Wearables Market Heats Up in India

2020 could be a turning point in smartwatch adoption

The Indian technology market is a hotbed of activity right now, as many players fight for a share of sales in a rapidly growing and increasingly affluent demographic. Some technologies such as smartphones have seen explosive growth in India. But the market for smartwatches, however, is still niche, and people buying the devices tend to be early adopters and technology enthusiasts, rather than mass-market consumers.

In the past few years, several established smartwatch manufacturers including Apple, Samsung and Fitbit have launched products in India. However, the high price of premium devices like the Apple Watch means that sales haven’t taken off as dramatically as these players may have hoped; in fact, the prohibitive pricing of over 10,000 rupees (about $140) makes them unlikely to achieve significant sales volumes.

Despite this, fitness trackers have generally sold well in India so far, suggesting that there’s no lack of demand for wearable technology. So, there could be a clear opportunity for a more affordable smartwatch to succeed in the market, and there are signs that some established makers are ready to tap into this.

Lenovo has shown its intention to exploit this opportunity by recently announcing a smartwatch that will be released exclusively in India to begin with. The wearable device, called Carme, has a 1.3-inch IPS colour screen, one-touch sensor and IP68 waterproof and dustproof technologies. Its design has been optimized to lower the amount of reflection and glare in direct light, enabling users to read content from the screen even in broad daylight. The Carme also offers up to seven days of battery life on a single charge. With a very low price of about 3,500 rupees ($49), the device seems to have been designed with clear hardware benefits to suit its market, as well as a far more palatable price tag for the average consumer.

Despite the low price, the Carme offers health and fitness features including a pedometer, heart-rate monitor, sleep monitor and eight sports modes, which include swimming, running and cycling. It packs a range of other features including weather forecast and notifications for e-mails, text messages, calls and other social media apps; these work on Android and iOS smartphones.

With its Carme watch, Lenovo wants to reach out to first-time smartwatch buyers looking to upgrade from a fitness band to a device that’s attractive and intuitive. The launch of the Carme is also well timed for the market, with the Diwali festival season beginning at the end of October.

The arrival of more budget-friendly smartwatches in India such as the Carme could hugely boost consumer interest in the category. Given the country’s rapidly growing population and the potential for massive sales volumes, we’re certain that other hardware makers are monitoring and evaluating the viability of a low-cost smartwatch to rival Lenovo’s. In particular, we expect to see other Chinese manufacturers such as Xiaomi and possibly OnePlus aim for a greater share of the Indian market, building on their already strong position with smartphones.

Given the wider awareness of new technology among many Indian consumers, adoption of smartwatches will be driven by factors such as design, build quality, usefulness, and, of course, price. We believe that 2020 could be an inflection point for mainstream smartwatch adoption in India, and that these devices might join smartphones as a must-have gadget for many people.