Will Wearables Succeed Beyond Activity Trackers?

To make it big in the fashion world, wearables will need style and simple functionality from invisible technology, says analyst Nicole Guarascio.

Wearables available today may be dominated by performance-enhancing and biorhythm-monitoring devices, but their destiny is pointing to many other uses.

To break into areas beyond this niche activity market it, will take fashion-industry style with hidden technology that is simple to use and connects with other accessories and personal technologies, according to Nicole Guarascio, senior analyst at StyleSight.

During her visit to Intel headquarters in Silicon Valley earlier this year, the fashion- and retail-industry trend spotter pointed to the challenges holding back faster innovation in wearables.

“Wearables are really big in the active market, but what comes after that?” she asked.

Even though the wearable device market is still in its infancy, research firm Canalyspredicts smart bands, including health trackers like FitBit, will grow from 8 million annual shipments this year to more than 45 million by 2017. If wearables become successful in other areas, such as the world of fashion, the market potential could be higher.

While Guarascio is starting see wearables that monitor things like sun exposure, posture and emotions, she believes wearables will be more interesting as accessories that use Bluetooth to connect with other items and communicate with each other in a personalized, useful way.

“I see it going two ways,” she said. “It’s going to become more invisible to where the technology disappears, which would work well for the medical field if I don’t want anyone to know that I’m monitoring something. Then there is this other direction, where it is more of a status symbol and it becomes fun. That’s where it becomes really fashionable.”

Integrating the great technology into beautiful design that exists today is the key to success. It’s making the technology and fashion industries strange bedfellows as they collaborate like never before, but it’s also stirring a talent grab across industries.

“We are at a critical juncture for fashion, technology and retail,” said Karen Harvey, head of Karen Harvey Consulting Group, in a recent interview with The Wall Street Journal.

“The war just got bigger for talent. Neither sector is necessarily at a place where you are grooming the right talent to build a sustainable brand for the future.”

A few years ago, Intel hired Steve Holmes, one of the designers who worked on the popular Nike FuelBand. Late last year, Hans Moritz, who led development of the Oakley Airwave heads-up goggle display, Switchlock series eyewear and watch program, also joined Intel’s New Devices Group.

“The big change now is the amount of technology that you can pack into some of these small devices is becoming significant enough that it really opens up new possibilities,” said Homes in an interview with Intel Free Press.

Those possibilities range from a piece of jewelry that is your security key to a Band-Aid that transmits your heart rate to your phone to a head-mounted computer that creates a virtual reality experiences. Unlike a smartphone that’s tucked away in a pocket or bag, however, wearable devices are often visible and project a message, said Holmes.

“As far as the future of wearbles, I think there are a lot of consumers who think that it’s really going to be in your face, that we’re going to look like cyborgs and everything is going to be monitored,” said Guarascio.

“Success will be when the tech is invisible and it really makes sense for the consumer.”

Guarascio sees a trend, especially with consumer electronics, where more menus, more functionality and more everything is being added to new products.

“We need simplification to start happening, especially if we’re talking about fashion consumers,” she said.

Designing one watch or bracelet with a ton of capabilities may not be the best approach.

“Rather, maybe it’s about designing a collection of bracelets, each that have one or two capabilities,” sje said. “This would allow us to customize and give something to someone based on their personality so they could use for what they actually do want to monitor.”

Glasses and a bracelet are two accessories out of so many that people wear every day. There are so many more interesting accessories that could be designed with technology. Guarascio likes the idea of designing tech infused collections.

“Rather than a wristband and a pair of glasses, maybe it’s a little purse and it communicates with your ear rings or belt,” she said. “That’s where it gets exciting because of the customization opportunities people have with these wearables.”

As the technology gets smaller and smaller it can bring new capabilities to pieces of jewelry, which is what designer Deepa Sood is creating with her Cuff line.

Holmes points to how at least one company has put a camera in a clip that you put on your shirt. “Rings are another one and even car keys, which have electronics that talk to your car and control it remotely. The amount of sophistication that it has can certainly go up,” he said.

What’s challenging the burgeoning wearables sector is not the technology, said Guarascio, but the esthetic component.

“When I go to trade shows like CES, I’m very underwhelmed at how the product looks even if it has all kinds of great functions and capabilities. If it doesn’t look slick and like something that I’d wear, then it’s not going to be a big success.

A wearable is only a wearable if people wear it, and that’s the key.”