boAt has established leading market positions in volume and value terms in India across multiple, high-growth consumer categories such as audio and smartwatch. It is a digital-first consumer products company and one of the largest Indian digital-first brands in terms of revenue from operations for the financial year 2021.
Initially, the brand began its journey with hearables products within the audio category. It now offers products across a variety of price points and customer segments across multiple product categories, which comprise audio (wired headphones and earphones, wireless headphones and earphones, true wireless stereo, Bluetooth speakers and home theatre systems and sound bars), wearables (smartwatches), gaming accessories (wired and wireless headsets, mouse and keyboards), personal care appliances (trimmers and grooming kits), and mobile accessories (chargers, cables, power banks, and other accessories).
“We seek to identify fast-growing, lifestyle-oriented product categories with high consumer engagement and large market opportunities and disrupt the incumbent industry landscape. We endeavor to achieve this by launching distinctive and aspirational products having a clear value proposition at accessible prices, specifically tailored for the Indian audience and marketed towards the rapidly emerging online audience of young, digitally-enabled and trend-conscious consumers in India,” Aman Gupta, Co-Founder and CMO, boAt Lifestyle said.
“Our product mix has evolved significantly over the past several years as we have successfully entered into new product categories and diversified our business. For the year ended March 31, 2019, 96.01 percent of our revenue from operations was derived from the audio category. For the six months period ended September 30, 2021, 83.13 percent of our revenue from operations was derived from the audio category, 14.05 percent from the wearables category, and 2.82 percent from the other category,” he further added.
As of September 30, 2021, for the second quarter of Financial Year 2022, the brand was ranked number 1 in India among the wireless hearables brands by value and volume, and number 2 among smartwatch brands in India in terms of volume (as per IDC). “Moreover, our market share in both wireless hearables and smartwatch segments has consistently increased over time, and for the quarter ended September 30, 2021, we had a market share of 48 percent and 23 percent in terms of volume, and 30 percent and 13 percent by value, in the branded wireless hearables and smartwatch markets, respectively,” Gupta asserted.
As per the RedSeer Report, digital-first brands are better positioned to track customer journeys and transactional behavior than offline-first legacy brands. “We believe that this allows us to better understand consumer behavior and derive sharp insights which help us better predict and understand shifts in preferences for our products,” he stated.
The brand’s digital-first approach provides it with near real-time consumer feedback through ratings and reviews, as well as the ability to track its customers’ purchase journey and engage with them on a continual basis. These elements of a digital-first approach help it gain insights into consumer behavior and understand and predict shifts in preferences for its products, in turn helping the brand in better demand forecasting and new product development.
boAt’s digital-first approach provides it with the ability to launch new products and SKUs at a lower cost and at greater speed as compared to traditional offline channels. As a result, this approach allows it to offer a wide assortment of products as well as build depth across several sub-categories, thereby addressing various nuanced consumer needs. “We launched 40, 70, 77, 45 new SKUs in the financial years ended March 2019, 2020, 2021 and six months period ended September 2021 respectively,” he explained.
As a digital-first consumer products company, a large portion of boAt’s sales is derived from the online channel, which includes online marketplaces such as Amazon and Flipkart, and its own website. For the financial years, 2019, 2020, and 2021 and the six months period ended September 30, 2021, sales from online channels constituted 85.11 percent, 86.47 percent, 87.67 percent, and 86.16 percent of its revenue from operations, respectively, with the remainder derived from offline channels.
“We continue to maintain strategic relationships with online marketplaces and regularly collaborate with them on marketing initiatives and understanding consumer preferences and purchasing behavior. Given the existing and rapidly developing e-commerce ecosystem in India and its enabling infrastructure, our products are currently available to consumers located in approximately 90 percent of pin codes across India,” he concluded.