Solving the Sock Drawer Problem: How Are We Failing Wearables Consumers?

1. Solving the Sock Drawer Problem: How are we Failing Wearables Consumers? Wearables Techcon 2015 Dr. John Feland, CEO

2. Page 2Page 2© 2015 Argus Insights, Inc. Confidential: Do Not Distribute First, A Bit Of A Framework For Today’s Discussion Buying Learning Using Succeeding ConsumerPerceptionsoftheExperience Elation of Anticipation Habit Forming Sock Drawer Long (or Short) Drive to Mastery Euphoria of Achievement

3. Share of mind leads share of marketShare of mind leads share of market

4. Page 4© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 4© 2015 Argus Insights, Inc. Confidential: Do Not Distribute (Really) Brief Intro to Argus Insights COLLECT REPORTANALYZE TAKE ACTION

5. Page 5Page 5© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Amazon Fire Phone: Failure to Launch July 25 Fire Phone Launched July 28 Argus Insights Blog Predicts Failure Sep 8 Amazon Drops Price to 99 cents, GreenPeace strikes Aug 26 Amazon only sells 35k in first 25 days

6. Page 6Page 6© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Argus Insights Proprietary Metrics Are Proven Predictors of Consumer Demand 23-Feb-13 23-Mar-13 23-Apr-13 23-May-13 23-Jun-13 23-Jul-13 23-Aug-13 23-Sep-13 23-Oct-13 23-Nov-13 Mapping Handset Consumer Buzz Metrics to Actual Handset Sales Actual Sales/Returns for Specific Handset Predicted Sales Using Argus Metrics from 8 weeks prior Eight Weeks Predicting Adjusted R2 = 87.8% p-value = 4.547E-22 HandsetUnitSales/Returns

9. Page 9Page 9© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Measuring the Gap Between Promise and Reality • Installation and Set up still an issue across multiple brands • FitBit’s early adoption was limited by learning curve issues • Now one of the best performing brands in hearts of consumers

12. Page 12Page 12© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Usage of Watches Does Not Differ Much from Fitness Bands • Outdoor Usage Mentioned More Than Any Location • Bathroom (shower) second most discussed • Consumers need products that fit their lifestyle, not the opposite

13. Page 13Page 13© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Usage of Watches Does Not Differ Much from Fitness Bands • Outdoor Usage Mentioned More Than Any Location • Bathroom (shower) second most discussed • Consumers need products that fit their lifestyle, not the opposite “It's not great for using during exercise if you want to see your HR at a glance because the display reverts back to the time after about 30 seconds, so you have to swipe the screen whenever you want to see the data And if your hands are sweaty or wet the swiping doesn't always work” “Apparently you can't wear it properly fitted get it wet in any way becuase it causes bad chaffing/rash The touchscreen is overly sensitve at times Taking a shower causes the screen to think I'm swiping through the screens The up/down swipe is diifcult to execute at tiems overly sensitive” “ For example, when the device is wet, the swiping on the oled touchscreen does not work easily (need dry screen fingers), so best to have the 'activity' screen up going before hopping in the water, or a towel handy poolside” “While waterproof, the touch screen responds to contact with water As a result, it is not unusual to have your settings completely reconfigured after showering, washing dishes, swimming a few laps, etc Pretty annoying “

16. Page 16© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 16© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Wearables have a Usability Problem, that Can Be Solved “Reading texts on the watch is difficult frustrating as well, since the swipe up motion doesn't always work, it only shows about 160 characters It should be able to show more” “Ironically this is also that screen that I would need to swipe 11 times to do a factory reset as it does not respond to touch I can't even do a factory reset” “Later that day, I received another long text automatically attempted to swipe It swiped back forth without any issue, later however, I received another long text spent 5+minutes getting the thing to swipe ” “Apparently you can't wear it properly fitted get it wet in any way becuase it causes bad chaffing/rash The touchscreen is overly sensitve at times Taking a shower causes the screen to think I'm swiping through the screens The up/down swipe is diifcult to execute at tiems overly sensitive other times”

18. Page 18Page 18© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Round is In For SmartWatches • Round Watches Match Consumer Expectations More than Square • LG and Moto continue to be perceived as better devices • Huawei’s new smartwatch launched at MWC was the most discussed wearable at Barcelona

19. Page 19Page 19© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Designed to Disrupt? Lessons from the FitBit Surge Alerting GPS Texting Touchscreen Screen Apps Battery Life Gesture Recognition Battery Charging Access Percentage of Fitbit Surge Users Mentioning Particular Aspects of Users Experience

22. Page 22Page 22© 2015 Argus Insights, Inc. Confidential: Do Not Distribute What will Apple’s Journey Be? Buying Learning Using Succeeding ConsumerPerceptionsoftheExperience Elation of Anticipation Habit Forming Sock Drawer Long (or Short) Drive to Mastery Euphoria of Achievement

24. Page 24© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 24© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Apple Stole the Wearables Show in September 2014 Buzz over Apple exceeded all other major brands combined FitBit was a trailing second place Samsung and Pebble operation below the noise floor

25. Page 25© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 25© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Apple’s Spring Forward Event Attracted Less Attention than Six Months Ago Apple came out strong but in a more competitive market FitBit has a clear hold on mindshare Pebble Time grabs almost as much mindshare as Apple Samsung still below the noise floor

26. Page 26© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 26© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Consumers Hold Their Breath For A Few Weeks When Apple Watch First Announced Apple Watch Announced

27. Page 27© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 27© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Holiday 2014 Drove Significant Wearables Adoption That Continues Today Apple Watch Announced

28. Page 28© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 28© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Fitbit And Jawbone Had To Biggest Holiday Gains, Samsung Wanes FitBit Garmin Jawbone Samsung MOTOMisfit Pebble LG Apple?

30. Questions? http://www.argusinsights.com Twitter: @argusinsights 1-877-992-7487 sales@argusinsights.com Sign up for a free Wearables newsletter at http://argusinsights.com/wtc2015

Solving the Sock Drawer Problem: How Are We Failing Wearables Consumers?

Solving the Sock Drawer Problem: How Are We Failing Wearables Consumers?

Recommended

More Related Content

What's hot

What's hot(20)

Similar to Solving the Sock Drawer Problem: How Are We Failing Wearables Consumers?

Similar to Solving the Sock Drawer Problem: How Are We Failing Wearables Consumers?(20)

Solving the Sock Drawer Problem: How Are We Failing Wearables Consumers?