Let’s face it, wearables will never match the level of necessity that a smartphone offers to us, and that has become evident in the way people view wearables.
According to latest IDC findings, most Indians aren’t keen on spending anything more than Rs 4,000 for a wearable, which offers basic health-centric features, without compromising on the battery life.
Which is why, brands like Xiaomi and Goqi are flourishing in a space, since it isn’t considered hot enough for smartwatches. No wonder, Apple and Samsung have a tough time selling their niche watches to the Indian public.
The sentiments shared by IDC are well backed up with figures and data.
Basic smart wearables account for 86.4 percent of the total wearable market in India.
In terms of price, the sub-$50 segment continues to dominate the category accounting for 73 percent of total wearable shipments in CY Q4 2016.Karthik J , Senior Market Analyst, Client Devices, IDC India
So, why are most people going for the cheaper option? Is it just the price factor, or have the low-end wearables really become worth its value? To which, Karthik says:
Devices in this price segment have seen drastic evolution over the past year, from being basic activity trackers to one with display, basic phone notifications, and heart rate sensorsKarthik J, Senior Market Analyst, Client Devices, IDC India
After rolling out basic fitness bands, Xiaomi updated its Mi Band 2 with display unit, heart rate sensor, and still manage to offer a battery life of over 2 weeks.
Currently, the entry level segment is surprisingly dominated by an India-based fitness brand called Goqii (with 15.5 percent share), followed by Xiaomi (13.2 percent).
It’s not as if other local brands haven’t tried their luck with wearables. Micromax (with YU) and Intex did try its luck with wearables, but they’ve failed to light up the market and build any interest for the segment.
No Takers for Smartwatch?
What’s happening to the promise of Apple Watch, the novelty it carries, or the Samsung Gear watches? Not too many are keen on splurging smartphone-like price point on a wearable.
Android is another victim of failing to make the transition from mobile to wearables with Android Wear (now they’re onto version 2.0), which became clear when Motorola decided against making third generation Moto 360 smartwatch.
Smartwatch continues to be a niche offering as they struggle to be a mass market device due to premium pricing and limited and unclear value proposition to a broad base of potential users.Karthik J, Senior Market Analyst, Client Devices, IDC India
That’s probably a fair assessment of the segment, and when over 86 percent of the market is built around affordable devices, the features-for-price factor does make or break for wearable brands in the country.
Having said that, analysts believe that the diverse demographics of India offers everyone the encouragement to test the waters. After all, you don’t need an invitation to test waters in a market with over 1.2 billion people, out of which, most of them are untapped.
Now that brands have the data to understand the psyche of buyers in the wearable market, may be they can come out with products that’ll hit the ground running.
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