India’s smartwatch shipments more than tripled in the second quarter of 2021 compared to the same period last year, with 206% year-on-year (YoY) and 18% quarter-on-quarter (QoQ) growth during the quarter, according to the latest research from Counterpoint Technology Market Research’s IoT Service. The growth was mainly driven by affordable offerings, new entrants, changing customer preferences and demand recovery from the lockdown period.

Looking at the overall market, Senior Research Analyst Anshika Jain said, “India’s smartwatch market is in a boom phase as more and more people are trying out smartwatches because of the affordability factor. Smartwatches are now replacing traditional watches and complementing smartphone usage as well. Domestic brands are playing a pivotal role in making them accessible by introducing relevant functionality and fitness tracking functions at lower price points. The top three brands in the Indian smartwatch market are domestic and have over a three-fifths share of the total market. We are estimating double-digit growth for the country’s smartwatch market in the coming period as new vendors are coming with emphasis on the CMF factor (Colour, Material and Finish), thereby offering a wide variety of options to the consumers at different price points.” Around 10 brands have already entered this market since the beginning of 2021.

On domestic production, Jain said, “We are also seeing domestic production picking up. Samsung is already producing smartwatches in India since June 2020. Other players like realme, Molife and Timex are also opting for domestic production as it would help reduce the prices as well as dependence on the external market.”

On the price trends and features, Research Associate Harshit Rastogi said, “We are witnessing many new launches in the sub-INR 5,000 segment, which saw its contribution rising to 83% in the overall market in Q2 2021, compared to 67% in Q2 2020. Due to this, the ASP (average selling price) of smartwatches decreased by 36% in Q2 2021 compared to the same period last year. We are also seeing features like Voice Assistant, Bluetooth Calling, SpO2 and Blood Pressure Monitor trickling down from high-end models to the low-end ones.”

Market Summary:

* Noise grew 229% YoY to remain at the top with a 27.3% market share. The Colorfit Pro 2, launched in 2019, was its highest-selling model. New launches like the Colorfit Pro 3 and Noisefit Active helped the brand maintain its lead. Noise also roped in cricketer Rishabh Pant as its brand ambassador.

* boAt grew 34% QoQ in Q2 2021. Its Boat Storm was the best-selling smartwatch model in the market in Q2 2021, capturing over one-fifth of the market. Since its entry in Q4 2020, the brand has quickly grabbed the second spot in the Indian smartwatch market. It is also rapidly closing the gap with Noise with new models like the Xtend and Xplorer, which have more features.

* Fire Boltt quickly emerged as the third-largest player with 243% QoQ growth. Multiple affordable-segment launches, feature-packed products, rewards program and exclusive tie-ups with online retailers made this growth possible. The company has signed actor Vicky Kaushal as its brand ambassador.

* Amazfit grew 58% YoY in Q2 2021 due to its diverse offerings. It stood at number one in the INR 5,000 and above segment.

* realme declined 49% YoY as it is facing tough competition from domestic brands. realme had its third-anniversary sale in June 2021 and also introduced bank offers to push its inventory. The brand is looking to upgrade its smartwatch series in Q3 2021 with two new models.

* Samsung grew 118% YoY aided by the sales of its Galaxy Watch Active 2 The watch was also bundled along with its Galaxy S21 smartphone series during April at just INR 990.

* Xiaomi made an entry into the sub-INR 5,000 price segment with its Redmi Watch. Xiaomi also slashed the price of its Mi Watch Revolve before launching the Mi Watch Revolve Active on June 22.

* Apple grew 34% YoY mainly due to high sales of the Series 6 and SE. The sales of its other models have fallen rapidly since the introduction of newer models.

* OnePlus also entered the smartwatch market in Q2 2021 with its OnePlus Watch. It has already taken the top spot in the INR 10,000-INR 15,000 price band.

By: DocMemory
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