Wearable Electronics in Indonesia

PROSPECTS

Numerous consumer trends and smartphone penetration bolster prospects for wearable electronics

Wearable electronics, which are most useful when used in conjunction with a smartphone that is connected to the internet, continued to see double-digit volume growth in 2019, primarily supported by demand from health-conscious adults, gym-goers and executives. The penetration rate of smartphones, the percentage of subscribers with mobile internet, consumer spending on health and wellness products and gym/health club attendance all continued to grow in 2019, especially in major cities across Indonesia.

More affordable products help widen the consumer base, boosting volume sales

When the products were first launched in 2014, wearable electronics – especially smart wearables and activity watches – were marketed at high price points, thus the typical buyers were usually executives looking to improve their productivity. Towards 2019, however, wearable electronics were no longer primarily catering to the upper-income consumer base, as cheaper Chinese brands introduced by Huawei and Xiaomi became appealing to middle-income Indonesian consumers.

Younger consumers increasingly switch from ordinary watches to wearable electronics

Many consumers in Indonesia, especially amongst the young generation, enjoy sharing photographs and information on social media sites, and people are generally comfortable with wearable electronics that can collect data about their habits or workouts and share them on social networks. Many young consumers in major cities may also view the use of smart wearables and activity watches as part of aspirational or luxury lifestyles.

COMPETITIVE LANDSCAPE

A host of new launches boosts growth in both wearable electronics categories

Players in wearable electronics launched a flurry of new smart wearables and activity watches in 2019, and the interest they generated amongst Indonesian consumers resulted in double-digit volume growth for nearly all the leading players in 2019. Samsung launched Samsung Watch Active and Galaxy Fit in February 2019, while Chinese brand Huawei launched Huawei Watch GT, a GPS smartwatch, in April 2019.

Garmin expands share within smart wearables with new Forerunner series

Garmin is a notable brand in wearable electronics that has a wide variety of product types, ranging from activity watches to smart wearables with distinct features and different consumer targets; in all, the brand offers nearly 100 different product types. In early 2019, Garmin introduced the Forerunner series of smart wearables (GPS running and multisport watches), targeting entry-level, middle- and upper-class consumers, with its highest price reaching more than IDR10 million per unit.

Chinese brand Imoo generates interest with new product targeting children

Within smart wearables, the Chinese brand Imoo launched a product targeting children in 2019. The new product is waterproof, so it is safe to use while swimming.

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