Even though consumption and the mobile phone industry is sluggish, the smart wearable market is still growing against the trend, with high expectations by
ODM and terminal brands.
According to the statistics of Electrend, the global smartwatch brand shipments in Q1 this year were 29.44 million pieces, a year-over-year increase
of 9%. Electrend estimates that in 2022 , the global smartwatch market shipments will increase by 20% year-over-year to 228 million pieces; the
cumulative total shipments will exceed 500 million pieces.
A mature market usually means increased involution. ODM smart watch manufacturer Yawell Intelligent is considered to be the "dark horse" of the industry with its
outstanding performance with millions of monthly shipments.
" This year's revenue target is to increases by 70% year-on-year, and it seems that it is expected to be completed ahead of schedule." Mr. Gu, deputy general
manager of Yawell Intelligent, said that "After our rapid rise from China, we have developed an expansion strategy of 'India first, then Europe and the United States'
with high-quality supply chain and customer resources as the starting point, which has become the key to the company's sustained and high growth."
It is reported that Yawell Intelligent has more than 10 automated production lines for smart watches, with a monthly production capacity of 1.3KK. In the Indian
market with huge demand, it has launched ODM business relationship with the four major local smart watch brands with high cost performance products, which
also includes more than half of the watch orders of Noise, Titan, Fire-boltt and boAt, becoming the most competitive ODM smart watch manufacturer for India.
Millions of monthly shipments
For ODM manufacturers, large-scale production is a direct manifestation of hard power and the core of creating cost advantages. In this regard, Yawell Intelligent
has a lot of experience, and its growth story is worthy of careful appreciation.
6 years ago, when the company was first established, it had almost zero client acceptance. In order to open up the market, Mr. Gu’s figure appears in Huaqiang
North almost every day, to understand the advantages and disadvantages of competing products at the forefront, and listen to consumers' feedback.
"After a long time, I have become familiar with every counter that sells smart watches. I can know about any new product information as soon as possible. This
is very beneficial to know ourselves and others." Mr. Gu recalled that the company quickly realized from 0 to 1, and it found its own market position with
cost-effective products, and launched 6 best sellers for the following 5 consecutive years.
In 2019, due to the shortage of ICs in the market, most factories blindly increased the unit price, and as a result, they lost their power in e-commerce channels
such as Amazon. Many of their customer resources turned to Yawell Intelligent, which laid a solid foundation for its subsequent development.
At the end of 2020, Yawell Intelligent has ushered in an important turning point in its development history: the company has fully moved to the 2B market.
Until now, Mr. Gu is still grateful and gratified for this decision, because the overseas e-commerce channels initiated by Amazon in the past two years have been
reshuffled, and the ODM industry has suffered a lot. Yawell Intelligent was not only not affected, but benefited from it. It once again took over the top brand
customers, and the resources were further concentrated.
Since last year, Yawell Intelligent has focused on expanding the Indian market and opened a new chapter of advanced development.
" The characteristics of our post-70s are: firstly, our style is relatively stable, and we don't take risks easily; secondly, we are used to perseverance and always want
to do things to the extreme. " Mr. Gu said that after so many years of precipitation and accumulation, the company now has 13 production lines with 1.3KK monthly
production capacity, and the shipment volume reaches the KK level. " If it weren't for the supply of the main control chip due to the epidemic, the company's orders
and production capacity would have been fully saturated."
According to his WeChat records with the supply chain, various partners are now fully supporting Yawell Intelligent, and its supply level has basically returned
to normal. Electrend learns from the industry chain that the current utilization rate of ODM smart watch production lines is generally around 50%, which is far
lower than the level of Yawell Intelligent.
Gained 60% orders in the Indian market
Since Mobile News (the predecessor of Electrend) launched the "India Tour" for the first time in the industry in 2016, Electrend has maintained a high degree of
attention to the Indian consumer electronics industry chain for many years.
According to the statistics of Electrend, among the four major smartwatch markets in the world, India is more prominent. After the mobile phone position was
captured by foreign brands, India strengthened the protection of its own smart watch brands, and firmly controlled most of the market with cost-effective
products of about 12-20 US dollars. It is still difficult for foreign brands to take root.
Indian consumers are not sensitive to brand awareness, but are more concerned about the quality and user experience of the product itself. Compared with the
large-scale involution in the domestic market, Chinese ODM manufacturers, which are known for their cost control, have an excellent development opportunity
in India. Of course, they also face severe challenges, that is, the satisfaction of product features and functions, and the core cooperation ability with overseas ecology.
With years of operating experience and excellent supply chain system, Yawell Intelligent has reduced costs and increased efficiency for brand customers. Currently,
it has a cooperative relationship with local top smart watch brands in India. It is the core ODM partner of Noise, Titan, Fire-Boltt, and Boat, undertaking more than
half of their orders, and becoming the largest ODM smart watch manufacturer for India.
Every October is the biggest and most grand Diwali festival in India, and it is also the traditional golden time for consumer electronics promotions. Mr. Gu believes
that this year is the ultimate test for the quality of ODM products, and it is also related to the stocking situation of local Indian brand manufacturers for the
Christmas war, and even the future market trend. "Although the competition in shipments is extremely fierce, and the product price war is murky, the short-sighted
behavior of reducing configuration or using shoddy for short term interests is a real harm to the industry."
The market is always cost-effective. Mr. Gu emphasized that China's many years of ODM experience have fully proved that customer-centric and consumer-oriented
continuous innovation is the fundamental core and driving force of the industry.
Innovation is not only a way of thinking, but also a kind of vitality.
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