Battered by the onslaught of a sea of clones, knockoffs, and price warriors, homegrown wearable and audio biggie boAt finds itself in choppy waters. Can the leader arrest an alarming slide in its market share?
Can boAt navigate the choppy waters?
Illustration: Chaitanya Dinesh Surpur
“Have you seen Pirates of the Caribbean,” the seasoned tech analyst posed an intriguing counter-question. “How do you explain the mayhem in the wearable and hearable market in India,” was the original query with which I started the conversation. Can Pirates of the Caribbean, I wondered, explain the dramatic crash—over 50 percent—in the prices of smartwatches, truly wireless stereo (TWS), and wearable segments over the last twelve months or so? The analyst, who has been closely tracking the Indian smartphone, smartwatches, and hearables and wearables markets for over a decade, takes us back to 2019.
Look at the market share of the three established brands. Apple topped the chart with a thumping 27 percent share in the hearable segment, JBL came third with eight percent, and South Korean giant Samsung was fourth on the ladder with seven percent. “The market grew furiously, the leadership stacking was settled, and the Indian market was poised to explode,” underlines the expert, requesting anonymity as his job profile with a top-tier consulting firm prevents him from commenting on individual brands. ‘The market was set to explode,” he says.
And the markets did explode over the next four years. In 2023, the wearable market posted a record growth: 134.2 million units, and a hefty 34 percent growth. Apple lost the crown and doesn’t even have a double-digit market share, JBL slipped out of the reckoning, and Samsung is not a force to reckon with. So, what went wrong for the global brands? “Blame it on the ‘pirates’,” reckons the analyst mentioned above. In 2019, he talks about an upstart that raced ahead of JBL and Samsung to become the second biggest after Apple, and India saw the emergence of a bunch of pirates. “Noise came second with a 12 percent market share,” he says, adding that a clutch of homegrown players such as boAt and Noise had stormed the market as price warriors, democratised the segment by making smartwatches, wearables and hearables’ affordable, and quickly displaced the market leaders. “The aggressive new Indian players acted like pirates,” he adds.
Fast forward four years. Noise is still the second biggest with a 13.8 percent share in the wearable market (see box). The other four among the top five are boAt, Fire-Boltt, Oppo, and Boult Audio. “But now we have a bunch of new and unknown pirates such as Promate, CMF, Hammer, Hapipola, and Nu Republic,” says the analyst mentioned above. These insignificant players—most have under one percent market share but form a huge chunk when counted together—are doing what once boAt, Noise and others did to Samsung, Apple, JBL, and Sony.