solving the sock drawer problem: how are we failing wearables consumers?

Solving the Sock Drawer Problem: How are we Failing Wearables Consumers?

Wearables Techcon 2015

Dr. John Feland, CEO

© 2015 Argus Insights, Inc. Confidential: Do Not Distribute

First, A Bit Of A Framework For Today’s Discussion

Buying Learning Using Succeeding

Co

nsu

mer

Per

cep

tio

ns

of

the

Exp

erie

nce

Elation of Anticipation

Habit Forming

Sock Drawer

Long (or Short) Drive to Mastery

Euphoria of Achievement

Share of mind leads share of marketShare of mind leads share of market

© 2015 Argus Insights, Inc. Confidential: Do Not Distribute Page 4© 2015 Argus Insights, Inc. Confidential: Do Not Distribute

(Really) Brief Intro to Argus Insights

COLLECT REPORTANALYZE TAKE ACTION


Amazon Fire Phone: Failure to Launch

July 25Fire Phone Launched

July 28Argus Insights Blog

Predicts Failure

Sep 8Amazon Drops Price to 99 cents, GreenPeace strikes

Aug 26Amazon only sells 35k in

first 25 days


Argus Insights Proprietary Metrics Are Proven Predictors of Consumer Demand

23-Feb-13 23-Mar-13 23-Apr-13 23-May-13 23-Jun-13 23-Jul-13 23-Aug-13 23-Sep-13 23-Oct-13 23-Nov-13

Mapping Handset Consumer Buzz Metrics to Actual Handset Sales

Actual Sales/Returns for Specific Handset

Predicted Sales Using Argus Metrics from 8 weeks prior

Eight Weeks PredictingAdjusted R2 = 87.8%p-value = 4.547E-22

Han

dse

t U

nit

Sal

es/R

etu

rns


Measuring the Gap Between Promise and Reality

• Installation and Set up still an issue across multiple brands

• FitBit’s early adoption was limited by learning curve issues

• Now one of the best performing brands in hearts of consumers


Usage of Watches Does Not Differ Much from Fitness Bands

• Outdoor Usage Mentioned More Than Any Location

• Bathroom (shower) second most discussed

• Consumers need products that fit their lifestyle, not the opposite


Usage of Watches Does Not Differ Much from Fitness Bands

• Outdoor Usage Mentioned More Than Any Location

• Bathroom (shower) second most discussed

• Consumers need products that fit their lifestyle, not the opposite

“It's not great for using during exercise if you want to see your HR at a glance because the display reverts back to the time after about 30 seconds, so you have to swipe the screen

whenever you want to see the data And if your hands are sweaty or wet the swiping doesn't always work”

“Apparently you can't wear it properly fitted get it wet in any way becuase it causes bad chaffing/rash The touchscreen is overly sensitve at times Taking a shower

causes the screen to think I'm swiping through the screens The up/down swipe is diifcult to execute at tiems overly sensitive”

“ For example, when the device is wet, the swiping on the oled touchscreen does not work easily (need dry screen fingers), so best to have the 'activity' screen up going before

hopping in the water, or a towel handy poolside”

“While waterproof, the touch screen responds to contact with water As a result, it is not unusual to have your settings completely reconfigured after showering, washing dishes,

swimming a few laps, etc Pretty annoying “


Wearables have a Usability Problem, that Can Be Solved


Wearables have a Usability Problem, that Can Be Solved

“Reading texts on the watch is difficult frustrating as well, since the swipe up motion doesn't always work, it only shows about 160 characters It should be able to show more”

“Ironically this is also that screen that I would need to swipe 11 times to do a factory reset as it does not respond to touch I can't even do a factory reset”

“Later that day, I received another long text automatically attempted to swipe It swiped back forth without any issue, later however, I received another long text spent 5+minutes getting the

thing to swipe ”

“Apparently you can't wear it properly fitted get it wet in any way becuase it causes bad chaffing/rash The touchscreen is overly sensitve at times Taking a shower causes the screen to think I'm swiping through the screens The up/down swipe is diifcult to execute at tiems overly

sensitive other times”


Round is In For SmartWatches

• Round Watches Match Consumer Expectations More than Square

• LG and Moto continue to be perceived as better devices

• Huawei’s new smartwatchlaunched at MWC was the most discussed wearable at Barcelona


Designed to Disrupt? Lessons from the FitBit Surge

Alerting

GPS

Texting

Touchscreen

Screen

Apps

Battery Life

Gesture Recognition

Battery Charging

Access

Percentage of Fitbit Surge Users Mentioning Particular Aspects of Users Experience


What will Apple’s Journey Be?

Buying Learning Using Succeeding

Co

nsu

mer

Per

cep

tio

ns

of

the

Exp

erie

nce

Elation of Anticipation

Habit Forming

Sock Drawer

Long (or Short) Drive to Mastery

Euphoria of Achievement


Apple Stole the Wearables Show in September 2014

Buzz over Apple exceeded all other major

brands combined

FitBit was a trailing second place

Samsung and Pebble operation below the

noise floor


Apple’s Spring Forward Event Attracted Less Attention than Six Months Ago

Apple came out strong but in a more

competitive market

FitBit has a clear hold on mindshare

Pebble Time grabs almost as much

mindshare as Apple

Samsung still below the noise floor


Consumers Hold Their Breath For A Few Weeks When Apple Watch First Announced

Apple Watch Announced


Holiday 2014 Drove Significant Wearables Adoption That Continues Today

Apple Watch Announced


Fitbit And Jawbone Had To Biggest Holiday Gains, Samsung Wanes

FitBit

Garmin

Jawbone

Samsung

MOTOMisfit

Pebble

LG

Apple?


At the end of the rainbow…

Questions?

http://www.argusinsights.com Twitter: @argusinsights1-877-992-7487 [email protected]

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solving the sock drawer problem: how are we failing wearables consumers?

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