India’s wearables market faced its first-ever decline in Q2 2024, with a 10% year-on-year drop to 29.5 million units. Despite this, Lava, a home-grown smartphone maker, sees an opportunity in the downturn. With its recent entry into the wearables sector, the company aims to secure a 20% market share over the next few years.

Strategic Move into Wearables

Lava’s move into wearables aligns with its core strengths in the smartphone industry. “We decided to enter wearables due to synergies with our smartphone business,” said Sunil Raina, Executive Director at Lava. The company leverages its supply chain, R&D, and customer service to create a competitive edge.

Focus on Affordable Segment

Lava is concentrating on the sub-Rs 5,000 wearables segment, where it currently holds a low single-digit market share. The company plans to increase this share to 10-15% in the next few years by addressing the market’s innovation gap.

Overcoming Market Challenges

The wearables market in India is saturated with limited innovation, leading to cautious vendor strategies and a focus on clearing old inventory. Lava, however, is investing in R&D to improve product quality and meet customer expectations. This approach, the company believes, will drive growth even in a declining market.

Future Outlook

Lava’s strategy includes launching new smartwatches and audio products ahead of the festival season. The company also plans to integrate AI into its upcoming wearables, enhancing the user experience. As the market matures, Lava expects consumers to pay more for quality, potentially leading to a market rebound.

With its roots firmly in India, Lava’s local manufacturing and in-house R&D give it a unique advantage. The company’s customer-first approach and focus on innovation could set it apart in a competitive landscape.