Thursday, July 30, 2020

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:-

Related Reports:-



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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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