Few ‘wearables’ make fashion sense

Few ‘wearables’ make fashion sense

BY PETER SVENSSON

JAN 11, 2014

LAS VEGAS – Gadget lovers are slipping on fitness bands that track movement and buckling on smartwatches that let them check phone messages. Some brave souls are even donning Google’s geeky-looking Glass eyewear.For the technology industry, this is an exciting time, but also a risky one. No one really knows whether the average consumer can be enticed to make gadgets part of their everyday attire.

The question is: Can tech companies create “wearables” with the right mix of function and fashion?

Wearable computing devices are igniting an explosion of hope and creativity that’s engaged both startups and big companies including Samsung, Sony, LG and others. At the International Consumer Electronics Show last week, companies showed off hundreds of new watches, wristbands and eyeglasses with built-in video screens or cameras.

The industry is encouraged by the attention Google’s Glass is getting. The device is worn like a pair of glasses and projects a small video screen into the wearer’s field of vision. Companies are also encouraged by the success — albeit on a small scale— of the Pebble and Samsung Galaxy Gear smartwatches.

Intel Corp., the world’s largest maker of computer processors, is on the wearable computing bandwagon, too. Its CEO, Brian Krzanich, demonstrated a “onesie” that can measure a baby’s temperature, pulse and breathing rate. It sends a wireless signal to a parent’s “smart” coffee cup, which shows a smiley face in lights if the baby is sleeping well and a worried face if the child is too hot or close to waking up. The outfit can also send a signal to a digital bottle warmer so it can be ready with warm formula when the baby wakes.

“We want to make everything smart,” Krzanich said, showing off the brains of the onesie —a computer the size of a stamp.

The smart onesie is one example of the many gadgets at the show that are designed to demonstrate what technology can do. What’s less clear is whether they tackle real problems, and improve life so much that people will care to buy them.

The wearables industry is haunted by an earlier false start: Bluetooth headsets, which were commonplace a few years ago, fell out of favor. The shift away from phone calls and toward texting was one factor, but many say it simply became uncool to walk around in public with a listening device protruding from one’s ear.

It’s easier to convince consumers to wear gadgets on their wrists, and that’s where most of the industry’s energy is focused.

“The wrist is one of the few places where it’s socially acceptable and technologically feasible to wear a gadget,” says David Rosales, the chief technology officer of Meta Watch Ltd., a spin-off of watchmaker Fossil. Rosales has been making smartwatches for years, but only now does he believe they can break into the mainstream. It’s not so much a matter of technology — smartwatches worked fine in 2006, as one of social acceptance, he says.

Smartwatches are still a small market: the Consumer Electronics Association estimates that just under a million of them will be sold in the U.S. this year, up from 600,000 last year.

“I don’t think consumers get the idea of smartwatches,” says Russ Crupnick, senior vice president of industry analysis at research firm NPD Group. In a survey, the group found that the feature U.S. consumers most desire in a smartwatch is the ability to make and receive calls — something the watches generally don’t do. He thinks the image a smartwatch projects of the owner is a more important driver.

“I think this is about jewelry . . . I think at least in the near term, it’s about what having one of these things says about me and my personal brand,” Crupnick says. “It’s human nature to brand ourselves.”

Fitness bands are also an effective way to brand oneself, and they’ve seen a big surge in interest recently. The CEA says that last year, 13 percent of U.S. consumers said they intend to buy a wearable fitness product in the next 12 months, up from 3 percent the year before. But the staying power of these products is questionable — much of their motion tracking can be done by smartphones, which already contain the motion sensors that let the fitness bands act as advanced pedometers. At CES, some bands are being revealed that do more than phones can; Epson’s Pulsense, for instance, measures a wearer’s heart rate by shining a light through the skin.

Glucovation, a startup from Carlsbad, California, is among the companies that want to take wearables one step further: into the skin. It’s developing a discreet patch with a tiny needle that measures one’s blood glucose level and relays it wirelessly to a smartphone. That could be useful not just for diabetics, but for anyone monitoring their eating habits.

Google Glass is the opposite: It’s blatant and in your face, literally. Many people balk at the image of man-machine integration it conveys, and since it contains a forward-facing camera, it continues to raise privacy concerns. In theory, Glass users can be recording or taking pictures of anything they see, unbeknownst to others.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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