Wearable Technology - Canada - November 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Many consumers find no use in wearable technology
Figure 1: Reasons for not owning wearable technology, September 2018
There’s a limit to what people want in wearable technology
Figure 2: Interest in wearable tech features, September 2018
The opportunities
A sizeable share of consumers own some sort of wearable tech
Figure 3: Wearable technology owned, September 2018
Active lifestyles and exercise play a major role in the wearable tech market
Figure 4: Wearable tech owned, by physical activity in the past month, September 2018
Tracking physical activity is the top reason for owning wearable tech
Figure 5: Reasons for owning wearable technology, September 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Capitalizing on an aging population
The high risk of heart disease
Positioning wearable tech as technology or exercise equipment
Availability of mobile payments makes wearable tech more valuable
Encouraging consumers to use discretionary funds on wearable tech
MARKET FACTORS
Capitalizing on an aging population
Figure 6: Canadian population aged 70 years and older, 2000-17
Figure 7: Echo Spot – Be Together More, April 2018
The high risk of heart disease
Positioning wearable tech as technology or exercise equipment
Availability of mobile payments makes wearable tech more valuable
Encouraging consumers to use discretionary funds on wearable tech
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Social media apps are helping drive demand for wearable tech
Smart headphones are becoming the norm
Tech, GPS and fitness companies are competing in wearable tech
Finding the balance between function and style
Wearable technology will converge with the smart trend
Wearable technology has potential far beyond what’s now available
WHAT’S WORKING?
Social media apps are helping drive demand for wearable tech
Figure 8: Summit Features: Advanced bear defense, August 2018
Figure 9: Apple Watch Series 4 – Better You – Apple, September 2018
Smart headphones are becoming the norm
Figure 10: Hesh 3 – Wireless Perfection – Skullcandy, September 2017
CHALLENGES
Tech, GPS and fitness companies are competing in wearable tech
Finding the balance between function and style
Figure 11: Explore Fossil Q Hybrid Smartwatch Features, May 2017
WHAT’S NEXT?
Wearable technology will converge with the smart trend
Wearable technology has potential far beyond what’s now available
THE CONSUMER – WHAT YOU NEED TO KNOW 
Wearable technology usage and interest
Role of exercise and lifestyle in wearable tech
Barriers to purchase of wearable technology
Purchase drivers for wearable technology
Demand for non-activity tracking features
WEARABLE TECHNOLOGY USAGE AND INTEREST
A sizeable share of consumers own some sort of wearable tech
Figure 12: Wearable technology owned, September 2018
Figure 13: Type of smartwatch owned, by age, September 2018
Figure 14: Type of smartwatch owned, by gender, September 2018
Figure 15: Wearable technology owned, by age, September 2018
Figure 16: Vinci 2.0 – World’s First Standalone Smart Wireless Headphones, January 2018
Figure 17: iPhone 7 + AirPods – Siri – Apple, January 2017
Figure 18: Wearable technology owned, by income, September 2018
Wearable tech is not capitalizing on the interest it has created
Figure 19: Wearable technology owned, August 2017 vs September 2018
ROLE OF EXERCISE AND LIFESTYLE IN WEARABLE TECH
Active lifestyles and exercise play a major role in wearable tech market
Figure 20: Physical activity in the past month, September 2018
Figure 21: Wearable tech owned, by physical activity in the past month, September 2018
Figure 22: Wearable tech future purchase intent, by physical activity in the past month, September 2018
Figure 23: Wearable tech is a great gift, by physical activity in the past month, September 2018
Figure 24: Number of wearable tech device types owned, September 2018
Figure 25: Physical activity in the last month, by number of wearable tech device types owned, September 2018
Investigating the kinds of exercise consumers engage in
Figure 26: Physical activity in the last month, by gender, September 2018
Figure 27: Physical activity in the last month, by age, September 2018
Figure 28: Own wearable technology, by physical activity in past month, September 2018
BARRIERS TO PURCHASE OF WEARABLE TECHNOLOGY
Many consumers find no use in wearable technology
Figure 29: Reasons for not owning wearable technology, September 2018
Figure 30: Reasons for not owning wearable technology: no use for it, by physical activity in past month, September 2018
Figure 31: Wearable tech ownership vs reason for not owning, by gender, September 2018
Figure 32: Wearable tech ownership vs reason for not owning, by age, September 2018
Figure 33: Apple Watch Series 4 – How to Use Emergency SOS – Apple, September 2018
Price is a major hurdle for wearable technology
Figure 34: Reasons for not owning wearable technology, by age, September 2018
Figure 35: Reasons for not owning wearable technology, by income, September 2018
Other mobile devices are potential competition for wearable tech
Figure 36: Reasons for not owning wearable technology: other devices can do the same things, by age, September 2018
PURCHASE DRIVERS FOR WEARABLE TECHNOLOGY
Tracking physical activity is the top reason for owning wearable tech
Figure 37: Reasons for owning wearable technology, September 2018
Figure 38: Reasons for owning wearable technology, by gender, September 2018
Figure 39: Reasons for owning wearable technology, by age, September 2018
Figure 40: Interest in wearable tech features, September 2018
Gifting plays a major role in the wearable tech industry
Figure 41: Reason for owning: it was a gift, by household composition, September 2018
Figure 42: Expect to buy wearable tech in the future, by reason for ownership, September 2018
Figure 43: Don’t use devices as often as when I first got them, by reason for ownership, September 2018
Distinguishing health tracking from activity tracking
Figure 44: Interest in wearable tech features, by age, September 2018
DEMAND FOR NON-ACTIVITY TRACKING FEATURES
Consumers are interested in wearable tech that replicates smartphones
Figure 45: Interest in wearable tech features, by gender, September 2018
Figure 46: Interest in wearable tech features, by reason for ownership, September 2018
Figure 47: TURF analysis: interest in wearable tech features, September 2018
There is a limit to what features people want in wearable technology
Figure 48: Interest in wearable tech features, September 2018
Figure 49: Interest in wearable tech features, by age, September 2018
Consumers are practical about what they want in wearable tech
Figure 50: Importance of wearable tech factors, September 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
TURF analysis
Abbreviations and terms
Abbreviations
Terms