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TRANSCRIPT
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The Connected Consumer: How Wearables and Smart
Personal Accessories Fit into the IoT Opportunity
Vice-Chair, AIM IoT Committee
►Michael LiardLiard Research & Consulting
President, RFID Professionals
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> Wearable and smart personal devices are flooding the market
> These devices are bringing consumers into the IoT mainstream
> Smart products are positioned as the consumer entry point…or the ‘connection point’…to the IoT
> Wearables and smart personal accessories gather information about behavior, activities and sensor collected data, and then process all that information
> Not just for the consumer, using wearable technology at work is a hot topic, offering possibilities of increased productivity for businesses by augmenting and automating the tasks of the wearer
Wearables Viewed as the Latest IoT “Careables”
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> Beyond providing users with real-time data about their health or an augmented view of the world, wearable technologies will form an integral part of the Internet of Things…the logical evolution of the cloud and big data
> The idea is to enable sensor-equipped "things" to communicate with one another in meaningful, actionable ways
> For that to happen, though, companies need to take care not to scare off would-be users by failing to address their privacy concerns
> Sensor-equipped “things” may change IoT strategies and invite new players to the IoT table – namely, consumers
How Do Wearables Fit in with the Internet of Things
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> All wearable computers will have location-adjusted motion sensing
> Cloud-based applications are the foundation for data collection, storage and exchange» Sensors, devices and hardware rely on data, which needs to be stored and
processed to bring customized and extensible experiences.
> Big Data and Cloud computing combined with wearables and sensors: » Provide a new environment to collect, process and produce information
based on the data collected» Data will be composed of multiple sensor readings and need to be
processed, producing valuable information or customized experiences
> “Bigger,” more personal data demands higher, tighter security» The connected customer/connected consumer needs to feel comfortable
and confident
Sensors, the Cloud & Data are the Common Denominators for Wearables
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> The answers depend on who you ask and what types of devices are included
> The expected number of devices and size of the industry vary widely and is subject to change, especially as new products and new classes of solutions are introduced:» 19 million units in 2014 (3x 2013’s total), growing to 112 million units
by 2018 according to IDC
» 485 million devices by 2018 according to ABI Research
» $80 billion market by 2020 according to Jupiter Research
» $30 billion to $50 billion over 2 to 4 years according to Credit Suisse
How Many Devices? How Large is the Market?
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> Entertainment
> Social Media
> Gaming
> Advertising
> Healthcare / Lifestyle / Medical
> Retail
> Many others…
Fast-expanding World of Wearables Across Verticals
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> Companies that fall in this broad category are likely in the best position to benefit from the burgeoning wearables movement… » Basically, where there’s a screen, there’s an opportunity!
> A recent survey by PWC found over 70% of respondents expect wearable technology to make media and entertainment experiences “more immersive and fun”
> Consumers not looking to wearables to create new genres of communication and entertainment, but rather to improve those already in existence
> To no surprise, millennials are the most open to trying branded wearables offered by media and entertainment companies
Entertainment
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> Consumers want even more on-the-go access to their favorite social networks via wearables
> This is especially true of always-on millennials, who are 3x to 4x more likely adopt uses cases around social media than the general population
> Therefore, real-time social-media updates are seen as a key benefit of wearables for a critical current and future class of consumers» #Wearable&Shareable» #WearIt&ShareIt» #WearingIsSharing
Social Media
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> Games that wearables could render more visually and physically engaging are of high interest to the gamer community
> Consumers between18 to 24 would be “motivated by” wearable-integrated gaming
> The future of gaming will not be televised…It will be worn
> Think literally on-your-face, 3-D virtual reality gaming
> Microsoft’s new HoloLens headgear is positioned to “play” here
Gaming
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> More wearable screens equal more places for marketers to advertise
> Wearables provided a portable, blank canvas for highly targeted message placements, including content with greater relevancy and context to the consumer
> Advertisers and brands are already developing wearable strategies that deliver personalized marketing messages directly to people who don Google Glass, smartwatches, fitness bands, virtual reality headsets, etc.
> If you can wear it and stare at it, the advertisers will share it
Advertising
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> A fast-growing crop of wearables already help health-conscious people monitor everything from calories consumed and burned to steps taken to sleep and more
> Retailers such as Walgreens are funneling data from loyal customers who don fitness bands and are willing to share that data. In other words, make healthy choices, give them your data and Walgreens will give you rewards
> Additional health- and wellness-focused companies are expected to offer wearable-related incentive programs
> Wearable smart medical devices, health monitoring, medical treatment and other healthy living wearables have been introduced (i.e., at CES 2015) and many more are under development
Health Care / Lifestyle / Fitness
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> Wearables will soon play a central role in our everyday retail experiences.
> However, they may be haunted by privacy and data breach threats and concerns
> Consumers would like to use wearable tech for more pleasant, efficient shopping experiences from pre-store and in-store product research and comparison, finding deals/ incentives/discounts and at the checkout
Retail
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> Bulky devices, ugly designs
> Better batteries are a NOW-term requirement
> Invisibility of wearables is key to adoption
> Security and privacy, particularly around the management of consumer data, remain a concern as the tech industry seeks to bring more of our body parts online
> Continued experimentation and innovation with wearables is important, but the near-term requires a conversation about whether current wearables are really adhering to customer needs and wants
> User retention and use cases are critical to adoption as consumers must care for it in order to wear it
Issues and Challenges
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> While still only in its nascent stages, the wearables market is expected to explode
> Big brands, big tech companies, big retailers, and big investors are entering the fray…all with the consumer in mind
> Many say wearables will forever change the way we live, work and do business
> To remain competitive, your company might have to adopt a competitive wearables-integrated edge. Are you ready?
Wearables and the Future: Get Smart
