Why Indian Wearables are Winning Over the World: Indian Tech Brands Prove Affordability

Some years ago (in 2016, before the epidemic), a tireless pursuit of cord-cutting, in the shape of wireless keyboards and chargers, arrived at the doorstep of earbuds and headphones. The move to wireless headphones was more gradual, but everyone seemed to want one when earbuds lost the cords that held us back. The Apple AirPods (the first generation was released in 2016) served as an influence. Phone brands began competing for market share. That was before Indian tech start-ups dominated.

Xiaomi, Samsung, OnePlus, Realme, and Oppo were among the manufacturers that thrived on promoting the wireless experience

Initially, phone manufacturers had a modest edge. They have design and production processes in place due to bundling earphones with phones or selling earphones as supplementary accessories. Xiaomi, Samsung, OnePlus, Realme, and Oppo were among the manufacturers that thrived on promoting the whole wireless experience. Prices varied from Rs 5000 to Rs 20,000.

Wearable manufacturers have kept pricing under control

For the initial generation of wireless earbuds, Indian start-ups concentrated on launching a new product category for consumers, with some items priced at Rs 5,000 and omitting features like noise cancellation to keep prices low. Wearable manufacturers then controlled pricing due to increased production scale and volume (which made sourcing arrangements with vendors simpler to negotiate) and market factors driving the competitive environment.

A variation of that method has proven quite effective with wireless earphones

A few years later, Indian digital start-ups that had emerged as major players in the accessories market (wireless speakers, smartwatches, etc.) chose to compete on price, value, and volume. Suppose we draw a connection to the car industry. In that case, it is similar to Maruti's approach of providing several alternatives to consumers within a specific price range, hoping that diversity will appeal to varied user tastes. A variation of that method has proven quite effective with wireless earphones.

Most Recent Statistics

According to the most recent statistics issued in February by the research firm International Statistics Corporation (IDC), India's earwear exports reached 80.4 million units in CY23, representing a 16.9% year-on-year increase. The Truly Wireless Stereo (TWS) sector now accounts for 67.3% of the overall earwear market, up from 55.2% last year. Would you want to guess which brands are in the top five regarding market share?

Indian digital start-ups have dominated

Indian company BoAt (with a 26% market share), followed by an indigenous firm, Noise (12.1%), followed by another Indian company, Fire-Boltt (10.1%), with the combined efforts of OnePlus and Oppo (totaling 7.8% share), and rounded off by yet another Indian company, Boult Audio (not far behind, with 6.9% share). Throughout the year, Indian digital start-ups have dominated, and the reasons for this are many.

When most of us think about wireless earbuds, our brains conjure images of Apple, Samsung, audio legacy brands like Sony and Marshall, or even Google or Nothing. Despite this, the primary motivator for consumer choice and portfolio curation remains: more is better. The sheer diversity accessible to consumers is sure to be successful. BoAt offers up to 130 TWS earbud variants priced between Rs 899 and Rs 4,999: different versions but comparable approaches for Noise, Fire-Boltt, and others. There are often little differences between similar-looking items, yet this is the decisive factor for the buyer. None of the classic audio or phone brands can sustain such a diverse product offering. It would not make financial sense for them to venture outside their primary industry.

Because of the price range, this broad selection is likely to have worked among a predominantly price-sensitive group of new purchasers and first-time users. Experimental purchases are frequently subject to financial constraints, although this issue has been mostly resolved. Making these items available in India has helped widen margins, so price tags keep their value.

Conclusion

Even after a strategy for success has been revealed, there is still a strong urge to innovate. Another Indian tech start-up, Mumbai-based Watchout Wearables (featured on the popular TV show Shark Tank), has released a new experimental product that (basically) effectively combines a wristwatch and wireless earphones into a single gadget. Then there's the desire for premiumisation. Noise's latest product, Buds Xero, is more expensive (about Rs 4,499) but offers more features, including adaptive noise cancellation, titanium audio drivers, and a water-resistant design. Compared to their second most costly Air Buds Pro 2, which costs roughly Rs 2,699. There is a need to go up the pricing ladder. The next phase is to create premium items that justify their prices while allowing for value perception.