executive report smartwatch market research

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Pieretto Enrico

Matriculation n.841458

SMARTWATCH MARKET

RESEARCH – Executive Report

December 13, 2014



INTRODUCTION

The smartwatch market is experiencing rapid growth since the last two years.

The purpose of our research is to evaluate the potential of the rising market for the smartwatch, a

relatively new product that has steadily increased its sales in the last few years. The market is stillvery fragmented and no company can claim a solid leadership in this rapidly changing

environment.

Our main research objectives were:

- Identification of current users and potential users profiles

- Identification of most used and most desired features

- Definition of the most suitable advertising channels

METHODOLOGY

Since we targeted a young population (15-34 years old), we decided to conduct our exploratory

research through a web survey with the tools provided by Google Drive and we spread it through

the most popular social networks (Facebook and Twitter), an approach that allowed us to reach the

desired population effectively and gather a great amount of data at zero-cost.

Once we had gathered sufficient data, we analyzed them using computer applications (mainly R,

and Microsoft Office Excel) in order to detect significant relations and produce useful information

often explained by various types of charts. Main results are described in the following section.

OVERVIEW OF FINDINGS

- Just 5% of respondents already own a smartwatch

USERS

- The most represented brand among owners is Samsung (72%), while Sony (14%) and LG

(14%) possess almost equal shares in our sample

- Most of the buyers in our sample spent between 100 and 199 euro to purchase their

smartwatch

- Features and functionalities that are more frequently included in the current smartwatches

are: SMS and email (96%), fitness (80%), music (77%), voice commands (54%), social

apps (42%), phone calls (38%), navigation and localization (27%)- Most used functionalities on a scale from 1 to 7 have shown to be: SMS and email

reader(6.38/7), social apps (4.55/7), phone calls (4.22/7), fitness and health (3.96)

- Users are more concerned with the improvement of battery life, interaction with the device

and the number of downloadable applications

- Concerning overall satisfaction with their smartwatches: 39% are partially satisfied, 32%

are content but are still waiting for improvements, 18% are completely satisfied, the

remaining are either partially or completely disappointed.

POTENTIAL USERS

- Most non-current users have not bought a smartwatch yet because they find prices too high(29%), others are not satisfied with the functions (20%), 18% declare they are not well

informed on the product



- Potential users are more interested in functionalities (76%) rather than in the appearance

(24%) of the smartwatch

- 94% are interested in a waterproof smartwatch

- 54% are willing to pay between 100 and 199 euro for an hypothetical purchase

- While 40% of the interviewees don’t have brand preferences, 28% would buy an Apple

smartwatch- 30% of potential users have declared they are not interested in the product and 75% of

them thinks the smartwatch in an unnecessary device.

RECOMMENDATIONS

The overall satisfaction of users of smartwatch is quite high but there’s still room for improvements.

Through our analysis we found the price-range 100-199 (euro) to be the most suitable for a product

addressed to a young population.

We suggest to produce a waterproof smartwatch with an interchangeable watchband. We suggestto invest more in the implementation of smart functionalities rather than in sophisticated design

solutions. It has to includes all the most desired functionalities listed in our findings according to

potential customers’ preference. Product differentiation is not required since data have not shown

relevant differences in preferences due to sex.

Most suitable marketing channels are for sure social networks and technology blog.

executive report smartwatch market research

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