Cases that hold your lip balm, puffer coats for phones, and crystal-embellished headphone covers — the tech accessories market is receiving the Gen Z treatment, and the industry is booming because of it.
Once defined by sterility, the segment has become fertile ground for brands over the past few years, fueled by Gen Z’s ever-evolving demand for innovation.
“If the smartphone is Gen Z’s lifeline to the world, then the accessories that adorn their beloved phones are their identity statement,” Lisa Yong, director of consumer tech at WGSN, tells Jing Daily. “As an accessible status symbol, tech accessories empower self-expression while bestowing small happiness.”
The mobile phone accessories sector — which includes cases, headphones, earbuds, and power banks — rang up revenues of $275.5 billion in 2022. It is projected to reach $335.5 billion by 2030, growing at a CAGR of 3.4 percent during the forecast period (2022–2030).
Cult favorites#
Hong Kong and LA-based Casetify is leading the charge with its cult following. Founded in 2011, Casetify was an early adopter of buzzy tech accessories with its custom design concept, allowing customers to turn their Instagram photos into phone cases.
In 2022, the company topped $300 million in annual revenue, recording over 15 million phone cases sold worldwide.
Casetify’s adeptness at staying on the pulse of Gen Z is a key driver behind its success. “We’re focused on establishing an emotional connection with Gen Z by resonating with their values and preferences,” Vincent Au, General Manager of Casetify in China, tells Jing Daily.
The brand closely monitors Gen Z’s fashion and lifestyle trends, says Au, and “utilizes social media and influencer partnerships to maintain year-round engagement and foster ongoing conversations.”
To further fortify its market position, Casetify launched its Co-Lab division in 2019, a creative platform that embraces Gen Z’s love for collaborations, independent artists, and trendy products. Partners have included Hello Kitty, the Louvre, Daniel Arsham, and the NBA.
Interest across China grows#
China has emerged as a fruitful test lab for brands deepening their footprint in the market.
“Tech is part of our daily life, especially in China, where the phone plays a central role,” Anaïs Bournonville, President and co-founder of Reverse Group, tells Jing Daily.
Last year, the mainland’s phone accessories sector topped $78 billion. It’s projected to surge to $115.4 billion by 2030, driven by local Gen Z’s growing obsession with personalization and customization.
On Xiaohongshu, netizens are posting their tech products embellished with crystals, charms, stickers, and beads as a means of expressing their identities.
Casetify has taken note. The brand has been pouring resources into its China expansion and currently boasts eight stores across Shanghai, Beijing, Guangzhou, Chengdu, and Hangzhou.
“We are actively exploring and planning to expand our presence across various cities throughout China,” Au adds.
The company has also partnered with local creatives and IPs, such as streetwear labels Staffonly and Labelhood, and expanded its presence on e-commerce channels including Tmall, Douyin, Xiaohongshu, and JD.com.
Earlier this month, it tapped into the $8.1 billion K-pop market by releasing a limited-edition collection of tech accessories alongside South Korean boy band NCT Dream. Fans could visit an exclusive pop-up in Seoul’s trendy Seongsu district to experience the feeling of “kidulthood.”
“Tech accessories have a unique opportunity to bring to real life the most exciting moments of movies, TV series, and any other form of popular culture,” Beatrix Wong, head of the Casetify Co-Lab Program, tells Jing Daily. “This is because accessories are physical items; they can be worn and taken to many places in our daily life. We definitely see a trend of fandoms increasingly becoming a bigger part of the lifestyle world.”
Although it doesn’t publicly disclose its revenue, lifestyle label Urban Sophistication, famous for its “puffer” phone cases, is also climbing up the ranks across the APAC region, albeit more slowly than its competitors.
To boost business, the startup partnered with Casetify in 2021 on a series of tech accessories inspired by Y2K relics, such as flip phones, Blackberry messengers, and MP3 players. It also collaborated with K-pop girl group Aespa earlier this year.
Urban Sophistication’s products are currently stocked in ENG Concept Store Shanghai and have gained particular traction among netizens on Xiaohongshu.
Competition heats up#
Globally, competition is mounting as the market evolves.
iPhone accessory company Wildflower Cases, founded by sisters Sydney and Devon-Lee Carlson in 2012, has emerged as a major competitor. The brand recorded sales of $5.3 million in 2020 (the company hasn’t publicly released revenue data since) after finding favor among online influencers.
The label has since diversified its product offering to include beaded wristlets, Airtag keychains, camera diamontes, and charms. Last month, the company also launched “Stickeez,” silicone suction pads for mounting phones to the wall. According to the brand, the product is aimed at “girls who love creating TikToks, GRWMs (Get Ready With Me), and taking selfies.”
Rhode, the buzzy Hailey Bieber-owned beauty label, has also skyrocketed in popularity over the past year. In January of this year, the unsuspecting industry player broke the internet after launching a silicone phone case that could hold the brand’s hero lip balm product.
Bieber’s teaser image of the case posted in January received over 2 million likes on Instagram, while the hashtag #Rhodephonecase has amassed over 2.08 million views on Xiaohongshu.
Luxury brands cash in#
Spying colossal demand across the sector, luxury maisons are diving in. For high-end players, “having a line dedicated to tech accessories can expand their portfolio and increase sales,” Bournonville says.
But they’re struggling to keep up with the likes of Casetify due to slower reaction times and a lack of affordable options.
“We noticed it with Chanel when they launched their AirPod cases,” says Bournonville. “Chinese consumers loved the design of the AirPod case, but the price of 20,000 RMB (around $2,770) discouraged them.”
To combat underperformance, brands are collaborating with buzzy industry trailblazers to make inroads with younger shoppers.
For its SS21 collection, Fendi teamed up with British tech-powered accessories label Chaos on a selection of earphone and smartwatch add-ons, including gilded AirPod cases and smartphone pouches.
The winning formula#
As competition intensifies, heightened expectations are a matter of course. What’s the formula for creating a standout product?
Bournonville believes that it should tick the boxes of style, convenience, and price. “[Tech accessories] are part of Gen Z’s fashion outfits now,” she says. “They want to be able to change the design, the color, the material, and are keen to purchase these products if they can remain convenient.”
WGSN’s Yong also notes that a good accessory should resonate with Gen Z’s freedom of expression and satisfy their lust for uber-personalized novelties.
"The right CMF [color, material, finish] strategy helps a brand stand out among the competition,” Yong says. “Give them plenty of customizable options so they can figure it out themselves and have fun with the choices.”