In-depth Analysis of the COVID-19 impact on India Wearable Industry: Ken Research

The global outbreak of Covid-19 virus has led to massive disruptions in all industries, especially with sectors which are dependent on imports, especially from China. The looming public health crisis has claimed over 530 thousand lives globally as of 6th July 2020 and apart from that, it continues to pose a threat on the lives, livelihoods and businesses across the world.

India is the third worst Covid-19 hit country in the world, after the United States and Brazil with the number of cases reaching ~1.0 million. India’s GDP contracted by 13.1% in the first quarter of 2020 as against in the last quarter of 2019. The closure of establishments, manufacturing units, industries, etc. due to the imposed lockdown, has adversely impacted the Indian economy. The consumer electronics industry as well as wearables industry was affected due to plummeting imports. As per industry reports, after consecutively growth from the last eight quarters, the volumes registered their first sequential decline, as the shipments curtailed 17.9% in first quarter of 2020. Supply constraints from China due to the countrywide lockdown in March led to this decline. The impact was largely seen on wrist bands as the category saw a 33.5% quarter over quarter (QoQ) decline in the same duration.

Effect on Consumer Wearable Demand in the First Half of 2020: The imposed lockdown in the country and the social distancing norms have impacted the premium wearable demand in the country. The total sales of both fitness trackers & smart watches combined declined to -17.5% in FY’2020 as compared to FY’2019. Companies such as ‘Xiaomi’ reported approximately 39.3% decline in wearable sales volume in the weeks of Mar-June, 2020. Stay-at-home orders amidst the pandemic reduced the physical activities of individuals, moreover the lockdown on gyms contributed to the declined sales of fitness trackers.

Effect on Medical Wearable (or Consumer Wearable with Specific Medical Features) Demand in the First half of 2020: Temporary closure and shutdown of hospital facilities in the country lead to increased demand for medical wearables in the country. The reluctance of patients to go to doctor’s offices and clinics during the pandemic has helped telemedicine and online health coaching gain some traction, and that supports the business model of many companies such as Goqii. Smartwatches with ECG capabilities PPG for oxygen saturation and blood pressure monitoring have seen increase amongst patients who require monitoring of vitals on a regular basis. In addition to this, with the arrival of temperature sensing in certain wrist worn wearables has helped in detecting the early onset of COVID-19.

Temporary & Long Term Shifts in the Business Practices: The demand for wearables is expected to recover towards the end of 2020 due to the ease offered on lockdown restrictions post June. The demand for fitness is however expected to recover in the first half of the year 2021, as the gyms and fitness centers reopen and logistics is restored along with removal of import restrictions. As of now, the industry is heavily dependent on China for imports. There are lots of essentials for which a lot of countries are banking on China. With changing buying preferences throughout the world towards China, it is anticipated that manufacturers may move towards India as a preferred alternative for wearable manufacturing.  The industry is expected to witness steady recovery from 2021 onwards and the sales volume reaching pre-Covid levels in the next few years. In the longer run, wearable manufacturers are expected to shift towards online sales channels including e-commerce platforms, online marketplaces and investing in an official online store which accounts for majority of the wearable sales volume in the country. As a result of the Covid-19 pandemic, online buying is expected to dominate the buying preferences of consumers in the future. Strategic partnerships with independent & franchisee gym and fitness centers,  insurance companies as well as other stakeholders in the industry is expected to lead the industry to recovery and boost wearable sales volume in the future. This would be coupled with focus on higher quality sensors, introduction of new features and continued investment in research & development for introducing innovation product solutions in the market. Basis all these factors, the India wearable’s market is expected to grow at a CAGR of 21.8% on the basis of sales revenue during the forecast period 2020-2025.

Key Segments Covered:-

India Consumer Wearables Market

By Type

Fitness Trackers

Smartwatch

By Price Segment

Under ₹1000

₹1000 – ₹10,000

₹10,000 – ₹20,000

Above ₹ 20,000

By Distribution Channel

Online

Offline

By Region

North

East

West

South

By Type of City

Metro

Non-Metro

India Smartwatch Market

By Type

General Purpose Smartwatch

Sports Smartwatch

Hybrid Smartwatch

By Price Segment

Under ₹1000

₹1000 – ₹10,000

₹10,000 – ₹20,000

Above ₹ 20,000

By Distribution Channel

Online

Offline

By Region

North

East

West

South

By Type of City

Metro

Non-Metro

India Fitness Trackers Market:-

By Type of Wearables

Wrist Worn

Others

By Price Segment

Under ₹1000

₹1000 – ₹10,000

₹10,000 – ₹20,000

Above ₹ 20,000

By Distribution Channel

Online

Offline

By Region

North

East

West

South

By Type of City

Metro

Non-Metro

Companies Covered:-

Xiaomi Technologies India Inc.

Goqii Technologies India Inc.

Samsung India Electronics Ltd.

Fitbit India

Apple India

Titan Company India Ltd. (Fastrack)

Fossil India Inc

Key Target Audience:-

Wearables Manufacturing Companies

Wearables Importing Companies

Semiconductor Manufacturing Companies

E-Commerce Companies

Healthcare Associations

Industry Associations

Regulatory Bodies

Time Period Captured in the Report:-

Historical Period: 2015-2020

Forecast Period:  2020-2025

Key Topics Covered in the Report:-

Overview and Genesis of India Consumer Wearable Industry

Target Addressable Market for End Users

Trends and Growth Drivers in the Industry and Challenges Faced

India Consumer Wearables Market Size and Segmentations, 2014 – 2019

Ecosystem and Value Chain of India Consumer Wearables Industry

Customer Decision Making Parameters

Cross Comparison between Major Players and Detailed Company Profiles & Product Portfolios

Future Market Size and Segmentations, 2020-2025F

Covid-19 Impact on the Industry & the Way Forward

Analysts’ Recommendations

For More Information on the research report, refer to below link:-

India Consumer Wearables Market

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Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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