Table of Contents
Executive Summary
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- The market
- Growing market despite short-term impact
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- Figure 1: China total sales volume of wearable devices, 2015-2023(fore)
- Impact of COVID-19 on wearable devices
- Healthy growth is expected to continue
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- Figure 2: Short, medium and long term impact of COVID-19 on wearable devices, April 2020
- Companies and brands
- Huami utilizes discounts to top the sales list
- Huawei and Xiaomi saw biggest increase in smartwatches
- Apple leads the market for hearables in terms of product innovation
- The consumer
- Rising privacy concerns provide brands with a differentiation opportunity
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- Figure 3: Current factors of concern, an intrusion of my privacy, February to May 2020
- Slight growth in smartwatches while usage of wristbands lapsed
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- Figure 4: Current ownership of smartwatch and smart wristbands, 2016 and 2020
- Key usage occasion has not expanded beyond health tracking
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- Figure 5: Most used functions of wearable devices, April 2020
- Ecosystem is more important for earning consumers
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- Figure 6: Smartwatch ownership by smartphone brand owned crossed by brand of smartwatch owned, April 2020
- Tier two city health monitoring shows market opportunity
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- Figure 7: Purchase drivers, to manage chronic diseases, by city tier, April 2020
- Marketing sense of control to parents
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- Figure 8: Purchase drivers of consumers, by marital status, April 2020
- Offer good looking smart wristbands to ease the price sensitivity of young women
- What we think
The Impact of COVID-19 on Wearable Devices
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- Figure 9: Short, medium and long term impact of COVID-19 on wearable devices, April 2020
- Opportunities and threats
- Rising privacy concerns provide brands with a differentiation opportunity
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- Figure 10: Current factors of concern, an intrusion of my privacy, February to May 2020
- Opportunity: health function enhancement as consumers’ awareness
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- Figure 11: SPO2 Sensor on Huawei GT2, September 2019, China
- Impact on the market
- Short-term disruption in sales and supply chain
- Mobile apps thrive amidst home quarantine
- China’s wearables market remains in active growth in 2020
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- Figure 12: China total sales volume of wearable devices, 2015-2023(fore)
- Shifts in consumer behaviour
- Consumers’ interest in wearable technology remains active
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- Figure 13: Changes in consumer spending in technology, February to May 2020
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- Figure 14: Changes in priorities in life, High priority, May 2020
- Attitudes shift towards domestic device manufacturers
- How the crisis will affect wearable devices’ key consumer segments
- Self-improvement ties with spending on technology
- How a COVID-19 recession will reshape the industry
- Competitive edge gained by smartphone manufacturers
- Impact on the marketing mix
- One step further than personalized data
- Offer more than just sounds in hearables
- COVID-19: China context
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- Figure 15: Accumulative confirmed cases of COVID-19 in China, January to May 2020
- Figure 16: Status of returning to work, China, March-May 2020
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Issues and Insights
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- Ecosystem is important for building wearable device scale for brands
- The facts
- The implications
- Increase professionalism in fitness for smart wristbands and TWS
- The facts
- The implications
- Communicate usefulness of innovative wearable devices to high-income trend setters
- The facts
- The implications
The Market – What You Need to Know
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- Smartwatches maintain growth rate
- Hearables boasts the fastest growth
- Health monitoring continues to be a driving motivator behind wearables purchases
Market Size and Segmentation
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- Steady growth for the wearable devices market
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- Figure 17: China total sales volume of wearable devices, 2015-2023(fore)
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- Figure 18: China, Market share by sales volume, in million units, 2015 to 2019
- Figure 19: China, Total value of wearable devices in RMB billion, 2018 and 2019
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- Figure 20: Total value of China’s wearables market, by segment, 2018 and 2019
Market Drivers
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- Domestic brands lower prices to drive popularity
- Hands-free experience becomes more advanced in the hearables market
- Fulfilling health demands
Key Players – What You Need to Know
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- Huami penetrates premium smartwatch category
- BBK finds success in children’s wearables
- Xiaomi’s economical pricing strategy outperforms others in smart wristband category
Competitive Strategies
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- Brands leverage proprietary technology in OS showdown
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- Figure 21: Major players in wearables market and their operating system as of May 2020
- Figure 22: Comparison of different operating systems on smartwatches
- Building a social product for child(ren)’s wearables
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- Figure 23: Okii’s smartwatch and its main features
Who’s Innovating?
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- Smaller or invisible trackers from beauty brands
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- Figure 24: La Roche-Posay wearable skin PH tracker
- Translucent wearable masks
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- Figure 25: Aeri masks showing the concept of a built in ultraviolet lights that disinfect it
- Wearable camera in healthcare and security
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- Figure 26: 5G enabled Linkflow wearable camera
The Consumer – What You Need to Know
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- Utilize discounts to increase ownership
- Young men are the key consumers to target for new product development
- Health and weight management still the priority
Current Ownership and Future Interest
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- TWS ownership beats smart wristband and smartwatches
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- Figure 27: Current ownership and purchase intentions of smart earbuds, smart wristband and smartwatches, April 2020
- Persona of trendsetters
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- Figure 28: Current ownership and purchase intentions of consumers towards wearable devices, trend setter demographics, April 2020
- Ownership slightly shifts towards smartwatches and away from smart wristbands
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- Figure 29: Current ownership of smartwatches and smart wristbands, 2016 and 2020
- Smartwatch ownership changes by demographics
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- Figure 30: Ownership of smartwatches, by age and gender, 2016 vs 2020
- Smart wristband ownership decrease caused by loss in younger consumers
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- Figure 31: Smart wristband ownership changes by age and gender, 2016 vs 2020,
Brand Ownership
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- Figure 32: Ownership of smartwatches and wristbands by brand, 2016 and 2020
- Personas of Apple, Xiaomi and Huawei owners
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- Figure 33: Top three players in wearable device market user profile, April 2020
- Ecosystem is more important for earning consumers
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- Figure 34: Smartwatch ownership by smartphone brand owned crossed by brands of smartwatch owned, April 2020
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Key Functions Used
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- Key usage occasion has not expanded beyond health tracking
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- Figure 35: Most used functions of wearable devices, April 2020
- More diverse usage suggests smartwatches will have a wider appeal in the future
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- Figure 36: Most used functions of wearable devices, by smartwatch and wristband owners, April 2020
- Concern over children
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- Figure 37: Most used functions of wearable devices – monitoring the safety or health of family members, by age and marital status, April 2020
- Intelligent voice assistant will become a must-have feature for future generations
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- Figure 38: Most used functions of wearable devices – intelligent voice assistant, by age, April 2020
Purchase Drivers
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- Demographics of driven by image and driven by function
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- Figure 39: Purchase drivers of wearable devices, April 2020
- Difference between current users and lapsed users
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- Figure 40: Reasons behind purchase, by user types, April 2020
- Health monitoring shows opportunity in low tier market
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- Figure 41: Purchase drivers, by city tier, April 2020
Most Important Product Features
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- Health remains priority and young people value design
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- Figure 42: Most important factors when choosing wearable devices, any importance, by age, April 2020
- Young consumers’ show high expectations towards warranties
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- Figure 43: Top three ranked components of wearable devices, guaranteed warranty, by age, April 2020
Attitude towards Wearable Devices
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- General positive understanding of wearable devices
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- Figure 44: Attitude towards wearable devices, April 2020
- How lapsed and current users view their devices
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- Figure 45: Attitude towards wearable devices "Most functions of wearable devices are just marketing gimmicks, by ownership and interest in technology products, April 2020
- Different pricing model for different female age groups
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- Figure 46: Agreement with the statement that most wearable devices are quite expensive in the market, by gender and age, April 2020
- Manage those with high expectations of health
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- Figure 47: attitude towards wearable devices, paid applications are not worth buying, by types of consumers, April 2020
Meet the Mintropolitans
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- Higher ownership of wearables among Mintropolitans versus higher purchase interest
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- Figure 48: Current ownership of devices, by consumer classification, April 2020
- Figure 49: Desired ownership of devices, by consumer classification, April 2020
- Mintropolitans have higher usage within the brand ecosystem
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- Figure 50: Current brand ownership of smartwatches, by consumer classification, April 2020
- Convenience highlighted in Mintropolitans’ usage habits
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- Figure 51: top used functions of wearable devices, by consumer classification, April 2020
- Weight management continues to be an important factor in wearable devices
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- Figure 52: Reasons behind purchasing wearables, by consumer classification, April 2020
- Mintropolitans know how to get more out of wearables than non-Mintropolitans
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- Figure 54: Agreement with various attitude statements about wearable devices, by consumer classification, April 2020
Appendix – Price Range by Key Players
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- Figure 55: Price ranges of by key players, in smartwatch and smart wristband market, China, April 2020
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Appendix- Consumer Segmentation
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- Figure 56: Attitude towards wearable devices, by consumer classification, April 2020
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- Figure 57: Strongly Agree of different attitudes towards wearable devices, by consumer cluster, April 2020
- Economical consumers
- Who they are
- What’s their attitude
- How to market to them
- Enthusiastic consumers
- Who they are
- What’s their attitude
- How to market to them
- Candid consumers
- Who they are
- What’s their attitude
- How to market to them
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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