How did Boat dominate the Indian earphone market through its genius execution?
With more than 35% of the market share, Boat is currently dominating the Indian earphone market so much so that its market share is more than its next 3 competitors combined.
According to statistics, 6 out of every 10 earphones sold in India are from Boat.
What’s more interesting is 5 years back nobody knew about Boat, but today it sells more than 10000 products daily. You see how tables turn so quickly.
Now you might be wondering that having competitors like JBL, Skullcandy, Noise and Mivi already present in the market how did Boat achieve such a feat.
The story starts back in 2014 when Boat’s co-founder Aman Gupta was working with JBL, when it had just started to put a foot in the Indian market.
Aman was fascinated by the growth of JBL and decided to enter the Indian Wearable Market Space.
While doing his research, he realized there is a big change that has happened which is the seller-to-buyer market shift.
Earlier, companies used to manufacture a product and then find the customer but now companies first understand the wants of the customer and then manufacture the product.
The secret sauce of Boat’s success lies not in innovation but in its execution.
Boat launched in 2016 and in that year 2 more things happened that changed consumer behaviour.
The first is increased content consumption due to Reliance Jio and the second is an increase in mid-range smartphone demand.
Things changed in such a manner that where people who earlier used to use their phone 5-6 times had suddenly started spending 30-40% of their time on phones watching movies, songs and videos.
This changed the consumer behaviour, people who were consuming content now also started desiring better audio quality.
On top of that around 2016 phone manufacturers had stopped shipping earphones with the phone adding fuel to the fire.
Aman soon noticed a gap.
He understood the Indian demographics well and knew that people will definitely require low-budget earphones very soon.
He was also acquainted of the fact that low-budget earphones which were currently being sold for under 500 rupees were of bad quality.
Companies like JBL did provide good quality earphones but the budget at which they were being sold was still expensive for a lot of people costing more than 700 rupees.
Aman focused on this gap and nailed the execution superbly by launching great quality earphones from 299 -799 rupees and since then Boat hasn’t looked back with continuous growth in revenue and profits.
Boat has clocked a revenue of 1550 crores in FY 2021 and is planning for an IPO soon.
Isn’t this journey a fascinating one?
What’s your main takeaway from Boat’s story?
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