Wearables market growing in India, Goqii remains at top: IDC
New Delhi: 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, according to research firm International Data Corporation’s (IDC) quarterly wearable tracker for Q1 2017.
The report claims that 612,000 wearable devices were shipped in India in the first quarter of 2017 and smartbands accounted for almost 90% of these shipments.
“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 segments,” says Celso Gomes, associate market analyst, client devices, IDC India.
Most of the traction is happening in the entry-level segment which includes wearables below $50 (approximately Rs3,213). The segment accounts for 78.6% of all wearables shipped in India in Q1.
California-based Goqii leads the wearable pack with a market share of 20.8%. The company had a robust Q1 2017 and reported a growth of 21% over Q4 2016 when it held 15.5% market share. IDC attributes its success to increasing interest in the new Goqii bands with heart rate monitors.
Chinese company Xioami continues to hold the second position in the wearable space with a market share of 10%. Its shipments declined by almost 30% over Q4 2016 when it had 13.2% market share, due to stiff competition from Goqii and short supply of the Mi Band 2 in the market.
The global leader in the wearable space, Fitbit, is currently lagging behind Goqii and Xiaomi when it comes to the Indian market. Fitbit accounted for only 5% of all shipments in Q1 2017, a decline of 42.7% over Q4 2016, when it held 7.9% of the market. However, its number are likely to improve in the next quarter as the company is expected to launch new devices, IDC said.