Wearables Shipments in India Jump 165% in September Quarter: Report

Due to increasing health awareness, remote work and learning requirements, rising demand for fitness watches and earwears led to record shipments of these wearables in India in the September quarter (Q3 CY20). According to International Data Corporation (IDC), a total of 11.8 million wearables were delivered in the third quarter, up by 165.1% on year on year basis.

The category of watches, which includes large-screen wearables, fitness trackers and smartwatches that can run third-party applications, increased 119.9% y-o-y to 778,000 units, the Indian market’s highest growth ever. The category was dominated by the Indian lifestyle technology company Noise, which has a 28.5% market share, followed by the mobile brand Realme, which has a 24.2% share.

After declining in the first half, wristband shipments increased 83% quarter-on-quarter (q-o-q).

On a y-o-y basis, as customers upgraded to watches with a larger screen and different features, shipments decreased 20.3%. Wristbands now reflect just 8.2% of India’s wearable market share, compared to 27% a year ago.

With the entry of more Chinese and Indian brands, watches have become much more affordable. In Q3 20, the average retail price of watches was US$ 111 (approximately Rs. 8,197) compared to US$ 175 (approximately Rs. 12,924) a year earlier.

Mr. Jaipal Singh, associate research manager, Client Devices, IDC India, “The pandemic has increased the relevance of health in our lives. The motivation to keep fit and lead a healthier lifestyle is now pushing consumers to move to more advanced fitness devices with higher demands for enhanced health monitoring.”

Singh reiterated that while some brands introduced watches and wristbands with covid-19 centre temperature and SpO2 trackers, they were still not the main drivers of increasing demand in the segment.

Shipment in the category of earwear, which includes earphones and TWS (truly wireless stereo) increased 260.5% YoY with BoAt accounting for 32.4% of it as a homegrown business. In the quarter, 15% of all earwear was shipped by Samsung and its various brands, including Infinity, Harman Kardon and JBL.

The total share of earwear in the entire market for wearables has risen from 62.7% in Q3 20 to 85.2%.

Ms. Anisha Dumbre, market analyst, Client Devices, IDC India, “A modern standard of studying and working from home has been developed by the pandemic. The increased demand for earwear devices has resulted in virtual meetings, online classes and increased time spent on entertainment.”

Source: IBEF