The total market for wearables, including earrings and bracelets, was 23.8 million units in the third quarter
Driven by a pandemic-induced shift in consumer awareness of health and fitness, smartwatches in India are experiencing tremendous growth. Deliveries quadrupled to a record level in the July-September quarter.
“The third quarter of 2021 was the biggest quarter for smartwatches,” said Anshika Jain, senior research analyst at Counterpoint. “We have seen that customer preferences have changed due to COVID-19. People are switching from traditional watches to smartwatches. They’re constantly looking for health-related traits like tracking steps, SPO2, heart rate or their sleep pattern … this is a triggering factor, ”she added.
While the total wearables market in India, which includes earwear, watches and bracelets, reached 23.8 million units in the third quarter, watches remained the fastest growing category with 4.3 million shipments during the reporting period. Bracelets that offer less functionality saw a seventh straight quarter of a year-on-year decline, according to IDC. The demand for smartwatches extends beyond the youth as many health characteristics also appeal to the older generation, observed Ms. Jain.
Madhav Sheth, CEO of realme India and President of the realme International Business Group, pointed out that fitness trackers and smartwatches were previously only popular with fitness or tech enthusiasts, but that these products have become a “necessity” during the COVID-19 pandemic have become.
Noise co-founder Amit Khatri said while the pandemic helped accelerate momentum and consumer adoption, wrist wearables have become a lifestyle product.
“Another big factor driving demand for smartwatches is productivity gains,” said Khatri. “Users have access to many apps on the watch itself, they can read messages on them, they don’t have to take the phone out to answer a call … when they drive they can see who is calling.”
Indian brands dominate
The smartwatch segment is currently dominated by Indian brands, which captured nearly 75% of the Indian smartwatch market in the last quarter, compared to 38% in the same period last year.
Ms. Jain said the starting price has dropped significantly from around 8,400 yen last year to around 5,400 yen now, which has helped first-time buyers.
She added that currently, brands are more differentiated by the look and feel of the product than the specifications. In the future, however, a distinction would have to be made between the accuracy of functions such as blood pressure measurement, SPO2, thermal sensors, etc., as well as a smooth user interface.
Mr. Khatri added that the growth of this segment is “very sustainable”. “We are currently at 4-5% penetration from cell phones. I think that capturing 15-20% of the smartphone market is a decent number to aim for so that brands have enough leeway to grow. “
Similarly, Sheth said, “We believe that demand will continue to grow in the years to come as smartwatches can connect to smartphones / laptops / earbuds, etc. for a connected and comfortable lifestyle.”
