In the ever-evolving landscape of India’s consumer electronics industry, one company has sailed to success, making waves in the audibles and wearables market. This is the incredible story of Boat, co-founded by Sameer Mehta, a company that began by selling mobile phone chargers and transformed into a leader with an annual turnover of Rs 4,000.
Setting the Scene
In the year 2016, Sameer Mehta and Aman Gupta independently approached House of Marley, a renowned US brand known for its headphones, speakers, and other consumer electronic products, with proposals to distribute their products in India. The backdrop for this was a rapidly growing smartphone market in India. To their surprise, the executives at House of Marley suggested that Mehta and Gupta meet each other.
Reluctantly, the duo agreed to meet at a hotel in Mumbai’s Bandra district. Little did they know that this chance encounter would change the course of India’s homegrown consumer electronics industry. Within days of their rendezvous, Boat was born.
“It was destiny that I met Aman along the way,” Mehta reflected. “I got to know him, and three days later, we formed the company, Boat. So, it was a lot of destiny and good wishes.”
Within just a few years of its inception, Boat emerged as a poster child of India’s burgeoning direct-to-consumer (D2C) industry. Alongside a few other D2C brands that sprouted in the early to mid-2010s, such as Sugar Cosmetics, Mamaearth, Wow Skin, and Clovia, Boat blazed a trail of entrepreneurship that spanned various sectors, from beauty and electronics to food and fashion.
The Rise of Boat
Boat set sail in 2016, and its timing couldn’t have been better. As Flipkart and Amazon redefined the Indian retail landscape, millions of Indians began shopping online for everything from electronics to fashion.
During this period, Amazon and Flipkart were converting hordes of Indians into online shoppers through enticing discounts. Online retailers were delivering products to every corner of the country, opening new avenues for brands to reach not only metropolitan areas but also tier 2 and 3 cities.
“Our turning point came when we started selling online. We partnered with Amazon and Flipkart, and our distribution became much easier, allowing us to focus on our products and brand,” Mehta explained. “Online distribution channels could deliver our products to 19,000 PIN codes across India.”
Boat initially began with the sale of phone chargers online. Over time, the Gurugram-based startup expanded its product range, gaining popularity among India’s tech-savvy younger generation, who constituted a growing segment of online shoppers.
Selling online not only expanded Boat’s reach but also reduced operational costs, enabling the company to allocate around Rs 20 lakh to marketing its products. Today, the marketing budget has grown exponentially to approximately Rs 200 crore annually, with the company dedicating 4-5% of its revenue to marketing.
Mehta proudly noted that Boat’s brand recall now surpasses many international electronic brands, including those that have been in India for decades.
Brand consultant Santosh Desai praised Boat’s success as a youthful audible brand. “They have done a wonderful job in a category that isn’t easy to break into,” Desai remarked. “Their entire business was based on selling sourced products, something anyone could do. It’s remarkable to create a powerful, youth-oriented contemporary brand.”
Navigating Initial Offline Challenges
Despite establishing a significant online presence, persuading India’s numerous mom-and-pop stores to stock Boat products proved challenging. Co-founder Aman Gupta took it upon himself to visit store owners in New Delhi’s upscale Khan Market, but his efforts initially yielded little success.
To gain acceptance among the well-heeled South Delhi crowd who frequented Khan Market, Gupta devised a clever strategy. He sent his wife and mother to the stores, posing as customers and requesting Boat products. This unconventional approach worked, and soon Gupta received calls from store owners eager to stock Boat’s electronic items.
Winning over affluent customers was pivotal because Boat positioned itself as an aspirational brand offering global quality at attractive prices.
Tailoring Products for India
Boat’s products were not just designed for global appeal; they also incorporated features tailored specifically for the Indian market. For instance, Boat’s headphones were designed to prevent sweat from entering the speakers, addressing a common issue in India’s sweltering climate. Additionally, noise-cancellation features were adapted to suit Indian cities, where noise levels often exceeded the World Health Organization’s guidelines.
“As Indian consumers, we need a different quality that differs from international brands. We live in a hot and humid country where we sweat a lot, and that can damage headphones. Plus, our environment is noisy,” Mehta explained.
What began as a small startup in 2016, selling mobile phone chargers, has grown into an enterprise with an annual turnover of Rs 4,000 as of September 2023. The company now aspires to reach revenues of one billion in the next three to four years.
Charting the Course
Boat primarily sells its products through online channels, accounting for approximately 68% of its total sales. Around 27% of the business comes from a network of approximately 30,000 mom-and-pop stores, with distributors established in major cities.
Despite its substantial brand equity and financial stability, Boat has no immediate plans to open branded stores. Instead, it will continue to leverage online channels and its network of local stores.
“We have realized that online has its own space, but there are many people who want to experience our products. About 80% of India still shops offline,” Mehta observed.
Mehta believes that online channels are crucial for product discovery, offering a broader selection and reaching a wider audience. Nevertheless, Boat remains committed to developing its offline presence through various channels, including its own website.
Boat aims to become a global brand designed and manufactured in India.
Bullish on Wearables
Wearables currently contribute about 22% of Boat’s overall business, with Mehta expressing optimism about this segment’s potential.
“Wearables, as a business, are very strong for us. In the next four to five years, the wearable business will surpass audibles in terms of revenue,” he predicted.
He noted that India is following a similar trajectory to China several years ago when consumers favored “fancy-looking” digital watches without advanced health-tracking features or user experiences. However, Mehta believes this will change as young Indians increasingly seek health-tracking and other features in smartwatches.
Boat expects its wearable business to reach $1 billion in the next four to five years, surpassing the audible segment’s revenue.
“The future of health tech is digital, and it has to be. People will transition towards it,” Mehta asserted, emphasizing the role of smartwatches as preventive tools against various health issues.
Global Ambitions
Boat currently sells its products in Nepal and Bangladesh and is preparing to enter the Middle East, starting with Dubai.
Mehta’s perspective on global expansion is clear: “I would not limit it to Indian brands and Indian products. You have to deliver what the customer wants—quality, specifications, and user experience. And if you can do that, you can be based out of anywhere.”
Boat is heavily investing in research and development (R&D) to
ensure the quality, specifications, and user experience of its products. With 40 members in the R&D team dedicated to audible products and a parallel team focusing on wearables, Boat is gearing up to compete in the global market, championing products designed and developed in India.
In conclusion, Sameer Mehta’s journey with Boat serves as an inspiration for aspiring entrepreneurs. His advice encapsulates the essence of entrepreneurship:
Be Prepared for Highs and Lows: The entrepreneurial journey is a rollercoaster, with days of doubt and moments of triumph.
Attention to Detail: Success lies in the details; being detail-oriented ensures that you remain on the right track.
Perseverance: Stick with it, even during the toughest times. Perseverance is key to overcoming obstacles and building a successful brand.
Evolve: Adapt to the changing needs of your business as it grows. What works for a small company may not be suitable for a larger one.
As Boat continues to evolve and set its sights on the global stage, it demonstrates that with vision, determination, and a commitment to quality, Indian brands can make a significant impact on the world stage.