Monitoring Fitness a Major Sales Area for Wearable Devices

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NUREMBERG, Germany, Sept. 8, 2014 /PRN=KYODO JBN/ --

     Wearable devices are the current trend in technology. Manufacturers from a

range of different industries including fashion, sports and technology are

introducing many new models to the market. A recent GfK survey carried out in

China, Germany, South Korea, the UK and the USA shows that, from the consumers'

point of view, well-known technology brands are the first port of call for any

potential purchase. Activity trackers are, above all, used to manage fitness

regimes in the majority of countries surveyed. Monitoring and recording

sporting activities, sleeping patterns and health also emerge as key

preferences for applications of smart watches. This may become a problem in the

future for manufacturers of "pure" devices that just track activity.

    Smartphones are now a standard part of everyday life for individuals around

the world. They are a constant companion and enable communication as well as

access to information and entertainment anytime and anywhere. Wearable devices

are creating an even closer relationship between humans and technology, with

innovations such as computer-supported watches, fitness armbands and data

glasses, which are generally used in conjunction with a smartphone.

    Activity trackers: purchase criteria differ between countries

    Activity trackers are devices which are specially designed to monitor and

display health and fitness variables, ranging from running distance and

calories burned to heart rate and quality of sleep. These electronic monitoring

devices record the activity of their wearers. The data can usually be

transferred wirelessly to a computer or smartphone for evaluation. The current

GfK survey shows that there are differences in how consumers wish to implement

this technology. Fitness monitoring is the most important area of application

for consumers in Germany, the UK and the USA, whereas recording health data is

regarded as a priority in China. A detailed breakdown of personal statistics on

fitness, health and sleep is ranked as the priority by South Korean consumers.

    Opinions in the surveyed countries also differed with regard to the most

important criteria behind making a purchase. In Germany, 30 percent of

respondents state that compatibility between smartphones and other devices is

the most important purchase criterion. For 20 percent of Germans, price is the

key factor, while accuracy is viewed as the top criterion for 15 percent of

respondents. In China, compatibility is also the most commonly named factor (19

percent), followed by accuracy (17 percent). However, the brand is also seen as

the decisive factor in the purchase decision for 16 percent of Chinese

consumers. In the UK, consumers consider the price of an activity tracker above

all other factors, with 28 percent saying that this is the most important

criterion when weighing up a purchase decision. Second and third in the

rankings for the UK are compatibility and accuracy, with 20 percent and 11

percent respectively. A similar picture emerges for the USA, with price coming

top of the ranking (27 percent) followed by compatibility (17 percent) and

accuracy (13 percent). However, in South Korea, compatibility is viewed as the

most important factor (19 percent), while there is a tie for second place

between price and user-friendliness (both 17 percent).

    Activity trackers: technology before sports brands

    Activity trackers are manufactured by companies operating in a range of

sectors and the study found that well-known technology companies have the

greatest sales potential in all countries surveyed. In South Korea, 69 percent

of consumers say that such companies would be their first choice for any

potential purchase, while the corresponding figures are 54 percent in China, 51

percent in Germany, 47 percent in the UK and 42 percent in the USA. Sports

brands follow in second place, but by quite some margin. The largest sales

potential for these is to be found in the UK and the USA, with around a third

of respondents in those countries stating a preference for sports brands.

Although coming in at a lower level, they are still popular with just under 30

percent of consumers in both China and Germany, but this drops to only 17

percent amongst South Korean consumers. However, the popularity of sports

brands is particularly widespread among younger target groups. According to the

study, the sales potential of activity trackers from specialized technology

brands, fashion companies and luxury brands is only very limited.

    Smart watches: activity monitoring is the preferred area of application

    In comparison to activity trackers, smartwatches offer a wider range of

applications. Depending on the model, it may be possible to use these watches

for telephone calls and navigation services, while some also enable users to

search the internet and record data on sporting activity and health. According

to the GfK study, this is considered the main area of application for

smartwatches by consumers in all surveyed countries, which makes smartwatches a

genuine competitor for pure activity trackers.

    In Germany, capturing data on sports, health and fitness is regarded as the

most important application by a quarter of respondents, followed by the more

traditional function of displaying the time (20 percent) and the possibility of

conducting telephone calls via the watch (11 percent). In the UK, monitoring

activity and health is the most commonly cited application (28 percent), with

the traditional watch function (15 percent) and the smartwatch's GPS (10

percent) following in its wake.

    For Chinese consumers, the ability to monitor activity is a certain winner

in this category, at 35 percent, followed by the telephone function (16

percent) and the GPS in third place (11 percent). The number one area of

application for consumers in the USA is also quite clearly activity monitoring,

at 29 percent. This is followed by the traditional watch function at 13 percent

and then the use of apps for weather forecasts, notifications and news

bulletins (10 percent). Respondents in South Korea are also primarily motivated

by the ability to monitor activity (27 percent), with the telephone function

second (21 percent) and the use of apps coming third (11 percent) in the

ranking.

    Smart watches: price is the most important purchase criterion

    With the exception of China, the price of a smart watch is the most

important purchase criterion in all surveyed countries. Functionality is named

second in most countries, with the ability to monitor and display activity and

health data in third. In contrast, Chinese consumers place the greatest

importance on the accuracy of the smartwatch, followed by recording activity

and the brand. In this respect, the strong interest for owning brand name

products in China is clearly reflected in the findings.

    Well-known technology companies are named as the preferred supplier of

smartwatches by respondents in all countries. They are considerably ahead of

sports brands in second place. The Chinese market, above all, holds potential

for luxury brands from the fashion and watch industries.

    Infographic on activity trackers in high-resolution:

http://www.gfk.com/PublishingImages/Press/GfK-Infographic-Activity-Tracker_english.jpg

    Infographic on smart watches in high-resolution:

http://www.gfk.com/PublishingImages/Press/GfK-Infographic-Smart-Watches_english.jpg

    About the study

    The data was collected in a study of smartphone owners in China, Germany,

South Korea, the UK and the USA which was conducted in August 2014. In each

country, 1,000 respondents were surveyed online.

    For more information, please visit http://www.GfK.com or follow GfK on

Twitter: https://twitter.com/GfK_en

    Contact:

    press@gfk.com,

    +49-911-395-4440

    SOURCE: GfK