On August 15, Motorola sent invitations indicating the Moto 360 smartwatch might be announced on September 4. Public attention to wearable devices rose again. However, despite growing consumer awareness and acceptance, manufacturers and developers still face five major obstacles.
1. Redefining and demonstrating wearable value
How do you persuade people to put down a smartphone, a tablet computer, a smart TV, or a game console and instead rely on a wearable device? That question remains a key concern for many wearable device makers.
Smartwatches at the forefront must deliver both compelling functionality and appealing design, supported by differentiated marketing. In practice, from Samsung's Gear series to LG's G Watch line, no product has yet won broad endorsement as a must-have smartwatch. As Apple CEO Tim Cook remarked at the 2013 All Things Digital conference, "A watch is a novel thing, but you still have to convince consumers that it is worth buying."
Long-term commercial success relies on brand strength to build consumer trust and a distinct brand appeal. Like how Apple has shaped its brand, wearables need to establish a more emotional connection with users. Without a clear brand identity, user adoption will be difficult when the market is fragmented.
2. Powerful features but poor aesthetics
Technology companies often prioritize technical capability and features while neglecting product appearance and design. Yet they still tend to market products by highlighting technical specs to consumers who may not care about them.
Experience shows that design and user experience drive industry and market direction. Products are more than a list of functions, especially in an emerging market such as wearables. So far, no wearable has had the design impact that the iPhone had on smartphones.
Recently, however, companies have begun to emphasize fashion and style. For example, the round display of the Moto 360 stood out among the many square smartwatches. In other words, although technology is central, user experience should always come first.
3. The smartphone shadow
Although smartphone proliferation has accelerated the mobile revolution, smartphones' all-in-one nature suppresses the development of other mobile devices.
If a smartphone already consolidates multiple functions, why buy a separate device that simply duplicates or extends one aspect of the phone? This question is especially pertinent for smartwatches, which fall into the category of accessories. Moreover, most wearables on the market require a smartphone as a companion to import and export data.
A robust local operating platform could break dependence on phones, but not every manufacturer wants to build a new platform from scratch. Without independent platforms and ecosystems, wearables will struggle to develop their own market.
4. Software and services: getting users to change behavior
For fitness and health-focused wearables, if the product cannot persuade users to be more active, it loses much of its purpose: users need to exercise, have that activity tracked, receive data, and get actionable recommendations. When someone buys a wearable, they expect meaningful data and feedback that justify the device.
Current wearable offerings, in hardware and software, appear to make little difference for people who already exercise. For those who do not have an exercise habit but want to change, many health wearables seem optional rather than essential.
5. User experience should be human-centered
If the previous four challenges are difficult, then a strong user experience can be the differentiator.
Typically, if a health wearable has limited functionality, initial novelty fades quickly. For patients who use wearables for health monitoring, if the device cannot be followed by accurate, reliable professional advice and services, they are likely to return to traditional medical providers for help. That would be a setback for the wearable market as a whole.
Wearables have clear advantages, but significant challenges remain. It will take time and sustained effort before wearable devices achieve broad, lasting adoption.
