According to the new report by research firm International Data Corporation’s (IDC) quarterly wearable tracker for Q1 2017, GOQii maintains its leadership in the Indian wearable market with 20.8 percent share.
It said that “GOQii shipments increased 21.0 percent sequentially in CY Q1 2017 driven by fresh demand for its newly launched GoQii HR and promotional upgrade offer. It is gradually migrating from online only to a hybrid channel to increase its offline presence.”
While, wearable devices are finally gaining momentum in India. The category is expected to grow in double digits in Q2 2017 and Chinese vendors are likely to be the key drivers behind the growth.
The report claims that 612,000 wearable devices were shipped in India in the first quarter of 2017 and smartbands accounted for almost 90 percent of these shipments.
Celso Gomes , Associate Market Analyst, Client Devices, IDC India says “In addition to the low entry price of basic wearables, consumers are now getting better value from these devices as the category now offers advanced features. Features such as heart rate, sleep monitor and among others are soon becoming the must-have features in basic wearables, even in entry level ($50) segments.”
Less than $50 segment continues to dominate the category accounting for 78.6 percent of total wearable shipments in CY Q1 2017. This entry level segment is led by GoQii followed by Xiaomi. “New entrants like Titan, with aggressive marketing, have entered Indian wearable market in March further increasing the competition in this highly cluttered entry-level segment,” adds Gomes.
The report further added that Xiaomi slipped to the second position with 10.1 percent vendor share as shipments declined 30.6 percent in Q1 2017 over the previous quarter. Increasing competition and limited supply of Mi Band 2 in Q1 2017 led to the decline of Xiaomi’s share in Indian wearables market.
Fitbit maintained its third place in CY Q1 2017 even though shipments declined 42.7 percent sequentially. Newly launched Alta HR helped offsetting volume of earlier Alta shipments. New lineup of product launches in the coming quarter to prepare for the festive season are expected to revive the vendor’s shipments.
“Currently, primary use-case of wearables are focused on the specific niche market like fitness and health. Hence, to sustain volume and existence in long run, wearables should evolve to appeal to a wider consumer segment resulting in either to be a mainstream device or an essential product of a broader ecosystem.” says Navkendar Singh, Senior Research Manager, IDC India.
Singh further adds “Like IoT vendors, the wearables market should differentiate themselves either in terms of service offered with the product or its product features to enhance the scope of the market”