The Decline of the Wearables Market in India: Q2 2024 Overview
The wearables market in India experienced its first significant downturn in the second quarter of 2024, according to a detailed report from a leading market research firm. The data reveals that wearable shipments in India fell by 10 percent year-over-year (YoY), amounting to 29.5 million units. The first half of 2024 also saw a decrease in wearables shipping, with a 4.7 percent decline leading to a total of 55.1 million units shipped. This article will delve into the factors contributing to this decline, analyze the specific segments within the wearables market, and discuss the outlook for the remainder of 2024.
Understanding the Wearables Market Decline in Q2 2024
Factors Contributing to the Decline
Several factors have been identified as contributing to the wearables market’s decline in India during Q2 2024. One of the primary reasons is the cautious approach to inventory stocking by vendors. With the festive season approaching, many companies opted to focus on clearing old stock rather than introducing new products. This strategy aimed to avoid overstocking and potential losses, but it also led to fewer new launches, which in turn impacted overall shipment numbers.
Impact of Fewer New Product Launches
The wearables market thrives on innovation and regular product launches. In Q2 2024, the market saw a significant drop in the number of new products introduced, which directly affected consumer interest and purchasing behavior. With fewer options available, consumers were less inclined to upgrade or purchase new devices, contributing to the overall decline in shipments.
Detailed Analysis of the Wearables Market Segments
Smartwatches: A Significant Drop in Shipments
Smartwatches, a major segment of the wearables market, experienced a notable decline in Q2 2024. Shipments dropped by 27.4 percent YoY, with only 9.3 million units shipped. This decline can be attributed to the reduced number of new product launches and the cautious inventory management by vendors.
Market Leaders in the Smartwatch Segment
Despite the decline, certain brands continued to dominate the smartwatch market. Noise held the largest market share with 25.7 percent, followed closely by Fire-Boltt and Boat, with 24.2 percent and 11.6 percent market shares, respectively. These brands have managed to maintain their positions by offering a range of products catering to different consumer needs, from budget-friendly options to more feature-rich models.
Earphones: A Bright Spot in the Wearables Market
In contrast to the decline seen in smartwatches, the earphones segment showed resilience in Q2 2024. Shipments grew by 0.7 percent YoY, reaching 20.1 million units. This growth was largely driven by the increasing popularity of Truly Wireless Stereo (TWS) earphones, which saw their market share rise from 65.5 percent in Q2 2023 to 71.0 percent in Q2 2024.
Leading Brands in the TWS Segment
The TWS segment has become a competitive battleground, with Boat leading the market with a 34.0 percent share. Other notable players include Boult and Noise, with market shares of 12.9 percent and 9.2 percent, respectively. The growth of the TWS segment is indicative of changing consumer preferences, with more users opting for the convenience and portability offered by wireless earphones.
Emergence of the Open Wireless Solution (OWS/OES) Segment
A new and rapidly growing segment within the earwear category is the Open Wireless Solution (OWS) or Open Ear Solution (OES). This segment has attracted attention due to its unique design, which allows users to listen to audio without completely blocking out ambient sounds. Brands like PTron, Truke, and Noise have introduced affordable models in this category, while premium options are offered by Bose.
Market Outlook for H2 2024: What to Expect
Anticipated New Product Launches
Looking ahead to the second half of 2024, the wearables market in India is expected to see a resurgence, driven by new product launches from leading brands during the festive season. These launches are anticipated to bring a fresh wave of consumer interest, potentially reversing the decline witnessed in Q2. However, the overall shipment numbers for smartwatches are still expected to decline by 10 percent for the year, reflecting the broader challenges faced by the market.
Focus on the Low to Mid-Price Segment
Another key trend to watch in H2 2024 is the increased focus on the low to mid-price segment within the smartwatch market. As manufacturers strive to capture a larger share of the market, there is likely to be a proliferation of affordable models offering essential features without the premium price tag. This shift could help attract budget-conscious consumers and drive overall market growth.
Conclusion: Navigating the Wearables Market Decline in India
The wearables market in India faced its first significant decline in Q2 2024, with a 10 percent YoY drop in shipments. Factors such as cautious inventory management and fewer new product launches played a crucial role in this downturn. However, the market is not without its bright spots, as seen in the resilience of the earphones segment and the emergence of the Open Wireless Solution (OWS) category.
As we move into the second half of 2024, the market is poised for a potential recovery, driven by new product launches and a focus on the low to mid-price segment. While the challenges are significant, the Indian wearables market continues to evolve, offering opportunities for growth and innovation in the coming months.