Katherine Hague - A look at the future of Hardware - and it looks a lot like the fashion industry
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A LOOK INTO THE FUTURE OF HARDWARE Photo credit: cobalt123
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Startupfest 2014 - With easier access to every aspect of the supply chain and increased ease of rapid prototyping, short launch cycles are no longer exclusive to software, or the clothing industry.. The winners in the next generation of connected devices will be the ones that can quickly adapt to rapidly changing consumer preferences, staying one step ahead of the increasingly nimble competition. The barriers for hardware are falling, vision, brand and distribution are what separate those that make it past their first production run from those that don't. In this talk, Katherine will share some of the trends driving rapid shifts in the hardware ecosystem today, with examples from some of today’s hottest hardware startups and emerging service providers.
Transcript of Katherine Hague - A look at the future of Hardware - and it looks a lot like the fashion industry
A LOOK INTO THE FUTURE OF HARDWARE
Photo credit: cobalt123
My name is Katherine Hague
AYAH BDEIR OF
littleBits
DREW DOWNS
GelaskinsADAM SAGER
Canary
MARC BARROS
Moment
EMILY BROOKE
Blaze
MARK ARGO OF
Aesthetec Studio
KATE DRANE
Indiegogo
MAX TEMKIN
Cards Against Humanity
EDWARD TANG
AvegantCHRIS ANDERSON
3D Robotics
BEN KAUFMAN
Quirky
NICK EVANS
Tile
ZACH SUPALLA
Spark
JAMEY STEGMAIER
Stonemaier Games
LISA FETTERMAN
Nomiku
LAURIS LIBERTS
Startup VitaminsMAX BOGUE
3Doodler
CAMERON ROBERTSON
Lockitron
ARIEL GARTEN
InteraXon
STEPHEN LAKE
Thalmic
$287,472raised on Indiegogo
$6 millionin series A financing
6 monthsuntil product ships
M U S E
“I've been given a lot of advice but if I were to give advice to another entrepreneur I think it would be that the manufacturing process is always going to take longer than you thought.”
N O M I K U
$586,061raised on Kickstarter
1,880backers on Kickstarter
111 daysas part of HAXLR8R
“Nobody runs on money in a startup. They run on ideas, love for each other, and love for the product. That is what is going to pull you through.”
N Y M I
7000+Pre-Order Units
$1.3MSeed Funding
385,946views
"Focusing does not mean that you're going to lose out on other opportunities. Focusing means that you will flesh out the opportunity in front of you much faster and then if it doesn't work, you can move to the other one."
L I T T L E B I T S
150,000+circuit combos
20awards won
700,000views on TEDtalk
“My advice is to not try to rush too much and to acknowledge and accept that hardware cannot work as beta software, as much as we would like to. It really requires more attention and iteration.”
L U M O L I F T
$1.2MPre-Orders in the first month
16,000 Units
"The future we see for wearables is that they will become a lot more wearable."
INTERVIEWS
70+ARTICLES200
STARTUPS1598
MAKERSPACES200
TOOLS108
LAUNCH ACADEMY
S E E D R S
To guarantee success, you need to hit 35% of your goal on day one.
G O G E T F U N D I N G
Campaigns with day to day marketing plans raise 180% more.
I N D I E G O G O
Campaigns that post 1-5 updates each week double their contributions.
G O G E T F U N D I N G
Campaigns with teams raise 38% more.
BEFORE WE START TALKING ABOUT THE FUTURE, LETS SEE WHERE HARDWARE IS TODAY.
THE PIECES FOR LOWER COST PRODUCTION EXIST
NO LONGER JUST THE BIG GUYS
SHORTER PRODUCTION CYCLES
ACCESS TO EARLY STAGE FUNDING
SO, WHAT’S THE TYPICAL JOURNEY OF A HARDWARE STARTUP STARTING OUT TODAY?
Entrepreneurs rush into setting up a business, attracted by the perceived glamour and fun that is associated with crowdfunding and connected devices.
There are wonderful fairy tale stories of young talented designers graduating from Stanford or MIT and then going off to achieve fame and fortune.
Most startups can’t answer the question: “Who are you designing for? And why?”
MOST PEOPLE START “PROJECTS” AND AREN’T REALLY PREPARED TO RUN A BUSINESS.
Packing boxes at 2 am+
Saudering and over again+
Pouring through receipts with an accountant will
become part of your routine.
They likely spend less than 10% of your time designing
• Managing production• Sending samples to
magazines• Dealing with suppliers who
want their money (now!)• Begging Techcrunch
reporters and Apple retail to grant you a meeting
• Managing your employees while hoping they don’t fall ill
• And trying to eat and bathe in between
They spend the rest of the
time
They discover that even once you have a prototype, production is very complex one as well, even at the smallest of scales.
They quickly find themselves with customers and suppliers scattered around the world, requiring so much coordination and organization.
They realize that it takes 6 months to two years to match crowdfunding success.
They eventually realize that retail distribution still matters, puts pressure on cost. How do you keep your COGS to 25%?
On top of all that, you have to worry about making enough money to one day make enough money to provide returns for yourself and your shareholders for all your hard work.
BUT WAIT.
THE BUSINESS OF FASHION
Photo credit: Earthworm
CROWDFUNDING AND CONNECTED DEVICES WITH FASHION
JUST REPLACE…
STANFORD AND MIT WITH ST MARTINS OR PARSONS
Photo credit: m01229
Photo credit: Fernando de Sousa
SAUDERING BOARDS WITH STEAMING CLOTHES
TECHCRUNCH AND APPLE RETAIL WITH ANNA WINTOUR AND NORDSTROM
Photo credit: Mike Kalasnik
KICKSTARTER WITH WELL, KICKSTARTER
Photo credit: Scott Beale
• No longer just the big guys
• The pieces for production exist
• Shorter production cycles• Access to early stage
funding
Why haven’t the two converged
until now?
Photo credit: Jenny
IF HARDWARE IS EVOLVING TO BE MORE AND MORE LIKE THE FASHION INDUSTRY, WHAT COULD BE NEXT?
Photo credit: Frits Klaarenbeek
EMERGENCE OF “SEASONS”
Photo credit: Simon A
HIRING OF BURBERRY CEO TO APPLE
EXAMPLE
DEVELOPMENT OF RETAILS CHANNELS FOR EMERGING DESIGNERS
EXAMPLE
+
INCREASED COMPETITION ON BRAND AND COMMODITIZATION OF MANUFACTURING
EXAMPLES
VOGUE FOR THE HARDWARE INDUSTRYBRINGING PRODUCTS TO CONSUMERS
EXAMPLE
SOME FINAL THOUGHTS
GO: CHINA & SAN FRANCISCO
DO: CUSTOMER DISCOVERY· Mom Test· Customer Discovery Blog· Lean Startup· 4 Steps to the Epiphany
WATCH: SCATTER MY ASHES AT BERGDORFS
Photo credit: misslylestyle.com
READ: THEBLUEPRINT.COM
[email protected]@KatherineHague@BlueprintShop
