Indian smartphone manufacturer Lava is strategically moving into the wearables market, aiming to capture a significant share despite the recent downturn in the industry. With the launch of its smartwatches, Lava is targeting up to 20% of the Indian wearables market over the next few years, according to company executives.
Sunil Raina, Executive Director at Lava, highlighted the synergies between the company’s smartphone business and its new wearables venture, including shared resources in supply chain, manufacturing, design, and R&D. It primarily competes in the sub-Rs 30,000 smartphone segment and is now focusing on the sub-Rs 5,000 wearables category. “Our goal is to achieve a 10-15% market share in the sub-Rs 5,000 wearables segment within the next couple of years,” Sunil Raina stated.
This push comes as the Indian wearables market experienced its first decline, with a 10% year-on-year drop to 29.5 million units in Q2 2024, and a 4.7% decrease in the first half of the year, according to International Data Corporation (IDC) data. Analysts attribute the decline to limited innovation and cautious inventory management by manufacturers.
Despite the market challenges, Lava sees potential for growth by focusing on innovation and quality. Currently holding a small share of the wearables market, the company plans to expand its presence by leveraging its “customer-first” approach. Satya Prakash Sati, Head of Accessories at Lava, expressed confidence in the company’s ability to triple its market share and revenue in the wearables segment by 2024-25. Lava’s foray into wearables began with audio products, followed by its first smartwatch launch in April 2024.
With 15 years of experience in the mobile industry and a deep understanding of the Indian market, Lava believes it can compete effectively against established players. The company is also working on integrating advanced features, such as high-end chipsets and artificial intelligence, into its upcoming smartwatches.
The company expects to maintain strong growth, with plans to double its sales in the current fiscal year. “Our products are entirely made in India, and we’ve developed our user interface in-house. This gives us a competitive edge in both the smartphone and wearables markets,” Sunil Raina added. Additionally, Lava is set to launch new products, including two smartwatches and an audio device, ahead of the festive season. In the smartphone sector, Lava reported a 250% year-on-year growth in 2023-24, making it the fastest-growing brand in the Rs 10,000-20,000 segment.
