There was a time when the whole electronic market of India was dominated by China. Low input costs due to the abundant availability of rare earth metals provided Chinese companies with a support system to monopolize the initial electronic revolution. With the exploitation of its workforce and dubious economic policies, China completely dominated the manufacturing of the world.
Even multinational electronic device making companies like Samsung and Apple established their manufacturing bases in China. They dumped highly subsidized Made in China products in the Indian market leaving little or no room for Indian products. But, now the situation has completely changed. Indian players are now not only ruling the Indian market but giving a head-on fight to companies like Apple and Garmin.
Indian Startups Beating Giants Like Apple
According to a report published by Counterpoint Research, India has surpassed China to become the second largest smartwatch market in the world. The report suggests that in the second quarter of 2022, the shipments of smartwatches in India grew by 347% year-on-year, while the global market struggled with a mere 13%. With 26% of shipments, North America is the largest market. While China with a fall of 10% reached 21% and India with 22% accord second place in the world.
| Regions/Countries | Quarter Two 2021 | Quarter Two 2022 |
| India | 6% | 22% |
| China | 26% | 21% |
| North America | 31% | 26% |
| Rest of the World | 38% | 31% |
The report is interesting as the rise of India’s share is dominated by domestic startups like Fire-Boltt and Noise. With 298% YoY growth, Noise reached the second position, and Fire-Boltt recorded remarkable growth taking the top position in India’s smartwatch market.
In quarter one of 2022 (January-March) Noise was leading the market but the situation has now turned and Fire-Boltt has not taken the first position. With an 18% market share boAt was dominating in the third position.
| Smart Watch Brands | Shares in Indian Market (Q1 2022) |
| Noise | 23% |
| Fire-Boltt | 21% |
| boAt | 18% |
Indian startups like Noise, Fire-Boltt, and boAt are dominating about 60% of the Indian smartwatch market. Where established companies like Apple, Garmin, Samsung, Huawei, Xiaomi, and Amazefit are struggling with 40% shares.
Also Read: Startups are changing the landscape of employment generation in India
World’s Most Competitive Market
It is important to understand that the Indian market is one of the most competitive in the world. The large population, open market, and presence of almost all the World’s brands make it very competitive. Indian consumers not only look for an economical price but also for the quality of products. In this scenario, companies like Apple, Garmin, and Samsung have little base to penetrate as most of their products come in the premium range. The surprise comes from Chinese companies like Huawei, Xiaomi, and Amazfit, who have traditionally dominated the Indian electronic market.
The Counterpoint’ Associate Director Sujeong Lim speaking about the dominant position of Indian startups said, “During the quarter, 30% of models shipped in the Indian market sold for less than $50, and major local brands launched cost-effective models, lowering the entry barriers for consumers”.
Indian startups like Noise, Fire-Boltt, and boAt provided their product at a highly competitive price in the range of ₹ 1500 to 3000. With the value-for-money products, they also provided quality products with special features. Using various government incentives, they lowered the input cost and made it available to Indian customers.
If we remove the North American Bloc, India is already the largest smartwatch market. Geopolitical tensions and internal problems in China have already downgraded its growth prospects. They are still struggling to revive their manufacturing base. Meanwhile, Indian industry and manufacturing are at peak level and export is pacing at exponential rate. It is time for Indian companies to rule the electronic world.
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