Boom in Sales of Affordable Smartbands in China: A Sign of the "Lipstick Effect"
China's Tech Industry Heats Up as Huawei and Xiaomi Dominate Wearable Market
In the first half of 2025, China has witnessed a significant surge in the sales of cheap smartbands, with brands like Xiaomi, Huawei, and Realme leading the charge. This growth is particularly notable in the basic bands segment, which saw an impressive 80% year-on-year increase, outpacing other categories.
The rise in popularity of basic bands can be attributed to several factors. Firstly, these devices are increasingly providing more value due to enhanced health functions and improved aesthetic designs and materials. This makes them an ideal indulgence for cautious spenders who still seek something useful.
Moreover, the discrepancy in growth between basic bands, basic watches, and smartwatches suggests that consumer priorities are leaning towards affordability. This trend aligns with the phenomenon known as the "lipstick effect," where consumers redirect their spending towards smaller luxuries during economic downturns.
While smartwatches also experienced growth, with a 8% year-on-year increase, they did not see the same level of surge as basic bands. This could be due to the higher price point of smartwatches compared to basic bands, making the latter a more accessible luxury for many consumers.
In the world of smart devices, affordability and functionality seem to be key drivers of consumer behaviour in China. As these trends continue, it will be interesting to see how the market evolves and which brands will continue to thrive.
