In Short:
Garmin, a GPS-enabled equipment maker, aims to boost its share in the Indian market, which has been underperforming compared to other regions. Tim Spurling, Garmin’s General Manager, highlighted India’s growth potential as it may become the third-largest economy by 2030. Recently, Garmin restructured its operations by partnering with AMIT International Group as its exclusive distributor and is focusing on affordability and digital health in India.
NEW DELHI: The US-based company, Garmin, recognized for its GPS-enabled watches and various equipment across marine, automobile, and aviation sectors, is seeking to enhance its market presence in India. This strategy aims to align the Indian market share with the performance levels seen in some of Garmin’s top markets in Asia and Europe. According to Tim Spurling, General Manager for Emerging Markets – Central Asia, Middle East & Africa at Garmin International, there exists a considerable opportunity for growth in India.
Market Potential in India
Spurling noted that India currently does not rank among Garmin’s best-performing markets, yet it possesses the potential for significant growth. “India is set to become the third-largest economy globally by 2030, with a growing middle class and increasing disposable income. With a population of 1.45 billion, this offers a substantial opportunity for Garmin,” he stated.
He acknowledged that Garmin’s present market share in India is relatively low in comparison to other countries, indicating a need for improvement.
Strategic Changes in Operations
In alignment with its growth strategy, Garmin has taken pivotal steps in its retail operations. In October 2023, the company appointed AMIT International Group (AIG) as the sole national distributor for Garmin’s fitness, outdoor, and marine products.
During the second quarter of 2024, Garmin’s revenue from its fitness segment surged by 28% to $428 million, primarily driven by the sales of wearables. The company operates on a January to December financial calendar.
Spurling elaborated on the company’s restructuring, which involved closing its Indian office and transitioning responsibilities to AIG. As part of this transition, local staff have been reassigned to report to AIG, which in turn will communicate directly with Garmin’s headquarters.
Challenges and Solutions
Spurling acknowledged a key challenge in managing pricing disparities between online channels and brick-and-mortar retailers. “We are committed to creating a level playing field for all our retail partners to make selling Garmin products lucrative,” he emphasized.
Garmin’s product pricing ranges from Rs 30,000 to Rs 40,000 and above, competing with offerings from major brands such as Samsung and Apple. As part of their strategy to further enhance affordability, Garmin is collaborating with AIG to provide various payment plans for consumers.
Focus on Innovation
Additionally, Garmin is concentrating on developing innovations in digital health, wearable payments, and satellite communication technologies in India. According to Juha Villanen, Head of B2B & Partnerships for EMEA Emerging Markets and India, “Garmin Health is our primary focus in the short term in India. Garmin Pay implementation will align with the timelines set by the Reserve Bank of India, while satellite communication is expected to cater to specific governmental needs, primarily in emergency situations.” Villanen expressed optimism about seeing these innovations in India soon.
