In the third quarter of 2018, the total wearables market in India recorded a growth of 17 per cent year-on-year as vendors shipped 897,000 units
The shipments of smart wearables in India reached 102,000 units in the third quarter of this year, recording a double-digit growth consecutively for two quarters. This is the first quarter when smart wearables shipment crossed the 100,000 units mark, according to the latest data by the market intelligence and advisory firm International Data Corporation (IDC).
In the third quarter of 2018, the total wearables market in India recorded a growth of 17 per cent year-on-year as vendors shipped 897,000 units in the country. However, the overall shipments dropped by 11 per cent in third quarter as compared to the previous quarter, majorly due to double-digit drop in the basic wearables.
The companies had sourced a high inventory of basic wearables, mainly the wristbands, in the second quarter of 2018, which they sold in the initial months of the third quarter, according to the report.
In terms of new shipments, the months of July and August remain flat, while September saw a recovery as vendors started preparing the channel for online sales festivals in the country. This has helped in limiting the decline of overall category, it added.
Commenting on the findings, Jaipal Singh, Associate Research Manager, Client Devices, IDC India said, “It is too early to say that the India wearables market has started moving towards the smart wearables. However, vendors have started analysing the big pricing gaps between the basic and smart wearables.”
“While vendors need to identify a new pricing sweet spot for smartwatches, the next challenge is to address the positioning of watches which is still seen as a vanity product in India. Also, many vendors haven’t explored the kid segment which can be a volume driver for this category as they are more comfortable with technology and new products,” he added.
Navkendar Singh, Associate Research Director, Client Devices & IPDS, IDC India, said, “The overall wearable market is expected to continue its double-digit growth in 2019. While the growth of basic wearables will slow down as users look at upgrading to smarter wearable products. However, it will remain the dominant category in India for the next few years. We will see a few more smartwatches with cellular connectivity and also vendors will be looking to explore some of the new categories to provide the solutions around healthcare and lifestyle management.”
As per the report, Xiaomi tops the list in wearables shipments in India, with 41 per cent market share, followed by GOQii, Titan, Samsung and Fossil.