2. Background
Wearables in ‘15
Wearables are at the top
of Gartner’s ‘peak of
inflated expectations’
this year...
but, most businesses
and consumers have
only recently considered
making a feasible
transition. Why?
Current Market
Sensitive tradeoff
between
functionality and
fashion
New ways to interact
with customers
New players in the
market
Future Potential
From retail to insurance,
wearables will disrupt
consumer markets, the
question is when and how.
Where today’s
organizations decide to
place their wearables ‘bet’
is the deciding factor.
3. American Apparel
Young, urban leaning demographic.
Unlike Urban Outfitters, all focus on clothes.
AA must remain ‘hip’ at all costs:
all brand value lies there!
Suggestion: stay aware
Become a first mover: use the immersive wearable experience to
attract new customers.
Still far too early to fit wearables into the product line, risk of losing
trendiness.
4. Independence Blue Cross
Fitness bands essentially allow real-time,
perfect information.
With proper timing and research, IBC could
change the game using wearables in:
Risk Management/Underwriting
Claims management
Premium plans
Incentive programs
Suggestion?
5. Independence
Blue Cross:
Move Fast!
Fitness bands alone offer a new
degree of perfect information,
consumer value, and business
value
● Leverage new and existing networks of
physicians.
○ Get hospitals using them for health
monitoring, etc.
● Launch wearables insurance plans.
○ Incentivize exercise for cheaper rates
○ Premium monitoring plan and alert
system for elderly living alone
● Use real-time health data to segment
groups of patients
○ Identify real time risks in concentrated
areas
○ Analyze macro health trends over
days, weeks, and years
Wearables have been around for about a decade, but organizations are still unsure where they fit:
Consumers on the still on the fence about fashionability and functionality
Estimates say that in 2015, 50% of consumers in the wearables market will opt for a watch over a smartband
As ‘hype’ is at the peak, consumers and businesses are waiting it out to see where things fall
Who the major players will be, and what product will set the standard…
Consumers unsure how much they want companies knowing about them
Not only where you are, but what your exact health condition will be (we’ll get back to that later)
Consumer base largely 18-24 year olds
Large market, but relatively slim age range…
They could go after 13-18 market or 25+ with targeted ad campaigning
Most stores close to urban areas.
Not a problem of distribution, just proximity to customers
American Apparel’s current and success is entirely dependent on keeping up with fashion trends, need to stay hip to remain profitable ( the only classroom appropriate advertisement I could find!)
Trends in fashion are much shorter than in tech, almost impossible to predict
AA should use wearables in general as a new marketing channel to reach new demographic.
AA could implement wearables as payment options in their current point of sales system.
Now here is a true opportunity for disruption
Health care, medicare/aid
With health insurance, by far the most important are smart watches and fitness bands.
Gives underwriters/RMI perfect information, and consumers better service for a cheaper price.
Very granular control of costs for business
Very granular insight into health information for the consumer
IBC can reach many untapped markets using wearables, lots of potential:
New business models
However, as mentioned on background slide, IBC obviously has the ability to disrupt
Success is however contingent on picking the right combo of the above strategies
and being able to execute
Use of health-oriented wearables will almost triple between 2014 and 2018, according to Juniper Research.
