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More to shop for ‘smart’ jewelry this holiday season
From watches to activity trackers, the number of consumers who own something “smart” for their wrist could increase as much as 4 percent this holiday season, the NPD Group said.
Port Washington, N.Y.--From wearable devices to activity trackers, the number of consumers who own something “smart” for their wrist could increase as much as 4 percent this holiday season, according to recent data from the NPD Group.
The marketing consulting company said that when it comes to smartwatches, consumers at first were stalled by price tags and continued uncertainty about the functionality of the products. However, the release of the Apple Watch last April “has made majors ripples within the smartwatch sector.”
“(Apple Watch) is much more of a mainstream product than other generation one smartwatches,” said Weston Henderek, director of wearables and connected intelligence at NPD Group. He added that even Apple Watch may not reach its full potential until the launch of a second-generation version that could offer integrated cellular connectivity.
Integrated cellular connectivity refers to a smartwatch that will not be reliant on syncing with a smartphone to connect with a cellular network. The current version of the Apple Watch does not have its own cellular connectivity, explains David Riley of NPD Group. The device can connect to the iPhone via Bluetooth and then use the cellular connectivity of the phone but, without the phone, it has no ability to connect to a cellular network.
“Independent cellular connectivity is one of the key differentiators that will accelerate smartwatch growth even further in the coming year,” Henderek said.
Other types of smart devices--activity trackers and digital fitness devices--already have seen significant growth that will continue into the holiday shopping season, the NPD Group said. The retail sales of these items increased 120 percent in the first eight months of the year, from $343.5 million to $754.8 million.
“That level of growth is expected to extend through the end of the year, making activity trackers some of the hottest tech gifts this holiday,” said Ben Arnold, executive director and industry analyst of consumer electronics at NPD Group. “Awareness of these products has grown tremendously over the past year, and there are a diverse number of products on the market offering a variety of features and price points.”
He added that manufactures continue to partner with designers to increase the appeal of the products.
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“There is a product for every type of consumer, from the most active athlete to the mom who
just wants to remember when to pick up her kids from soccer practice, on the market,” Arnold said.
NPD Group said in November 2013, awareness of activity trackers was just more than 30 percent in the U.S. market, with younger consumers being the most knowledgeable. Now, in 2015, the situation has changed--close to 82 percent of the market knows about activity tracking devices.
“The wearables industry has come to a crossroads in the past six months, as the quality, depth and price points of activity trackers and smartwatches have expanded at a rapid rate,” Henderek said. “The two sectors are much more segmented now, with the activity tracker category in particular having a wide variety of price ranges, depending on features, quality and design.”
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