Misfit Wearables - Company Report EECS 441 UM F2015

1. Misfit Wearables
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2. History
- Founded in 2011 by Sonny Vu, John Sculley and Sridhar Iyengar.
- Before Misfit, Vu and Iyengar were behind IBGStar (the first FDA approved
medical device for Iphone).
- Early-day invested by ex-Pepsi president and ex-Apple CEO Sculley.
- Headquartered in San Francisco. Engineer offices located in China and Vietnam.

3. Products - Shine (launched 2012)
- Utilize sensor technology, tracking activity and monitor sleep.
- Funded through Indiegogo (goals reached within 10 hours, finished ~ $846k).
- Elegant design, persistent battery life (5-6 months) and waterproof.

4. - Positively received.
- Partnered with Victoria’s Secret, Swarovski.
- Named official tracker for Sochi and World Cup 2014.
- Fully waterproof.
- Partnered with Speedo to utilize swimming tracking.
- Shine 2 will be launched in 2016.

5. Products - Flash (launched 2014)
- Similar to Shine, but made from plastic.
- Half the price.
- Lower water resistant (30m compared to Shines’s 50).
- Mixed reviews.

6. Financial
- Around $63M from 5 funding rounds. (7.6M, 15.2M, 40M from Series A/B/C)
- Revenue undisclosed, but shipped over 1M devices in Q4 2014.
- Huge market for growth (70M devices sold total in 2014 - $7B market).
- Recently acquired by Fossil Groups for $260M.

8. Secret Sauce
- Fashion-oriented.
- Doesn’t greatly compromise activity tracking.
- Price.
- High sustainability, access to cheap HR.
- “We have to get the best talent at the best prices” - Sonny.
- Accessible outside of US market. (⅔ of revenue outside US, mostly China, Russia)
- So far, decent marketing strategy.

9. Competitor
+ Other tracker: Jawbone, Garmin, Mio…
+ Smartwatches: Pebble, Samsung Gear.
+ Young and competitive market.

10. Thoughts
+ Sustainable, steadily generate revenue.
+ Good direction, focus on “wearables”.
+ Depends on its parent company’s partnership and marketing.
- Need to diversify products.
- Need to enhance UX.
- Solid competitors.
Will continue to earn its share in the market!