Wearable devices shipment in India clocked over 4,00,000 units in the first quarter of 2016, largely driven by fitness bands, research firm IDC today said.
The market was largely driven by fitness bands with 87.7 per cent market share whereas smart wearables, defined as any wearable that can run third-party applications, contributed to around 12.3 per cent, IDC said in a report.
"The wearable market is rapidly gaining traction as it provides an easy health tracking mechanism to the users...The smart wearables have not yet gained enough ground because of the higher price attached to them," IDC Senior Market Analyst Client Devices Raj Nimesh said.
The online channel was the most preferred means for majority of the vendors, he added.
"However, a shift towards retail is also being observed as customers are looking to physically feel and test out the product," he said.
Xiaomi's Mi Band accounted for the largest share of the shipment at 27.12 per cent, followed by Goqii at 18.07 per cent and FitBit 6.23 per cent.
Samsung and Motorola had 2.53 per cent and 1.42 per cent share, respectively.
"Fitbit clinched the third spot in the market, with 6.2 per cent market share in terms of units. However, the brand leads in terms of market value share, currently over 10 per cent more than its closest competitor. Leading the market globally, Fitbit's relatively higher prices have impacted the unit share in Indian market," the report said.
Nimesh said the popularity of wearable devices is restricted to urban sectors with relatively higher disposable income.
"Since online platforms are immensely popular in this segment, nearly three-quarter of the sales happened through leading online retailers. However, to expand the reach, increasing number of brands are taking up the offline channel, especially though major large format retail (LFR) outlets," he added.
Though the smart wearables remained low at 12.3 per cent, a higher growth rate compared to basic devices is expected in near future.
The first two positions were grabbed by Samsung and Motorola, while the global leader Apple stood third due to channel-related issues, the report said.
