The Indian market has seen a surge in influencer-driven products in recent years, fueled by the rise of content creators on platforms like YouTube and Instagram, 84% of consumers like to make their purchases simply on the recommendation of influencers. Among these was the Anarc Watch, launched by Techburner (Shlok Srivastava), a tech influencer with over 12 million subscribers on YouTube. Positioned as a high-quality yet affordable smartwatch, the Anarc Watch generated significant pre-launch buzz. However, its eventual failure highlighted a critical issue: influencer marketing mistakes often lead to influencer product failures in India, especially in the tech-driven Indian market.
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Anarc Watch: Overpromised and Underdelivered
When the Anarc Watch debuted, its promise was enticing—a sleek design, multiple health tracking features, and affordability. It was priced at around ₹6999, and although it’s high cost, it was still in direct competition with established players like boAt, Noise, and Realme, who dominate the budget smartwatch segment. Despite leveraging Techburner’s massive online following for marketing, the watch quickly garnered criticism for its:
- Build Quality: Reports of subpar materials and lack of durability undermined the product’s appeal. Many users complained it was not made of stainless steel as Techburner promised, and that is why it might be heavy.
- Design: Although Techburner claimed that the sleek diamond cut dial was designed by a company in London called ‘Seymourpowell’, soon it was found that it had a similarity to the Fit Bit Blaze, giving product the negative reviews.
- Hardware Failures: Reports of inconsistent performance in step tracking and heart rate monitoring. It also lacked basic features like auto-brightness, calling, and controlling music while working out.
- Software Glitches: Complaints about the clunky user interface and the companion app were equally buggy firmware and laggy performance highlighted a lack of rigorous testing before launch.
- Poor After-Sales Service: Lack of efficient support channels left dissatisfied customers stranded. Users also found that the live chat support would answer in the Chinese language making it even more untrustworthy.
- Selling Point: Initially it was promised that the Anarc layer watch would be on the level of the Apple Watch Ultra but at a genuine price point, but soon after the launch this selling point was also dismissed by well-known tech reviewers.
These issues not only led to poor customer retention but also reflected in the product’s rating of 2.8/5 on major e-commerce platforms, a stark contrast to competitors averaging 4+ stars in the same price range.
Why Do Influencer Brands Struggle in India
The Anarc Watch failure case study highlights several crucial insights for influencers and entrepreneurs considering launching their products. From influencer marketing mistakes like over-relying on personal branding to the challenges of launching products, here are a few more significant barriers influencer-backed products often face to success in India:
1. The Disconnect Between Hype and Reality
Influencers excel at generating excitement. The Anarc Watch was marketed as a game-changer in its segment, with Techburner claiming it was “built for the audience.” However, the technical execution did not match the hype. Techburner watch issues highlighted that 66% of Indian consumers research a product online before purchasing, making it difficult for subpar products to survive negative reviews.
2. Established Competition in Price-Sensitive Markets
India’s wearable market is valued at $1.42 billion, growing at a CAGR of 16.70%, per IMARC Group. This growth is largely driven by brands like boAt and Realme, offering budget-friendly yet reliable products. For instance:
- boAt’s Xtend Smartwatch priced at ₹1,499 offers Alexa integration, a vivid display, and water resistance.
- Noise’s ColorFit Ultra priced at ₹2,499 delivers better built quality, health metrics, and good battery life.
These products are backed by established supply chains and years of customer trust, giving them a significant advantage. This is one of many crucial influencer marketing mistakes. Many influencer-backed products fail because they don’t offer something new or unique.
3. Lack of Product Development Expertise
Techburner’s expertise lies in tech reviews, not product engineering. Unlike brands like Xiaomi, which invests in extensive R&D, influencer-led products often rely on white-label manufacturing. This leads to challenges of launching influencer products in India, including:
- Compromised Quality: Limited control over production and quality assurance.
- Feature Limitations: A failure to innovate beyond generic smartwatch functions.
- Reliability Issues: Hardware and software often lack the polish seen in long-standing competitors.
- Firmware Development: Poorly optimized software results in operational glitches, latency issues, and incompatibility with other devices.
- Testing Protocols: Limited beta testing can lead to unresolved issues post-launch.
4. Limited Scalability and Support
Post-sales service is crucial in tech. According to the EY report, 78% of Indian consumers value reliable customer support when choosing tech products. The Anarc Watch failure case study highlighted the bad delivery experience, offering minimal support channels and delayed responses. This gap significantly impacted customer satisfaction and brand loyalty.
5. Negative Word-of-Mouth Amplified by Reviews
Negative reviews spread quickly in India’s digitally connected consumer base. Platforms like Amazon, Flipkart, and YouTube amplify user dissatisfaction, causing rapid erosion of trust. A 2023 Deloitte report highlighted that 70% of Indian consumers consult online reviews before making a purchase, leading to rapid erosion of consumer trust in influencer products.
6. Supply Chain and After-Sales Infrastructure
Launching a hardware product is resource-intensive, requiring a proper supply chain, reliable distribution channels, and good after-sales service. Influencers often underestimate these operational complexities, leading to:
- Inventory Management Issues: Stockouts or excess inventory due to inaccurate demand forecasting.
- Shipping Delays: Poor logistics partnerships can lead to delayed deliveries, frustrating customers in the process.
- Customer Service Failures: Inefficient support systems fail to address complaints, resulting in reputational damage.
The Anarc Watch, for example, faced significant criticism for slow issue resolution, which further eroded consumer trust.
What Influencers Misunderstand About Indian Markets
The Anarc Watch entered the market with a bold marketing strategy, leveraging Techburner’s massive social media following. However, it quickly became evident that this was not enough. Let’s break down what influencers often neglect while launching their products:
1. Diverse Consumer Needs
India’s wearable market is diverse. Urban consumers demand premium features, while rural buyers prioritize affordability and durability. The Anarc Watch failed to cater specifically to either segment, leaving it in an undefined middle ground.
2. Price-to-Value Ratio
India is the most price-sensitive market globally, with 62% of buyers citing affordability as their top priority, according to Mint. While the Anarc Watch was marketed as affordable, it failed to deliver the value proposition needed to compete with budget leaders. Not only it was priced higher than its competitor but also offered less value to the customers.
3. Consumer Loyalty to Established Brands
In tech, loyalty matters. Brands like boAt, Xiaomi, and Realme have built credibility through consistent quality and after-sales service. For an influencer product to stand out, it must offer either breakthrough innovation or unparalleled affordability. The Anarc Watch did neither, leaving it vulnerable to competitive pressures.
4. The Role of Peer Reviews and Digital Communities
In India, purchase decisions are often influenced by peer reviews and community recommendations rather than influencer endorsements alone. When early adopters of the Anarc Watch highlighted its flaws on platforms like YouTube and Reddit, the product quickly lost credibility.
How to Succeed with Influencer Products
For influencer products to work in India, a more strategic approach for influencers is necessary:
- Thorough Market Research:
Understand the audience’s price sensitivity and feature preferences. This ensures alignment between product design and consumer expectations. - Strategic Collaborations:
Partnering with established brands can lend credibility and provide operational support. For example, celebrity collaborations with brands like Noise or Fire-Boltt have proven successful. This is one of the many influencer marketing mistakes made by many brands. - Innovate for Impact:
Offer a unique selling proposition (USP). Features like voice control, localized language support, or extended battery life could create differentiation. - Build a Strong Support Ecosystem:
Invest in customer service, return policies, and warranties. Trust builds loyalty, especially in tech products.
How Brandshark Can Help
Imagine avoiding the common missteps of influencer product launches and building brand-consumer trust. Brandshark, a leading digital marketing agency in Bangalore, is your partner in building a successful, scalable brand.
We start with in-depth market research to ensure your product aligns with consumer needs and preferences. Our website design and development services create sleek, user-friendly platforms that enhance trust and drive sales. Beyond personal branding, we help establish a credible, long-lasting brand identity that resonates with your audience. With Brandshark, you’re not just launching a product—you’re building a brand that stands out. Ready to turn your vision into reality? Visit Brandshark today!