BoAt ad campaign taking a dig at Apple sparks social media outrage

In today's fast-paced market, brands use creative marketers to tap into the psychology of consumers, crafting stories and visuals that deeply connect with their wants and needs, building strong bonds and trust. Smart Personal Audio tech and other wearables have contributed significantly to the boom in the gadget industry.

GLOBAL SCENE FOR (TWS) ~ Truly Wireless Stereo

Wireless Stereos continue to penetrate affordable mass-market segments, they make up 73% of shipments of the 110 million units traded in Q3 2023. The global shipments of wearable devices in Q3 2023 exceeded those in Q3 2022 and Q3 2021. Smaller companies entering the market and the competition from more recent categories, such as smart rings, have been suggested as the reasons for the increase.

Is boAt changing set standards?

The fact that boAt is setting new sales records impacted its company's success in the unlisted share market. Consequently, the boat share price saw a rise in value the moment the firm disclosed its sales data. But how this would help regular investors is a primary question that has to be answered. In the FY23 financial report, boAt indicated that its net sales amounted to almost Rs 4,000 crore. According to the boAt, the company's leadership in the wearable and audio areas is the cause of this rise.

Boat's goal of effortlessly incorporating accessories into lifestyles shows a strategic partnership with changing consumer behavior. The boat gives a sense of personal style in addition to meeting basic necessities by providing goods that improve everyday lives.

The trend for accessorizing is expected to drive Boat's growth, as demonstrated by the notable rise in average ticket size—from Rs. 500 to Rs. 750. This success can be attributed to the company's dedication to quality and innovation, which has increased trust among the listeners. The boat is in a strong position to maintain its rising momentum and further strengthen its position in the market as consumers continue to embrace its products.

But where did boAt go wrong?

Using words like "i," "pro-max," and the social awareness associated with Apple's products in their current advertising, boAt Lifestyle produced a campaign in an attempt to acquire market share, stand out, and attract clients with their distinctive style and message. However, the responses were not well received by “fanboys” of Apple users. “No Fruits were harmed in the making of this film. It's time to give an Indian brand a chance to compete on the global level. Don’t be a fanboy, be a boAthead," while releasing its most recent advertisement, boAt said in a disclaimer.

Online users were divided over the video; some praised boAt for its inventiveness, while others referred to it as a new low in illusory marketing strategies. Social media users were split over the fact that Apple and boAt have vastly distinct client bases, which elevates the advertising above mere marketing ploys. Additionally, customers brought out technical issues with boAt products and called for the firm to deliver its goods on schedule before taking on major competition like Apple.

What Does boAt Net Sales Growth Mean for Retail Investors?

BoAt announced a 39% increase in net revenue, largely attributable to the audio segments.

Retail investors have an advantage over corporate investors. This may be the result of boAt's financials, which have been favorable over the previous three years compared to its strongest competitors. Retail investors will win in the long run from boAt's increasing net sales in the audio segment as the firm may raise its profit margin due to strong market demand.

Boat intends to further its global expansion by focusing on foreign markets. Apart from adding an audio section, boAt's goal is to boost its share of sales in the wearable market, including its smartwatches. As the company with the biggest market share, it will continue to concentrate on taking the lead in the wearable and audio markets, which will help its regular investors.

How can you invest in Boat?

BoAt Lifestyle, a leading Internet-first brand in electronics, has secured $171M in funding over 9 rounds. With a focus on 'Make in India, Make For India,' it plans to enhance technology capabilities and production capacity. BoAt aims for global expansion, emphasizing audio and wearable products like smartwatches and smart rings. However, concerns arise over its advertising practices, which could affect its reputation.

Regarding the boAt's performance on the unlisted share market, an increase was observed in its sales, EBITDA, and other indicators. The current market capitalization is ₹ 130888 Cr, and its boat share price has increased to ₹ 1,455. You can purchase boat pre-IPO shares to benefit from the company's competitive edge in the wearable and audio industries. You can use Stockify to buy unlisted shares without any inconvenience and locate the latest boAt share price. Stockify is a growing stock trading platform for unlisted shares.