Wearable tech Google Glass and Smartwatches deemed too pricey for target demographic
Wearable technology such as Google Glass and Sony Smartwatches are too expensive for the target market they should most appeal too, despite awareness of the items being high, according to GfK research.
The research, which polled the views of 1,600 UK and US adults this September, revealed around half of respondents are aware of products including Google Glass, Sony Smartwatches, Samsung Galaxy Gear, and Nike Fuelband, particularly among the male, under-45 years-old demographic.
However, only 6 per cent of the population owns any kind of wearable tech, with a slightly higher (7 per cent) figure for 16 to 24 year olds, according to GfK.
The research showed the appeal of wearable tech is high among the youngest respondents, with six in ten of the 16 – 24 year-old bracket liking Smartwatches, preferring the idea of wearing a connected device rather than carrying a smartphone that could be lost or damaged.
Respondents also cited the ability to make phone calls and receive messages via a Smartwatch more appealing than their current mobile phones.
Meanwhile Google Glass was slightly less appealing to this age group, with four in ten of them finding the concept appealing, according to the research.
However, price is a “major barrier” for mass take-up of the technology, particularly for 16 to 24 year olds, according to the research.
Once respondents were told the current cost of a Smartwatch is between £150 and £200 purchase intention plummeted from 24 per cent to 12 per cent. The same happened when informed of the market price of Google Glass, with purchase intent dropping from 16 per cent to 7 per cent on seeing the market price of £400-£600.
Purchase intent fell sharply for 16 to 24 year olds, dropping from 32 per cent to 10 per cent for Smartwatches.
Johanna Martin of GfK said: “To get the market moving manufacturers need to communicate tangible lifestyle benefits and offer a sleek design – but even then, any wearable tech device will only succeed if it’s priced right.
"Our research suggests that the current price points are a barrier, restricting wearable tech to an older, more affluent audience. So while consumer awareness and interest is definitely there, we are still waiting for the launch of that ‘must-have’ wearable tech device for Christmas 2013.”
GfK concluded that manufacturers must "work harder" to communicate the capabilities and appeal of wearable tech devices currently available along with forthcoming launches.
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