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Wearable Devices Market & Technology
Prepared by Kevin Huang
Nov 1, 2015
Everything You Need to Know
Page  2
Page  3
• What Is Wearable Tech?
• Wearable Tech Timeline
• Wearable Tech Market Scope
• Key Attributes of Wearable Tech
...
Page  4
What is Wearable Technology?
The Rise of Wearable Tech
Simply put, it’s technology that you incorporate
into thin...
Page  5
WEARABLE TECHNOLOGY IS NOT A NEW CONCEPT
Byte Magazine Volume 06 Number 04, 1981 - Future Computers
Page  6
Wearable Tech Timeline (1975 ~ 2014)
1975
1987
1999
The Digital
Hearing Aid
Bluetooth
Headset
2000
2008
2012
2013...
Page  7
Wearable Technology Market Scope
The following table shows an overview of the five applications for wearable
tech...
Page  8
Wearable Tech In Industrial & Military
Page  9
Key Attributes of Wearable Tech
6 Key
Attributes
that Make
a BIG
Difference
Voice/Gesture
Recognition
3rd party a...
Page  10
Wearable Technology Evolution
The Device Is Considered Wearable If It:
 Can be Worn for extended period of Time...
Page  11
Wearable tech is part of
the wider internet of
things (IOTs) movement
where everyday
objects become
“smart” than...
Page  12
We Could Say the Modern-day
Wearables Market Started with
the Humble Activity Tracker
Page  13
Now The Activity Tracker Market Is Saturated
The Attention Is Moving to the Smartwatch
Page  14
Smartwatches and other
wearables are still in the
“first generation” phase.
As time goes on and as
the tech deve...
Page  15
The Apple Watch is very personal – “personal” and “intimate”
were words that Apple CEO Time Cook and his colleag...
Page  16
Wearable Tech Isn’t
Just for Grown Adults
It Isn’t Just for the Wrist (or
Humans for that Matter) Either
Page  17
Of Course There Is Google’s Head-mounted Display, Glass
Page  18
Despite a 12 Page Spread in Vogue
Glass Is yet to Go Mainstream
Even integrating it into regular glasses hasn’t ...
Page  19
While the jury’s out on whether Glass will be successful
in a consumer setting, it’s currently being put to use ...
Page  20
Google Smart Contact Lenses Mean Better Health
Page  21
Hexoskin is a Bluetooth vest that tracks the body’s vital signs
Smart Clothes to Smart Objects
Page  22
Athos is connected workout clothing with a range of sensors
Page  23
Ralph Lauren has launched the Polo Tech Shirt
The first premium brand to do so. A growing trend?
Page  24
Jewelry Meets Wearable Technology
Technology integrated in to jewelry so
far has been about filtering the “alway...
Page  25
Personal data is
becoming increasingly
valuable as it allows
brands to sell the
consumer in real time
Thanks to ...
Page  26
And Apple is ahead
of the competition –
Apple launched a
wearable device, a
personal data
collecting app and a
p...
Page  27
Why Wearables? Why Now?
Document
Our Lives
Augment
Ourselves
To Create
New Realities
Express
Ourselves
In New Wa...
Page  28
About the Consumer WT Market
Page  29
Expected Market Development:
Too Early In the Adoption Cycle to Build Reliable Forecasts
Source: IHS Inc. Septem...
Page  30
http://goo.gl/naKqGP
Wearable Device Market Value
from 2010 to 2018
Wearable technology in the future is expecte...
Page  31
Global Wearable Device Unit Shipments Forecast
https://goo.gl/AgK0LaSource:
Page  32
Global Wearable Technology Sales by Category
from 2014 to 2018
http://goo.gl/ifSj4T
Source:
Page  33
Wearables Regional Market Share
Source: CISCO 2015
Page  34
Page  35
Page  36
Just 6.8M Smartwatches Sold In 2014
at An Average Price of $189
http://goo.gl/x73A5pSource:
• Independent resear...
Page  37
Page  38 Source:
Apple Watch Shipment Forecast: 2015
http://goo.gl/Fouuh5
Page  39
Players Across ALL Verticals are hungry to Get
a Piece of the WT Pie
Wearable Technology
For a Connected Lifesty...
Page  40
Wearables Vendor Landscape
Source: IHS
Page  41
Forces Driving the Growth of Wearable Tech
Faster, Smaller
Cheaper
Hardware
Cloud
Storage
Location
Data
• Comput...
Page  42
Major Behavioral & Social Trends
Likely to Provide Major Tailwinds for the Wearable Market
Families will monitor...
Page  43
By 2018, the infotainment segment is expected to surpass the
fitness and wellness segment, driven primarily by a...
Page  44
The increasing adoption of wearables among millennials, coupled
with greatly increasing demand for real time and...
Page  45
The Overlapping Market of
Fitness Devices & Smartwatches
• Fitness devices track distance traveled, how long you...
Page  46
Wearable Tech Data Interpreted
On-the-Go with Smartphones
United States 2015 Projections:
• 92% have a cell phon...
Page  47
Barriers to Wearables Adoption
1. The lack of a persuasive use case
Among the biggest barriers that could limit
...
Page  48
Gaps In Users’ Expectations
vs. Actual Product Experience
Page  49
It Will Take Time for Society
to Get Used to Wearables
Page  50
About the WT Consumers
Page  51
70% of Consumers are Aware of Wearables
Nielsen’s survey of nearly 4,000 respondents reveals
that popularity of ...
Page  52
Wearables Market Has A Lot to Grow
Just one in five US consumers say they own a wearable devices.
http://goo.gl/...
Page  53 Source: Accenture Digital Consumer Tech Survey 2014
• Health and Fitness becoming a focus - consumers were widel...
Page  54
Page  55
Page  56
Fitness Bands Remain US Consumers’ Top
Wearable Pick
Almost half of US consumers said they were very likely or s...
Page  57
U.S. Wearable Ownership by Demographics
Source: NPD https://goo.gl/EUw6S2
36 percent of fitness tracker owners
i...
Page  58
What Consumers Expect from Wearable Devices
Source: Cognizant report 2014
Page  59
Health Tops List of Information US Consumers
Want from Wearables
Consumers want wearables to help them exercise ...
Page  60
Frequently Asked Questions
Before Buying a WT Product
Source: Rithmio: Wearable Tech Market Trends - Q2 2014
Gen...
Page  61
Most US Consumers Are Interested in
Lower-priced or Free Wearables
While about one in 10 consumers are willing t...
Page  62
Page  63
Demand Is Growing and Online Marketplaces
for WT Are Emerging
Page  64
Wearables: The Impact on Retail
• Improving the Customer Experience
1. In-Store Shopping Experience - RFID and m...
Page  65
Define Your WT Strategy
Page  66 http://goo.gl/x73A5pSource:
Page  67
“One Size Does NOT Fit All”
- Focus on a Target Audience
Oversight
Bodies are different. Tastes are different. S...
Page  68
Go After A Target Audience & Address Their Needs
Page  69
Activity Trackers – Fitness / Wellness
What do they do?
• Activity Tracking
• Sleep Monitoring
• Heart Rate Moni...
Page  70
Insight: Integration of WT + Calorie Tracking
MapMyFitness was acquired by Under Armour in 2013. Get ready for c...
Page  71
Activity Trackers – Fitness / Wellness
Segmentation by Age
• Infant
Mimo, onesie that measures the baby’s
breath...
Page  72
Activity Trackers – Fitness / Wellness
Segmentation by Sports Type
• Weight Training
The PUSH Strength
Kiwi Move...
Page  73
Wearables In the Workforce
Examples: Heads-up Displays
• Medical Professionals (see http://pristine.io)
Document...
Page  74
Wearables Helping People with Different Abilities
Page  75
Ways to Differentiate WT Products
Page  76
Color Preference
Page  77
Ability to Transform
Page  78
Ability to Personalize
Page  79
Materials
Look to jewelry industry for inspiration. Fashion designers will seek
a variety of materials to make w...
Page  80
Co-Branding
The time will come when you don’t need to create your own
wearable from scratch to have a product in...
Page  81
Go Luxury
Page  82
Software Makes the WT Meaningful
Otherwise you’re just wearing a goofy bracelet.
A Wearable Tech Product Is Actu...
Page  83
Wearable Technology Has to Work Well……
Page  84
Wearable Devices Shift
from Accessories to Ad Platforms
Wearable devices are always
attached to the user. This o...
Page  85
Between 2013 and 2018, wearable device
connections to jump more than 704.5%
http://goo.gl/qvvFPqSource:
“Adverti...
Page  86
The first brand to use Glass in its marketing was Kenneth Cole and its “Man Up for Mankind Challenge”
which requ...
Page  87
Topshop used Oculus Rift to let customers at
the London store experience a fashion show
from the front row. User...
Page  88
Do you dream of wandering virtual
supermarkets? U.K. supermarket Tesco is the
surprise star of a new demo for th...
Page  89
The Future of Wearable Tech
Page  90
Wearable technologies are adding new layers to our personal
relationships by extending the reach and power of ho...
Page  91
Function of Wearables Forecast
From wristbands and glasses to clothing and even embedded devices, technologies a...
Page  92
Many people found the first wave of wearables
came up short. Entry-level price points were high, form
factors we...
Page  93
1. Invisible. Moore’s Law contends
that as components get smaller, products gain
efficiency and become more powe...
Page  94
2. Personalized. From
wedding rings to Invisalign, objects worn on
the body 24-7 are a personal thing. Unless th...
Page  95
3. Efficient. Alternative forms of energy to power wearables
are on the rise. In December 2014 Tommy Hilfiger la...
Page  96
4. Accurate. From your kids’
GPA to your own body’s BMI, our culture is
getting more numbers oriented across man...
Page  97
5. Permissions-based. Marketers
are salivating at the prospect of pushing wearables advertising to
you around th...
Page  98
6. Sentient. Even Furbies in 1998 could learn new things, so
why is it that $150 activity trackers can’t learn a...
Page  99
7. Multi point. The
wearable tech conversation will quickly shift
from discussion of your wearable (singular) to...
Page  100
8. Seamless.It will be excited
to see what happens when wearables converge
with connected homes to drive effici...
Page  101
While it is premature to predict specific features or
form factors that will prevail in the future, wearable
te...
Page  102
Appendix I
WT Brands & Products
Page  103
Brand ranking: Wearable Lifestyle and Fitness
• Based on number of Google
searches since October 2014 in the
US...
Page  104
Apple Watch is most often searched around Apple
keynote events; Fitbit and Samsung Gear demonstrate stable popu...
Page  105
Apple, Samsung and Nike are yet to establish an
association with product features in consumer minds
 Web-searc...
Page  106
Fitbit: A top-of-mind brand in the wrist-worn fitness trackers
• Founded: 2007; HQ: San Francisco, USA; Employe...
Page  107
Jawbone: Fitness trackers & other consumer products
• “…world-leader in consumer technology and wearable device...
Page  108
Basis: A single fitness & sleep tracking device
• Acquired by Intel in March 2014
• Basis Peak announced in Sep...
Page  109
Pebble Smartwatch, the most successful Kickstarter project ever
• Founded: 2009; HQ: Palo Alto, CA, USA
• Over ...
Page  110
Misfit: Bluetooth synced fitness & sleep monitors
• “Invent and manufacture great wearable computing products.”...
Page  111
Garmin: Wide range of wearable devices for various sports
• “To be an enduring company by creating superior pro...
Page  112
Apple Watch: Initial impressions from observers were varied
• Apple Watch announced in Sept 2014; scheduled for...
Page  113
Samsung Gear Series: bridging wearables with smartphones
• “Designed in a purely idealistic way”
• Shipped 500,...
Page  114
LG Smartwatch: The first smartwatch with the look and feel
of a real watch
• G Watch R: “The world’s first watc...
Page  115
Sony SmartWear: Newly announced voice capabilities in
SmartWatch 3 and SmartBand Talk
• “Lets you stay on top o...
Page  116
Microsoft Band: Open platform focused on data gathering
• Microsoft has been late to the wearables space, launc...
Page  117
Nike+: online fitness community ‘fueled‘ by fitness accomplishments
• Significant global online presence throug...
Page  118
Appendix II
Media Reviews
Page  119 Source: http://goo.gl/rJn2jp
Page  120 Source: http://goo.gl/Ni6Oi
Page  121 Source: http://goo.gl/BxQmWs
Page  122 Source: http://goo.gl/Y0H92e
Page  123
Source: http://goo.gl/RLfQ1q
Page  124
Appendix III
Marketing & Advertising
Page  125
Samsung
2015 Smartwatch Commercials
Apple
(Click on each video to play)
Page  126
Huawei
LG
2015 Wearables Commercials
Fitbit
(Click on each video to play)
Jawbone
Moto
Garmin
Page  127
Sony
2015 Wearables Commercials
Pebble
(Click on each video to play)
Microsoft Band ASUS
Misfit
Moov
Page  128
Apple Watch Print Ads in Vogue
The Apple Watch made its first magazine
appearance last October (2014) in Vogue ...
Page  129
Google Glass Print Ads in Vogue
In the September 2014 issue, Vogue dedicated all those 12 pages
featuring model...
Page  130
Moto Smartwatch Print Ads
Wearables devices market and technology
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Wearables devices market and technology

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What is wearable technology?

Simply put, it’s technology that you incorporate into things you wear on a day-to-day basis, and it could be anything from a smart watch, augmented reality glasses, or even a personal health monitor in the form of a bracelet.

The idea is that technology will increasingly become more part of our daily lives, and it will become less intrusive, as it will be part of our clothing, and sometimes even part of our bodies!

Wearable tech presents a fascinating field to study. I have conducted some researches and hope you can also learn more about this high growth market.

Published in: Technology
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Wearables devices market and technology

  1. 1. Wearable Devices Market & Technology Prepared by Kevin Huang Nov 1, 2015 Everything You Need to Know
  2. 2. Page  2
  3. 3. Page  3 • What Is Wearable Tech? • Wearable Tech Timeline • Wearable Tech Market Scope • Key Attributes of Wearable Tech • Wearable Tech Evolution • Why Wearables? Why Now? • About the Consumer WT Market - WW Sales Forecast/Market Leaders - Wearables Vendor Landscape - Key Driving Forces - Barriers to WT Adoption • About the WT Consumers - U.S. Wearable Ownership by Demographics - Know Their Wants & Needs - Common Questions Asked - Users’ Expectations & Product Experience • Define Your WT Strategy • Ways to Differentiate WT Products • Wearable Devices Shift from Accessories to Ad Platforms • The Future of Wearable Tech What Can You Learn Here
  4. 4. Page  4 What is Wearable Technology? The Rise of Wearable Tech Simply put, it’s technology that you incorporate into things you wear on a day-to-day basis, and it could be anything from a smart watch, augmented reality glasses, or even a personal health monitor in the form of a bracelet. The idea is that technology will increasingly become more part of our daily lives, and it will become less intrusive, as it will be part of our clothing, and sometimes even part of our bodies!
  5. 5. Page  5 WEARABLE TECHNOLOGY IS NOT A NEW CONCEPT Byte Magazine Volume 06 Number 04, 1981 - Future Computers
  6. 6. Page  6 Wearable Tech Timeline (1975 ~ 2014) 1975 1987 1999 The Digital Hearing Aid Bluetooth Headset 2000 2008 2012 2013 2014 2014 Fitbit Nike FuelBand Samsung Galaxy Wear 1994 Apple Newton PDA 2001 2004 Microsoft SPOT Smartwatch First Apple iPod 2012 2013 The Oculus Rift Pebble Smartwatch • Specialized Visual Aids • Medical grade Monitors (on wrist) • Smart Safety Glasses • Augmented Reality Pulsar Calculator Watch 1984 Casio Databank CD-40 First Blackberry 2003 Viatron C series Pacemaker Motorola Razr GoPro 2006 Nike + iPod Kit 2007 First Apple iPhone 2011 Jawbone Up Nissan Nismo Smartwatch MISFit Shine Google Glass “Year of the Wearable”
  7. 7. Page  7 Wearable Technology Market Scope The following table shows an overview of the five applications for wearable technology and the products included within each of those applications. Applications Healthcare & Medical Fitness & Wellness Infotainment Industrial Military Blood Pressure Monitors Continuous Glucose Monitoring Defibrillators Drug Delivery Products ECG Monitors Hearing Aids Insulin Pumps Smart Glasses Patches PERS Pulse Oximetry Activity Monitors Emotional Measurement Fitness & Heart Rate Monitors Foot Pods & Pedometers Heads-up Displays Sleep Sensors Smart Glasses Smart Clothing Smart Watches Other, Audio Earbuds Bluetooth Headsets Head-up Displays Imaging Products Smart Glasses Smart Watches Hand-worn Terminals Heads-up Displays Smart Clothing Smart Glasses Hand-worn Terminals Heads-up Displays Smart Clothing Product Categories Exoskeleton Exoskeleton
  8. 8. Page  8 Wearable Tech In Industrial & Military
  9. 9. Page  9 Key Attributes of Wearable Tech 6 Key Attributes that Make a BIG Difference Voice/Gesture Recognition 3rd party apps API partners Accessories Less distracting with notifications Short interaction Low power consumption Instant wake Background working/sensing Accelerometer Gyroscope IMU Compass Camera Microphone Environmental sensor Wi-Fi Cellular Bluetooth NFC Always-On Environment -Aware Connected Attention -Getting Development Platform Hands -Free
  10. 10. Page  10 Wearable Technology Evolution The Device Is Considered Wearable If It:  Can be Worn for extended period of Time  Provides User Inputs, enabling User Control  Enhances of User Experience
  11. 11. Page  11 Wearable tech is part of the wider internet of things (IOTs) movement where everyday objects become “smart” thanks in part to sensors
  12. 12. Page  12 We Could Say the Modern-day Wearables Market Started with the Humble Activity Tracker
  13. 13. Page  13 Now The Activity Tracker Market Is Saturated The Attention Is Moving to the Smartwatch
  14. 14. Page  14 Smartwatches and other wearables are still in the “first generation” phase. As time goes on and as the tech develops previous generations are far inferior in hindsight Norwich City Council takes delivery of the first computer for its treasury department in 1957. Remember a computer once looked like this?
  15. 15. Page  15 The Apple Watch is very personal – “personal” and “intimate” were words that Apple CEO Time Cook and his colleagues used over and over again when presenting it to the public for the first time. That’s where the watch is likely to change things, because it does something computers aren’t generally supposed to: It lives on your body
  16. 16. Page  16 Wearable Tech Isn’t Just for Grown Adults It Isn’t Just for the Wrist (or Humans for that Matter) Either
  17. 17. Page  17 Of Course There Is Google’s Head-mounted Display, Glass
  18. 18. Page  18 Despite a 12 Page Spread in Vogue Glass Is yet to Go Mainstream Even integrating it into regular glasses hasn’t made it take off
  19. 19. Page  19 While the jury’s out on whether Glass will be successful in a consumer setting, it’s currently being put to use in various business applications
  20. 20. Page  20 Google Smart Contact Lenses Mean Better Health
  21. 21. Page  21 Hexoskin is a Bluetooth vest that tracks the body’s vital signs Smart Clothes to Smart Objects
  22. 22. Page  22 Athos is connected workout clothing with a range of sensors
  23. 23. Page  23 Ralph Lauren has launched the Polo Tech Shirt The first premium brand to do so. A growing trend?
  24. 24. Page  24 Jewelry Meets Wearable Technology Technology integrated in to jewelry so far has been about filtering the “always on” experience smartphones provide
  25. 25. Page  25 Personal data is becoming increasingly valuable as it allows brands to sell the consumer in real time Thanks to wearables and other technological and biological innovations the human body is becoming a data machine As wearable tech develops marketing will use consumer’s personal biometric to sell products and services
  26. 26. Page  26 And Apple is ahead of the competition – Apple launched a wearable device, a personal data collecting app and a payment mechanism at the same time
  27. 27. Page  27 Why Wearables? Why Now? Document Our Lives Augment Ourselves To Create New Realities Express Ourselves In New Ways Quantity Ourselves The Time is Right And It’s Happening Now
  28. 28. Page  28 About the Consumer WT Market
  29. 29. Page  29 Expected Market Development: Too Early In the Adoption Cycle to Build Reliable Forecasts Source: IHS Inc. September 2013Source: Wearable Tech; Wearable Technology Market: Trends & Outlook • Berg Insight: 64 million devices shipped in 2017 • ABI Research: 485 million devices in 2018 • Cisco pointed to a total of 177 million devices in the market by 2018 • Juniper Research: 130 million devices by 2018 • IMS research forecasted the market size under three scenarios (based on adoption rate) that vary from 40mn to 171 million devices shipped  Forecasts for the wearable tech industry varies widely
  30. 30. Page  30 http://goo.gl/naKqGP Wearable Device Market Value from 2010 to 2018 Wearable technology in the future is expected to include products such as Google Glass and the Apple Watch as well as other medical technology. By 2018, it is estimated that this market will be worth some 12.6 billion U.S. dollars. Source:
  31. 31. Page  31 Global Wearable Device Unit Shipments Forecast https://goo.gl/AgK0LaSource:
  32. 32. Page  32 Global Wearable Technology Sales by Category from 2014 to 2018 http://goo.gl/ifSj4T Source:
  33. 33. Page  33 Wearables Regional Market Share Source: CISCO 2015
  34. 34. Page  34
  35. 35. Page  35
  36. 36. Page  36 Just 6.8M Smartwatches Sold In 2014 at An Average Price of $189 http://goo.gl/x73A5pSource: • Independent research company Smartwatch Group estimated that just 6.8 million smartwatches were sold in 2014. Those devices had an average price of $189, which is down 16 percent from the selling price of $225 seen in 2013. • Total market volume in 2014 was $1.29 billion, up from $711 million in 2013. Overall unit sales increased 82 percent year over year. Starting Price $349 $549 $10,000
  37. 37. Page  37
  38. 38. Page  38 Source: Apple Watch Shipment Forecast: 2015 http://goo.gl/Fouuh5
  39. 39. Page  39 Players Across ALL Verticals are hungry to Get a Piece of the WT Pie Wearable Technology For a Connected Lifestyle
  40. 40. Page  40 Wearables Vendor Landscape Source: IHS
  41. 41. Page  41 Forces Driving the Growth of Wearable Tech Faster, Smaller Cheaper Hardware Cloud Storage Location Data • Computing technology is becoming 100 times smaller each decade • Capabilities can be condensed into one device • Smaller and lighter parts allow for easy portability • By 2020, batteries are expected to be 2.2x more powerful (Yahoo Finance) • Internet of things, Big Data, SDN • Factors: consumerization of enterprise IT, multiple device ownership, improvement of camera technologies • Active accounts associated with personal cloud storage services has exceeded 1 billion in 2014 (API Research) • Cloud computing reduces overall IT expenses • Implicit location information, internet traffic information, device-based location services (GPS) • iOS, Android Blackberry OS, Windows Mobile, Symbian S60 Visual, Gesture and Voice Technology Quantified Self Movement Gaming Industry & UX Real Use Cases
  42. 42. Page  42 Major Behavioral & Social Trends Likely to Provide Major Tailwinds for the Wearable Market Families will monitor their collective activities • Remote monitoring of oldest family members to ensure safety • Stress or fitness goal monitoring for parents • Entertainment experiences and safety monitoring of the youngest Pro athletes track their metrics to gain a competitive edge • Pro teams awareness of tracking body’s stats with WT. • Consumers will gain comfort seeing pro athlete WT data integrated on multimedia (like ESPN). • Consumer products will follow as they want to mimic their athlete “heroes” Wearables in the workforce • Medical professionals: Documenting surgeries, getting a second opinion from remote specialists • Public safety workers: Obtain just-in-time critical information, monitor safety of peers in the field • Field workers: Improve productivity, gain specialist second opinion in the field
  43. 43. Page  43 By 2018, the infotainment segment is expected to surpass the fitness and wellness segment, driven primarily by anticipated robust growth of smart watches and smart glasses.
  44. 44. Page  44 The increasing adoption of wearables among millennials, coupled with greatly increasing demand for real time and actionable data will also fuel the growth of the wearable technology market.
  45. 45. Page  45 The Overlapping Market of Fitness Devices & Smartwatches • Fitness devices track distance traveled, how long you have been inactive, sleep time and sometimes heart rate. Certain devices such as Nike and Basis bracelets also display time. • This suggests the smartwatch market has the potential to encompass the fitness devices market as well. How this play out in the industry, remains to be seen. • These functions can also be performed by a smartwatch loaded with sensors, while being paired to a smartphone to receive and make calls. Through an app ecosystem, a smartwatch is capable of acting as a fitness device and more.
  46. 46. Page  46 Wearable Tech Data Interpreted On-the-Go with Smartphones United States 2015 Projections: • 92% have a cell phone, 68% have a smartphone Worldwide 2016 Projections: • The number of smartphone users worldwide will surpass 2 billion in 2016 We are addicted to checking our phones Smartphones are essential to our lives:
  47. 47. Page  47 Barriers to Wearables Adoption 1. The lack of a persuasive use case Among the biggest barriers that could limit smartwatch adoption – and wearables adoption overall – is people still don’t see the point of these devices. 2. The lack of a killer app There aren’t enough apps out there that are really compelling on the wrist- worn devices. Fragmentation is one of the biggest reasons for lack of a robust wearable app ecosystem. 3. Limited functionality Basic fitness bands are limited to primarily tracking health- and fitness- related data and spitting this aggregated data back out onto a smartphone or tablet. 4. Style Many of the wearable devices mimic ubiquitous fashion accessories (watches, bracelets, glasses), one of the biggest concerns from consumers is the look and style of the devices. 5. Price With more players in the market and lower priced products, the adoption of wearable devices as a mainstream consumer product is expected to increase
  48. 48. Page  48 Gaps In Users’ Expectations vs. Actual Product Experience
  49. 49. Page  49 It Will Take Time for Society to Get Used to Wearables
  50. 50. Page  50 About the WT Consumers
  51. 51. Page  51 70% of Consumers are Aware of Wearables Nielsen’s survey of nearly 4,000 respondents reveals that popularity of wearables is rapidly increasing and 15% of people who heard the term ‘wearables’ currently use one but high prices remain a barrier. Among the wearable technology devices, fitness bands are the most popular product category with 61% of respondents using them followed by smart watches (45%) and mobile health devices (17%). Source: Nielsen Connected Life Report 2014 • 72% of the users say that they wish wearables were less expensive. • 62% said they wish wearables came in forms other than the usual wrist bands and watches. • 53% wanted wearable technology devices to look more fashionable like jewelry.
  52. 52. Page  52 Wearables Market Has A Lot to Grow Just one in five US consumers say they own a wearable devices. http://goo.gl/q4zBlRSource:
  53. 53. Page  53 Source: Accenture Digital Consumer Tech Survey 2014 • Health and Fitness becoming a focus - consumers were widely interested in health or fitness monitoring functionalities, either from dedicated devices or apps on multifunctional devices. “Appification” was a strong trend for other categories as well. Consumers Growing Interest In Wearable Tech
  54. 54. Page  54
  55. 55. Page  55
  56. 56. Page  56 Fitness Bands Remain US Consumers’ Top Wearable Pick Almost half of US consumers said they were very likely or somewhat likely to purchase a fitness band in the next 12 months. One in three said they were considering a smartwatch. http://goo.gl/q4zBlRSource:
  57. 57. Page  57 U.S. Wearable Ownership by Demographics Source: NPD https://goo.gl/EUw6S2 36 percent of fitness tracker owners in the US are 35-54 years old, 41 percent had an average income of more than $100,000, and 54 percent were women. One-in-ten U.S. adults now own a fitness tracker. Smartwatches haven’t caught on as quickly, with only two percent penetration, and appeal to a much different segment of the market. More than two-thirds (69 percent) of smartwatch owners are 18-34 years old, skew mostly towards the male population (71 percent) and nearly half (48 percent) had an income below $45,000.
  58. 58. Page  58 What Consumers Expect from Wearable Devices Source: Cognizant report 2014
  59. 59. Page  59 Health Tops List of Information US Consumers Want from Wearables Consumers want wearables to help them exercise smarter, pull together their medical information and eat better. http://goo.gl/q4zBlRSource:
  60. 60. Page  60 Frequently Asked Questions Before Buying a WT Product Source: Rithmio: Wearable Tech Market Trends - Q2 2014 General considerations Product considerations What benefit does it provide to me? Would I actually wear it? Daily? Am I willing to pay that much for it? Does it actually work? Are the insights it provides meaningful? Is it accurate? Will I want to continue wearing it? What will others think? Will it break? Is it reliable? Will the battery last? Is it cool? Will others like it? Is it easy to put on? Can it get wet? Is it easy to set up? Comfortable to wear? Easy to transfer data to your phone? Look dumb wearing it? Is it accurate? Is it fashionable?
  61. 61. Page  61 Most US Consumers Are Interested in Lower-priced or Free Wearables While about one in 10 consumers are willing to pay a premium price for a wearable, most would rather receive one for free from their employers or insurers. http://goo.gl/q4zBlRSource:
  62. 62. Page  62
  63. 63. Page  63 Demand Is Growing and Online Marketplaces for WT Are Emerging
  64. 64. Page  64 Wearables: The Impact on Retail • Improving the Customer Experience 1. In-Store Shopping Experience - RFID and mobile payments 2. Personalization and Real-time Marketing – visual messaging or targeted offers • Transforming Retail Operations 1. Streamlining Communication and In-store Collaboration 2. Store Layout and Backend Efficiency As with any disruptive technology, the key to success is to fail fast, learn quickly, and continue to optimize. Investing in pilot programs and proof of concepts to test specific use-cases for the customer. Retailers who start thinking about wearable technology now could capture market share from their competitors and drive large operational efficiencies in the near future. What Retailers Can Do Now 3. Retail store personnel can also be outfitted with wearable devices - they can be more responsive — and in more consistent dialog — with in-store shoppers.
  65. 65. Page  65 Define Your WT Strategy
  66. 66. Page  66 http://goo.gl/x73A5pSource:
  67. 67. Page  67 “One Size Does NOT Fit All” - Focus on a Target Audience Oversight Bodies are different. Tastes are different. So why are a lot of WT products “for everyone”? Who is your target audience? Once the fad of putting on a wearable because it is new has worn off, for users to continue wearing a product they’ll have to be passionate about the benefits it provides to them as an individual. How to adapt? • Have focus. Target a particular audience. • Understand their pain points and needs. • Involve them in your product design process. • Market the solution to them. • It’s iterative. Gather feedback, refine, repeat.
  68. 68. Page  68 Go After A Target Audience & Address Their Needs
  69. 69. Page  69 Activity Trackers – Fitness / Wellness What do they do? • Activity Tracking • Sleep Monitoring • Heart Rate Monitoring • Augmenting Nutrition Plans • Coaching Who are they for? • Professional & D1 Collegiate Athletes • Team Training • Individuals • Families • Weight Loss Market What are the biggest markets? • Professional / Collegiate Athlete From Nike to Adidas, sporting equipment manufacturers are seeking ways to help athletes improve their performance. Also sports analytics firms like Catapult are popping up to bring “Nate Silver” stats to all playing fields. • Corporate Wellness Programs / Insurance FitLinxx helps large corporations roll out wearables with wellness programs to decrease their insurance premiums while helping their workforce get healthier. • Weight Loss Market It will be no time before Jenny Craig or Biggest Loser are releasing their own branded versions of Fitbit to appeal to their user base.
  70. 70. Page  70 Insight: Integration of WT + Calorie Tracking MapMyFitness was acquired by Under Armour in 2013. Get ready for calorie- tracking for fitness sites to integrate with WT data to give users a full picture of what they intake and burn.
  71. 71. Page  71 Activity Trackers – Fitness / Wellness Segmentation by Age • Infant Mimo, onesie that measures the baby’s breath while it sleeps. • Children Disney Magic Bands’ ecosystem deliver once-in-a-lifetime experiences. Tile helps you protect things you fear losing. FiLip is a wrist wearable to keep your kids safe. • Youth – Teen NEX Band, modular wrist wearable targeted at Tweens to Teens. • Aging CarePredict helps sensors maintain their independence, GE / Intel several years ago launched Care Innovations to trackle similar problems. See article on Wearables for Boomers.
  72. 72. Page  72 Activity Trackers – Fitness / Wellness Segmentation by Sports Type • Weight Training The PUSH Strength Kiwi Move • Swimming Instabeat • Running Adidas miCoach System • Soccer Adidas Smart Ball • Snowboarding Recon Snow 2 • Biking Recon Jet Turn Signal Gloves • Tennis Babolat Racquet The PUSH Strength system
  73. 73. Page  73 Wearables In the Workforce Examples: Heads-up Displays • Medical Professionals (see http://pristine.io) Documenting surgeries, getting a second opinion from remote specialists, disaster relief situation with specialist support from afar. • Entertainment & Sports First-person storytelling to enrich the fan’s experience and unlock advertising opportunities. (see The Pacers) • Field Workers See Vuzix & SAP example. Work nearly hands-free to improve productivity, gain specialist second opinion in the field. • Public Safety Workers / Civil Servants Obtain just-in-time critical information that can make a big difference in a life or death situation, monitor safety of peers in the field (oxygen levels of firemen) • Customer Service Personalized and premium customer service experiences to differentiate the brand and add value. Think retail with luxury brands.
  74. 74. Page  74 Wearables Helping People with Different Abilities
  75. 75. Page  75 Ways to Differentiate WT Products
  76. 76. Page  76 Color Preference
  77. 77. Page  77 Ability to Transform
  78. 78. Page  78 Ability to Personalize
  79. 79. Page  79 Materials Look to jewelry industry for inspiration. Fashion designers will seek a variety of materials to make wearable products nearly “hidden” within jewelry.
  80. 80. Page  80 Co-Branding The time will come when you don’t need to create your own wearable from scratch to have a product in the market. You’ll just need to license the technology and co-brand it.
  81. 81. Page  81 Go Luxury
  82. 82. Page  82 Software Makes the WT Meaningful Otherwise you’re just wearing a goofy bracelet. A Wearable Tech Product Is Actually Two Products in One: • The physical product worn with technology inside. • The accompanying software to make the data generated by the wearable meaningful to the user. Both combined, have to work well for a user to be HAPPY.
  83. 83. Page  83 Wearable Technology Has to Work Well……
  84. 84. Page  84 Wearable Devices Shift from Accessories to Ad Platforms Wearable devices are always attached to the user. This opens door for further possibilities. The rate at which one would happen to glance at their smart watches would be much higher. Marketers and promoters would get a more targeted approach and also would get better ROI on advertisements. These devices are contextually aware. There is a lot of information on the location of the user, their habits, the notifications that they receive, climate, travel, locality, work etc.
  85. 85. Page  85 Between 2013 and 2018, wearable device connections to jump more than 704.5% http://goo.gl/qvvFPqSource: “Advertisers aren’t the only ones looking to jump on the smart device bandwagon. In January 2014 polling by Accenture, 39% of senior executives worldwide cited wearable technology, such as smartwatches and exercise devices, as an emerging technology they would likely consider as part of their future digital/IT agenda. This was the second-highest response, trailing low-energy components and connectivity standards by 2 percentage points.” Wearable Devices Shift from Accessories to Ad Platforms
  86. 86. Page  86 The first brand to use Glass in its marketing was Kenneth Cole and its “Man Up for Mankind Challenge” which required men using a special Glass app to perform a gentlemanly deed each day for three weeks
  87. 87. Page  87 Topshop used Oculus Rift to let customers at the London store experience a fashion show from the front row. Users could sit next to A-list celebrities and experience the show like a VIP
  88. 88. Page  88 Do you dream of wandering virtual supermarkets? U.K. supermarket Tesco is the surprise star of a new demo for the Oculus Rift virtual-reality headset.
  89. 89. Page  89 The Future of Wearable Tech
  90. 90. Page  90 Wearable technologies are adding new layers to our personal relationships by extending the reach and power of how we communicate and share details about ourselves regardless of distance. The constant connectivity of these devices builds a unique portrait of their wearers and creates a continuous link between people, simulating closeness, changing the way we understand one another and enabling new forms of attention and care. CONNECTED INTIMACY Long Distance Togetherness Data Streamed Care Emotional Mirror TAILORED ECOSYSTEM User-centric technologies are beginning to adapt their form and functionality to align with our unique set of needs. Whether customizing their design to fit the unique contours of a wearer’s body or responding to a user’s emotional state to offer highly personalized feedback, this new breed of devices allows people to better define their interactions with technology, while at the same time enabling more meaningful experiences. Biometrically Attuned Responsive Coaching Bespoke Biotech CO-EVOLVED POSSIBILITIES Technology features and designs are evolving alongside our behaviors to take on a more essential role in our daily lives. Whether augmenting people’s existing abilities or adapting their interfaces to enable more natural levels of interactions, these devices point to the increasingly sophisticated relationship people have with their technologies. Augmented Sensory Perception Authenticated Self On-Board Interface Cloud Memory The Future of Wearable Tech CONNECTED INTIMACY PERSON TO PERSON THE FUTURE OF WEARABLE TECH TAILORED ECOSYSTEM PERSON TO COMPUTER CO-EVOLVED POSSIBILITIES PERSON AS COMPUTER http://goo.gl/FjH6jdSource:
  91. 91. Page  91 Function of Wearables Forecast From wristbands and glasses to clothing and even embedded devices, technologies are undergoing a rapid evolution. In this chart, PSFK forecasts the wearable form factors and corresponding functions that consumers can begin to expect over the next five years. http://goo.gl/FjH6jdSource: PSFK
  92. 92. Page  92 Many people found the first wave of wearables came up short. Entry-level price points were high, form factors were clodgy and accuracy left a lot to be desired. It’s no wonder there was a 30% return rate and high product abandonment after six months. Companies found getting wearables “right” is a tall order. To be truly useful, usable and desirable for people, we’ll see the following future improvements in wearable tech products to come in 2015 and beyond.
  93. 93. Page  93 1. Invisible. Moore’s Law contends that as components get smaller, products gain efficiency and become more powerful. In other words, you can think of current wearables as a boombox on your wrist. Between conductive fabrics or sensor-clad smart garments, wearables will intertwine so closely with fashion we won’t be able to distinguish them apart. Companies like AiQ, Hexoskin and OMsignal are already paving the way with biometric garments that measure body vitals. Future wearables could be more hidden by adding a thin film inside your favorite jewelry to measure biometric data, activity levels and even let you know when you’ve been typing at a keyboard too long.
  94. 94. Page  94 2. Personalized. From wedding rings to Invisalign, objects worn on the body 24-7 are a personal thing. Unless the product addresses a critical medical need like a hearing aid, it is unlikely for a single wearable to be desirable enough to be worn all of the time. Take a note from companies like Cuff or Misfit that employ a personalized approach to wearable tech. Their technology nests inside a system of jewelry that a person can select from and wear that day. Wearables are a part of the jewelry legacy, and they should be thought of as both parts tech gadget and a fashion statement.
  95. 95. Page  95 3. Efficient. Alternative forms of energy to power wearables are on the rise. In December 2014 Tommy Hilfiger launched clothing with solar cells to charge devices. We’ve seen kinetic energy-powered gadgets from Chicago-based AMPY (power your devices from your motion) to Darla Hollander of Everywhere Energy. Another example is the Peltier Ring by Sean Hodgins that leverages body heat to power small LED lights on a ring. While energy advancements require more polish to achieve commercial viability, they’ll be on your wrist sooner than you think.
  96. 96. Page  96 4. Accurate. From your kids’ GPA to your own body’s BMI, our culture is getting more numbers oriented across many aspects of life. Approximations of how many steps you walked will no longer suffice as people demand accurate data from their devices – including wearables. We have yet to see industry standards emerge to set manufacturer guidelines and advocate on consumers’ behalf. I anticipate advocacy boards to be formed to evaluate devices and require brands to deliver accuracy percentage guarantees. Can you picture a label on Jawbone packaging with a ‘99.5% accurate gesture tracking’ guarantee?
  97. 97. Page  97 5. Permissions-based. Marketers are salivating at the prospect of pushing wearables advertising to you around the clock. As ad revenues dwindle on TV and newspaper formats, next generation devices offer a new opportunity for brands to target people like we’ve never seen before. Savvy consumers will demand the ability to set specific permission settings on their device to structure who, what, where and when they can be disturbed. Founded in 1894 and more commonly known for certifying appliances for electrical safety, UL is developing draft requirements for security and privacy for data associated with Internet of Things devices, including wearables. A pilot program is underway, and UL plans to launch the program early in 2016.
  98. 98. Page  98 6. Sentient. Even Furbies in 1998 could learn new things, so why is it that $150 activity trackers can’t learn additional activities like jumping rope, swinging a kettlebell or salsa dancing? Peoples’ interests evolve. Their wearables need to be able to evolve too and learn new things. The single feature, fancy pedometers of today’s activity tracking market won’t sustain for much longer.
  99. 99. Page  99 7. Multi point. The wearable tech conversation will quickly shift from discussion of your wearable (singular) to the system of sensors on your body at any point in time. Already people are wearing an activity tracker and have a smartphone in their purse; both of which are gathering motion- sensing data through the accelerometer and gyroscope inside. Technologists are working on ways to derive meaning from multiple sensors on the body at one time, to give a person a holistic view of how her body is moving or performing across multiple devices and sensors.
  100. 100. Page  100 8. Seamless.It will be excited to see what happens when wearables converge with connected homes to drive efficiencies without having to tap a button on a screen. Imagine approaching your home’s door with groceries in hand, and the heartbeat signature via your wearable signals the door’s smartlock to unlock. While crossing your living room, a sensor on your wrist wearable notices your core body temperature is above average and automatically interacts with Nest thermostat to trigger the air conditioning. Your wearable also includes a sensor to detect hydration levels, and it triggers your smart refrigerator to automatically pour a glass of water for you as you enter the kitchen to unload your groceries.
  101. 101. Page  101 While it is premature to predict specific features or form factors that will prevail in the future, wearable tech presents a fascinating field to study. With innovations on the horizon, we’re moving closer to making possible products that are useful, usable and desirable for people.
  102. 102. Page  102 Appendix I WT Brands & Products
  103. 103. Page  103 Brand ranking: Wearable Lifestyle and Fitness • Based on number of Google searches since October 2014 in the US only • Fitbit is clearly the most searched wearables brand with most stable popularity over the course of the period • Apple Watch has the highest search levels, but only at times of Apple keynote events. • The list is not exhaustive ** Basis & Misfit web searches often refer to other companies/ brands/ products and events, not related to the brands in the research Rank Product 1 Fitbit 2 Apple Watch 3 Samsung Gear 4 Jawbone Up 5 Pebble Watch 6= LG G Watch 6= Microsoft Band 8 Garmin Forerunner 9 Sony Smartwatch ** Misfit ** Basis
  104. 104. Page  104 Apple Watch is most often searched around Apple keynote events; Fitbit and Samsung Gear demonstrate stable popularity 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Brand popularity online* Sep 2014 & March 2015 Apple Special Events Fitbit Charge and Surge released Source: Google trends. Popularity based on the number of Google searches. 100 = highest weekly search number on the chart. 20142013 April 2015 2015 LG G watch Pebble watchGarmin Forerunner Samsung GearFitbit Microsoft Band Apple watch Jawbone Up Sony smartwatch
  105. 105. Page  105 Apple, Samsung and Nike are yet to establish an association with product features in consumer minds  Web-search word clouds: what topics are the brands associated with Web Search Word Cloud Web Search Word Cloud Web Search Word Cloud Web Search Word Cloud Web Search Word Cloud Source: Google trends
  106. 106. Page  106 Fitbit: A top-of-mind brand in the wrist-worn fitness trackers • Founded: 2007; HQ: San Francisco, USA; Employees: 288 • Main production line: Activity trackers, wireless-enabled wearable devices that measure data such as the number of steps walked, quality of sleep, and other personal metrics • In March 2015 it acquired FitStar, a fitness training app maker • Distribution channels: • USA: AT&T, Best Buy, Brookstone, Dick's Sporting Goods, Radio Shack, REI, Sports Authority, Target etc. Apple recently dropped Fitbit from its stores after the company refused to integrate with the Apple Health Kit tool • Online: Amazon.com, Fitbit.com, minineed.com • Europe: UFP International S.A., Decathlon • Tracks steps, distance, calories burned and active minutes. • LED lights show progress against goal. • Water and dust proof • Directly Sync with mobile device, PC and MAC • Monitors your sleep and wakes you with a silent alarm. Flex™ Wireless Activity + Sleep Wristband • Tracks steps, distance, calories burned and active minutes. • OLED display with daily stats and watch • Call notifications and Wireless Sync with compatible devices • Battery life of 7-10 days • Monitors your sleep and wakes you with a silent alarm. • HR – heart rate tracking • GPS tracking • PurePulse™ heart rate • Multi-sport activity tracking • Call and text notifications and music controls Charge/Charge HR™ Wireless Activity + Sleep Wristband Surge™ Fitness Super Watch • Tracks steps, distance, calories burned and stairs climbed. • Monitors your sleep and wakes you with a silent alarm. • Sweat, rain, and splash proof • Wirelessly syncs to computers and select smartphones • Attaches easily to clothes, belts, sacks etc. One™ Wireless Activity + Sleep Tracker • Tracks steps, distance and calories burned. • Sweat, rain, and splash proof • Wirelessly syncs to computers and select smartphones • Replaceable battery, lasts 4-6-months. Zip™ Wireless Activity Tracker • Scale measures weight, BMI and % body fat. • Uses Wi-Fi to upload stats automatically to Fitbit.com. • Set weight goals and chart your progress with free online graphs and tools. Fitbit Aria Wi-Fi Smart Scale $95 $130 $250 $100 $60 $130
  107. 107. Page  107 Jawbone: Fitness trackers & other consumer products • “…world-leader in consumer technology and wearable devices, building hardware products and software platforms powered by data science” • Acquired BodyMedia in 2014 • $3 bln. valuation (H2 2014); rumored $600 mln. revenue run rate for 2014 • In early 2015 - allegations that Google would make a ‘strategic investment’ in Jawbone • Bulk of sales - Jambox wireless speakers • HQ: San Francisco; products available in 40 counties • Dedicated online store Marketplace, selling third-party products as well • Retail partners: Amazon, Best Buy • Jawbone UP4 announced in April 2015: partnership with American Express for a payment system; heart rate and hydration levels tracking; Fitness Trackers • Activity, steps, distance, calories, sleep tracking • UP3: heart monitoring, advanced sleep tracking • Jawbone communities at city level • Dedicated app with Coach functionality • Connectivity with external apps and hardware • Wireless syncing • Mini and large version • Wireless Bluetooth speaker • Connect calls from phone to speaker • Wireless Bluetooth headset • NoiseAssasin technology to eliminate surrounding noise • Separate charging case • Dedicated mobile app Jambox Headsets $50 $130 $180 $130- $300 $130
  108. 108. Page  108 Basis: A single fitness & sleep tracking device • Acquired by Intel in March 2014 • Basis Peak announced in September 2014 • Dedicated web store, Amazon, Best Buy, etc. • Intel to integrate Basis tech into other form factors • Intel plans to launch biometric-sensing earbuds Basis Peak • Sleep tracking, trends, sleep patterns • Accelerometer, heart rate • Fitness tracking, goals, notifications, calories tracking • Smartphone connectivity (Bluetooth), notifications • Water resistant • 4-day battery life $199
  109. 109. Page  109 Pebble Smartwatch, the most successful Kickstarter project ever • Founded: 2009; HQ: Palo Alto, CA, USA • Over 6,500 Pebble apps and watch faces available • Pebble is the first smartwatch capable of connecting with Apple’s iPhone, a feature that’s helped it reach a mainstream market. • Pebble Time has reached $14 million in Kickstarter pre-orders, making it the most- financed project in Kickstarter history. • Pebble Time will come with customizable module straps, offering additional features (radio, extra battery, heart rate monitor, etc) • The new Pebble Time aims to be directly competing with Apple Watch Pebble Time • Call and text notifications • Up to 7 days of battery life • Color screen • Microphone • Currently in development Pebble Smart Watch • Call and text notifications • Up to 7 days of battery life • Water resistant up to 50 meters • Fitness tracking – run, walk, bike, swim, sleep • Various apps Pebble Steel • Aims for traditional timepiece owners • Built with stainless steel; both in the watch face as well as the new link-style bracelet with traditional watch clasp. • Pebble also added a small LED light for charging status under a corner of the Corning Gorilla Glass watchface $99 $199$249
  110. 110. Page  110 Misfit: Bluetooth synced fitness & sleep monitors • “Invent and manufacture great wearable computing products.” • Founded in 2011; $15 mln series B financing in Dec 2013 • In Dec. 2014 landed $40 million in funding from various investors, incl. Chinese Xiaomi to develop operations in Asia • Manufactures sleep and fitness monitors, but also sport socks & t-shirts, notebooks, wrist bands for Shine & Flash • Added a host of smart home features, such as Nest, Logitech, and Spotify connectivity • Operations: • San Francisco (Industrial & UX design; hardware engineering) • Seoul (Sensor dev and manufacturing) • Ho Chi Minh (Data science, software, graphic design, operations) Bolt Smart Bulb • Wirelessly connected • Over a million colors controlled by mobile app (iOS and Android) • Alarm sunrise simulation • LED technology • Waterproof • No charging, 6-month battery • Watch Function • Measures & tracks steps, calories, distance, sleep • Smartphone compatibility • Since March available as Swarovski Shine Set Shine Fitness + Sleep monitor • Waterproof • No charging, 6-month battery • Watch Function • Measures & tracks steps, calories, distance, sleep • Smartphone compatibility Flash Fitness + Sleep monitor • Tracks sleep time, cycles, light sleep duration • Heart rate • Ambient sound, snoring • Sleep graphs & stats • Alarm, soothening sounds • Placed between mattress & sheets Beddit Sleep monitor $50 $99 $169 $49 $150
  111. 111. Page  111 Garmin: Wide range of wearable devices for various sports • “To be an enduring company by creating superior products for automotive, aviation, marine, outdoor, and sports that are an essential part of our customers’ lives. We will be the global leader in every market we serve, and our products will be sought after for their compelling design, superior quality, and best value.” • Founded 1989, Kansas, USA • $2.6 bln 2013 revenue; 21% of revenue comes from Fitness segment (~$365 mln) • Announced three more smart watches in 2015: Fenix 3, Epix, Vivoactive • Dedicated wearable watches and products for: running, swimming, golf, cycling, hiking, dog tracking and training; multisport wearables, and action cams vivoactive • GPS smartwatch • Specialized running, biking and golfing features, as well as activity tracking • Call, text, and calendar notifications • 1-year battery life, waterproof • Customizable interface Forerunner Series • Sleep tracking, steps, calories, sleep patterns, heart rate monitor • 1-year battery life, waterproof • Wireless sync with Garmin Connect • Bluetooth Sync with smartphone, notifications • Cadence, vertical oscillation and ground contact time • VO2 max estimate², race predictor and recovery advisor • swim distance, pace, stroke type identification, stroke count, drill logging and rest timers • Smartphone sync, rechargeable • Garmin Connect™, live tracking, social media sharing vivo Series $330 $140 - $190 $130 - $450
  112. 112. Page  112 Apple Watch: Initial impressions from observers were varied • Apple Watch announced in Sept 2014; scheduled for release on April 24, 2015 • Financial analysts offered early sales estimates from a few million to as many as 40 million in the first year; currently preorders are estimated at the amount of 957,000 watches on the first day of release • In November 2014, Apple Watch was listed by Time as one of the 25 Best Inventions of 2014. • Apple has partnered with IBM to develop the technology to analyze patient data collected from millions of wearable Apple devices to help healthcare companies. Apple’s Research Kit and Health Kit help developers create apps to gather and share medical information about the device’s users. Partnership with prominent healthcare institutions, such as the Mayo Clinic, promise to extend the preventive applications of the watch, of Apple’s devices, such as receiving warnings when a user’s health indicators get too high. • WebMD, CareEvolution and other healthcare companies have announced new apps for the Apple Watch, which can issue medication reminders and sharing electronic records. • Tracks movement through a built-in accelerometer and heart rate through • Measures not only the quantity of movement (e.g. number of steps) but also the quality and frequency of movement • The three rings of the Activity App show progress at a glance • Separate Workout App for Cardio sessions • Learns user habits over time and suggests personalized daily fitness goals $349 - $17 000
  113. 113. Page  113 Samsung Gear Series: bridging wearables with smartphones • “Designed in a purely idealistic way” • Shipped 500,000 Gear smartwatches in Q1 2014, 1 mln for FY`13 • ~71% smartwatch market share Q1 2014 • Smartwatches represent 11% of all wearables (YTD 2014, GfK) • Used with several Samsung smartphone models • Super AMOLED display and Oculus-driven software • 360 degrees view • Still an ‘Innovator’ Edition Gear VR • Calls, emails & directions • Curved 2-inch Super AMOLED display • Internet radio service • Exercise tracking, heart rate, barometer • Various apps available • Calls, emails & directions • 1.63-inch Super AMOLED display • Voice control and response • Stand-alone music player • 2MP built-incamera • Calls, text messages, music • Splash resistant • Gear manager mobile app to control notifications, settings, SoundAlive equalizer • 9 hours music play time / 11 talk time • Compatibility with all Bluetooth enabled devices Gear Circle Headset Gear smartwatch series $199 $99 Gear S - $299 (no carrier contract) Gear 2 - $299
  114. 114. Page  114 LG Smartwatch: The first smartwatch with the look and feel of a real watch • G Watch R: “The world’s first watch-style wearable to feature a full circle display that utilizes 100 percent of the watch face” • LG Watch Urbane/ Urbane LTE will be launched in 2015; both models are already available for pre-order and are competing with the Apple watch • LG has been on the rise in global smartphone sales • Water and dust resistant • Android wear OS, voice control • 1.2GHz Qualcomm Snapdragon™ 400 • 4GB eMMC / 512MB RAM • 410mAh Battery life • 1.3-inch P-OLED display • Weather, notifications, navigation, stock information, Google search, fitness tracking apps G Watch R G Watch Lifeband Touch Activity Tracker • Water and dust resistant • Android wear OS • 1.2GHz Qualcomm Snapdragon™ 400 • 4GB eMMC / 512MB RAM • 400mAh Battery life • 1.3-inch P-OLED display • Weather, notifications, navigation, stock information, Google search, fitness tracking apps • 2 sizes • OLED Touch screen • Wireless syncing with LG Fitness app • Music control • Measures and tracks timing, calories, speed, heart rate • Integrates with smartphone to display calls and notifications $359 $259 $199
  115. 115. Page  115 Sony SmartWear: Newly announced voice capabilities in SmartWatch 3 and SmartBand Talk • “Lets you stay on top of things that matter.” • All Sony wearable devices are synced with the Android Lifelog life-tracker app: bookmarking moments and analyzing patterns of any activity (reading, music listening, walking), social interaction, and sleep • Fitness tracking SmartBand introduced in Jan 2014; voice recognition and control added later in the year • Voice capability (vibration, mic and loudspeaker integrated) • Curved E-ink display • Up to 3 days battery life • Waterproof • Measures & tracks activity • Alarm and notifications • Android smartphone compatibility SmartBand Talk SWR30 • Voice control and recognition • Up to 2 days battery life • Notifications, contextual search, reminder, travel and weather apps Measures and tracks activity • Stores audio files • Android smartphone compatibility • Waterproof • Removable core • Vibration notifications about smartphone activity • Measures and tracks activity and sleep • Smart alarm • Android smartphone compatibility SmartWatch 3 SWR50 SmartBand SWR10 $170 $249 $100
  116. 116. Page  116 Microsoft Band: Open platform focused on data gathering • Microsoft has been late to the wearables space, launching its Band in Oct 2014 • Feb 2015 sees a major update of the wearable and its accompanying Health app, including voice control and keyboard • Focus on the data gathered; compatibility with third party provides allows for convenient syncing with various health analysis apps • Starbucks has signed up as a partner for the Band to accept mobile payments • Water-resistant • Heart Rate monitor • UV monitor • Integrated with smartphone to show notifications • Measuring and tracking health and fitness indicators • Voice controls • Mobile payment feature • 48h battery life • Works with Microsoft Health app Microsoft Band $199
  117. 117. Page  117 Nike+: online fitness community ‘fueled‘ by fitness accomplishments • Significant global online presence through the Nike+ online community and smartphone apps – 28 million Nike+ members as of 5/2014 • Proprietary Fuel points system tracking performance and movement • Nike+ running range started in 2006 with the Nike running sensor, connecting wirelessly to iPod • In 2014 discontinued FuelBand bracelet and teamed up with Apple to produce a new wearable • Continued focus on software, goal to expand the community to 100 million members from all over the world • Android and iOS based self-tracking apps • Water-resistant • 8h battery life • Tracks distance, pace, duration of runs • Captures run laps • Maps GPS location • Works with Nike running sensor • Monitors heart rate Nike+ SportWatch GPS Nike+ Kinect Training • Requires Kinect sensor and Xbox 360 (sold separately) • Tracks workouts • Smartphone compatibility • Integrates personal music • Creates personalized programs and tracks progress $149 $39
  118. 118. Page  118 Appendix II Media Reviews
  119. 119. Page  119 Source: http://goo.gl/rJn2jp
  120. 120. Page  120 Source: http://goo.gl/Ni6Oi
  121. 121. Page  121 Source: http://goo.gl/BxQmWs
  122. 122. Page  122 Source: http://goo.gl/Y0H92e
  123. 123. Page  123 Source: http://goo.gl/RLfQ1q
  124. 124. Page  124 Appendix III Marketing & Advertising
  125. 125. Page  125 Samsung 2015 Smartwatch Commercials Apple (Click on each video to play)
  126. 126. Page  126 Huawei LG 2015 Wearables Commercials Fitbit (Click on each video to play) Jawbone Moto Garmin
  127. 127. Page  127 Sony 2015 Wearables Commercials Pebble (Click on each video to play) Microsoft Band ASUS Misfit Moov
  128. 128. Page  128 Apple Watch Print Ads in Vogue The Apple Watch made its first magazine appearance last October (2014) in Vogue China. The Apple Watch made its U.S. magazine cover debut earlier this month in the March 2015 issue of Self, and it's also being featured in a multi-page spread in the March issue of Vogue.
  129. 129. Page  129 Google Glass Print Ads in Vogue In the September 2014 issue, Vogue dedicated all those 12 pages featuring models wearing Google Glass of various colors.
  130. 130. Page  130 Moto Smartwatch Print Ads

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