The gain in GOQii’s market share is being attributed to its unique selling point, where a vendor provides access to a personal trainer. GOQii has partnerships with diagnostic centres and doctors. Unlike other brands, GOQii has a relatively higher share in the commercial segment, than in the consumer segment, IDC said.
Xiaomi slipped down one position to number two, with 10.3 per cent market share. Apart from competitors launching products with displays in the same price band, consumers also delayed their purchase as the market awaits the launch of Mi Band 2, IDC said.
The wearables market in India observed a robust growth of 41.9 per cent in Q2 2016 over the first quarter of 2016. According to IDC’s Worldwide Quarterly Wearable Device Tracker, total shipments in Q2 2016 clocked over 567,000 units of which basic wearables, defined as wearables which can’t run third-party applications, contributed nearly 94 per cent.
According to Raj Nimesh, Senior Market Analyst, Client Devices, IDC, “The wearables market has advanced to a stage where awareness is no more a roadblock. New vendors are continuously entering the market and existing vendors are offering better product features. Though basic devices marked a sharp growth, the average price of over $190 has had a negative impact on smart wearables as it is still perceived as a premium device which not many consumers can afford.”
In terms of price, the market was highly dominated by the sub-$50 category with over 83 per cent share. The category largely caters to fitness bands from Intex, GOQii and Mi. “Most of the low-end devices suffice the basic requirement that consumers look for at this stage, largely for first experience and gifting purpose. As the market evolves and consumers demand advanced features, a shift to higher price bands is expected,” Nimesh said.
The e-commerce channel remains the most preferred route for consumers. Most of the new entrants are taking the e-commerce route as it is cost effective with direct reach to the end-consumer.
Besides GOQii and Xiaomi, Fitbit maintained the third spot with 6.7 per cent market share. The brand, however, increased its market share both in terms of units as well as value. The brand now holds almost a quarter share in terms of value, leading by over 15 per cent of its closest competitor.
Garmin made an entry to the top 5 bracket with a 1.4 per cent share, marking a remarkable sequential growth of 250 per cent over Q1 2016. “Garmin products are applauded for high technical specifications and have a wide range catering to different consumer segments. Despite low share in terms of units, the brand was second in value market share,” said IDC.
Huawei was another new entrant to the top five bracket, with one per cent market share. It is one the few brands with a presence in both basic and smart wearables. Though growth was seen in basic wearables, a drop was observed in smart wearables over Q1 2016.
Source: Business Standard