India wearables market reports record growth in 3Q21

India s wearables market grew by 93.8% YoY in 3Q of 2021, shipping 23.8 million units, as per IDC. Despite the logistic challenges and increase in freight costs, vendors remained aggressive in their shipments and were able to manage the inventory for the upcoming month-long festival sales. Shipments in September surpassed 10 million, growing two-fold from the same month last year, resulting in a record quarter for wearable devices in India.

Watches continue to be the fastest-growing category with 4.3 million shipments in 3Q21, while wristbands saw a seventh consecutive quarter of annual decline. Overall wristwear (inclusive of watches and wristbands) crossed the 5 million shipments mark in a single quarter, further reinforcing the acceptance of watches in the country. Truly Wireless devices reached a 39.5% share of earwear in 3Q21, but the market remains dominated by over-the-ear and tethered devices.

India-based brands have captured over two-thirds of the watch market with their aggressive offerings and marketing spends on digital platforms. Noise maintained its lead for the sixth straight quarter with a 26% market share in 3Q21. Experts said, while seasonality made 3Q21 the biggest quarter for wearables, the influx of devices at the entry-level was the key growth factor. Throughout the quarter, Indian vendors were aggressive with their launches and channel expansion.

Aggressive intent to maintain their lead helped them to further reduce the average selling price of watches to $73, putting immense pressure on a struggling wrist band category. The report further states, so far, these new-age brands have been able to limit the incumbent smartphone brands’ ability to make any dent in their growth and continue to dominate the hearables and wristwear categories.

Secondly, Celebrity endorsements are a key tactic for brand recall. However, to maintain the growth momentum they must invest more in newer designs and aesthetics, as well as newer collaborations with existing franchises. This can help create unique product experiences that will not only help associate with new customers but can also open new avenues to sell these products.

Deepak Sahu, President & CEO, VARINDIA