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The trendy smartwatch has caught the fancy of young and old alike in India, especially because of the plethora of features that the wearable offers. These devices, when connected to your phone can help you answer calls, listen to music, keep a tab on your health with the health suites consisting of SpO2 monitors, heart rate trackers, calorie counters, pedometers, female menstrual health trackers and also something as simple yet important as drink water reminders. No doubt, such a multi-tasking device would become everybody’s favourite within no time. But, apart from the utility factors, there are many reasons why India has become the biggest smartwatch market globally in recent times.
According to Counterpoint, a firm that conducts research and collects data, in July-September 2022 India’s global share in the smartwatch market grew by 30 per cent. North America had a share of 25 per cent while China had just 16 per cent. In the previous year, in the same quarter, India ranked third while North America was the category leader then. It is surprising that India’s smartwatch industry grew by 171 per cent.
As we try to understand the cause of this boom in the smartwatch segment in India, the price point is definitely the biggest driver. India has witnessed about a 30 to 40 per cent price drop across different specs in the smartwatch industry. This can be compared to the early days of smartphones, where initially they were expensive, but as they got cheaper they reached the masses, leading to a phenomenal sale. The lower prices have helped the penetration of the category and a major shift of consumers has been seen from analogue to smartwatches that can do a lot more than just show the date and time. Moreover, the trendy and stylish outlook of smartwatches adds to their value not just as a utility product but as a mainstream fashion accessory as well which has further led to its multi-fold growth.
Secondly, many Indian brands have risen in this short span of time. They have been able to create a great value proposition and provide the best deals for first-time buyers, especially in the budget-friendly category of smartwatches within the price range of INR 5000. Feature wise these wearables can compete with the best of the best and offer everything that the consumers of India might feel the need for. The festive period with great discounts has become the time frame with the highest sales. People have bought one for themselves as well as for their family and friends, with the thought that they are gifting good health to their loved ones.
All this has been further boosted by an emphasis on local manufacturing, and the government to pushing for ‘Make in India,’ and offering the manufacturers much-needed support. Companies have been able to manufacture products customised according to the needs of Indians, and this has led to the rise of indigenous brands.
In 2023, there may be a further 10 to 20 per cent price drop across the segment. This will lead to customers upgrading their wearables across the board. Non-calling watch buyers will move to BT-calling watches. Another big factor will be the AMOLED display, which gives the best visual output on a smartwatch screen and is likely to become an integral part of the devices by the end of the year. From where I see things, I feel our Indian brands will be venturing into the global markets this year, as they provide great value for money. Value-seeking markets such as the Middle East and North Africa (MENA), South East Asian (SEA) countries and maybe even parts of Africa are great markets to explore after the wearable brands have consolidated their position in India.
Written by Komal Agarwal, Co-Founder, Pebble
