In a world where businesses strive to break even, going to the top remains a dream for many. Some companies, however, break the records and make it to the top despite all the challenges and competition.
One such Indian company, whose name was barely known, is currently at the top of its game. BoAt, a lifestyle brand, is a household name today, selling electronics and wearables. In today’s article, we will explore BoAt’s company details and the brand’s journey of passion, hard work and smart business strategies.
Who is BoAt?
BoAt is a fashionable, wearable brand that primarily sells audio-related and other electronic products. The brand’s categories include headphones, earphones, speakers, car accessories, smart watches, power banks and more.
Well, you must be wondering how a wearable brand relates to a boat. The founders believe that listening to music using these products transports the user to a different zone of peace and calm, like a boat journey that takes you from land to water. Hence, the brand is named BoAt, with the tagline “Plug into Nirvana”.
The founders
The business was founded by Aman Gupta and Sameer Mehta in 2014.
Also read: Aman Gupta: The sound of success
Aman Gupta is a Chartered Accountant and a B.Com graduate from Delhi University. He also holds an MBA in Finance and Strategy from the Indian School of Business Administration.
His first job was as an assistant manager at the CitiGroup, in their retail banking division. He worked with other corporates, with his last stint as Director – Sales, for lifestyle brands like JBL at Harman International. He then began his entrepreneurial journey as the Co-Founder of Imagine Marketing India, the parent company of BoAt. Today, besides being a successful entrepreneur and BoAt’s Chief Marketing Officer, Aman Gupta is one of the favourite sharks of Shark Tank India.
Sameer Mehta holds a commerce degree from Narsee Monjee College of Commerce and Economics. Being an entrepreneur all along his career, Sameer Mehta joined hands with Aman Gupta to start BoAt in 2014. Today, Sameer Mehta serves as the Chairman and Chief Product Officer of BoAt.
BoAt’s company history
The story of BoAt began when the founders noticed a gap in the audio product sector – Good quality products were expensive, and less-priced products were of cheap quality. BoAt aimed to bridge the gap by selling high-quality products at reasonable prices, making them affordable to a larger section of consumers.
BoAt’s business began with launching chargers for Apple phones since the original chargers were breakable and expensive. BoAt’s chargers were inexpensive alternatives and worked well among consumers. Gradually, the brand penetrated the audio market with headphones, earphones and other products.
What is the brand purpose of BoAt?
The objective of the brand is to provide millennials with affordable, durable and ultra-fashionable audio products and accessories.
BoAt’s business growth and strategy
BoAt’s business model is robust. with the following These strategies that have led to its growth and made it one of the most popular brands, especially among youth:
- The target customers
The brand’s primary target is youth. The country’s young population is rapidly growing, which has helped the brand gain consistent demand. BoAt aims to provide stylish yet affordable products to this category of customers.
The brand keeps updating its style and introduces new categories to cater to the changing needs of this segment. Hence, BoAt has been able to stay relevant among youth and maintain a loyal consumer base.
- BoAt’s core values
The brand’s core value system is to provide attractive and trendy products, at affordable prices, with no compromise on the quality. Focusing on these three aspects has helped the brand place itself between mass and premium brands, which usually do not meet the requirements of the middle-class population.
Also read: Godrej Consumer Products initiates strategic divestment in East Africa holdings
- Sales channels
BoAt has not restricted its sales to one medium but has been active on both online and offline channels. It is available on e-commerce websites like Amazon, Flipkart and Myntra. It is also available in offline stores like Reliance Digital, meeting the varied shopping preferences of consumers.
- BoAt’s internal strengths
BoAt’s strengths include its trendy designs and features. The brand also acknowledges the strength of the employees and its management, as a key contributor to its growth and success.
- BoAt’s cost and revenue
The company’s undeterred focus and spending on research and development is one of the main factors differentiating the brand’s products from others. It equally focuses on production and customer service while allocating costs. Having a portion of its production outsourced to China has helped attain cost efficiencies, which drives the reasonable cost of products.
On the revenue front, nearly 70% of the revenue comes from wearables and audio products. The remaining comes from other accessories.
Besides the above factors, BoAt gives utmost priority to customer relationships. From after-sales services to social media engagements via Instagram, Facebook, etc., to offline activities such as organising events and meet-ups, BoAt does not miss any opportunity to stay in touch with its customers.
BoAt’s growth and financial position today
As of 2020, BoAt was ranked as the fifth largest wearable brand, by International Data Corporation. In FY 2023, 15 million BoAt products were assembled in India. It hit a revenue of $500 million for the first time since inception, in the same year. The firm hopes to increase its revenue by ₹1,000 crores next year. BoAt held 30.6% of the market share in the audio wearable segment in 2023.
Here are some strategic moves that BoAt intends to make to achieve the desired growth:
- To improve the performance of its software and strengthen its offline presence.
- BoAt has contracts with various manufacturers, including a joint venture with Dixon Technologies, to improve the manufacturing of the brand’s products.
- The brand aims to source most of its components locally going forward.
- The acquisition of KaHa has helped BoAt’s smartwatches stand out among competitors, with KaHa launching new features regularly.
Bottomline
BoAt, which was established as a bootstrapped company in 2014, is a million-dollar business today. It is a household name, with a loyal customer base, especially popular among youth.
BoAt stands as an example of how the right values, strategies, products and team, can disrupt the market. The growth and success of BoAt are an inspiration to all young entrepreneurs to follow their passion and achieve their goals.
Also read: The Indian fashion industry: A booming sector with huge potential
