Consumer wearables, which were once perhaps considered to be more of a fashion statement and a luxury range, from what it seems is now a more regular affair. Moreover, in an effort to further grow the business, companies like Crossbeats claim to be focussing on global expansion. “We plan to expand into global markets. So far we have been mostly focused on the Indian market. We have built a line of products in India which can be easily expanded. This product line can introduced in markets such as Europe, the US and Latin America,” Archit Agarwal, co-founder, Crossbeats, told BrandWagon Online.
2023 ended with the India wearable market achieving a 34% growth to reach the mark of 134.2 million units, according to International Data Corporation’s (IDC) India Monthly Wearable Device Tracker. The report further highlighted that the October-December 2023 period saw the sale of 28.4 million units, growing 12.7% year-over-year (YoY). However, the average selling price (ASP) of overall wearables declined by 15.4%, from $25 to $21.2 in Q4, of 2023.
Crossbeats’ net turnover increased 7.32% to Rs 44 crore in FY23 from Rs 41 crore in FY21, as per regulatory filing accessed by business intelligence platform, Tofler. The company’s net profit remained constant at Rs 2.3 crore in both years, FY22 and FY23, respectively. However, the company refrained from divulging advertising and marketing spending in the RoC filings. “We invest heavily in digital platforms such as Meta, Google and YouTube, apart from focusing on influencer marketing,” Agarwal explained.
The direct-to-consumer (D2C) company, which recently onboarded Indian cricketer Suryakumar Yadav, claimed that e-commerce websites such as Amazon, Flipkart, among others account for a majority of its revenue. “55-60% of our revenue comes from e-commerce platforms, while 20-25% of the revenue is generated from our D2C platform, and the rest 15% is derived from the retail market,” Agarwal pointed out. The company further claimed that Crossbeat Nexus, which is priced at Rs 4000, is their most sold product. “We get around 25,000-35,000 orders in a month for Crossbeat Nexus,” he added.
The company, which claims to have an average order value of Rs 3,500, revealed that around 80-82% of its consumers are males while the rest 18% are females. Additionally, the company’s target market lies between the age group of 24-35 years old. The company’s cost of customer acquisition remains between Rs 400-600. Furthermore, the company’s wearable category accounts for 60% of the sales, while the rest 40% of revenue is generated through sales of audio products such as headphones and earphones.
Furthermore, the company plans to foray into the car accessories market with the launch of products such as Roadeye Dashcam. “We started researching and then, in January, we launched our first dash cam.So, it is one segment that we’re focusing on. The other category where we are focussing on is home theatre accessories such as soundbars. We have seen a huge demand for people upgrading their home audio systems,” Agarwal explained.