ZDC: Research on China's smart bracelet market in the first half of 2015

1. Market Overview

As an important force in wearable devices, smart bracelets have achieved rapid development in the first half of 2015. ZDC monitoring data shows that the number of manufacturers competing in the Chinese smart bracelet market continued to grow from January to June, from 37 in January to 44 in June, with 7 new manufacturers joining. The number of smart bracelet products on sale also increased from 54 in January to 69, an increase of 15 models, and user attention has also risen accordingly.

(Figure) Trends in the number of brands and products in China's smart wristband market from January to June 2015

Judging from the market development trend, due to the relatively low entry threshold, the competition in the smart bracelet market is continuing to intensify. In addition to the traditional sleep monitoring and exercise monitoring functions, new entrants into the field are working on more health-related functions. However, whether users will buy into it remains to be seen.

Report highlights

• Brand attention pattern: Huawei is the leader, Samsung and Wanka rank second and third respectively. The rankings of the eight brands fluctuated, and Samsung replaced Wanka in Q2 to take the second place.

•Product attention pattern: Samsung Gear Fit R350 tops the list and is the most popular.

•Product features: System compatibility, dust and water resistance, and support for Bluetooth are the main functions of the smart bracelet.

•Product features: Products priced between 501-800 yuan are the mainstream of users’ attention, and the attention to products in the price range of 501-800 yuan fluctuates greatly.

•Product features: 90% of smart bracelets do not support WiFi, and the attention to non-WiFi products has increased sharply.

•Product features: The attention to smart bracelet products supporting Bluetooth 4.0 exceeds 50%, and the attention to Bluetooth 4.0 and Bluetooth 3.0 products increases and decreases.

•Analysis of mainstream brands: Huawei’s attention shows an M-shaped trend, Samsung first rises and then falls, and Jawbone has the largest number of products.

2. Brand Focus Pattern

Huawei takes the top spot, Samsung and Gaming rank second and third respectively

According to ZDC statistics, in the first half of 2015, Huawei received 27.4% of the attention in the Chinese smart bracelet market, and users paid concentrated attention to it. Samsung and Wanka ranked second and third with 16.7% and 9.6% of attention respectively. Jawbone and Garmin ranked fourth and fifth. The attention of other brands on the list was less than 5%. Overall, the top ten brands accounted for more than 85% of the attention, and the brand concentration in the smart bracelet market was high.

(Figure) Distribution of brand attention in China's smart bracelet market in the first half of 2015

The rankings of eight brands fluctuated. Samsung replaced Wanka in Q2 and took the second place.

Comparing the brand attention patterns of the smart bracelet market in Q1 and Q2, the brand pattern in Q2 has undergone a wide range of changes. The rankings of eight of the top ten most popular brands have fluctuated. Samsung replaced Wanka to take the second place with an attention ratio of 18.2%, and the attention rate increased by nearly 7 percentage points. Garmin, LifeSports, and Microsoft also rose in rankings to different degrees. Bong made the list for the first time in the second quarter.

Table 2015Q1-Q2 China Smart Bracelet Market Brand Attention Ratio Comparison

3. Product Focus Pattern

(I) Product model

Samsung Gear Fit R350 tops the list and is the most popular

In terms of product attention, in the first half of 2015, Samsung Gear Fit R350 topped the list with 17.2% of attention, and Huawei Talk Band B1 ranked second with 14.8%. Overall, the two products have a significant leading advantage, and the attention of other products on the list is less than 9%.

Overall, the top ten products on the list are from eight brands, including Samsung, Huawei, Wanka, Jawbone, Garmin, Microsoft, Sony, and Fitbit. Huawei has three products on the list, with a clear advantage in product quantity.

(Figure) China's smart bracelet market product attention rankings in the first half of 2015

System compatibility, dust and water resistance, and Bluetooth support are the main functions of smart bracelets

From the features of the ten products on the list, products compatible with Android and Apple iOS occupy six seats, which are the mainstream, while products compatible with Android, Apple iOS and WP occupy two seats. From the perspective of three-proof functions, nine products have waterproof functions, and all nine products support Bluetooth functions. From the perspective of price, products priced at more than 1,000 yuan occupy five seats. The third-ranked Wanka K1 has the lowest price, only 99 yuan.

Table 15 Most Popular Products and Main Parameters in China’s Smart Bracelet Market in the First Half of 2015

(II) Product structure in different price segments

• Products priced between RMB 501 and RMB 800 are the mainstream of users’ attention

From the perspective of price structure, in the first half of 2015, users paid more attention to products in the price range of 501-800 yuan, accounting for more than 30%. The second most popular category was products above 1,000 yuan, which received 21.4% of the attention. The attention of products in other price ranges was less than 20%, with the 801-1,000 yuan category slightly higher at 18.2%.

(Figure) Distribution of product attention in different price segments in China's smart wristband market in the first half of 2015

• The attention to products in the 501-800 yuan price range fluctuates greatly

From the trend from January to June, the attention of products in the price range of 501-800 yuan, where users pay the most attention, showed obvious fluctuations, reaching a peak of 35.5% in March, and then fell for two consecutive months to 26.1% in May. It rebounded slightly in June and returned to above 30%. The attention of products above 1,000 yuan also fluctuated significantly, with a sharp rise in April to 28.1%, an increase of nearly 12 percentage points from January. The attention of products between 801-1,000 yuan showed a straight downward trend.

(Figure) Trends in product attention in different price segments of China's smart wristband market from January to June 2015

(III) WiFi functional structure

• 90% of smart bracelets do not support wifi

From the perspective of the Wifi function of smart bracelets, the current mainstream smart bracelet products do not support the Wifi function, and users of such products pay more than 90% attention to it. Overall, the smart bracelet products currently on the market do not have screens, so most users do not have the need for Wifi.

(Figure) Distribution of Wi-Fi-supported Products in China’s Smart Bracelet Market in the First Half of 2015

• Non-wifi products are seeing a sharp rise in attention

From January to June, the attention to smart bracelets that do not support wifi function has been rising, reaching 94.0% in June, an increase of nearly 6 percentage points from January. However, the attention to products that support wifi function has been declining.

(Figure) Trends of Wi-Fi-enabled Products in China’s Smart Bracelet Market from January to June 2015

(IV) Bluetooth product structure

• More than 50% of people are interested in smart bracelets that support Bluetooth 4.0

From the perspective of Bluetooth function, almost all smart bracelets on the market support Bluetooth, but there are certain differences in the specific level of support. According to ZDC statistics, smart bracelet products that support Bluetooth 4.0 currently receive 56.3% of attention, which is nearly 7 percentage points higher than the attention of Bluetooth 3.0 products.

(Figure) Distribution of Bluetooth-supported products in China’s smart bracelet market in the first half of 2015

• Bluetooth 4.0 and Bluetooth 3.0 products have increased and decreased in popularity

From the trend from January to June, the popularity of smart bracelets supporting Bluetooth 4.0 first increased, then decreased, and then slightly increased again in May. The popularity of Bluetooth 3.0 products increased and decreased.

(Figure) Trends of Bluetooth-enabled products in China’s smart wristband market from January to June 2015

4. Analysis of mainstream brands:

1. Trends in the proportion of attention paid to mainstream brands

• Huawei's attention shows an M-shaped trend, while Samsung's first rises and then falls

ZDC monitoring data shows that Huawei has always been in the leading position in the Chinese smart bracelet market from January to June 2015, but its attention ratio trend is not stable, showing an M-shaped trend, with the highest in April, exceeding 30%. It dropped to the lowest point in March, only 20.6%, and Samsung was only 0.8% behind. Samsung's attention ratio in January-June showed a trend of first rising and then falling, and rose again in May and June, and reached the highest point in June, exceeding 20%. The attention ratios of Wanka, Jawbone, and Gudong showed a more obvious downward trend.

(Figure) Trend of attention ratio of mainstream brands in China's smart wristband market from January to June 2015

(II) Analysis of mainstream brand product structure

• Jawbone has the largest number of products

ZDC monitoring data shows that among the five brands that attracted the most attention from users in the Chinese smart bracelet market in the first half of 2015, Jawbone had the largest number of bracelet products on sale, with three models, including one product priced between 201-500 yuan, 501-800 yuan, and more than 1,000 yuan.

Huawei, Wanka, and Gudong each have two products on sale. Among them, Wanka's two products are both below 200 yuan, while Gudong's products are concentrated in the 201-500 yuan range.

(Figure) Comparison of product structure of mainstream brands in China's smart wristband market in the first half of 2015

ZDC Summary:

Overall, the functions of smart bracelets in China are not very different, but the prices vary greatly. At the same time, because the functions of smart bracelets are relatively simple, they are not like mobile phones, and they are not daily necessities. Therefore, in the future, smart bracelets still have a long way to go to expand the market scale and win the favor of users.