Economic Outlook of the Fitbit

Group 9: Kailynn Ott, Shaq Glover, Kiara Allen and McKayla Herman

Where We Are Going

• Background of the Fitbit

• Current Status/About the Wearables Market

• Benefits of Wearables

• The Future of the Fitbit and Other Wearable Technology

Background of Fitbit

• In 2007, the founders of Fitbit, Eric Friedman and James Park, realized that sensors and wireless technology had advanced

• They embarked on a journey to create a wearable product that would change the way we move

• Fitbit’s mission is to “empower and inspire people to live a healthier and more active life.”

Terms to Know

• Wearable technology▫ When discussing the term “wearable technology” we

are referring to “wearables”

• Wearables: electronics that can be worn on the body, either as an accessory or as a part of material used in clothing

The Current Stage of Fitbit

• Fitbit is among the most successful fitness trackers aimed at the consumer market, with 72% market share, according to the company

Fitbit and Current Trends• Fitbit is currently marketing products for different

levels of interest/fitness categories

• Ex: The Fitbit Charge of everyday fitness, the Fitbit Charge HR for active fitness and the Fitbit Surge for performance fitness

• Fitbit technology supports over 150 different mobile devices and applications other than the Apple-oriented iOS software

Fitbit and Current Trends• Increasingly, consumers are beginning to look more

at function and user ability over style for their fitness trackers▫ The overall design of the Fitbit allows for more

flexibility and also allows users to easily utilize it throughout different environments and occasions

• Consumers have said that they prefer the Fitbit over the Apple SmartWatch due to the Fitbit’s battery life and price

Fitbit and Current Trends

• Survey from August 2014 showing the features that would increase wearable-device usage

Fitbit and Current Trends

• Fitbit has recently incorporated designer Tory Burch within their wearable collection▫ This is an attempt to reach out to consumers who

prefer to be health conscious, yet still want to keep up with the latest fashion trends

The Benefits: Your Health• Next big evolution for Fitbit could be to create

products that users can talk about with their doctors

• The health market is one that Fitbit is currently looking to innovate in▫ Mayo Clinic and Cleveland Clinic have been trying to

incorporate Fitbits into their health regime, with some success

The Benefits: Your Health• One recent study tested whether mobile phones

could help increase activities among patients with diabetes▫ After 6 months, the average patient was walking a mile

further each day in addition to their blood sugar control being significantly improved

The Future of the Fitbit &

Other Wearable Technology• During the 2015-2016 year, the global fitness

wearable market, including the Fitbit, is expected to shrink from 70 million units sold to 68 million

• Smart wristband shipments are expected to fall by 15% to 17 million units

The Fall of the Fitbit &

Fitness Wearables Market

• Companies such as Samsung, Sony, Apple, LG, Motorola, and Intel are getting into the market along with carrier partners such as AT&T and Verizon

• One of the main problems lies within the functionality of the fitness tracker integrated into the coming generation of smart watches

The Fall of the Fitbit and

Fitness Wearables Market

• An individual would get good at guessing the numbers with the regular use of a fitness tracker

• The immediate problem is the limited appeal ▫ Wearables are primarily aimed at fitness fanatics,

however well over half of all Americans do not exercise regularly

▫ This means they have very little interest in the product

The Fall of the Fitbit and

Fitness Wearables Market• Self-tracking gadgets will probably only become a

mainstream market once they shed their images as computerized jewelry or conversation starters for fitness freaks and data geeks

• Also will become more mainstream once a collection is started with more useful information related to health, such as vital signs and a wearer’s biochemical changes

Smart Watches: The

Takeover• At least 40 million smart watches will be shipped in

2015

• Apple will most likely dominate the market with its first wrist wearable, the Apple Watch.

• Smart watch sales are expected to jump 17% to 21 million units

Smart Watches: The

TakeoverForecasts for Apple Watch

Units Shipped

How Much Respondents are Willing to Pay for a Wearable

Device

In Conclusion• The Fitbit will work hard to evolve by emphasizing its

software experience

• It has the necessary connectivity that people need and is marketable without the extras that other companies feel the need to include