Developing a viable wearable technology business to penetrate into the mass market

Developing a ViableWearable Technology Business to Penetrateinto the Mass Market

Seokmin MoonCeo of Lineable Inc.

CONTENTS 1. Current WT Industry 2. WT Business Development3. Case Study : Lineable

Copyright 2015 © by Lineable Inc.

1Current WT Industry

The Paradigm Shiftsand Market Opportunity

CURRENT WT INDUSTRY

Copyright 2015 © by Lineable Inc. 4

ICT Industry Cycle

PC INTERNET SMARTPHONE WEARABLE

1987IBM PC Compatible

1994NetscapeYahoo

2007APPLE iPhone

?

CURRENT WT INDUSTRY

20122011 2013 2014 2015

FitBit UltraOct. 2011

Nike FuelBandFeb. 2012

FitBit OneSept. 2012

PebbleJan.

2013

FitBit FlexMay. 2011

SamsungGalaxy Gear

Sept. 2013

Nike FuelBand SENov. 2013

Samsung Gear Live

June. 2014

MotorolaMoto 360

Sept. 2014

Jawbone UP3Early 2015

Apple WatchMarch. 2015

(Expected)

Jawbone UPNov. 2011

Sony SmartWatchJune. 2012

Google Glass

Feb. 2013

Sony SmartWatch 2

Sept. 2013

SamsungGear 2 And Fit

April. 2014

JawboneUP24

Nov. 2013

LG G WatchJune. 2014

SamsungGear S

Nov. 2014

LG G Watch ROct. 2014

FitBit ForceJan. 2014

The Wearable Computing Market Report: Growth Trends, Consumer Attitudes, And Why Smartwatches Will Dominate (BI Intelligence, 2014)


Wearable DeviceRelease Date Timeline

CURRENT WT INDUSTRY


3%Yes, currently own and use one

2%Yes, owned one no longer use it.

34%Yes, but never seen one.

34% Yes, Seen them never owned one

26%No

No

Yes, seen them never owned one

Yes, currently own and use one.

Yes, owned one no longer use it.

Yes, but never seen one.

Wearables Survey (CCS Insight, 2013)

Have you Heard of Smart Watches?

High Awareness but

Low Ownership of Wearables

CURRENT WT INDUSTRY


Declining Rate of Sustained

Activity Tracker Use Over Ownership

3 6 9 12 15 18 21 24

100%

75%

50%

25%

0% Time(months)

Rate of Sustained Utilization

Inside Wearables (Endeavour Partners,2014)


2WT Business Development

How to Develop a WT Business Model to

Penetrate into Mass Market ?

Focus on the Needs and the Price


2-1ConnectingUser Needs andWearable Technology

NEEDS


I Don’t See The Point

I Don’t Like Wearing A Watch

Price: They Are Too Expensive

I Just Don’t Want to Spend A Lot Of MoneyOn A Watch

All smartwatches I Have Seen Are Ugly

Other

0% 10% 20% 30% 40% 50% 60%

51%

13%

8%

6%

7%

15%

The Wearable Computing Market Report: Growth Trends, Consumer Attitudes,

And Why Smartwatches Will Dominate (BI Intelligence, 2014)

Why Aren’t you

Interested in A Smartwatch


NEEDS

USERS NEEDS

PROBLEMSOLUTIONS

WEARABLES

Connecting with

Wearables Users Needs

“What are the needs?”↓

“ What problem do we need to solve? “


2-2PRICING STRATEGY: Service Based Business Model


PRICE

Pricing Pyramid

Asking price compared

To Market Value

Percentage of potential

Buyers who will look at property

+15%

+10%

Market Value

-10%

-15%

10%

30%

60%

75%

90%


• Recent smart phone markets depicts how low the profit margins

are, except for a few manufacturers such as Apple

• Wearable devices would follow the trails of the smartphone industry

Profit margins less than 2% in 2013

PRICE

Lessons from Smartphone Industry

ServiceBased Business


ProductBased Business

Service Based Business Model

• If profits cannot be made from selling hardware (product based business),

should go for a service-based business

PRICE


3Case StudyLineable : $5 WearableTracking Beacon for Kids

LineableLineable is a service to protect our children

It is consist of a wristband and an application. Lineable Application has Alert & Tracking function.


Lineable Service

Only$5


ACHIEVEMENT

“THE KING OF AFFORDABLE WEARABLE DEVICE”

AFP

"So, every parent on this earth, using Lineable smart wristband, is protecting your children. It’s like getting a membership of a fraternity of parents who have taken a oath of never losing their children again. If you are not a parent, still you can add yourself this noble cause. Just, download the app and show any lost child his or her home.“

Ampercent Tech Blog


ACHIEVEMENT

“Let’s protect our kids together.”


Taemen World Mission

Taemen World Mission has been voluntarily running campaigns for preventing missing children with

Lineable

VOLUNTARY CAMPAIGNWITH LINEABLE

ACHIEVEMENT

Different


어떤 문제를 해결해야되는가? 인류보편적 가치 – 아이들의 보호

-How can we find what peoplereally want?-How can we find the needs that applies to as many people as possible?

True needs of the public



Exploring

Selective technologyat the lowest cost possible.


Protecting Children

Alert Tracking


FixedBeacon

MobileBeacon

REVERSE

Beacon


TrackingAlert

CROWDSOURCING GPS

People can share their smartphone resourcesto make a safe zone for children.



Price

Focused onthe core functions

Final cost of $5


Let’s Protect Our Kids Together