Manufacturers Must Get Apps, Pricing and Design Right if Wearable Technology is to Become Mass Market

Awareness of Google Glass, smart watches and other wearable technology is high but sales and usage lag behind

“Wearable technology and smart watches could be the next big thing in consumer electronics. However, if manufacturers don’t work hard to break out of the gadget-loving, geek niche then all the promise will come to nothing.”

Ben Wood, chief of research, CCS Insight

4 September 2013: Wearable technology, like smart watches and Google Glass, is for geeks and gadget lovers, with buyers most likely to be technology-minded men. These are some of the results from a survey of over 1,500 smartphone owners in the US and UK that telecoms analyst firm CCS Insight carried out with mobile survey company On Device Research to gauge interest in the new generation of wearable technology and smart watches.

Siim Teller, marketing manager at On Device Research said: “We are surprised by how many people are aware of wearable technology. 65% of respondents had heard of smart watches and over 50% knew about wearable fitness trackers. Nearly half of those surveyed in the US had heard about Google Glass. This is very high for a product that isn’t even commercially available at the moment.”

However, while awareness is high, ownership is very low and so is sustained interest. Of those surveyed who already owned a smart watch or fitness band, over 40% had stopped using it because they often forgot to wear it, or got bored with it.

“Companies making these devices need to ensure their products remain exciting for users once the initial enthusiasm ebbs. Furthermore, wearable devices need to be comfortable, attractively designed, easy to use and have great battery life,” said Ben Wood, chief of research for CCS Insight.

From the survey, it is apparent that manufacturers need to clearly communicate the benefits offered by wearable devices. Over 80% of people who are aware of fitness trackers understand health monitoring as the device’s benefit. However, calling a device a “smart watch” is misleading for consumers: despite being worn on your wrist its capabilities typically go way beyond telling the time alone.

Wood said: “Smart watches fall into the traditional target market for new technologies, that of gadget-loving men. Manufacturers have to urgently address how to expand their appeal beyond this usual ‘geek niche’ to ensure they don’t end up just being a flash in the pan.”

A gadget that can help improve your health looks like a winner in this regard, according to the research. Fitness and well-being is the hottest area for wearables right now, and ownership of fitness trackers outpaces that of smart watches.

With over 60% of the US consumers who are aware of smart watches citing sports and activity tracking as a key feature, incorporating these capabilities with the “second mini-screen” features such as displaying who is calling you and your latest text messages is going to be a vital ingredient for success.

Another important factor in the buying decision is price. Based on the research, this will be one of the biggest reasons why consumers won’t buy a smart watch or wearable gadget. CCS Insight estimates the new products hitting the market this autumn will cost between $200 and $300. “Given many consumers are used to getting their smartphones ‘free’ with a contract, that’s a hefty sum to pay on top,” concluded Wood.

About On Device Research

Headquartered in London, UK, On Device Research pioneered the use of the mobile internet to gain access to consumer opinions at any time or location. Mobile research brings fresh, instant responses that accurately capture consumer’s feelings, thoughts and opinions, in a quick and cost effective way. With proprietary survey technology and panels of mobile consumers in over 50 countries, On Device Research can offer its clients research projects they’ve never been able to do before, especially in emerging and growth markets. On Device Research works with the world’s largest market research, fast moving consumer goods companies and handset manufacturers, and has delivered over 10 million mobile surveys to date.

More information about On Device Research can be found at www.ondeviceresearch.com

About CCS Insight

CCS Insight is a global telecommunications analyst company. It provides comprehensive services that are tailored to meet the needs of individual clients, helping them make sense of the connected world.

CCS Insight has developed a research methodology and segmentation for the wearables category which encompasses hot topics such as wearable communication devices (e.g. Google Glass), smartphone extensions / second mini-screens (e.g. smart watches), the “quantified self” category that largely caters for personal fitness and well-being at present (e.g. Fitbit, Jawbone UP, Nike Fuelband). Other segments being assessed by CCS Insight include professional sports, lifelogging, healthcare and entertainment.

Follow CCS Insight on Twitter (@ccsinsight) or learn more at https://www.ccsinsight.com

For further information contact:

CCS Insight/Harvard PR

Rachael Thomas or Hugo Deacon

Harvard PR

Tel: + 44 (0)20 7861 2842

Email: ccsinsight@harvard.co.uk

 

On Device Research

Siim Teller

Marketing Manager

Tel: +44 (0)20 7278 6627

Email: siim@ondeviceresearch.com

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