India remains one of biggest opportunities for Fitbit Inc

For US-based fitness trackers and wearable technology maker Fitbit Inc, which is staring at challenges in terms of falling sales and share price in the US market, India remains one of its biggest opportunities. 

The company, which has launched its products in the country in July 2015, has decided to increase its investment in marketing, promotions and distribution, said Steve Morley, vice president and general manager of APAC at Fitbit Inc. 

“In some mature markets, our growth is slowing, but it doesn’t apply to India,” said Morley. "As per GFK data, we have 82 per cent market share in the activity tracker market in India. This is not shipping, but actual sales data. Even if you consider every connected wrist devise, which also includes smart watches — a segment we don’t participate yet — activity trackers, running watches, etc., we control over 50 per cent market share in India." 

When it launched in India, Fitbit first offered its products exclusively via Amazon for two months. Later, it started selling the product at 600 stores of large electronic chains including Reliance Stores, Croma and Helios. 18 months down the line, over 1000 stores across 90 cities sell Fitbit products, while customers from over 350 cities have bought their products. 

"Now, we also have more than 300 independent shops selling our products. I firmly believe that our distribution needs to go up by at least five times. The reach of Amazon is unrivalled, but retail is also important. We have invested millions of dollars, and will continue to invest significantly to maintain the market leadership in India," Morley explained. 

Incidentally, Fitbit, which has maintained its dominance globally, has also faced one of its largest declines ever in the US market that is quickly approaching saturation for fitness trackers, according to global market intelligence firm International Data Corporation (IDC). 

According to IDC report, though Fitbit has grown in other parts of the world, it also remained challenged as low-cost competitors eat away at Fitbit's market share. In fact, from being valued at $6.5 billion on its debut on the New York Stock Exchange in June 2015, the market cap of the company has fallen to $1.37 billion. 

However, Morley dismissed concerns in India. "Between July-December 2015 and July-December 2016, we have seen over 150 per cent growth in India. Even in the first quarter of 2017, there has been major increase. I would say Indians have really adopted this category," he said. "We are becoming a part of the popular culture here, which is always a good sign."

Source: ET