BoAt crosses 50 mn in 'Made in India' products amid wearables mkt slowdown

India’s leading audio and wearable brand BoAt on Monday said it has surpassed 50 million ‘Made in India’ products mark against the grim backdrop of declining sales and limited product innovations in the sector.

The brand currently manufactures between 70-75 per cent of its audio and smart wearable products within India, via a joint venture with contract manufacturer Dixon Technologies.

The collaboration has enabled the company to “optimise its supply chain, reduce lead times, and enhance product quality and reduce dependency on other countries.”

“Crossing the 5-crore mark in Made in India products is a momentous occasion for boAt. It reflects our unwavering commitment to the ‘Make in India’ initiative and our confidence in the capabilities of Indian manufacturing,” said Sameer Mehta, Co-founder and CEO, BoAt. 

Meanwhile, India’s wearable device market declined for the first time ever, by 10 per cent year-over-year (YoY) to 29.5 million units in the second quarter (Q2) of calendar year 2024 (CY24).

The first half of 2024 saw a decline of 4.7 per cent, shipping 55.1 million units, according to data from the International Data Corporation (IDC). 

BoAt, however, remains the market leader with a 26.7 per cent share, despite a 9.8 per cent Y-o-Y decline in shipments, IDC data showed. 

Analysts say that original equipment manufacturers (OEMs) are facing challenges in luring customers to upgrade due to limited innovation and freshness in newer models.

Moreover, vendors are cautious in stocking inventory, with a focus on clearing the old stock before the festive season begins.

To bridge this gap, BoAt says it is also focused and continuously invests in localising research and development (R&D). 

The brand has established BoAt Labs, a dedicated innovation centre in India, through which the company has established strategic partnerships with global technology leaders such as Google Inc, Qualcomm, Dolby, CEVA, Mimi Hearing Technologies and more.

According to BoAt, the company’s focus on local design and engineering gives it an edge in creating products that are tailored to meet “the unique needs of the Indian market.”

Regardless, low differentiation and limited innovation in the wearable markets is making players in the segment relook at their strategy, Business Standard had reported earlier. 

BoAT, for instance, is focusing on producing higher-end devices in a bid to offer consumers better quality products. 

“In wearables, we have retrenched and are now re-looking at the entire strategy of how to approach the segment. We have cut down on our business plan in that space...We have tried to stay away from the opening price points and cheap hardware. We are only working on products which are more mature in terms of hardware and algorithms,” Mehta said in an interview with BS in June. 

Notably, around 75-80 per cent of BoAt’s revenues come from audio products.

According to IDC, the average selling price (ASP) for the overall wearables also hit a record low in Q2, declining by 10.3 per cent from $21 to $18.8 during the quarter.

“Several new model launches by incumbent brands are expected during the upcoming festive season which may help in arresting this decline. However, the annual shipments for smartwatches are expected to decline by 10% in 2024. We will also possibly see refreshed smartwatch portfolios by the smartphone vendors at low to mid-price segments,” said Vikas Sharma, Senior Market Analyst, Smart Wearable Devices, IDC India.

Smooth Sailing

- BoAt remains the market leader with a 26.7 per cent share, despite a 9.8 per cent Y-o-Y decline in shipments
 

- Around 75-80 per cent of BoAt’s revenues comes from audio product
 

- BoAt is focusing on producing higher-end devices in a bid to offer consumers betterquality products