Worldwide wearables market climbs 26.1% in Q2

GOQii pips Xiaomi to become India's leading wearable vendor in Q2: IDC

Apple is falling behind rivals when it comes to wearables, those small electronic devices like fitness trackers and smartwatches that are embedded with sensors.

American company Fitbit took the third place in the market with 6.7 per cent share while Garmin (1.4 per cent ) and Huawei (1.0 per cent ) too found a place in top 5.

Sales for basic wearables, or devices that do not support third party applications, improved 48.8 percent, while smart wearables, or devices that support third party applications, declined 27.2 percent year over year.

“Consequently, basic wearables accounted for 82.8 per cent of all wearable devices shipped during the quarter, and more vendors continue to enter this space”, Llamas stated. At the same time, consumers prefer low-priced wearable devices because for them spending Rs 1,000 is more prudent on a bracelet kind of device instead of spending Rs 10,000.

The category is largely filled by fitness bands from home grown Intex, American GOQii and Chinese Xiaomi.

“Most of the low end devices suffice the basic requirement that consumers look for at this stage, largely for first experience and gifting goal”.

Fitbit has continued to see growth based on new product launches and cross border expansion. “But this also means that it will be a slow transition from basic wearables to smart wearables”.

GOQii grabbed number one position with 16.1 per cent market share, followed by Xiaomi, which slipped one position and stood second with 10.3 per cent market share in the second quarter.

The wearable devices market is rapidly gaining traction and a drop in growth rate does not seem to be in sight.

Majority of the ecommerce companies will bet on wearable devices, and looking into the wide range of price points, wearable devices are becoming the topmost gifting choice. Apart from competitors launching products with displays in the same price band, consumers also delayed their purchase as the market awaits the launch of Mi Band 2, IDC said. “However, as long as low-end products drive the market, e-commerce platforms are expected to dominate the channel”, Nimesh said.

According to Ramon Llamas, research manager, Wearables, while the overall wearables market grew during 2Q16, its two categories travelled at different speeds and directions. The brand, however, increased its market share both in terms of units as well as value.

The market in India is still at a nascent stage and is expected to evolve in all form factors, it added. Fitbit saw 28.7 percent growth in Q2 2016, compared to Q2 2015.

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