… But first it needs to convince consumers that wearables are a “need-to-have” versus a “nice-to-have” product.
Between Fitbits, Apple Watches and other “wearables,” I suspect the holiday season this year will be full of gift-giving of these and other types of interactive gadgetry.
The question is – how many of these items will still be being used by the end of the next year?
According to a recent online survey of ~9,600 consumers in the United States, the United Kingdom and Australia conducted by market research firm Gartner, many of these wearable devices will be destined for the dresser drawer.
The abandonment rate for smartwatches is expected to be ~29%, while for fitness trackers, it’s forecast to be nearly the same at ~30%.
Part of the problem is that while most people typically purchase these products for themselves, more than one-third of fitness trackers and more than a quarter of smartwatches are given as gifts.
When gadgets like these are gifted, often it’s “easy-come, easy-go.”
The Fitbit company knows about these dynamics all-too well. According to an article earlier this month in The Wall Street Journal, the company is struggling to develop its next generation of products and to attract new users.
While that’s going on, for this holiday season, Fitbit’s sales are forecast to grow only in the 2% to 5% range, as compared to double-digit increases in prior quarters.
Essentially, what Fitbit and other brands need to do is to move consumers to start considering wearables as “need-to-have” rather than “nice to have” products — and to avoid the dreaded “fad” moniker (as in “for-a-day”).
This imperative helps explain Fitbit’s attempts to position its products as ones that measure long-term health conditions rather than being simply fitness trackers.
The notion is that physicians could start prescribing Fitbit devices to track patients’ vital signs in heart health, or physical therapists doing the same to help monitor their patients’ at-home exercise routines.
Fitbit is also working on developing trackers that can detect and diagnose long-term health conditions. To that end, what’s critical is to come up with defining functions that other gadgets can’t perform.
Otherwise, consumers are less likely to be interested — figuring that they can get the same kind of functionality out of other devices they already own.
In the meantime, look for wearables to be under the tree this holiday season … and then for many of them to be stuffed in a drawer someplace by next summer.