Wearable tech start-ups don't have business models to drive adoption, researchers say

Tech companies need to collaborate with fashion industry to boost sales

Technology companies need to create more fashionable wearable technology if they are to drive widespread adoption among consumers, analyst company Beecham Research has said.

Major technology companies have started to realise this, resulting in collaborations such as Google Glass and designer Diane Von Furstenburg, Fitbit and Tory Burch and the Withings Activite watch which used Parisian fashion designers and Swiss watchmakers.

But start-ups in the wearables area are too focused on the technology and do not have the right business model that is necessary for them to succeed, according to the Beecham researchers.

"Wearable technology start-ups are feeding the market with innovative ideas and creative uses of technologies, but they are not addressing other important issues, from security to business models," said Saverio Romeo, principal analyst at Beecham Research.

"They do not consider at all what a business needs to consider [such as] business models, marketing, branding, design and ethics. They assume the technology is so cool that people will buy it because it is cool."

He added: "Wearables are not only tech products, and can't be."

Claire Duke-Woolley, fashion technology analyst at Beecham, said: "There is a real difference between making technology wearable versus making technology products that are desirable and genuinely engage with consumers through good design practice.

"Unless there is a holistic morphing of technology and aesthetics we will not harness the full potential of wearable tech innovation."

Duke-Woolley and Romeo are the authors of a Wearable Technology report that Beecham Research published this week.

In the report, they forecast that the market is on course to be worth $3 billion dollars by 2018. However, the researchers argue that taking a multidisciplinary approach to wearables could increase the market value to be worth $9.3 billion by 2018.

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Innovations in retail will bring creative and technology closer than ever

While approaching a customer in a shop and asking what you can help them with is Retail 101, how many of us actually enjoy being approached? Generally, you have to give the forced, fake smile and say, “Just browsing, thanks,” while screaming on the inside, “just leave me alone!” Maybe it’s just me?

Jason Dooris

CEO and founder, Atomic 212

There’s a brand in my digital soup

Not a day passes by in the life of business executives where digital innovation or the prospect of disruption is not front of mind. This in turn, drives an unrelenting flow of questioning, discussion and strategy papers.

Jean-Luc Ambrosi

Author, marketer

Can marketers trust agencies again?

Unless you’ve been marketing under a rock, you’ll probably have questioned whether your media agencies are offering you transparency.

Nic Halley

Founder and managing director, Mindbox

Nice post Brad! very useful information. The retail stores are really mean for every brand I am agree with you. Now Online Service Market...

Srialto

The rise of online retail marketplaces and what they mean for brands

Read more

Minor correct Nadia, just wanted to clarify that the "Marketo consultants" that did this work, were actually Hoosh consultants

Fab Capodicasa

What it's taking for Edible Blooms to grow a stronger personalisation strategy

Read more

Im not surprise though, been in the industry for couple of years and I feel and see it with my tow eyes how eCommerce platforms innovated...

Jason Smith

Australia Post earmarks $20m for Australian ecommerce innovation investment

Read more

For marketers that are "going Agile" I recommend using Ravetree. It's a really powerful suite of tools for Agile project management, reso...

Janice Morgan

7 ways to run your marketing department like a software startup

Read more

Over the years very part of our lives has become technological. That’s why I am not surprised to see that Australian home loans are going...

GreatDayTo

Why Aussie Home Loans is embracing digital transformation

Read more

Latest Podcast

More podcasts

Sign in