Wearables: The Themes and the Business

2015/2016

The release of the Apple Watch+ the most recognizable

smartwatch on the market

+ a bigger success than the skeptics predicted

+ many are hopeful for the improvements in Apple Watch 2, rumored to be unveiled in March

+ a bonus moment was Apple releasing Swift as open-source.

The release of the Apple Watch

With the release of WatchOS 2, experienced developers could begin to provide native apps with relative ease. Holiday sales predictions were pretty clear: the Apple Watch is a hot commodity. However, the killer app is yet to come. The device’s strengths include handling both notifications and health & fitness tracking, which provides plenty of opportunities for businesses focusing on smartwatch applications.

Business impact:

Google Glass-commercial failure + Failed to gain commercial success, and in January 2015 Google ended its beta program.

+ There are numerous expert opinions on why the product failed consumer-wise

+ Some mention lack of a clear advertising strategy and launch date

+ Google failed to address the product’s serious privacy issues

+ At $1500 – it was expensive.

+ However, it’s finding a home in the professional sphere - Enterprise Edition to come

The 3 Ps – PR, price, privacy – need to be taken into consideration – especially if you’re considering releasing high-tech, camera-based wearables. Also, know who your target audience is - some wearables are not for consumer use.

Google Glass-commercial failure

Business impact:

The growth of smartwatch banking – and smartwatch payments

+ Google Wallet (Android Wear), Apple Pay (Apple Watch) and Samsung Pay (soon to come)

+ Allows people to make transactions using their smartwatches

+ Wearable tech creators started incorporating the possibility to make payments into their devices - and banks and enterprises provided apps

+ Lloyds Bank, JC Penney, Ebay, Target, Millennium Bank etc.

The growth of smartwatch banking – and smartwatch payments

Analysts also see great potential in smartwatch banking, predicting 100 million annual mobile banking sessions by the end of 2020. Wearable technology could become convenient a way of securing access to finances, but a deeper understanding of both data and the smartwatch user experience is vital. Financial institutions should be prepared for ‘smartwatch banking’ to become a category in itself.

Business impact:

+ What seemed like technological novelties are now entering the mainstream.

+ Smartwatches are on the way to being far more than just a fad.

+ Activity trackers are not just being considered as a tool for motivating employees – they are being actively used by companies like Target.

+ Disney uses wearable tech in Disney Parks and Resorts.

Hi-tech becoming mainstream

Hi-tech becoming mainstream

The implications for businesses are as wide as the price range of wearables, but one thing remains certain: if you can find a legitimate niche, and reply to an unfulfilled need, you have a shot at success. There are no guarantees, but people are now increasingly open to new ideas, even truly surprising ones.

Business impact:

Conferences focus on wearable tech

+ Wearable technology was a major theme at all the big events of the year – from Slush to Websummit.

+ It was also the focus of ncreasingly specific conferences.

+ Wearable tech startups can frequently be seen at demos, stands or challenges.

+ 2016 will also abound in wearables conferences, from general ones like the Wearable Technologies Conference in San Francisco to the more specialized and/or academic.

Conferences focus on wearable tech

The bottom line is: if you’re interested in being on the market or staying up to date, events are worth attending, but look for niches and interdisciplinary specializations as many markets intersect. Money can be made: wearables and fashion, wearables and fitness, healthcare etc. Read the accounts, the Tweets, talk to entrepreneurs to get inspired.

Business impact:

What could be the big themes for next year?

1 2 3 4 5

Smart clothes

+ fashion industry interest - plus sports companies

+ ‘smart clothes the most anticipated trend of CES 2016’

+ expecting ‘close cooperation between manufacturers of gadgets and clothes’ - analyst Bob O’Donnell

+ Prêt-à-porter wearables - accessories

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Professional wearables

+ in the office

+ for businesses - practical use

+ e.g. smart glasses for maintenance jobs

+ ‘IoT and smart glasses come together to streamline business processes’

1 2 3 4 5

Health and fitness wearables

+ medical-grade devices

+ digital health an enormous opportunity

+ fitness trackers: wearables the no.1 fitness trend according to the American College of Sports Medicine

+ competition from Xiaomi and other cheaper tracker manufacturers

1 2 3 4 5

Smartwatch developments+ untethered from smartphone?

+ better tracking capabilities

+ Apple Watch 2

+ competition with activity trackers - or deciding to present them as a completely different product?

+ regular watches with smart elements

1 2 3 4 5

VR and AR

+ ‘VR set to take the headlines in 2016’ - Wareable

+ gesture control

+ not out-of-reach-sci-fi, but more affordable technology

+ Oculus Rift arriving in Q1, investments in Magic Leap AR

http://blog.seagate.com/business/five-business-data-technology-trends-to-watch-in-2016/http://www.dailymanagementreview.com/Smart-Clothes-Are-the-Most-Anticipated-Trend-of-CES-2016_a1347.htmlhttp://now.vodacom.co.za/article/2015/12/04/2016-business-tech-predictionshttp://realbusiness.co.uk/article/32616-epson-2016-predictions-wearables-at-work-take-offhttp://www.wareable.com/wareable50/best-wearable-techhttp://journals.lww.com/acsm-healthfitness/Fulltext/2015/11000/WORLDWIDE_SURVEY_OF_FITNESS_TRENDS_FOR_2016__10th.5.aspxhttp://www.cio.com/article/3017995/wearable-technology/13-wearable-tech-trends-to-watch-in-2016.html?page=2http://www.wareable.com/ar/magic-leap-ar-teaser-solar-systemhttp://www.macworld.co.uk/news/apple/apple-watch-2-features-rumours-release-date-march-april-2016-3606039/http://www.bbc.com/news/technology-30831128http://www.forbes.com/sites/siimonreynolds/2015/02/05/why-google-glass-failed/2/http://sanfrancisco.cbslocal.com/2014/02/25/google-glass-victim-defiant-never-expected-such-hate-and-venom/http://letstalkpayments.com/21-payments-and-commerce-apps-for-smart-watches/http://www.marketwatch.com/story/swatch-in-smartwatch-payment-deal-with-visa-2015-11-30-74852344http://www.lowcards.com/mobile-banking-hit-billion-users-year-38037http://www.bloomberg.com/news/articles/2015-09-15/target-to-offer-health-tracking-fitbits-to-335-000-employeeshttp://www.wareable.com/fashion/wearable-tech-is-now-a-legitimate-fashion-statement

References

What are your thoughts - and what do you see as the next big thing in

wearables? We’d love to hear from you.

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San Francisco, CA 94104www.espeo.eu