The report noted that though the festive period saw several new launches along with promotional offers and discounts, “there was an overstocking situation through the second half of 2023”.
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Further, during the fourth quarter of the calendar year, the average selling price (ASP) of overall wearables declined by 15.4% from $25.0 to $21.2. Also, the ASP of smartwatches dropped 38.7% from $42.5 to $26.1.
“Affordability, low product penetration and a plethora of options led to a surge in demand for smartwatches. However, the growing popularity of non-branded watches is impacting the incumbents, offering cheap alternatives of popular models, and are even bundled with multiple watch straps,” said Anand Priya Singh, market analyst, Wearable Devices, IDC India.
Singh added that such offerings essentially “dilute the first-time user experience” making it “imperative for incumbent vendors to find alternate ways to attract first-time users”.
Offline channels grew compared with online ones as vendors focused on expanding their retail presence, with shipments registering a 55.6% YoY growth. The share of offline channels increased to 31.0% in 2023, up from 26.7% in 2022.
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The top playersAccording to the IDC data, the top three players — Boat, Noise and Fire-Bolt — secured their respective positions in the overall wearable market through diversified product portfolios and constant innovations, but at lower ASPs.
While Boult Audio registered the highest YoY growth amongst the top five vendors list, BeatXP, a new entrant in the smartwatch category, managed to enter the top smartwatch vendor list with aggressive online marketing.
BeatXP is the direct-to-consumer brand of Tiger Global-backed heathtech startup Pristyn Care
“IDC estimates single-digit growth for wearables in 2024. Vendors will hasten their omnichannel strategy which is still dominated by online channels (e-tailer). This will require unique distribution partnerships and more affordable products to access tier-III cities & beyond,” said Vikas Sharma, senior market analyst, wearable devices, IDC India.
Sharma noted that 2024 will see a proliferation of smartwatches with LTE SIM/eSIM connectivity, advanced health sensors, and multiple GPS navigation.
