India's wearable market grew 93.8 percent year-on-year (YoY) in the July-September 2021 quarter, shipping 23.8 million units.
Shipments in September surpassed 10 million, growing two-fold from the same month last year, resulting in a record quarter for wearable devices in India, according to a recent (International Data Corporation) IDC report. This happened despite the logistic challenges and increases in freight costs facing the sector, as vendors remained aggressive in their shipments and were able to manage the inventory during the festival sales.
Specifically, watches continued to be the fastest-growing category with 4.3 million shipments in the third quarter, while wristbands saw a seventh consecutive quarter of annual decline to 738,000 units. In fact, India-based brands have captured over two-thirds of the watch market with their aggressive offerings and marketing spends on digital platforms, as per the report.
"While seasonality made Q321 the biggest quarter for wearables, the influx of devices at the entry-level was the key growth factor. Throughout the quarter, Indian vendors were aggressive with their launches and channel expansion," said Anisha Dumbre, IDC India Market Analyst (Client Devices).
Further, Fire-Boltt replaced Huami for the third position as its share jumped to 15.3 percent, while Realme took the fourth position (7.3 percent) and Amazfit settled at the fifth position (4.8 percent). These new-age brands have been able to limit the incumbent smartphone brands' ability to make any dent in their growth and continue to dominate the wearables and wristwear categories, experts believe.
The proliferation of new entrants in the mass market segment has increased competition, putting a lot of pressure on brands to differentiate in a market that is getting inundated with lookalike products,” said Jaipal Singh, IDC India Research Manager (Client Devices).
Again we see celebrity endorsements are used as a key tactic for brand recall. However, to maintain the growth momentum they must invest more in newer designs and aesthetics, as well as newer collaborations with existing franchises, experts believe.