Announcement comes at a critical moment for Fitbit
Fitbit today unveiled the Versa 2 smartwatch ahead of its release in September 2019. Its new device is the sequel to the successful Versa model released in April 2018, and brings many of its sibling’s most popular features with some new functions on top. Alongside this, the company provided further details of its premium subscription service, which aims to help all Fitbit users improve their health.
As the appeal of simpler fitness trackers wanes, particularly in Western markets, and people turn to the more-capable smartwatches, Fitbit is working hard to grab a slice of the smartwatch market. In 2018, the company became the second-largest maker of advanced smartwatches in the world, after Apple, and is certainly keen to maintain its position. The Versa 2 will be of huge importance to Fitbit’s success.
So, what’s new? The headline upgrades to the Versa 2 are the addition of a Spotify app, meaning people can listen to and control music on the go using their watch, and the inclusion of Alexa, allowing users to interact with Amazon’s digital assistant. Fitbit says that the Versa 2 is fully integrated with the rest of the Alexa ecosystem and will allow wearers to control a range of other smart devices through a Bluetooth connection to a smartphone. This is the company’s first voice-enabled device, bringing it closer to parity with the Apple Watch, which uses Apple’s own assistant Siri. The battery life on the Versa 2 is also enhanced, with Fitbit claiming over five days of usage, although this drops if the new always-on screen feature is switched on.
Fitbit is also focussing strongly on accessories for its latest creation. The usual block-colour silicon wristbands are available as a starting point, but users can change these out for a wide range of straps of other materials and colours. It certainly feels like a device aimed at the fashion-conscious. As smartwatches become more commonplace in everyday life, the ability to customize them for various outfits and occasions is an important feature, and recognizing this trend is a smart move by Fitbit.
Fitbit Versa 2 smartwatch
Alongside the Versa 2, Fitbit has also confirmed more details of its premium service. This is a paid-for membership option that will unlock greater personalized and practical content based on over 10 years of data that Fitbit has collected from users. For example, it provides greater insight into sleep data, as well as tips to help users get a better night’s sleep based on their daily activities. It also includes a range of guided programmes for those who want to make positive changes to their health. An example of this is the Beginner Running programme, which lets users set a goal, how often they can train, the intensity they want to train at, and when they want to train; Fitbit’s algorithms then work out the rest to offer a tailored training guide. The service also includes content from other popular wellness brands such as Headspace’s mindfulness exercises and Gaiam’s yoga workouts.
Premium is available to all Fitbit users and is priced at $9.99 (£7.99) per month, or $79 (£79) per year. Existing users also have the option to take a seven-day trial. The Versa 2 is priced at $199 (£199) for the Core edition, and to kick-start Premium, Fitbit is offering a special edition for $229 (£219). This includes a three-month trial of the subscription service, as well as an extra strap for the device — an excellent launch deal for consumers.
Fitbit app showing sleep-score feature
Fitbit’s investment in its premium service is a logical decision. The company has had some troubles in recent quarters, and diversifying into services allows for a more flexible product mix. It could produce a huge rise in revenue if the company can encourage a significant number of existing users to subscribe. Fitbit Premium also harnesses and generates revenue from the mountain of data that the Fitbit platform has gathered in a more meaningful way than before. If the personalized programmes on offer result in positive changes for users, this could lead to higher brand loyalty and potentially opportunities to cross-sell other Fitbit devices, such as the Aria Air scales, which it also announced today.
After Fitbit’s struggles with the Versa Lite, there’s no doubt that the Versa 2 and Fitbit Premium are crucial ventures for the business. As we move into the holiday season, we expect to see new devices from a range of wearables manufacturers, so standing out from the crowd remains as challenging as ever. To an extent, Fitbit is able to rely on the strength of its brand, and it will hope that sales of the Versa 2 replicate the strong performance of its predecessor.
Alongside this, Fitbit Premium provides a huge opportunity to generate new revenue from existing customers. The challenge for the company now is to ensure an attractive offering and to live up to its promise of helping users be healthier than ever.