Competition in India’s wearable market is heating up as new vendors, primarily China-based companies, are expected to set up shop with a focus on the sub-$50 segment.
According to IDC, basic wearables accounted for almost 90 per cent of total wearable shipments in Q1 2017, with the sub-$50 segment continuing to dominate the category (78.6 per cent of total shipments in Q1).
Total shipments of wearables reached 612,000 units in the opening quarter of the year, with IDC expecting double-digit growth in Q2.
The category includes smart wearables, which can run third-party apps, and basic wearables which cannot.
Celso Gomes, IDC market analyst, said new entrants like Titan, with aggressive marketing, entered the Indian wearable market in Q1, further increasing the competition in this highly cluttered segment.
The entry-level segment was led by GoQii (see chart below, click to enlarge), with a 20.8 per cent share, followed by Xiaomi (10.1 per cent) and Fitbit (5 per cent).
Offline shipments increased to 36.2 per cent in Q1, up from 24.3 per cent from the same period in 2016. New entrants like Fossil and Titan have entered the Indian wearable market primarily through retail stores. In addition, certain online vendors like Xiaomi and GoQii are also exploring offline channels to expand their customer base and enhance their presence.