In recent years, Indian wearables and hearables brands have experienced a significant surge in sales, with growth rates surpassing three times in the last three fiscal years. This trend highlights the increasing dominance of domestic brands in these rapidly expanding market segments. According to the latest regulatory filings with the Registrar of Companies (RoC), brands such as Boat, Noise, pTron, Boult, and Mivi have witnessed remarkable sales growth. While the sales growth of these Indian brands has been impressive, profitability has not kept pace. Startups like Boat and pTron have reported a decline in profits during the same period, with some even experiencing losses. This can be attributed to the significant investments made in developing the smartwatch category and scaling up local manufacturing.
One of the key factors contributing to the success of Indian wearables and hearables brands is the scaling up of domestic manufacturing. These brands have significantly increased their reliance on local manufacturing for products such as smartwatches, neckbands, and earbuds. Counterpoint Research reveals that the share of domestic manufacturing in the smartwatch market reached 82% in the July-September period, up from just 4% a year earlier. Similarly, in the true wireless segment (TWS), the share of local manufacturing rose to 37% in the September quarter, up from 16% in the previous quarter.
Indian brands like Boat and Noise have gained significant market traction, leveraging the prevailing anti-Chinese sentiments. Boat leads the market in true wireless speakers and neckbands, while Fire-Boltt tops the smartwatch segment. Indian brands dominate the wearables and hearables market, holding a 65-70% share even when competing against global giants like Apple, Samsung, and OnePlus. However, their sustained growth hinges on competitive pricing. While they have enjoyed success thus far, the question remains whether they can ensure long-term sustainability or if Chinese competitors will eventually replicate the past scenario, as seen with Micromax in the mobile phone industry.
RTM Watch’s Take
The surge in sales of Indian wearables and hearables brands reflects the growing preference for domestic products in the market. The scaling up of local manufacturing has played a crucial role in this success, allowing brands to offer competitive pricing and gain market traction. However, profitability remains a challenge, and brands need to focus on balancing investments in R&D and innovation with sustainable business models. As the market evolves, it will be interesting to see how Indian brands continue to compete and maintain their dominance in the face of global competition.
