boAt: 2016 was a rather difficult phase for Indian phone giants. The Chinese storm had started to blow away Indian companies such as Micromax, Lava and Karbonn among others.
On the other hand, Aman Gupta, an ambitious young man was all set to step into the industry with his consumer lifestyle accessories brand, “boat”. He founded the company with Sameer Mehta in November 2016. They had an almost impossible task to make his boat sail through the turbulent waters of the Indian market. There were problematic rocks all around. Banks declined to lend them a loan, investors were sceptical about putting in their money in an Indian hardware brand that has set forth to compete against the German, Japanese, American and Chinese ones.
However, the sheer self-confidence in their brand and the ability to keep sailing kept them moving forward. They invested capital of Rs. 15 lakh each and started off by selling mobile cable and chargers. Their first year’s turnover was Rs 31 crore with a profit of Rs 1.67 crore. They introduced wireless earwear products and speakers to their portfolio and thus, turned the tide in their favour by posting revenue of Rs. 113 crore.
As of 2020, boAt dominated the global accessory industry by becoming the 5th largest wearable brand in the world in the third quarter itself. What amazed everyone, even more, is the fact that boAt overtook industry giants like Apple, Samsung and Xiaomi to achieve this feat. boAt posted annual revenue of Rs 701 crore in FY2020 and a humungous profit of Rs 49 crore. It sold 15,000 units per day and built up a 3 million-plus user-base. the boAt did not stop here. It partnered with 6 IPL teams and collaborated with 14 celebrities from Bollywood and Cricket.
What different strategy did boAt adapt to scale up instantly?
As per the strategists, boAt identified the loopholes in the market quite early. Focusing on the entry-level segment, finding a sweet spot in terms of pricing, aggressive marketing and advertisement and a close emphasis on quality led to its exponential growth. Though what really helped them to establish their own position in the segment was addressing consumers’ real-life issues regarding cables – frequent breakage of cables. They offered a solution that came out as a blessing for many; Cables that don’t break. The message was loud and clear; Switch to the indestructible cable. Customers accepted their products with open arms.
Rolling out products specific to Indian conditions also gave boAt an edge over its competitors. BoAt introduced hearable products, which are water-resistant and sweat-proof to suit Indian conditions. To make them dust-resistant and durable, goods were tweaked. As Indians love the bass thump, ample care was taken to enhance mike’s sensitivity.
Today, boAt stands out as one of the premier brands in the industry with a wide range of product offerings for every individual. They ensured top-notch quality while constantly listening to real-life consumer problems and solving them one-by-one. They are all geared up to develop products in India itself, taking complete advantage of the wave of “Make in India”.
However, the challenges are “titanic”, but the duo is sure to sail their “boAt” past them swiftly.
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