Rocking the BoAt: How an Indian startup beat Chinese giants at their game

When one talks of Indian technology startups, it is usually about those who have developed apps or offer software solutions.

Though consumer electronics firms like Micromax, Intex, and Karbonn Mobiles gained some momentum in the early part of the 2010s with their budget smartphones, the onslaught of Chinese smartphone brands well and truly left these Indian brands by the wayside.

BoAt, an Indian wearable devices brand launched in 2016, has flipped the script. Less than four years after it started selling mobile cables and chargers, BoAt has become one of the most well-known wearables firms in India, with brand ambassadors ranging from popular Indian movie stars and singers to members of the national cricket team.

BoAt’s waterproof bluetooth speaker / Image credit: BoAt

The brand’s success isn’t just that its devices are worn by celebrities; its sales have also skyrocketed. In July to September 2020, according to market research firm IDC, BoAt was the fifth-largest wearables brand by volume across the world.

How did it get there? Experts point to two aspects: its presence in a large market like India and its ability to read and cater to market trends.

“They were in the right place at the right time,” says Jaipal Singh, associate research manager of client devices at IDC India.

According to Singh, BoAt understood that the audio devices market was switching from wired to wireless gadgets. “BoAt entered the market for wireless devices at a time when not a lot of Chinese players were offering such devices…we need to give it to BoAt that they understood the trend well and invested at the right time to gain momentum,” he adds.

Shilpi Jain, research analyst at Counterpoint Research, agrees. The wearables firm tapped into the trend with fervor, launching “many new devices” across price tiers. “The good design and aggressive marketing strategies appealed to the youth,” she adds.

Tech In Asia reached out to BoAt for this story, however, the company’s spokespersons were not available for comment.

Nationalistic fervor in India helped

Sales volumes in India have been critical to BoAt’s stunning rise in the global charts. According to Counterpoint Research, BoAt was the top-selling wearables brand in India during July to September 2020, beating the likes of Xiaomi, Realme, JBL, and even Apple.

A London-based venture capital investor who closely tracks the tech space in India, says the country’s geopolitical differences with China during the time pushed local consumers to purchase from an Indian brand. To be sure, BoAt’s supply chain is still China-based, though with Warburg Pincus’ recent investment of US$100 million, the company is looking to shift manufacturing to India.

“There is a definite anti-China sentiment among Indian consumers after the events of last year, and BoAt was ideally placed to capture that sentiment and beat its Chinese competitors,” says the London-based investor, who asked to remain anonymous because of their investments in competing firms.

Market research experts Singh and Jain take a slightly different view. While both credit BoAt’s India presence for its volumes, they also recognize the company’s leadership for making the right decisions at the right time.

Pandemic fuels growth of wireless “hearables”

Building a lifestyle brand

Pleasing its investors

Challenges ahead for BoAt