From Phone Cases to Rs 2,000 Crore: The Success of Noise's Smartwatches
Unveiling the story of Noise: A remarkable transformation from selling smartphone covers to leading India's smartwatch segment with cutting-edge technology and strategic market penetration.
Founded in 2014 by brothers Amit and Gaurav Khatri, Noise began as a company selling smartphone covers and accessories. However, in 2018, the brand pivoted towards the smartwatch and wireless earbuds market, a move that positioned it against major global competitors. This strategic shift has not only been successful but transformative, leading to become a dominant force in the Indian smartwatch segment.
Noise's growth trajectory in the past few years has been remarkable. The company registered a staggering 17X growth in just 30 months, expanding its presence to over 8000 offline outlets. A Counterpoint report in 2021 highlighted Noise's market leadership, with a 27% share and an impressive 278% year-over-year (YoY) growth in the smartwatch category. This success was attributed to a variety of factors, including expanding its portfolio to lower price points, emphasising community building, tailoring products to consumer preferences backed by strong consumer data, and forging new alliances and partnerships.
In the fiscal year 2021 (FY21), Noise closed with an annual revenue of Rs 373 crore, leading the wearables segment in India with a 27% market share, driven primarily by its smartwatches.
As of 2023, Noise has further solidified its position in the market. The company reported a substantial 90% YoY growth in the second quarter of 2023, with a market share of 27.6% in the Indian smartwatch market. This growth is significant, as it demonstrates Noise's ability to maintain and strengthen its market position over time.
In FY23, Noise achieved over Rs 2,000 crore in revenue, marking a record growth of over 100% YoY. The company's leadership in the smart wearables industry is evident, and it aims to continue this upward trend in the following fiscal year. With 400 employees, Noise projects to sustain robust growth momentum of over 70% in the next year, leveraging both volume and pricing growth.
A significant aspect of Noise's strategy is its commitment to local manufacturing, with over 95% of its production happening in India. This approach aligns with the country's vision of becoming a global manufacturing hub. Noise was the first homegrown brand to ship over 3 million made-in-India smartwatches, a notable achievement that underscores its commitment to local manufacturing and quality.
The company's smartwatch models, including the Noise Colorfit Icon Buzz, Colorfit Pulse Go and Colorfit Icon 2, have contributed significantly to its success, accounting for more than 25% of its shipments.
Noise also maintains a balanced approach to its sales channels, with an 80:20 ratio for its online and offline channels nationwide, and plans to cultivate strategic alliances for broader audience outreach.
Noise's journey from a smartphone accessories seller to a leader in the Indian smartwatch market is a testament to its strategic vision, adaptability, and commitment to understanding and meeting consumer needs.