How Can Wearable Devices Change From "Supporting Role" To "Protagonist" In China?

In 2014, it was considered the first year of wearable devices. In 2014 this year, Google glasses sold on the US market at a price of 1500 US dollars, and many products such as iWatch and Gear Gear will also be released this year.

Wearable devices are expected to become the next explosive growth point after smartphones. By 2018, global shipments will reach 485 million.

However, most of the wearable devices are not functional independent intelligent terminals. The market is small and potential purchasing power has not yet started. In the supporting role, how to turn it into a "protagonist" is worth considering.

First, wearable devices.

Definition.

A portable intelligent device that is directly worn on the body or integrated into the user's clothing or accessories.

Wearable devices use functions such as sensing, recognition, connection, cloud interaction, storage, and other technologies to achieve the functions of human body health adjuvant therapy, human motion monitoring, life entertainment and so on.

The application technology mainly includes embedded technology, sensing technology, recognition technology, connection technology, flexible display technology and so on.

Classification.

At present, wearable devices are mainly based on smart Bracelet (smart wristband), smart watches and other products, and also include smart glasses, smart necklace, smart clothing and so on.

The promising segments include fitness, entertainment, medical care and so on.

It can be classified according to the application function and wearing position, as shown in Table 1 and 2.

Table 1 Classification of wearable devices according to application functions

Table 2 classification of wearable devices according to wearing position

Two.

Market: the total size is small, and the gap with the smartphone market is very wide.

According to data from International Data Corporation (IDC), the global smartphone market shipments increased from 725 million in 2012 to over 2013 in the year of 2013, which is expected to reach 1 billion 200 million in 2014.

In 2013, China's smart phone shipments amounted to 3.51 billion billion, and it is expected that in 2014, China's smart phone shipments will exceed 450 million.

According to UBS statistics, the global smartphone market in 2012 was nearly $100 billion.

In contrast, according to research institutes, the global wearable device market is currently about $30-50 billion.

According to AI media consulting data, in 2012, China's wearable device market had 2 million 300 thousand shipments of various equipment and a market scale of 610 million yuan. It is estimated that by 2015, the volume of shipments will exceed 40 million, and the market size will reach 11 billion 490 million yuan.

Product: in the appendage status, not an independent intelligent terminal.

At present, most of the products released in China are just counting, calculating the amount of movement, and even pushing information. It is just some introductory health monitoring devices, including Google glasses. It also repeats the functions of smart phones and networked computers. All data are ultimately attached to smart phones and computers, and can not be used independently.

At present, wearable devices are only accessories of mobile phones. They are not smart terminals that can independently perform functions. They are strongly dependent on mobile phones, and appear to be dispensable compared with the powerful functions of mobile phones.

Consumption: the potential purchasing power has not started yet, and the wait-and-see atmosphere is strong.

At present, wearable devices demand more for consumers than fashion.

The existing design of wearable devices has not yet adapted to people's wearing habits and meet the needs of people.

According to research data from the US mobile market research firm Endeavour Partners on the wearable device market in the United States, 1/3 of consumers no longer use wearable devices in six months, while about 10% of adult consumers buy tracking devices, but more than half of them will soon be abandoned.

In addition, the price of products is high and the market penetration is low. For example, the price of Google eyeglasses in China is currently about 12 thousand yuan, which is unbearable for ordinary consumers.

At present, the potential purchasing power of wearable products has not yet been launched. Most of them are on the sidelines. Wearable devices are in an awkward situation.

Three, the proposal to become the protagonist.

Clear product development direction.

Focusing on the development of health, entertainment and leisure wearable device products, we focus on improving product functions, developing key technologies, and overcome problems such as single function, lack of practicability, and independent use.

At the same time, we should pay attention to the differentiated needs of the subdivided users, strengthen the design and research and development, and develop products with reliable functions, high degree of specialization, wearing no "foreign body sensation" and ensuring data security.

Taking heart rate bracelet as an example, we need not only to help users understand heart rate, but also to have preventive and early warning hints, give professional health care advice, help users reduce disease risk and so on.

Integrate and perfect the industrial chain.

The industrial chain of wearable device market mainly includes hardware, software, operation services, cloud computing, big data and so on.

Integrate and improve the industrial chain, guide and encourage the final product manufacturing enterprises to vertically integrate the industry chain, control the supply of components upwards, and coordinate the sales channels and logistics support of products.

Changes in the current link and closed loop, due to the sales volume of the upstream parts manufacturers reluctant to supply parts or high prices, downstream channel cooperation willingness is not strong, mass production difficulties and so on.

Create a favorable environment for development.

We should establish and improve a policy system that is conducive to innovation, promotion, application and orderly competition of wearable devices.

Establish industry standard, market access system and evaluation system, carry out industry standard certification, avoid the impact of "Shanzhai" and "homogenization" on the industry, guide the orderly development of industry, standardize the market economic order, and form a competitive and orderly market system.

In addition, we should guide enterprises to attach importance to the protection of innovation results.

There is little difference in the technology level of wearable devices at home and abroad. Domestic enterprises should protect the innovation results through patents as early as possible, such as Google.

More than 60 patents related to smart glasses were applied, and about 80 patents were applied by Apple Corp for smart watches.

Enterprises need to have their own core technology patents to ensure technological safety and interests.

Strengthen

Policy support.

We should actively explore new policies and funding channels, set up special funds for innovation, encourage and guide enterprises and research institutions to increase the R & D and industrialization of key technologies of wearable devices, and enhance the quality and reliability of their own brand products.

We should explore relevant financial subsidies and preferential tax policies, and give subsidies or preferential tax policies to pilot enterprises and demonstrative products with advanced technology and obvious advantages.

We should implement active investment and financing policies, encourage financial capital, venture capital and private capital to invest in the development of wearable equipment industry, support enterprises to carry out mergers and acquisitions in the capital market, and strengthen risk monitoring in mergers and acquisitions.