THE CONNECTED CONSUMER: HOW WEARABLES AND SMART PERSONAL ACCESSORIES FIT INTO THE IOT OPPORTUNITY - MICHAEL LIARD
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The Connected Consumer:
How Wearables and Smart
Personal Accessories Fit into the
IoT Opportunity
► Michael Liard
Liard Research & Consulting
President, RFID Professionals
Vice-Chair, AIM IoT Committee
| 1 |Wearables Viewed as the Latest IoT “Careables”
> Wearable and smart personal devices are flooding the market
> These devices are bringing consumers into the IoT mainstream
> Smart products are positioned as the consumer entry point…or
the ‘connection point’…to the IoT
> Wearables and smart personal accessories gather information
about behavior, activities and sensor collected data, and then
process all that information
> Not just for the consumer, using wearable technology at work is
a hot topic, offering possibilities of increased productivity for
businesses by augmenting and automating the tasks of the
wearer
| 2 |How Do Wearables Fit in with the Internet of Things
> Beyond providing users with real-time data about their health or
an augmented view of the world, wearable technologies will
form an integral part of the Internet of Things…the logical
evolution of the cloud and big data
> The idea is to enable sensor-equipped "things" to communicate
with one another in meaningful, actionable ways
> For that to happen, though, companies need to take care not to
scare off would-be users by failing to address their privacy
concerns
> Sensor-equipped “things” may change IoT strategies and invite
new players to the IoT table – namely, consumers
| 3 |Sensors, the Cloud & Data are the Common
Denominators for Wearables
> All wearable computers will have location-adjusted motion sensing
> Cloud-based applications are the foundation for data collection,
storage and exchange
» Sensors, devices and hardware rely on data, which needs to be stored and
processed to bring customized and extensible experiences.
> Big Data and Cloud computing combined with wearables and sensors:
» Provide a new environment to collect, process and produce information
based on the data collected
» Data will be composed of multiple sensor readings and need to be
processed, producing valuable information or customized experiences
> “Bigger,” more personal data demands higher, tighter security
» The connected customer/connected consumer needs to feel comfortable
and confident
| 4 |How Many Devices? How Large is the Market?
> The answers depend on who you ask and what types of
devices are included
> The expected number of devices and size of the industry vary
widely and is subject to change, especially as new products
and new classes of solutions are introduced:
» 19 million units in 2014 (3x 2013’s total), growing to 112 million units
by 2018 according to IDC
» 485 million devices by 2018 according to ABI Research
» $80 billion market by 2020 according to Jupiter Research
» $30 billion to $50 billion over 2 to 4 years according to Credit Suisse
| 5 |Fast-expanding World of Wearables Across Verticals
> Entertainment
> Social Media
> Gaming
> Advertising
> Healthcare / Lifestyle / Medical
> Retail
> Many others…
| 6 |Entertainment
> Companies that fall in this broad category are likely in the best
position to benefit from the burgeoning wearables movement…
» Basically, where there’s a screen, there’s an opportunity!
> A recent survey by PWC found over 70% of respondents expect
wearable technology to make media and entertainment
experiences “more immersive and fun”
> Consumers not looking to wearables to create new genres of
communication and entertainment, but rather to improve those
already in existence
> To no surprise, millennials are the most open to trying branded
wearables offered by media and entertainment companies
| 7 |Social Media
> Consumers want even more on-the-go access to their favorite
social networks via wearables
> This is especially true of always-on millennials, who are 3x to
4x more likely adopt uses cases around social media than the
general population
> Therefore, real-time social-media updates are seen as a key
benefit of wearables for a critical current and future class of
consumers
» #Wearable&Shareable
» #WearIt&ShareIt
» #WearingIsSharing
| 8 |Gaming
> Games that wearables could render more visually and
physically engaging are of high interest to the gamer
community
> Consumers between18 to 24 would be “motivated by”
wearable-integrated gaming
> The future of gaming will not be televised…It will be worn
> Think literally on-your-face, 3-D virtual reality gaming
> Microsoft’s new HoloLens headgear is positioned to “play” here
| 9 |Advertising
> More wearable screens equal more places for marketers to
advertise
> Wearables provided a portable, blank canvas for highly
targeted message placements, including content with greater
relevancy and context to the consumer
> Advertisers and brands are already developing wearable
strategies that deliver personalized marketing messages
directly to people who don Google Glass, smartwatches, fitness
bands, virtual reality headsets, etc.
> If you can wear it and stare at it, the advertisers will share it
| 10 |Health Care / Lifestyle / Fitness
> A fast-growing crop of wearables already help health-conscious
people monitor everything from calories consumed and burned
to steps taken to sleep and more
> Retailers such as Walgreens are funneling data from loyal
customers who don fitness bands and are willing to share that
data. In other words, make healthy choices, give them your
data and Walgreens will give you rewards
> Additional health- and wellness-focused companies are
expected to offer wearable-related incentive programs
> Wearable smart medical devices, health monitoring, medical
treatment and other healthy living wearables have been
introduced (i.e., at CES 2015) and many more are under
development
| 11 |Retail
> Wearables will soon play a central role in our everyday retail
experiences.
> However, they may be haunted by privacy and data breach
threats and concerns
> Consumers would like to use wearable tech for more pleasant,
efficient shopping experiences from pre-store and in-store
product research and comparison, finding deals/
incentives/discounts and at the checkout
| 12 |Issues and Challenges
> Bulky devices, ugly designs
> Better batteries are a NOW-term requirement
> Invisibility of wearables is key to adoption
> Security and privacy, particularly around the management of
consumer data, remain a concern as the tech industry seeks
to bring more of our body parts online
> Continued experimentation and innovation with wearables is
important, but the near-term requires a conversation about
whether current wearables are really adhering to customer
needs and wants
> User retention and use cases are critical to adoption as
consumers must care for it in order to wear it
| 13 |Wearables and the Future: Get Smart
> While still only in its nascent stages, the wearables market is
expected to explode
> Big brands, big tech companies, big retailers, and big investors
are entering the fray…all with the consumer in mind
> Many say wearables will forever change the way we live, work
and do business
> To remain competitive, your company might have to adopt a
competitive wearables-integrated edge. Are you ready?
| 14 |Questions and Answers
THANK YOU!
MICHAEL LIARD
Email: michael.liard@outlook.com
Phone: 1-508-966-0187
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