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External Trends for the Wearable Market
Abundance of Opportunities for Growth
About Me - Product Skeptic● Seven years in the Wearable Device / Fitness/ Wellness Space.
○ Moderating 3 panels at the Wearable Tech in Sports Summit● NeuroSky, Jaybird, iWinks, Motorola. ● Serious competitive amature cyclist for ~ 5 years. ● Notable Projects
○ Jaybird Reign ○ iWinks Aurora○ MotoBody/Moto360 2nd Gen
Agenda● Trends ● Precision Data● Wellness● Medical ● Form Factors
3 topics not covered in-depth:○ Smart Watch / Fashion Market ○ Non-Invasive Glucose Monitoring – Early development stages
– though coming. ○ Virtual / Augmented Reality – Waiting for traction / killer
application.
TrendsOpportunities Abound
Trends – Opportunities ● We are on path for wearables to become ubiquitous - blending into
our environment. ● Expectation of a proactive, accurate, contextual, personalized,
holistic data experience.○ We participate in more than one activity experience throughout
a given year. ○ I did 10k steps, now what?
● Awareness with the holistic effect of stress on our bodies and mind.
Trends – Opportunities ● Food
○ Transparency with our food both ingredients and source.○ Pull method for acquisition via mobile experience.○ Social connection.
● Preventative expenditure due to soaring healthcare costs.● Desire to control of our healthcare experience.● Expectation wearable data will be accepted and used by medical
community to assist with diagnosis.
Trends - Threats● Speed of the market.
○ Crowdfunding and Mobile Application distribution model is moving wearables at an extremely fast rate.
Precision DataCritical for Future Success & Survival
Algorithms - Critical Strategic Importance ● Aggressively seek to accumulate as many activity, health, wellness and
contextual related algorithms as possible, either by internal development, acquisition or third party partnership. ○ Granularity is key. ○ Additional algorithms enhance Insight Engines for deeper interaction.
● Opportunity to increase revenue stream from software. ■ Strengthen mobile application experience.■ Entry point for mobile advertisement. ■ Reduce dependency on hardware development life cycle and
seasonal buying. ● Mitigates risks of a fast moving market. Today the wrist - tomorrow?
Power - Personalized and Insightful● Power is an objective measurement providing a personalized, accurate &
contextual experience. ○ Steps & Heart Rate are both subjective exertion measurements.
● Precision Calorie expenditure - 4.18 kilojoules = 1 kilocalorie. ● Allows for flexibility to meet User’s contextual requirements.
○ Hit your numbers and go home. ● Challenge – currently only works for hip based location.
WellnessNon- Activity Based Revenue Opportunities
Food – Blue Ocean for Revenue Opportunity ● Food is the 20/80 rule in health and fitness.
○ Doctors instruct patients to adopt a preferred diet in order to mitigate chronic health conditions.
○ Athletes modify their diet to meet performance goals. ● Strong desire for transparency with our food. Ingredients and source.
○ Provides for new touchpoints to enhance Insight and Social experiences. ■ Diet lifestyle social connection – paleo, low carb, atkins etc.
○ Rise in awareness of food sensitivities/ allergies. ■ 50% increase among children since 1997. ■ Apps such as Fooducate to meet this concern.
○ Awareness of source. ■ Farm to Table & Organic movements. ■ Organic Food is a $30B Market.
Food – Blue Ocean for Revenue Opportunity
● Food acquisition is shifting from a Push to a Pull model. ○ i.e. Amazon Shopping, Google Express, Postmate, Good Egg, InstaCart,
Safeway, etc. ● Price comparison is a constant struggle. ● Provides for New Revenue Opportunities.
○ Entry point into Mobile Ad Revenue Market.■ $31B industry with North America experiencing a growth rate of 47%.
Stress / Mindfulness - New Experience● APA study in 2012 stated: Millennials and Gen X reported higher levels of
stress compared to other generations. ○ Leading Millennials to take a mind-body balance approach to health.
■ Money spent on Yoga grew 87% from 08-13 & participation rose 29% with ~ 20.4 million.
● Meditation is a $14B year industry with no clear market leader.
Stress / Mindfulness - New Experience● 75% to 90% of all doctor's office visits are for stress-related ailments and
complaints.
Stress / Mindfulness - New Experience
● Multiple Approaches to quantify stress & mindfulness.○ Heart Rate Variability – stress/ fatigue – Heartmath and Jaybird.
■ Can enhance the Pure Pulse experience.○ Breathing – Spire○ BCI – Thync
● Mindfulness experience can serve as an entry point into Virtual / Augmented Reality devices.
● Mindfulness experience will allow you to ride the trend of holistic wellness and provide another touch point for your Insight experience.
UV Detection – Natural Fit ● We have seen several devices approach UV detection. MS Band, Sun
Friend, etc. ● Two conflicting theories of sun health.
○ We are getting too much sun. ■ Skin Cancer most commonly diagnosed form of cancer. ■ We are spending $382 million on sun screen related products.
○ While at the same time not getting enough. ■ Sunlight essential to Vitamin D production.
● Seek to combine both experiences.
IOT / Smart Home ● Misfit, Apple Watch, Google Wear, Jawbone all allow for IOT integration.● Payment & IFTTT to have the most legs
○ Apple and Jawbone driving awareness of Payment. ○ IFTTT is acquiring new User’s and recipes at a fast rate.
● Google and Amazon developed stand alone Smart Home devices. ● Opportunity to enhance Sleep Experiences.
Medical Simplified Approach to Take the Lead
FDA – Partnerships to simplify the process
● Start to work with partners for FDA approval experiences to establish an early lead.
● Firms like Alivecor are defragmenting the FDA process for consumer device firms.○ Apervita - medical algorithm marketplace. ○ This will accelerate the FDA process.
● We can see medical use cases becoming table stakes offering for Digital Health oriented products.
Form FactorsNew Forms to Strengthen Your Position
Hearables – Intelligent Headphones● Hearables are a discrete form factor delivering an intelligent, blended
experience of ambient and personal data. ● Projected to be a $5B industry by 2018, with $31M VC investments in
2014. ● Associated form factor with fitness. ● Entry point to BT Stereo Headset growth trend.
○ $300 - $400 price range is ~73% of the market in 2014. ● Players already involved, LG, SMS Biosport, Jabra, Wearhaus, The Dash
(wait and see). ○ Logical to expect Apple taking a stab at the space.
Smart Textiles - The Big Promise - Just Not Yet ● Start to engage suppliers / fashion partners in the space. ● The space is going through learning pains.
○ Price point range $150 - $400 for a shirt. ● Current Players
○ OM Signal – HR/ HRV and Vo2. ■ Fashion partnership with Ralph Lauren Polo.
○ Athos – EMG to target muscle specific activities. ○ Hexoskin HR/ HRV and Vo2, Sleep○ Victoria Secret & Lululemon - Heart Rate Sports Bra ~ $75 price point