Innovation, premiumisation, marketing push powering wearable tech market in India

According to an SNS Insider report, the global Wearable Technology Market was valued at $62.54 billion in 2023 and is expected to grow to $198.83 billion by 2032, with a CAGR of 13.70% over the forecast period of 2024-2032.

The wearable tech and devices market in India has been growing in approximately double digits since 2017. In the first quarter of 2024, this market has registered a growth of nearly 2.1% as per industry sources. However in Q2 2024, the wearable tech market has recorded a decline in growth, with the overall shipments reaching 29.5 million units as per a report by International Data Corporation. The wearable devices’ average selling price stood at $18.8, witnessing a decrease of 10.3% in comparison to the past year. One factor contributing to the decrease in the growth rate in the wearable device market in Q2 this year is the large inventory size that persisted from H2 2023 in the festive season. The growth in the smartwatch category also decreased according to sources.

In India, a growing adoption of wearable devices is seen in the recent years, especially by the younger generation. As per a survey done by Rakuten Insight in September 2022, nearly 45% of the Indian respondents aged between 25 and 34 years own a smartwatch.

While it is a known fact that the younger population who are digital and tech-savvy has increasingly adopted wearable technology, it is also witnessing increasing usage rates among the older population who are benefitting greatly from it by way of monitoring blood pressure, sleeping patterns, heart rate, setting progress tracker of daily exercise routines, leveraging fitness tracker and more. Thus, wearable technology or wearable devices are beneficial for the elderly, helping them to track and monitor their overall health.

This festive season saw wearable tech brands come up with unique offers and initiatives to accelerate the growth process. Adgully spoke to a cross-section of industry experts who shared some valuable insights on their festive season plans, marketing strategy, spends and trends in the wearable tech and consumer electronics industry, and much more.

Leveraging the festive season

Ravi Agarwal, MD and Founder, Cellecor Gadgets, shared, “Cellecor Gadgets Limited came up with exciting offers and a line-up of new products designed to delight customers for the festive season. The brand’s marketing strategy emphasizes on an engaging and personalized shopping experience across both online and offline platforms. The festive marketing campaign featured collaborations with influencers, boosting the brand’s visibility and fostering a stronger connection with the audience. Consumers looked forward to new product launches and exclusive festive deals, all crafted to enhance the joy of their celebrations.”

Archit Agarwal, Co-Founder, Crossbeats, added here, “Crossbeats has unveiled multiple initiatives undertaken to make the festive season even more special for our customers. We have recently launched new products B900 and B30 soundbars with advanced technology, stylish designs, and enhanced features, ensuring that our customers have access to the latest innovations in wearable audio technology. Our soundbars provide unparalleled music quality and would be ideal for parties and gatherings. Additionally, we came up with a variety of attractive discounts and bundle offers to provide exceptional value and make our premium products more accessible. These special festive bundles include our top-selling products, perfect for gifting or treating oneself. Our aim is also to connect with our customers through engaging social media campaigns, festive contests, and collaborative partnerships with influencers to create an interactive experience that resonates with the festive mood and brings our community closer together. We as an Indian brand are committed to making this season memorable and joyous for everyone who chooses to celebrate with us.”

Siya Wadhawan, Head - Product Marketing, boAt, said, “This festive season, boAt had a sharp focus on its premium range, particularly the Nirvana Series, which offers a premium audio experience through a perfect fusion of superior sound quality, sleek design, and cutting-edge technology. The Nirvana Series is backed by strong collaborations with our tech partners, including Hi-res LDAC, Knowles, Hi-Fi, mimi, and Ceva ensuring consumers enjoy world-class sound engineering and personalized audio experiences. These partnerships enhance the overall premium experience, making the Nirvana Series a standout choice for audio enthusiasts. Our marketing approach this year is laser-focused, with product marketing taking center stage over brand marketing. We are leveraging digital platforms, influencer collaborations, and community-driven campaigns to position the Nirvana Series as the top choice for those seeking an elevated audio experience during the festive season. Consumers can expect a range of exciting offers, including exclusive festive deals, curated bundles, and limited-edition products from our premium collection. These offerings will appeal to those seeking high-quality, lifestyle-enhancing tech companions. With our emphasis on delivering superior sound and premium aesthetics, alongside our tech partnerships, the Nirvana Series is the ultimate choice for amplifying festive celebrations. BoAt’s strategy is all about driving awareness and creating deeper consideration for our premium products, ensuring consumers can indulge in an elevated and immersive audio experience this season.”

Piyush Jalan, Co-founder and COO, G0VO, spoke about devising strategies to make the latest advancements in home entertainment technology accessible and affordable. He said, “This festive season, consumers got introduced to a wide range of high-configuration products featuring best-in-class technology like Dolby Atmos, all offered at compelling price points. Our marketing strategy focuses on reaching our target audience through highly targeted digital campaigns, engaging social media content, and attractive promotional offers. By highlighting the advanced features and affordability of our products, we aim to make advanced home entertainment technology a staple in every modern household.”

Performance of Wearable Tech Brands in H1 2024 and expectations for H2 2024

Commenting on the performance of Cellecor Gadgets in H1 of 2024 and plans for H2 2024, Ravi Agarwal shared, “Cellecor achieved Rs 550 crore in revenue in the last fiscal year (FY23) and the company has continued its impressive growth trajectory in the first half of FY24, showcasing strong financial performance, reported a total revenue of Rs 425.71 crore, marking a 103.05% increase compared to H1 FY24. EBITDA surged by 98.67%, reaching Rs 25.31 crore, while PAT grew by 108.26%, totaling Rs 14.62 crore. When compared to H2 FY23, the company also experienced significant growth, with revenue up by 46.39%, EBITDA increasing by 49.67%, and PAT rising by 61.19%, demonstrating its sustained expansion and profitability trajectory.”

He further added, “Cellecor has achieved remarkable financial growth. For H1 FY25, compared to the H1 FY24, the company reported:

• Total Revenue at Rs 425.71 crore v/s Rs 209.66 crore (+ 103.05%)
• EBITDA at Rs 25.31 crore v/s Rs 12.74 crore (+ 98.67%)
• PAT at Rs 14.62 crore v/s Rs 7.02 crore (+ 108.26%)

HoH Comparison

For H2 FY25, compared to the corresponding H2 FY24, the company reported:

• Total Revenue at Rs 425.71 crore v/s Rs 290.80 crore (+ 46.39%)
• EBITDA at Rs 25.31 crore v/s Rs 16.91 crore (+ 49.67%)
• PAT at Rs 14.62 crore v/s Rs 9.07 crore (+ 61.19%)

For the latter half of the year, Cellecor’s growth strategy will focus on several key areas, including product category expansion, geographic diversification, and enhancing its retail presence across both online and offline channels. The brand is poised to introduce innovative products in categories to cater to evolving consumer preferences.”

In addition to expanding its product range, Agarwal informed that Cellecor aimed to strengthen its corporate sales initiatives, forging strategic partnerships with leading retail chains and e-commerce platforms to increase distribution reach. The company is also prioritizing customer engagement through targeted marketing campaigns and influencer collaborations that resonate with diverse demographics. The brand’s commitment to quality and customer satisfaction will further enhance its market position as it aims to become a household name in consumer electronics.

Noting the performance of Crossbeats in H1 2024 and expectations for H2 2024, Archit Agarwal said, “In the first half of 2024, Crossbeats has experienced growth and success. The average monthly unit sales have increased from approximately 20,000 units to 25,000 units, representing a 20% growth. Revenue has also experienced a 15% increase compared to the previous year.”

He further said, “Our product innovations and strategic marketing initiatives have resonated well with targeted consumers. It has also led to a substantial increase in market share and brand visibility. Our commitment to delivering high-quality, technologically advanced wearables – be it our arc buds or clip lapel mic – has strengthened our position in the competitive landscape. We have seen a strong uptick in sales across our core product lines, driven by both repeat customers and new acquisitions.”

Looking ahead to the second half of 2024, Crossbeats is optimistic about continuing our growth trajectory with an increase in sales and market presence. The company is planning to broaden its product portfolio by exploring advanced technologies to meet ever-evolving consumer preferences for Home Appliances, Car Safety Accessories, Home Theatre Systems/ Soundbars, and Internet of Things (IoT) Products. The expansion efforts will focus on strengthening the company’s presence in newer markets, especially in Tier 1 and Tier 2 cities, where there is a growing demand for wearable technology.

Innovations in battery life, connectivity, and user experience are on the agenda. “We are also planning to invest in improving our engagement platforms and feedback loops to offer personalized experiences as those are the keys to driving customer satisfaction and loyalty. We are prioritizing R&D to ensure our audio-visual products remain at the forefront of the industry with cutting-edge technology,” Archit Agarwal informed.

Speaking about G0VO’s growth, Piyush Jalan said that the company experienced remarkable growth in the first half of 2024, achieving an impressive 100% increase in performance compared to the previous year. “This significant achievement underscores our commitment to innovation and customer satisfaction. We are expecting even greater success during the festive season. Our goal is to close the year with nearly double the growth, driven by our strategic initiatives and product offerings. In the second half of the year, our key focus areas include expanding our product line-up to more high-configuration devices with innovative technology like Dolby Atmos. We also plan to enhance our market presence through strategic partnerships and increased visibility in both online and offline channels. Additionally, we are investing in customer engagement and support to ensure a seamless and satisfying experience for all our users.”

Trends in the wearable tech industry

Sharing his observations on the trends in wearable tech and consumer electronics, Ravi Agarwal said, “The festive season has witnessed significant growth in the wearable tech and consumer electronics segment. Trends such as smartwatches with health-tracking capabilities, earbuds with noise-cancellation features, and connected home appliances have gained popularity. Consumers are increasingly seeking gadgets that offer convenience, style, and cutting-edge features, reflecting a shift towards more sophisticated and tech-driven lifestyles. There has also been a notable increase in demand for eco-friendly and sustainable electronics, with customers prioritizing energy efficiency and long-term value over one-time purchases. This evolution in consumer behavior has driven brands like Cellecor to innovate and cater to changing expectations.”

Siya Wadhawan added here, “The demand for multi-functional, connected devices has surged, with consumers seeking wearables that enhance their daily lives through health monitoring, fitness tracking, or smart device integration. There’s also a growing preference for premium products that offer superior sound, advanced features, and personalization options. Sustainability is increasingly important, with consumers favoring durable, eco-friendly products. During festive season, there’s a noticeable willingness to invest in premium offerings like boAt’s Nirvana Series, which perfectly blends aesthetics and cutting-edge technology to meet these evolving needs.”

Archit Agarwal noted that consumers have become health-conscious and are seeking smartwatches with advanced features or AI-powered assistance that provide detailed health insights such as ECG, blood oxygen monitoring, and sleep tracking are becoming increasingly popular. Due to growing demand wearables nowadays offer personalized health recommendations with fitness apps and services. Consumers are keen on the latest advancements and are willing to invest in new technology that offers significant improvements over previous models. Wearables with advanced Bluetooth and Wi-Fi capabilities for better connectivity and integration with other smart devices are gaining traction.

There is a growing emphasis on combining functionality with style as wearables that look fashionable and can be worn as everyday accessories with premium materials and advanced technology are becoming popular amongst Millennials and GenZ, especially. Further consumers are increasingly considering user reviews and testimonials shared by social media influencers and tech reviewers; before purchasing as they value real-life experiences and feedback and are more focused on getting value for their money. Further, during festive seasons, there is a rise in the purchase of high-tech products as gifts as consumers look for unique, high-quality items that stand out as thoughtful and valuable presents.

Online Vs Brick-and-Mortar Store Dynamics

Ravi Agarwal pointed out, “During festive periods, both online and offline sales channels play a crucial role. Online platforms have seen a rise in popularity, offering convenience, wider selections, and attractive discounts. However, brick-and-mortar stores continue to hold significance, particularly for consumers who value the in-store experience of handling and testing products before making a purchase. Cellecor’s strategy integrates both channels, ensuring a seamless omnichannel experience for customers. The brand’s partnerships with major retail chains enable it to reach consumers across different touchpoints, providing flexibility in how they shop while maximizing festive sales opportunities.”

Archit Agarwal explained, “Consumers expect a seamless experience across online and offline channels. Brands that have an omnichannel presence and offer a smooth transition between digital and physical stores are usually preferred. However, both online and offline retail stores offer considerable discounts on consumer technology products during the festive season. As a result, there is an uptick in demand. For remote areas with poor internet connectivity, offline retailers become the prime source of consumer electronics. Also, people belonging to the older generation prefer to have hands-on experience, trying products before purchasing them. They also prefer personalized assistance from individual storekeepers.”

Siya Wadhawan observed, “Online platforms dominate during festive seasons due to the convenience of wide product selections, exclusive deals, and real-time price comparisons. boAt’s strong e-commerce presence drives significant sales in this space. However, brick-and-mortar stores remain crucial, especially for premium products like the Nirvana Series, where customers value the hands-on experience. Our strategy ensures a seamless blend of both channels, offering convenience and trust across online and offline touchpoints.”

Impact of Demographics

Reflecting on the demographic factors influencing sales trends in wearable tech and consumer electronics, Ravi Agarwal said, “Demographic factors such as age and income levels significantly influence sales trends in wearable tech and consumer electronics. Younger consumers, particularly in the 18-35 age group, are more inclined towards wearable tech and smart gadgets, driven by a desire for connectivity and innovation. On the other hand, older consumers may prioritize home appliances and traditional electronics, reflecting a broader approach to upgrading their lifestyles during festive times. Income levels also play a role, with premium products and high-tech gadgets appealing to affluent customers, while entry-level and mid-range options attract value-conscious buyers. Cellecor’s diverse product lineup caters to these varied demographic needs, ensuring that all customer segments find something to enhance their festive celebrations. In summary, Cellecor Gadgets Limited is poised for a vibrant festive season, with a strategic focus on customer experience, product innovation, and robust omnichannel presence. The brand’s readiness for FYH1 2025 aligns with evolving consumer behaviors, market trends, and the ongoing digital transformation in the consumer electronics space.”

Archit Agarwal commented, “Millennials and GenZ are highly engaged with the latest technology trends as they seek the newest and innovative products, such as smartwatches, high-quality headphones, earbuds, and speakers and they also rely on peer recommendations and influencer endorsements for their purchase decisions. On the contrary, Gen X and Boomers tend to be more focused on the practical aspects and value for money. Festive marketing strategies that highlight discounts, bundles, and promotions or offer limited-edition items can appeal to all age groups. However, Gen X generally tends to purchase tech products for family use or as gifts, therefore, strategies that emphasize the benefits of wearables for family health, practicality, easy-to-use interfaces, and connectivity along with durability, customer service and brand history can resonate with them. High-income consumers are more likely to invest in high-end wearable tech, gadgets, and electronics. They are likely to purchase high-value items as gifts, making festive promotions that offer luxury, advanced features, or exclusive products particularly attractive. Middle-income consumers are focused on finding products that offer a good balance between quality and price and are attracted to promotions, discounts, and value-for-money bundles during festive seasons. For low-income consumers, price plays a significant role, especially during festive periods, they are attracted to significant discounts, affordable options and budget-friendly models including entry-level products can drive sales within this demographic.”

Siya Wadhawan elaborated, “Younger consumers, particularly GenZ and millennials, favour tech-driven, stylish wearables like our wireless earbuds and smartwatches, seeking features like noise cancellation and voice assistance. Older demographics prioritize reliability and wellness tracking, making our health-focused wearables popular among them. Higher-income groups tend to invest in premium products as gifts or upgrades, while middle-income consumers focus on value-driven offerings, making festive promotions a key factor in their purchasing decisions.”

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