Here’s How Nokia Can Gain From Its Launch Of Connected Health Devices In India

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Withings, a company recently acquired by Nokia (NYSE:NOK), has launched a range of connected health devices in India, including fitness watches and Wi-Fi scales. Apart from activity trackers, Withings launched a home HD camera with baby monitoring features, a wireless blood pressure monitor and a device which allows users to monitor and improve their sleeping experience. While Nokia’s acquisition of Withings was aimed at establishing itself as a key player in the connected health devices market, India holds strong growth potential in this segment. With a large population and strong economic growth, the personal healthcare segment is witnessing tremendous growth in the country. Wearable health leader Fitbit entered India in the middle of 2015 to tap into this market and now commands the highest market share in terms of value, while players such as Xiaomi and GOQii dominate the market in terms of volume.  Nokia is an established brand in the country.  Through this launch.  it can get a head start in the higher priced fitness trackers segment, which is currently at a nascent stage with Fitbit being the only real competitor.

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Capturing The Fragmented Wearable Devices Market In India

According to IDC, fitness bands accounted for nearly 90% of the 400,000 units sold in the Indian wearables market in the first quarter of 2016. While this market is growing rapidly, players such as Xiaomi and GOQii together contributed over 45% of the market share in terms of volume. Fitbit had the highest market share in terms of value given the high price of its products, but only a 6% market share in terms of volume.

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Almost 50% of the market share in terms of volume is scattered over smaller players and Nokia can potentially capture this market. While Withings’ products will fall under the “high priced” category and compete primarily with FitBit, we believe Nokia can potentially launch lower priced products in this segment to capture a higher volume market share.  Also, currently this market is dominated by fitness trackers. Hhowever, Withings can potentially penetrate into the market for other connected health devices (such as baby monitors and health monitors) and establish itself as a strong player in that segment.

India is witnessing tremendous economic growth and is a highly populous country, with a rapid increase in the older population. While healthcare was not in the forefront in the region in the past, with increasing disposable income and higher life expectancy, consumers in the region are being attracted to health monitoring and fitness tracking devices. We believe Nokia’s early launch in the region and brand recall will work in its favour.  India can become a large market for its health devices in the long term.

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