Lenovo Group is setting its sights on India as it tries to boost its market share in the wearables industry in the country.
Reuters, citing Sebastian Peng, head of accessories at Lenovo Mobile Business Group, reported Lenovo is aiming to corner 20 percent market share in the wearables market in India this year, with the company gearing up to sell smartwatches and fitness bands.
Lenovo started selling wearables in India in 2017. Peng told Reuters it has achieved between 6 percent and 7 percent market share of smart wearables since then. Lenovo plans to start manufacturing in India, where the market for smart wearables is projected to grow between 30 percent and 40 percent. Currently, Lenovo’s wearable products are manufactured in China.
“We have started talks with local manufacturers to start manufacturing within the country. We’re trying to start these operations sometime this year,” Peng said. “Smart wearables is the key category we’re trying to push for this year. We are very confident that we can achieve our target.”
Citing data from the International Data Corporation, a market research firm, India’s wearable market reached $157 million last year. Other players in the country include Xiaomi, Huawei and Fitbit.
The push by Lenovo comes as the smartphone market is taking off in India. In the third quarter of last year, India overtook the U.S. to become the second-largest smartphone market in the world. According to Canalys, smartphone shipments in India grew 23 percent year over year in Q3 2017 to reach just over 40 million units.
“This growth comes as a relief to the smartphone industry. Doubts about India’s market potential are clearly dispelled by this result,” said Canalys research analyst Ishan Dutt. “There are close to 100 mobile device brands sold in India, with more vendors arriving every quarter. In addition, India has one of the most complex channel landscapes, but with low barriers to entry. Growth will continue. Low smartphone penetration and the explosion of LTE are the main drivers.”