Indian companies have dominated the wearables market
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Experts say that brands like Boat and Gizmore are making most of the wearable items in the country. These companies have joined hands with contract item manufacturers Dixon Technologies and Optiemus Electronics. Sanjay Kalirona, chief executive of Noida-based company Gizmore, said that wearables assembly has shifted from China to India. That’s why China’s assembling companies have no work left. Earlier, we used to get completely build-up units from there. But since the government imposed duty on wearables, we source them in semi-knock-down form and assemble them here. This is the reason why the companies supplying to India do not have any orders.
biggest market
According to IDC India (IDC India), between January and March, domestic shipments of wearables increased by 81 percent compared to last year and reached 25 million units. With this, India has become the largest market for wearables in the world, surpassing China. Shipments to Beijing declined by 4 per cent to 24.7 million units. According to IDC India, Indian shipments could reach 131 million in 2023, up from 100 million last year. Although Indian companies are still largely dependent on Chinese companies for parts.
Chinese companies dominate the smartphone market in the country but the situation is different in the wearables industry. It is dominated by Indian companies like Boat, Noise and Firebolt. In terms of volume, 75 per cent of the country’s market is dominated by domestic companies. By the end of 2022, 40 percent of wearables sold in the country were made in the country itself. At present this figure has reached 65 per cent and it is expected to reach 80 per cent by the end of this year. Boat Chief Executive Sameer Mehta said that 75 percent of audio products and 95 percent of smartwatches are being made in the country. Last year this figure was 20-25 per cent. The situation has become such that the work in Chinese factories has remained half.
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government’s move
Mehta said that the consumption of wearables is the highest in India in the last year and a half. That’s why companies have shifted manufacturing to India. This is the reason why Chinese factories are left with no work and many have been closed. Boat is working with seven to eight partners in India. These include Dixon and VVDN Technologies. In China, the company is working with Symphony, Minami and six other companies.
The government notified the Phased Manufacturing Program (PMP) in April 2022. Since then, the manufacturing of wearables has gained momentum in the country. India made wearables worth Rs 8,000 crore in the financial year 2023, whereas this figure was very less in the previous year. The government had imposed 20 per cent basic custom duty on CBU imports from April 2023. Experts say that the low average selling price (ASP) is being maintained by increasing the local assembly. ITC says that by the end of this year the ASP may come down to $23 to $25, which was $25 last year.
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