The Rise of Noise: From Phone Covers to Smartwatches

In a remarkable journey that showcases innovation, entrepreneurship, and resilience, Noise, an Indian company, has emerged as the world’s third-largest smartwatch maker in 2023, trailing only behind industry giants Apple and Samsung.

Founded just seven years ago, this bootstrapped venture has transformed from its humble beginnings into a leading name in the tech industry.

This article will explore the incredible story of Noise, the lessons learned from past challenges, and what the future may hold for this ambitious company.

Noise Humble Beginning: A Passion for Gadgets

The story of Noise begins with two cousin brothers, Gaurav Khatri and Amit Khatri, who grew up in the tier-two town of Bikaner in Rajasthan. Gaurav’s fascination with technology started at a young age.

In 2007, when Apple launched its first iPhone, Gaurav was eager to get his hands on one. His cousin Amit, who was working in Hong Kong at the time, helped him acquire the device. Upon receiving it, Gaurav realized the need for a stylish cover to protect his new gadget.

However, he quickly discovered that iPhone covers were not readily available in India. Seeking a solution, Gaurav had Amit bring back some covers from Hong Kong. The positive feedback from friends and peers sparked an idea: there was a business opportunity in this niche market.

The Rise of Noise: From Phone Covers to Smartwatches

Transitioning to Business: Noise 1.0

In 2014, after completing his business degree and witnessing the smartphone revolution in India, Gaurav decided to take a leap of faith.

He asked Amit to bring back 50 phone covers for a newly launched Xiaomi phone. When they listed these products on e-commerce platforms, they sold out within just 15 minutes. This pivotal moment marked the birth of Noise 1.0, focusing on phone accessories.

By the end of their first year, Noise had set up a factory in India and achieved sales of 7-8 crores INR. The following year saw sales soar to 24 crores, establishing them as the market leader in phone covers in India. However, despite their success, Gaurav and Amit faced challenges.

Challenges in the Commodity Market

Noise’s rapid growth came with its own set of concerns. They realized that their business was operating as a commodity market—competing primarily on price without any differentiation.

With the rise of e-commerce platforms such as Amazon and Flipkart, they faced an increasing number of competitors with low barriers to entry.

In 2017, seeking to pivot and find a more sustainable product line, Gaurav and Amit looked towards the burgeoning wearable technology market. Inspired by Apple’s launches of the Apple Watch and AirPods, they recognized an opportunity to tap into a market that was virtually non-existent in India.

Noise Entering the Wearable Market: Noise 2.0

In 2016, Noise transitioned to smartwatches with its new venture—Noise 2.0. Understanding the gaps in the existing market for wearable technology, the brothers aimed to provide affordable smartwatches that offered comprehensive features compared to fitness bands available at the time.

Initial Challenges with Smartwatches

The initial steps into smartwatch manufacturing were fraught with challenges. Manufacturing a smartwatch in India was unprecedented at that time, requiring advanced technology and components typically sourced from countries like Taiwan and China. Their first attempt at launching a smartwatch—the U8—was met with criticism and poor ratings on platforms like Amazon.

Despite these early setbacks, Gaurav and Amit remained committed to improving their products based on customer feedback. In 2018, they launched their flagship smartwatches—ColorFit and ColorFit Pro—which became popular due to their combination of affordability and exciting features.

Growth Amidst Adversity

The financial year 2018 marked a turning point for Noise. Their revenues skyrocketed from 24 crores INR to 42 crores, eventually reaching 156 crores INR in FY20.

Surprisingly, while many businesses suffered during the COVID-19 pandemic in 2020, Noise thrived as consumer awareness about health grew.

The demand for smartwatches surged—rising from just 5 lakh units sold in 2015 to over 1.2 crores in 2021.

By 2022, Noise had cemented its position as the market leader in India with a 27% market share, making it the third-largest smartwatch brand globally.

Noise Current Challenges: Competition and Market Saturation

Despite its success, Noise faces significant challenges today. As competition has intensified—over 80 companies now manufacture smartwatches—the market has become increasingly saturated.

Brands like Boat and Fire Boltt, which initially had negligible market shares, are now aggressive competitors.

Additionally, Noise’s revenue dependency on smartwatches is concerning; over 80% of its income is derived from this product line. This reliance raises questions about sustainability as more brands enter the smartwatch space.

Addressing Quality Concerns

Noise has also faced criticism regarding product quality and after-sales service—a common issue when scaling rapidly. To combat these challenges, Noise has adopted several strategies.

NoiseStrategies for Sustaining Growth

Aggressive Marketing Initiatives

To regain its competitive edge, Noise has ramped up its marketing efforts significantly. In December 2022, they signed cricket superstar Virat Kohli as their brand ambassador, aiming to leverage his popularity to boost brand visibility and sales.

Although aggressive marketing can impact profit margins—in FY23, Noise recorded a gross margin of around 30% but only a net profit of 0.07%—it’s crucial for maintaining relevance in a crowded market.

Investing in Research and Development

Understanding the need for innovation, Noise founded Noise Labs, an incubator dedicated to exploring new technologies and developing future products. One standout initiative is their focus on smart rings—a product that could redefine wearable technology by combining health monitoring features into a compact device.

The global smart ring market is projected to grow significantly—from just $147 million in 2022 to an estimated $1.4 billion by 2032—presenting Noise with an opportunity to establish itself as a pioneer in this emerging segment.

Expanding into Wireless Earphones

Noise is also eyeing expansion into the lucrative wireless earphones market. Having secured funding from Bose, they aim to compete more effectively against dominant players like Boat while enhancing their market share.

In-House Manufacturing for Quality Control

To ensure better product quality and control over their supply chain, Noise is transitioning towards in-house manufacturing. They have partnered with companies like Optiemus Electronics and Taiwan’s Foxconn, which will enable them to localize production and reduce costs.

The Rise of Noise: From Phone Covers to Smartwatches

Conclusion: The Future of Noise

The success story of Noise exemplifies how innovation, adaptability, and strategic planning can lead to tremendous growth in a competitive landscape. As they navigate challenges related to competition and product quality, their commitment to research and development positions them well for future opportunities.

Noise’s ability to create a global wearable brand from India remains uncertain—will they continue their upward trajectory or face setbacks akin to other once-dominant brands? The answer lies in their willingness to adapt and innovate continually.

What are your thoughts on Noise’s journey? Do you believe they can sustain their success and emerge as a global leader? Share your insights in the comments below!

For further reading on wearable technology trends and insights into Indian startups making waves globally, check out these resources:

With these insights, we look forward to witnessing more innovations from Indian startups like Noise as they shape the future of technology!

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