Hindered by stagnant prices and excess inventory, the Indian wearable band market faced a 12% decline in the first half of 2024. Yet high-end smartwatches and quick e-commerce offer hope!
The Indian wearable band market experienced a sharp decline in 2024 after a strong performance in 2023, falling by 12% in 1H24. According to a Canalys report, the year’s second half is projected to see a single-digit decline following two consecutive downturns.
The report stated that the slowdown in the wearable band market can be attributed to stagnating average selling prices (ASPs) due to limited technological advancements, which has dampened consumer enthusiasm for upgrades. Despite these challenges, approximately 95% of devices are still manufactured in India.
In Q2 2024, shipments fell by 14.6%, totalling 9.1 million units, a notable shift for an industry that had been thriving with 87% annual growth in Q2 2023. This contraction was most pronounced in the basic watch category, which still holds a 98% market share, mainly due to local brands.
As vendors deal with excess inventory from overestimated demand during the previous festive season, the report predicted that a sales spike in H2 2024 seems unlikely. New product launches have also decreased sharply compared to 2023.
Among the market leaders, Noise remains dominant with a 26% share but suffered an almost 32% drop in 2Q24. Fire-Boltt holds a 25% share and has partially mitigated losses through strong offline sales and effective bundling strategies. However, it also experienced a decline, albeit less severe than Noise. BoAt’s market share fell to 12%, significantly impacted by its online focus amid current market challenges.
However, Titan emerged as a standout performer, achieving an 8% market share and growth during widespread decline. Its success is attributed to strong brand loyalty and a robust offline presence. Through its Fastrack line, Titan appeals to younger consumers and older customers with traditional designs.
However, smaller local brands like beatXP, Pebble, and Ambrane face significant hurdles in making progress this year. Local brands are partnering with payment operators like Mastercard and Google Pay to introduce models using this technology, which could attract consumers. Contactless payment features like Tap and Pay are emerging as potential growth drivers.
Nevertheless, expanding into Tier 2 and Tier 3 cities, where basic watches struggle to gain traction, remains challenging. Consumers in these regions prioritise battery life and practical use cases, often preferring devices that don’t require frequent charging.
However, shipments of high-end wristwatches (priced above ₹5,000/$60) are expected to increase 7% in 2024, driven by a shift toward premiumisation. This growth is anticipated in both the smartwatch and high-end basic watch segments, primarily led by global brands and Titan.
Quick e-commerce like Blinkit and Zepto entering the IT devices market may also assist in the market recovery. Canalys has predicted a strong demand for it this festive season.
