The Future of Wearables

the future of wearable

technologyBy Ellen Noh

overview

Ever since Google introduced the idea of wearable with its Google Glass in 2012, many tech giants have jumped on the bandwagon

to explore the new frontier.

Google Glass is a trademark of Google, registered in the U.S. and other countries.

Wearable technology, especially smartwatches, presents new

opportunities because consumers will have their devices readily available wherever they are.

Samsung Galaxy Gear is a trademark of Samsung Group, registered in the U.S. and other countries.

Understanding consumer’s current context and needs within

the engagement lifecycle is crucial to successfully leverage

wearable technology.

challenges

Awareness of and interest in wearable devices are gaining

momentum, but consumers are far more conservative when it comes to try a more intimate relationship with technology.

According to Forrester Research,

According to Forrester Research,

Wearable technology is the most popular to a subset of technophiles who are drawn

to devices for their novelty factor.

According to Forrester Research,

Wearable technology is the most popular to a subset of technophiles who are drawn

to devices for their novelty factor.

In fact, "love of technology" is

the third-strongest predictorof interest.1

In order for wearable technology to be relevant to everyone -not just early adopters-

manufacturers and marketers will have to overcome these

challenges.

challenges: Design

One of the biggest roadblocks of wearable technology is the

design. We’re still missing that combination of something both beautiful and highly functional.

In order for wearable technology to become accepted by the mass

market, the design has to fit with the rest of consumers’ style.

Survey results also show that design has a considerable influence on many Americans' daily choices.

Almost seven in 10 respondents said that the last time they saw a product in a store that they "just had to

have," it was because of its design.2

Survey results also show that design has a considerable influence on many Americans' daily choices.

A majority of those surveyed (55 percent) believe that good design can actually improve a product's

functionality while also making it look better.2

Take Apple’s Keynote for an example.

Apple Logo is a trademark of Apple Inc, registered in the U.S. and other countries.

Before the official keynote announcing the Apple Watch, the conversation was split somewhat

evenly between design, cost, and the functions.3

0%

10%

20%

30%

40%

50%

60%

Design Cost Function

27.2%32.4%

40.4%

Take Apple’s Keynote for an example.

Apple Logo is a trademark of Apple Inc, registered in the U.S. and other countries.

However, after the Keynote, the conversation around the new product focused heavily on design.3

0%

10%

20%

30%

40%

50%

60%

Design Cost Function

32.3%

16.3%

51.6%

Take Apple’s Keynote for an example.

Apple Logo is a trademark of Apple Inc, registered in the U.S. and other countries.

“‘With phrases such as ‘luxury’ and ‘fashion designers’ among the top keywords being

used by consumers discussing the design of the Apple Watch, it is clear that people were

very impressed with this high-end device from Apple, both technologically and

aesthetically,’ explained Leah Pope, VP of Global Marketing for Synthesio.”3

challenges: privacy

Consumers’ concern with digital privacy is higher than ever.

Consumers’ concern with digital privacy is higher than ever.

According to new data out from Accenture and Acquity Group, privacy concerns top

the list of reasons many won't adopt wearable technology soon.4

Consumers’ concern with digital privacy is higher than ever.

According to new data out from Accenture and Acquity Group, privacy concerns top

the list of reasons many won't adopt wearable technology soon.4

80% say they're concerned about the privacy of wearable tech4

In order to capitalize on wearable technology, companies need to focus on protecting data and providing specific benefits

to consumers.

opportunities

Opportunities for enhanced convenience and rich

information feedback primarily drive consumer interest in

wearable technology.

Because of its unique position, (as in you are wearing it),

wearable technology has a huge potential to not only streamline

daily lifestyle, but also be a valuable tool in gathering

marketing data.

opportunities: Travel

Digital technologies are affecting the way we travel,

enabling a fully connected door-to-door experience, as well as

making the process more seamless and enjoyable.

Smartphone/tablet bookings account for 21% of hotel bookings5

Smartphone/tablet bookings account for 21% of hotel bookings5

34% of global consumers use mobiles for peer-to-peer rentals5

Smartphone/tablet bookings account for 21% of hotel bookings5

34% of global consumers use mobiles for peer-to-peer rentals5

12% of bookings are made in-app5

Wearable technology can take a step further at streamlining the

digital travel experience.

JAL has decided to use wearable technology to track and

improve the efficiency of its gate agents.

Image Credit: http://skift.com/2014/07/14/japan-airlines-to-track-gate-agents-with-smart-watches-and-ibeacons/

Japanese Airline (JAL)

A specially designed tracking program, linking smart watches

and beacons, reveals the proximity of staff in the area

who could be assigned to serve passengers.

Image Credit: http://skift.com/2014/07/14/japan-airlines-to-track-gate-agents-with-smart-watches-and-ibeacons/

Japanese Airline (JAL)

As the functions of smartwatches expand, travel

industry might be able to capitalize on location-based

notifications and digital tickets.

Image Credit: http://skift.com/2014/07/14/japan-airlines-to-track-gate-agents-with-smart-watches-and-ibeacons/

opportunities: w-commerce

Earlier in September, the possibility of mobile payment

flung wide open with Apple Pay.

As consumers become more comfortable with the idea of

mobile payment, wearable could become a convenient

platform for a more sophisticated digital

transaction experience.

Lollapalooza offered festival goers wearable tech that can be

linked to credit and debit card information.

Image Credit: http://www.psfk.com/2014/06/barclays-wristband-payment-method.html

Lollapalooza

Using RFID, it allowed people to pay for food and drinks without

having to carry cash or swipe their cards. Vendors already had pay pads on which users could tap

their bracelets for easy payment.

Image Credit: http://www.psfk.com/2014/06/barclays-wristband-payment-method.html

Lollapalooza

Wearable technology can provide greater convenience to mobile

payment. If equipped with privacy protection and vendor

partnership, wearables can be an indispensable platform to extend

mobile payment.

Image Credit: http://www.psfk.com/2014/06/barclays-wristband-payment-method.html

opportunities:emotional tech

Collecting information about the way people feel about brands and experiences has been an

ongoing challenge for the market research world.

Wearable technology, decked with its latest biometric

sensors, could provide a solution to gathering unfiltered

consumers’ emotional data.

Studio XO can emotionally connect emotion and technology through their XOX platform that

allows on-body sensing and analysis.

Image Credit: http://www.psfk.com/2014/09/studio-xox-sensory-technology-platform.html

XOX

The basic XOX system includes specially designed ergonomic

wristbands that are worn on the upper wrist. Intimate data is

read via a number of wearable biometric sensors.

Image Credit: http://www.psfk.com/2014/09/studio-xox-sensory-technology-platform.html

XOX

This technology presents possibility for brands, artists to

track audience’s emotional states in real time via wearables

Image Credit: http://www.psfk.com/2014/09/studio-xox-sensory-technology-platform.html

XOX

Wearable technology presents many exciting possibilities for

brands and marketers.

Addressing consumer’s potential concerns and utilizing its capability creatively will be crucial to mainstream this new

technology.

Contact Ellen

LinkedIn: http://www.linkedin.com/in/ellensnoh Twitter: http://www.twitter.com/ellen_noh

Appendix1. Forrester Research: https://www.forrester.com/US+Online+Consumers+Perspectives+On+Wearable+Technology/fulltext/-/E-RES118450 !2. Design Survey: http://www.reliableplant.com/Read/6019/survey-great-design-is-priority-for-'millennial'-generation !3. Apple Keynote: http://socialfresh.com/apple-watch-social-media-monitoring/ !4. Privacy: http://www.bizreport.com/2014/08/study-privacy-concerns-high-for-wearable-tech.html !5. Travel: http://www.bizreport.com/2014/09/study-mobile-driving-travel-plans.html !