Indian brands, Noise and Fire-Boltt, have emerged as dominant players in the consumer electronics sector, particularly in wireless headphones and wearables. Both brands have achieved significant market share and success by offering products that are highly customised for Indian consumers at competitive prices.
Smooth operator
Imagine Marketing Pvt Ltd (boAt brand) rose to fame by offering affordable wireless headphones packed with advanced features like ANC and low latency (a feature highly critical for video gamers). The value proposition of offering highly affordable products at competitive prices while offering features found on much more expensive models appeals to price-sensitive Indian consumers.
With boAt, Imagine garnered a whopping 39% share in TWS earbuds and 34% in wireless headbands in 2024. Customisation is another big factor in boAt’s quick ascension. For some TWS earbud models, it offers as many as seven colours (Apple’s AirPods are only available in white). The company has leveraged popular culture like licensing from Marvel to launch a Captain America version and has a sub-brand for women (TRebel).
To encourage its customers to buy direct from its own e-commerce portal, it offers free engraving services for models, costing as low as INR899 (USD10). The push towards direct-to-consumer (D2C) has helped boAt increase its profitability as the company need not share its margins with other retailers nor incur overheads (rental, manpower, storage) from physical stores.
Fire-Boltt, a relatively new entrant, dominates the activity wearables market in India with its affordable yet feature-rich wearables.
India’s booming middle-class has fuelled Fire-Boltt’s rapid growth, allowing the brand to gain 27% of activity wearables sales in 2024
Source: Euromonitor International
The large volume sales have allowed Fire-Boltt stronger negotiation power with its OEMs to customise its products and keep prices low. Indian consumers are still more price-sensitive despite increased incomes as average income is still the lowest among the large economies.
Fire-Boltt has harnessed celebrity endorsements and influencer marketing to drive brand awareness and sales. The brand has focused on authentic endorsements, where influencers genuinely use and recommend Fire-Boltt products, helping to build trust and credibility with its target consumer demographics.
Wearables at an affordable price have allowed the company to become the market leader. Faced with competitors which are copying the value for money proposition, Fire-Boltt is aggressively expanding into new consumer segments to maintain its lead and fuel growth.
Affordable indulgence
Consumers are increasingly prioritising affordable yet functional electronics such as TWS earbuds and activity wearables over larger, more expensive items such as LCD TVs and laptops. These smaller devices offer immediate gratification and align with the mobile-centric lifestyle. Their relative affordability encourages frequent upgrades, driving consistent consumer spending.
Retail value sales of TWS earbuds and activity wearables in India are forecast to hit USD8.2 billion in 2029
Source: Euromonitor International
Established manufacturers like Samsung have chosen to protect their profits over market share. Manufacturers are keen to avoid price wars and protect their margins to integrate features such as advanced health tracking, AI and customisation as differentiators, and position their products in the premium sector. The shift in business priority opens up the burgeoning categories for new brands to enter the market and cater to price-sensitive consumers in other emerging markets.
The success of emerging brands like Noise and Fire-Boltt are attributed to their keen understanding of consumer needs, strategic marketing, product diversification, and aggressive expansion to drive sales which allow these companies to negotiate with OEMs for lower prices. Aspiring entrants looking to emulate their success should focus on these key areas, ensuring they stay relevant and competitive in the ever-evolving consumer electronics market.
Affordable indulgence and profitability over market share are two of the five key trends that impact sales. Read our briefing, Top Trends in Consumer Electronics, for more analysis on other key trends impacting sales of consumer electronics.