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Sounding Off: The Harmonious Success of Boat Business Model

Boat, the Indian company, has been making ripples in the audio industry with its affordable yet high-quality audio products like wireless speakers, earbuds (Airdopes), wired and wireless headphones and earphones, home audio equipment, and rigid premium cables. The company has worked to carve a niche in a highly competitive market by offering audio products catering to different customer needs. 

The Boat was founded in 2016 by Aman Gupta and Sameer Mehta, who desired to deliver high-quality audio products at reasonable costs. The company commenced with a range of wired earphones and has previously grown to offer a range of audio products, like wireless earphones, headphones, speakers, and soundbars.

The Boat Business Model: Sailing Towards Success in the Audio Industry

Boat business model is determined to offer high-quality audio products at an affordable outlay. The company fulfills this by keeping its overhead expenses low and concentrating on e-commerce as its direct sales medium. 

By selling straight to consumers through its website and other e-commerce platforms, Boat can sidestep the conventional retail dispersal norm, which helps the company keep its prices down.

Creating a business like Boat requires much effort and business and marketing skills that help owners and the business idea stand out. For those planning to develop a robust business idea like Boat, Rahul Malodia – the most renowned and rewarded business coach– will help you with strategies and skills. 

Key Components Of The Boat Business Model

  • Product Offerings

The Boat offers various audio products designed for different customer segments’ needs. The product includes wired earphones, wireless earphones, headphones, speakers, etc. The products are of great quality, sound quality, and available at reasonable prices.

  • Distribution Channels

Boat’s distribution strategy is primarily focused on e-commerce. The company sells its products through its website and e-commerce sites like Myntra, Amazon, and Flipkart. Leaving behind the old retail distribution method, Boat has kept its prices low and offers more excellent quality products. 

  • Pricing Strategy

Boat’s pricing strategy is centered around affordability. The company offers high-quality audio products at significantly lower prices than its competitors. This is done by keeping overhead expenses low and selling the products directly to the customers through online sites. Besides, the company occasionally offers deals and promotions to draw customers.

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  • Revenue Streams

The Boat generates revenue by selling audio products. The company’s primary sales channel is e-commerce. It sells its products through its website and other online marketplaces like Amazon and Flipkart. The Boat also has offline retail stores, although e-commerce stays its primary revenue origin.

  • Sales Of Audio And Lifestyle Products

Boat vented itself as a lifestyle and fashion brand for GenZ and millennials, not as a faded electronics company just trying to sell an earphone.

  • Partnerships And Collaborations

The brand sells products on popular e-commerce sites like Amazon, Flipkart, and Myntra and retail outlets like Croma and Reliance. The company partnered with IPL teams like Mumbai Indians and Chennai Super Kings

The company has done popular endorsements for the brand, from Bollywood to cricket personalities like Shreyas Iyer, Hardik Pandya, K.L. Rahul, Shikhar Dhawan, Kartik Aryan, Diljit Dosanjh, Neha Kakkar, Kiara Advani, Rashmika Mandanna, etc. The Boat has also co-branded with events like Sunburn and Lakme Fashion Week.

  • After-Sales Services

They concentrated on exemplary after-sale customer service if a product came under the warranty. The Boat has started a new service where the customer will get home delivery of the product. 

Boat Revenue

Boat Business Model

According to the latest data, Boat reported revenue of INR 2873 crore in the financial year 2022.

Apart from audio products, Boat Lifestyle has a demand stake of 27.3 percent in the earwear type, and it is the only brand in this variety.

It made a revenue of INR 1,531 crores and a profit of INR 127.1 crores in the financial year 2021. Its earnings rose by 61 percent from INR 48.85 crores in the year 2020 to INR 78.6 crores in 2021.

Boat concentrates on selling wired earphones at the most affordable prices. Their products are priced anywhere between INR 350 to INR 550, as no brand sells wired earphones at this price.

The company has created products with a demand-pull theory, meaning they don’t have to market its new products. It has become popular only because of its high grade and affordability.

Strategies That Helped Boat Succeed

boat net worth

1. Online Approach

It started selling online as it was easier to handle distribution and sales. After that, they penetrated the offline market in remote cities.

2. Outsourcing The Manufacturing

The primary point was they needed the expertise to simulate good-quality earphones. So they chose to manufacture from Chinese companies. So they just concentrated on developing the product and making the brand.  

3. Focusing On Affordability

The product rates are lower in the audio category, and they sell good quality products at the lowest possible rate without compromising on the quality. Both the co-founders felt most Indians are middle class, and they desired branded earphones at an inferior cost.

4. Lifestyle Marketing

Boat vented itself as a lifestyle and fashion brand for GenZ and millennials, not as a faded electronics company just trying to sell an earphone.

5. Great Customer Service

They concentrated on exemplary customer service. The Boat has started a new service where the customer will get home delivery of the product. 

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Boat Founder and Co-Founder

Aman Gupta: Founder of Boat Company
aman gupta boat founder

Aman Gupta is the co-founder and Chief Marketing Officer of Boat (Imagine Marketing Pvt. Ltd). He graduated from DU and then jumped from one company to another to finally anchor and build one of the most famous audio gadget companies in India. 

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Sameer Mehta: Co-Founder of Boat Company
sameer mehta boat co-founder

Sameer Mehta is the co-founder, Chief Product Officer of Boat (Imagine Marketing Pvt. Ltd), and Executive Director of Kores. Previously, he owned a company named “Redwood Interactive.” He has done his education at St. Xavier School, Mumbai. He did BCom from the famous Narsee Monjee College of Commerce and Economics.

Boat Net Worth

Boat Business Model

Here’s a Glimpse of the Growth Landmarks-

  • It has amassed 800,000+ customers within a brief duration of 4 years.
  • It claims to add one new product to its clan every 3 minutes that pass.
  • It sells 4 products every minute and over 6,000 products each day.
  • Boat Audio was announced as the leading brand in the ear wear sort, with 27.3 percent of the market shares.
  • The business has been booming for 5+ years.

According to recent estimations, Boat net worth will be about 700 crores in 2023. The company has secured USD 177 million in investment in 7 rounds. In October last year, it received its most recent capital from a Convertible Note round.

The Breakup of Boat Revenue- 

  • Sale of earphones and headphones – INR 947.35 crore
  • Sale of wireless speakers – INR 297.40 crore
  • Sale of wired earphones and headphones – INR 94.92 crore
  • It also fetched revenues of INR 172.03 crore from the sale of other accessories.
  • It increased its profits by 61 percent to INR 78.6 crore in FY21 from INR 48.85 crore. However, the expenditure grew by 122 percent.

Boat Customer Care Number

You can kindly get in touch with the Boat customer care number (022-6918-1920) for any assistance related to products.

The experts are happy to help anytime between 9 am to 7 pm. Please note that they are closed on Sundays and National holidays.

Boat Valuation

Boat Business Model

The Boat’s valuation is around USD 266.8 million, i.e., INR 2200 crore, as of April 2021.

Following are the Top Competitors of Boat – 

1. Noise

Noise is one of the largest competitions of Boat. It is located in Gurugram, Haryana, India, and was established in 2014. Noise contends in the electronic supplies initiative.

2. Mivi

Mivi is another opponent of boAt. It is based in Telangana, Andhra Pradesh, India, and was established in 2015. Mivi also functions in the electronic supplies industry.

3. Skullcandy

Skullcandy is also one of the leading rivals of Boat. It is located in Utah and was established in 2003. Skullcandy also operates in the electronics initiative.

Apart from these, there are individual opponents of boAt, like Ubon, pTron, Boult, etc.

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Boat Turnover

The largest development of Boat stood wireless earphones and headphones. The sales rose by 2.5x to INR 947.4 crore in FY21 from INR 375.7 crore in FY20. The second place was taken by the wireless speakers. Speaker’s sales increased up to 2.6x from INR 113.2 crore in FY20 to INR 297.4 crore during FY21. 

Since the manufacturing and assembling of the company take place in China, it intends to shift its manufacturing drive to India through the Government’s PLI (Production Linked Incentive) plan. Boat’s annual expenditure climbed to 2.2x from INR 637.6 crore in FY20 to INR 1420.1 crore in FY21.  

Boat revenue crossed INR 500 crore in FY20, which was the anticipated revenue of the company for FY 21-22. At present, the company has more than 5000+ retail shops and 20+ distributors. 

The company feels there is forever a tendency to buy earphones with new mobiles. Boat sees this vision to be a medium of success. 

The company is rapidly developing its products as they have acquired a good market share in the wearable audio market. At present, they are concentrating on personal care and smartwatches. 

It has recently acquired two companies – Tagg and KaHa. KaHa is based in Singapore. It is an innovative wearable IoT startup. With this investment, Boat continues to build visionary products.

Tagg is an Indian consumer electronics startup founded in 2016. It trades in smartwatches, earphones, and speakers.

Awards and Recognitions of Boat:

  • 2020: Declared as ‘No. 1 brand’ for wireless earwear in India.
  • 2020: Boat was announced as the 5th biggest wearable brand in the world. 
  • 2021: Designated as the official audio member of 6 IPL teams.

Conclusion

In just 6 years since its establishment, Boat has brilliantly caught the whole world of electronic gadgets in an absorbed form. It has proved itself as the fifth-biggest wearable label in the world and the number 1 brand in India. 

The marketing techniques of this brand are praiseworthy. The company primarily concentrates on smart and catchy marketing drives. They have snappily used the digital medium for the publicity of their audio products. Even at the time of the pandemic, Boat used additional ways to remain pertinent in the market. 

Their vogue has compelled other big companies, like JBL, MI, Sony, Samsung, etc., to reduce their production costs to contend in the inexpensive audio gadget classification. 

The company’s business model is placed near offering high-quality audio products at reasonable rates. The company markets its products mostly through e-commerce channelers, such as Myntra, Jabong, Amazon, Flipkart, etc., and saves its above-expenses low to offer competitive outlay.

About Rahul Malodia 

Rahul Malodia is a business catalyst & strives to start a revolutionary movement in India, enabling businesses to grow, expand & find their originality in competition to global markets.

If you plan to develop a multi-millionaire business idea that can help you with profitable leads in the long run, Rahul Malodia’a business skills and strategies can help you. He has been scaling national and international businesses for 7+ years and is known to renovate the complete proven business strategies that have helped with assured scaling. 

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