boAt is one of the popular audio brands in India and globally. The company has achieved this milestone within just 8 years. Let's understand how boAt became the second biggest audio brand globally by examining the trends they followed, their marketing plans, and other things they did to grow.
What is the business model of boAt?
boAt, the popular Indian audio brand sells various products such as wired and wireless headphones, Bluetooth speakers, smartwatches, and others. It is the leading brand in the audio category and owns a market share of 27.3% in the earwear category.
boAt focuses on selling premium products at affordable prices. Their strong market reach and provision of good quality products at a low price contribute to its successful business model.
What is the revenue model of boAt?
When it comes to revenue, boAt generates its income from its strong presence across various channels. boAt is readily available on all the major online platforms, including but not limited to Amazon, Flipkart, Croma, and others.
The company is aggressively focusing on expanding its offline presence. Its products are available in several offline stores to form a strong alliance with its consumers.
The operating revenue in FY23 from the audio segment was INR 2,350.8 Cr, which accounts for 70% of their total revenue. It earned INR 901.5 Cr in operating revenue from its wearable sector. The total revenue in FY23 was INR 3,377 Cr.
To retain its existing customers, boAt also offers warranty services. This helps the brand gain the trust of its customers and enhance client satisfaction. Besides, it has expanded into other tech products as well.
For instance, it has added smartwatches to its product portfolio to reach more customers and provide them with affordable products according to market trends.
boAt’s strong marketing strategy
The foremost thing after customer satisfaction that helped boAt become the second-largest audio brand is its marketing strategy. boAt collaborated with popular youth icons from various industries to promote its products.
Additionally, it collaborated with the popular OTT platform Netflix in December 2022 to launch its true Wireless Earbuds (TWS), On-Ear Headphones, and Wireless Neckband.
In March 2023, boAt became the official audio and wearable partner of two IPL clubs, including GT and RCB. It was also the official audio partner of KKR throughout the IPL's 16th season.
boAt has launched its 360-degree campaign featuring many celebrities, including actor Kiara Advani, cricketer Shreyas Iyer, fashion designer Masaba Gupta, and co-founder Aman Gupta himself. All these marketing moves helped boAt become a favorite brand among customers.
Prominent Growth Milestone of boAt
In July 2022, boAt had gathered more than 800,000 customers.
According to the company's reports of July 2022, it was adding 1 new customer every 3 minutes.
In May 2022, the company sold 4 units every minute and a total of 6,000 units per day.
boAt reached an estimated $500 million in net sales in FY22-23.
In 2023, boAt became the world's second-largest audio brand.
How did Make in India contribute to boAt success?
Aman Gupta started boAt in 2016. The 'Startup India’ initiative was just launched. Back then, people did not take the brand seriously. But after 7 years, it has become the world's second-largest audio brand.
Aman shared this while attending the Creator Awards in Delhi. He further stated how the 'Make in India' initiative helped the company achieve this milestone. Aman shared that, before COVID, the company's products were exported from other countries.
However, during the pandemic when all trades were closed, the company started manufacturing most of its products in India with the help of the 'Make in India' initiative. Currently, the company is manufacturing 70% of its products in India and selling them around the globe.
What is the future of boAt?
The overall future of boAt looks promising as the company continues to focus on growth. This has also impacted boAt's share price in the unlisted market. Since the company is experiencing growth, boAt shares are a great investment option for people.
Although the company withdrew its IPO from the stock market, people can still invest in boAt's unlisted shares. It's a good way to park their funds in a growing company and make a profit before the official launch of boAt shares on the stock exchange.
If you want to earn a high return on your investment, then boAt unlisted shares are your worthy investment. At Stockify, the best trading platform in India, we have a team of experts who can guide you with buying and selling top unlisted shares in India. You can buy unlisted shares of top pre-IPO companies in India from Stockify. Want to know how to invest in boAt unlisted shares? Connect with us today!
