1. Wearable market grew 41.9% in Q2 2016: IDC

Wearable market grew 41.9% in Q2 2016: IDC

The wearable devices market in India grew 41.9 per cent in the second quarter over the first quarter of this year.

By: | New Delhi | Updated: September 6, 2016 7:54 PM
The wearable devices market in India grew 41.9 per cent in the second quarter. (Reuters) The wearable devices market in India grew 41.9 per cent in the second quarter. (Reuters)

Wearable devices shipment in India clocked over 5.67 lakh units in the second quarter, up about 42 per cent from the January-March quarter 2016, research firm IDC today said.

Total shipment in the second quarter clocked over 5.67 lakh units of which the basic wearables — defined as wearables that can’t run third party applications –contributed nearly 94 per cent, IDC said.

“The wearable market has advanced to a stage where awareness is no more a roadblock. New vendors are continuously entering the market and existing vendors are offering better product features,” IDC India Senior Market Analyst (Client Devices) Raj Nimesh said.

Though basic devices marked a sharp growth, the average price of over USD 190 has had a negative impact on smart wearables as it is still perceived as a premium device which not many consumers can afford, he added.

The market was highly dominated by sub-USD 50 category with over 83 per cent share.

GOQii grabbed number one position in the quarter with 16.1 per cent market share, followed by Xiaomi (10.3 per cent), Fitbit (6.7 per cent), Garmin (1.4 per cent) and Huawei (1 per cent).

“Most of the low-end devices suffice the basic requirement that consumers look for at this stage, largely for first experience and gifting purpose. As the market evolves and consumers demand advanced features, a shift to higher price bands is expected,” Nimesh said.

eCommerce remained the most preferred route for consumers with the channel contributing 79.2 per cent of the total shipment.

The offline channel is generally preferred for premium products where the consumer wants have real time experience before buying the product, IDC said.

“With festive season round the corner, most of the ecommerce companies are betting big on wearable devices. Considering the wide range of price points, wearable devices are expected to be first choice for gifting purpose. Bundling with mobile phones during festive season might give further push to the demand,” IDC India Senior Research Manager Pranav Tripathi said.

With the expected launch of smartwatches at lower price point towards the end of year, the smart segment of devices could observe a shift to growth path, IDC said.

The market in India is still at a nascent stage and is expected to evolve in all form factors, it added.

 

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