Wireless is the Future of Accessories Market

Manish Gupta, Business Head - Mobile Accessories, Intex TechnologiesThe proliferation of smart phones and advent of advanced technology has led to a surge in the demand for mobile accessories. It is said that the global mobile phone accessories market is projected to grow at a CAGR of 6.9 percent during the period 2015 to 2025. Last year, Indian mobile accessories market itself was evaluated at Rs.6000 crore and is expected to grow 25 percent in the coming years. Today, more and more consumers are opting for wireless accessories owing to the simplicity, ease and comfort that they bring along. With smartphone penetration and consumer’s preferences, the demand and hence the value wireless accessories such as headphones and chargers is bound to grow.

As per media reports, the accessories market is potentially twice or even thrice the size of smartphones market. The primary reason for that is the fact that a buyer ends up buying two or more accessories for a device. There are several factors which are driving the demand for wireless accessories today. Other factors like growing urban population and their disposable income in developing nations, familiarization to technological advancement and consumers’ shift to smart phone and technology are contributing to it. For a consumer, accessories that are easy to carry and use are drawing demand for wireless accessories, particularly the wireless headphones and chargers. Thus, creating a paradigm shift from wired to wireless accessories.

Why Go Wireless
There are myriad choices available in the market when it comes to smart and cool accessories. Due to the increasing demand for the accessories available, India is extremely optimistic about the potential growth of this market. Consumers prefer to shop from an array of mobile accessories ranging from batteries, chargers, headphones, speakers and the list goes on and different brands in the market are offering the same with an idea to enhance the user experience with smart technology.

Currently, the trend is that there is high demand for wireless technology which is presently concentrated in the developed countries, and is gradually picking up in India and other Asian countries. According to ABI Research firm, global revenues for mobile
accessories is forecasted to grow to $101 billion by 2020, at a CAGR of 4.3 percent. So, even if India is at a nascent stage for wireless technology, it is expected to gain momentum regardless of high costs for such gadgets.There are many international and home grown companies in India who are striving to introduce innovative products at affordable price range.

Given the government initiatives towards making India digital, a lot of mobile handset brands are urged to showcase best products for consumers to buy

Media reports also state that, consumers do not prefer wired accessories because they are not very efficient in handling. For instance, many companies would still utilise LAN (Local Area Network) technology to provide the basic ability of sharing the information with all employees with a common source. Hence, the implementation of rapid technological advancements is much required to offer opportunities for growth. Wireless accessories such as Bluetooth, wireless chargers,(also known as Inductive charging)offer numerous advantages over wired accessories which are portability,convenience, efficiency and flexibility. Owing to consumers’ preferences, India is sure to see a rise in demand for wireless accessories while assuring availability and longevity of smart accessories at affordable rates.

Factors that Impact the Wireless Accessories Growth
Currently, the transition is set to be remarkable in the earphone and headphone market which will be followed by chargers, as consumers feel more comfortable making large investments today. Some of the factors impacting the wireless mobile accessories in India today are:

- Increase in Smartphone Adoption: According to a Morgan Stanley research report, India will be the second largest smartphone market next year and the market will grow at a compounded annual growth rate (CAGR) of 23 percent through 2018. The motivation of users using a smartphone is primarily for internet use, staying in touch with near and dear ones, and the continued interest for innovative accessories for their cell phones.

- Strong Distribution Network & After Sale Service: Nowadays, both single-branded and multi-brand stores offer diverse range of wireless mobile accessories such as Bluetooth, headsets, earphones, chargers, and others online as well as offline, coupling it with after-sales services for long-term profits. Its impact is expected to increase in the near future.

- Demand for Innovative Products: As consumers mature, the Indian smartphone market will need to mature too; and given the government initiatives towards making India digital, a lot of mobile handset brands are urged to showcase best products for consumers to buy.

- Demand for Aesthetical Products: Indian consumers always look for good-looking products that raise the aesthetical value of their phone. And this is likely to fuel the prospects for market growth.

To sum it up, a change in lifestyle and preference for comfort and simplicity will drive the demand for wireless mobile phone accessories going forward. While India is already focusing on ‘Make In India’ and ‘Digital India’, mobile handsets and manufacturers are heavily investing in creating innovative products with a high degree of differentiation. It would be great to see how India unfolds the wireless market.