Table of Contents
Executive Summary
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- Market overview
- Top takeaways
- What you need to know about wearable technology
- The issues
- Wearable tech is viewed as a luxury
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- Figure 1: Attitudes toward wearable technology – Luxury purchase, by age and household income, November 2019
- Perceived lack of utility and high cost are top barriers to smartwatch adoption
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- Figure 2: Reasons for not owning a smartwatch, November 2019
- The opportunities
- Consumers are running, jumping and swimming into wearable tech
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- Figure 3: Smartwatch behaviors – Health and exercise, November 2019
- More than a quarter of consumers plan to buy an activity tracker or smartwatch soon
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- Figure 4: Wearable technology purchase intent, November 2019
- Key trends
- Smartwatches aren’t just for the gym, they’re also formal wear
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- Figure 5: Smartwatch behaviors – Casual and formal wear, by gender, November 2019
- Wearable technology gaining mainstream approval
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- Figure 6: Attitudes toward wearable technology – Fashion, November 2019
- AR and VR headsets continue to languish
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- Figure 7: AR and VR headset ownership, by gender and age, November 2019
- What it means and what’s next
The Market – What You Need to Know
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- Smartwatch segment rapidly growing
- Fitness continues to be a driving motivator behind wearable tech purchases
- 5G could spur increased connectivity and wearable adoption
Market Size – Wrist-worn Wearables
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- Smartwatch sales drive bulk of growth in the wrist tech wearable space
Market Perspective
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- Fitness trends will continue to drive wearable tech adoption
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- Figure 8: Ways to support health and wellness goals, by smartwatch shoppers, November 2019
- Luxury perception of wearables won’t last
Market Factors
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- 5G connectivity could increase wearable functionality
- Voice assistant usage could grow and enhance wearable user experience
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- Figure 9: Voice assistant usage, September 2019
- AR development could spur adoption
Key Players – What You Need to Know
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- Apple has a dominant position
- Garmin revenues remain consistent despite increasing competition
- Fitbit struggles amid shift to smartwatches
- Sports retailers have a big opportunity to get into wearable tech
Key Players and Top Products
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- Apple
- AirPods
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- Figure 10: Twitter mentions of “AirPods,” August 2016-December 2019
- Figure 11: Twitter mentions of AirPods & “I love” and AirPods & “ugly,” August 2016-December 2019
- Powerbeats
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- Figure 12: Beats by Dre Powerbeats Pro commercial, “Unleashed,” April 2019
- Figure 13: Beats by Dre Powerbeats Pro commercial, “NBA Unleashed,” April 2019
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- Figure 14: Bloomingdale’s acquisition email, January 2020
- Apple Watch
- Pixel Buds
- Google Glass
- Amazon
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- Figure 15: Amazon Alexa product promotional email, September 2019
- Echo Frames
- Echo Loop
- Echo Buds
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- Figure 16: Amazon acquisition email, November 2019
- Samsung
- Galaxy Watch
- Galaxy Fit
- Galaxy Buds
- Fitbit
- Fitbit Ionic
- Fitbit Versa Lite and Versa 2
- Fitbit Charge
- Fitbit Ace 2
What’s Working
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- Apple’s wearables and accessories drive revenue growth
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- Figure 17: Apple wearables, home and accessories net sales, 2017-19
- Garmin fitness segment revenues are consistent amid Apple onslaught
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- Figure 18: Garmin fitness segment – Net sales and operating income, 2016-18
- Figure 19: Road runner sports acquisition email, February 2019
What’s Struggling
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- Fitbit struggling to compete with smartwatches
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- Figure 20: Fitbit devices sold, 2014-18
- Figure 21: Fitbit revenue and net income, 2014-18
- Virtual reality headset ownership languishes
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- Figure 22: Wearable technology ownership, November 2019
- Figure 23: Oculus Quest commercial “Defy Reality,” November 2019
What to Watch
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- UWB technology for pinpoint location accuracy
- Haptic feedback could take wearable tech to another level
- Google buys Fitbit for $2.1 billion
- Huami Amazfit product line
- Sports retailers getting into wearable tech
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- Figure 24: Nike Adapt BB informational email, February 2019
- Figure 25: Under Armour HOVR promotional email, December 2019
- Niche purpose-built products could gain adoption
The Consumer – What You Need to Know
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- Wires are out of fashion – wireless is in
- Smartwatches and wireless earbuds are the most in-demand wearable products
- Apple Watch dominates smartwatch category
- Smartwatches are often used for health monitoring and exercise
- Long battery life and waterproofing top the list of desired smartwatch features
- Popular wearable tech is currently a luxury category
- Ideal consumer segment identified for wearable tech market
Wearable Technology Owned
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- 2019 was the year of the truly wireless earbuds
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- Figure 26: Headphones or earbuds owned, November 2019
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- Figure 27: Twitter post on AirPods, June 2018
- Figure 28: Twitter post on AirPods, January 2020
- Figure 29: Headphone and earbud ownership, by gender and age, November 2019
- Smartwatch ownership matches activity trackers
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- Figure 30: Smartwatch and activity tracker ownership, November 2019
- Younger women opting for smartwatches and activity trackers
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- Figure 31: Smartwatch and activity tracker ownership, by gender and age, November 2019
- Reality headgear has minimal traction and adoption
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- Figure 32: Wearable technology ownership – Alternative products, November 2019
- Young and wealthy cut the cords on the earbuds
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- Figure 33: Wireless headphone/earbud and smartwatch/activity tracker ownership, by age and income, November 2019
- Figure 34: Apple Watch AirPods Tweet, June 2017
Wearable Technology Purchase Intent
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- Smartwatch and wireless earbuds top consumer purchase intent
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- Figure 35: Wearable technology purchase intent, November 2019
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- Figure 36: Twitter post on AirPods, January 2020
- For smartwatches, age drives purchase intent, income drives ownership
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- Figure 37: Smartwatch/activity tracker ownership and purchase intent, by age and household income, November 2019
- Stronger interest in smartwatches among multicultural consumers
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- Figure 38: Smartwatch purchase intent, by race and Hispanic origin, November 2019
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- Figure 39: Wearable technology purchase intent among 18-34 year olds, by race and Hispanic origin, November 2019
- Audio jacks and wires are so last decade
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- Figure 40: Wearable technology purchase intent – Audio accessories, November 2019
- Women under 55 are key to growth in the smartwatch category
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- Figure 41: Wearable technology purchase intent – Smartwatch, by gender and age, November 2019
Smartwatch Brands Owned and Planning to Purchase
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- Apple dominates the smartwatch category
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- Figure 42: Smartwatch brands owned, November 2019
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- Figure 43: Breakdown of smartwatch owners, by Apple Watch and non-Apple Watch owners, November 2019
- Apple tops smartwatch purchase considerations
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- Figure 44: Smartwatch brand purchase intent, November 2019
- Samsung performing slightly better among men
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- Figure 45: Smartwatch brands owned, by gender, November 2019
- Figure 46: Household income of smartwatch owners, by gender, November 2019
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- Figure 47: Gender breakdown of smartwatch owners, by Apple Watch and non-Apple Watch owners, November 2019
- Apple Watch owners younger than non-owners
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- Figure 48: Age breakdown of smartwatch owners, by Apple Watch and non-Apple Watch owners, November 2019
- Apple Watch owners have higher incomes than non-owners
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- Figure 49: Household income of smartwatch owners, by Apple Watch owners and non-Apple Watch owners, November 2019
- Shoppers tend to stick to their smartphone brand for wearables
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- Figure 50: Smartwatch brands owned, by iPhone and non-iPhone owners, November 2019
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- Figure 51: Smartwatch brand purchase consideration, by iPhone and non-iPhone owners, November 2019
Smartwatch Behaviors
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- Smartwatches strongly linked with health and fitness
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- Figure 52: Smartwatch behaviors, November 2019
- Men are just as interested as women in smartwatch aesthetics
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- Figure 53: Smartwatch behaviors, by gender, November 2019
- Multicultural owners more likely to think they’re a fashion statement
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- Figure 54: Smartwatch behaviors, by White and non-White consumers, November 2019
- Apple Watch owners more likely to customize the bands
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- Figure 55: Smartwatch behaviors – Band customization, by Apple Watch and non-Apple Watch owners, November 2019
Reasons for Not Owning a Smartwatch
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- Non-owners don’t see a need for a smartwatch
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- Figure 56: Reasons for not owning a smartwatch, November 2019
- Women more likely to cite high costs for non-ownership
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- Figure 57: Reasons for not owning a smartwatch, by gender and age, November 2019
- Older consumers stick with old school watches
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- Figure 58: Reasons for not owning a smartwatch – Don’t need and prefer traditional watches, by age, November 2019
Desired Smartwatch Features
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- Smartwatch shoppers want superior battery performance
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- Figure 59: Desired smartwatch features, November 2019
- Women more likely to want to track calories
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- Figure 60: Desired smartwatch features – Calorie-burning calculator, by gender, November 2019
- Current smartwatch owners could be enticed with a limited-edition model
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- Figure 61: Desired smartwatch features – Limited-edition model, by current owners and non-owners, November 2019
Attitudes toward Wearable Technology
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- Wearable tech gaining mainstream acceptance
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- Figure 62: Attitudes toward wearable technology, November 2019
- Wearable tech is a luxury for consumers – not a necessity
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- Figure 63: Attitudes toward wearable technology, by age and household income, November 2019
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- Figure 64: Luxury fashion items purchased or intend to purchase, by smartwatch owners and shoppers, November 2019
- Houston Astros and Boston Red Sox aren’t alone – consumers want tech for sports performance
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- Figure 65: Attitudes toward wearable technology – Smart clothing, November 2019
- Men are very enthusiastic about the prospect of smart clothing
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- Figure 66: Attitudes toward wearable technology – Clothing, by gender and age, November 2019
- Figure 67: Attitudes toward wearable technology – Health monitoring, by gender and age, November 2019
Consumer Segmentation – Attitudes toward Wearable Technology
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- Figure 68: Wearable technology consumer segments, November 2109
- Tech Trendsetters (31%)
- Characteristics
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- Figure 69: Profile of Tech Trendsetters, November 2019
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- Figure 70: Wearable technology owned, by consumer segments, November 2019
- Opportunities
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- Figure 71: Wearable technology purchase intent, by consumer segments, November 2019
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- Figure 72: Attitudes toward wearable technology – Interest in smart clothes, by consumer segments, November 2019
- Waiting Wearers (27%)
- Characteristics
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- Figure 73: Profile of Waiting Wearers, November 2019
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- Figure 74: Attitudes toward wearable technology – Luxury purchase, by consumer segments, November 2019
- Opportunities
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- Figure 75: Smartphone brand owned, by consumer segments, November 2019
- Purpose Wearers (24%)
- Characteristics
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- Figure 76: Profile of Purpose Wearers, November 2019
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- Figure 77: Attitudes toward wearable technology – Fashion, by consumer segments, November 2019
- Opportunities
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- Figure 78: Attitudes toward wearable technology – Health monitoring, November 2019
- Wary Wearers (18%)
- Characteristics
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- Figure 79: Profile of Wary Wearers, November 2019
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- Figure 80: Attitudes toward wearable technology – Smart glasses, November 2019
- Opportunities
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- Figure 81: Attitudes toward wearable technology – Interest in smart clothes, November 2019
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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