BoAt is a fast catching trendy lifestyle consumer electronics brand. They manufacture and sell products like ear phones, head phones, speakers, chargers and premium cables. BoAt is a 2 year old company founded by Aman Gupta who is also the chief executive of the firm. BoAt sells their consumer durables through omni-channel platforms including the leading Ecommerce sites like Amazon and Flipkart.
What caught my attention is their trendy designs for millennial gen, advertising through excellent associations including Bollywood movies songs and community-driven retailing which they call as ‘BoAtheads’. Community-driven retailing is fast proliferating in US to give leaders like Amazon a tough stage in sales. Some leaders in concept based community-driven retailing in US are Lululemon Athletica which is a Yoga based community retailing, Stitch Fix in custom made fashion retailing. They have strategized asset light model by outsourcing the manufacturing to Chinese companies. BoAts definitely has a long way to go on the concept led marketing which indeed requires a lot of initial investments. They are targeting millennial Indians through Instagram for marketing bringing in celebrities endorsing their caption “Plug into Nirvana” which is a right move to establish the customer connect.
Rich Features at right pricing points
BoAt has launched series of innovative products offering best quality with immersive experience for customers. 50% customer reviews stands at excellent limits calling out the superior sound quality for bass lovers. Users call them as a philosophy than a product itself. Their headphones are foldable, compatible for users much in the way Beats and other headphones are. For example, BoAt rockers400 is a wireless on the ear headphones priced right in the affordable range. For these product ranges, sound quality, pricing goes a long way in customer captivity. They are priced really competitive and affordable when compared to similar products from Beats, JBL and Bose. Affordable wireless technological sophistication will propel market growth for BoAt.
Customer touché packaging:
When I first bought Beats I was amused by the packaging they did in the likes of Apple boxing. It had a deep customer touch which captures lasting mindshare. I read from reviews that BoAt packaging is in the similar lines and if customers are calling it out, it means something.
Tough industry to survive:
Its an enthusing case study to see how Jimmy Lovine and hip-hop icon Dr. Dre turned Beats By Dr. Dre headphones into a $3 billion-plus business. Beats went on to make 70% market share in premium headphones category. One would be apprehended as in why to pay such a high price for a headphone but they surpassed the apprehensions and critics to define wireless headphones pricing of $200 plus as a norm. Although pulling in strong marketing associations through leading music artists in the industry helped Dr Dre a lot to create the brand awareness. But you got to understand, it all started with the “Bass” focus. They wanted the users to hear music just the way they hear it in clubs. There is a book written by Zack O’Malley called “3 Kings Diddy, Dr.Dre, Jay-Z and Hip hop`s multibillion dollar rise” which talks about the genesis of Beats speakers and its success. We should give it to them beating the incumbent Bose which ruled the premium headphones and speakers roost for decades. Beats was finally bought by Apple for $3Bn in 2014. However this industry is very disruptive and there is nothing more than strong branding and marketing through music artists associations that can hold the edge for players in this industry.
BoAt is doing the right thing by plugging in the leading music and movies artists like Guru Randhawa and Jacqueline Fernandez to stay afloat in the game. Indian movie and cricket industry is grossly connecting to target audience, it will help gain brand awareness to a great extent. To conclude, BoAt`s approach has been all fine in terms of customer captivity, pricing points and bass focused quality of music. Aspirational young demographics is their target sales space. They are just replicating the success path laid out by ‘Beats by Dr Dre’ except for premium price scale. This company is still funded by the private equities like Fireside ventures and is not yet listed in the public market. But we can keep an eye on this rapidly rising Indian brand.