According to IDC's "China Wearable Device Market Quarterly Tracking Report, Third Quarter 2021", China's wearable device market shipped 35.28 million units in the third quarter of 2021, a year-on-year increase of 5.0%. The significant decline in market growth was mainly caused by three reasons: weak market demand, insufficient product positioning, and partial supply pressure.
Among them, the market of ear wear equipment shipments was 19.9 million units, a year-on-year increase of 40.0%. Driven by low-priced products, this market still maintains a rapid growth rate. As more mobile phone manufacturers focus on the layout, the true wireless market will grow particularly significantly.
Shipments in the watch market were 10.68 million units, a year-on-year decrease of 2.3%. Among them, 4.75 million adult watches were shipped, an increase of 4.7% year-on-year; the watch market urgently needs more manufacturers to fully participate, and higher requirements are placed on manufacturers' positioning capabilities in functional scenarios and prices. Shipment of children's watches was 5.93 million units, a year-on-year decrease of 7.2%; product homogeneity and functional upgrades were limited, and the pull on market demand was greatly reduced. The future growth of manufacturers will rely more on channel depth and radiation.
The bracelet market shipped 4.61 million units, a year-on-year decrease of 44.2%. Bracelet products generally usher in screen size upgrades and price increases. However, upgrades in functional scenarios are limited, which affects the demand for the bracelet market to a certain extent; at the same time, some watch products that are positioned in the low-end market have competition with rivals. Influence.
IDC believes that the market competition between watches and bracelets in the field of low-cost large screens will continue until 2022. Although the demand for bracelets has been affected to a certain extent, market upgrades will bring about improvements in the functions and scenarios of the bracelets, leaving differentiated needs to be met urgently. The user base of the bracelets will also lay a certain foundation for the transition to the watch market. Manufacturers are still There are many opportunities in the field of low-cost wrist wear.
1. The screen size and price increase of headband manufacturers’ products may leave the price range of 100 yuan for new manufacturers to enter.
With the upgrade of the product screen and the price increase of the headband manufacturers, the market in the price range of 100 yuan will gradually vacate. Due to the high sensitivity of bracelet users to prices, this market price segment is still competitive. New manufacturers may rely on their own mobile phone products or Internet content services to pull in, or they may be able to cut in from this market price segment.
2. In addition to the upgrade of the screen size of the bracelet products, new functions are urgently needed to improve the cost-effectiveness of the product
The price of current bracelet products has generally risen. In addition to the upgrade of the screen size, there are fewer functional iterations. This makes the cost-effective price of the bracelet products after the price increase is different from the past, and to a certain extent also inhibits the demand for new additions and replacements. Similar problems exist in the low-priced watch market, but due to the emerging rise of the market, the appearance of watch products, and the offensive of dimensionality reduction in marketing, the problem of insufficient cost performance is not as prominent as the bracelet market. Therefore, low-cost large-screen products want to further increase the market space, requiring continuous investment in the expansion of new functions and market education. The expansion of new functions can be the decentralization of more mature technology on watch products, or innovative applications on bracelet products, including the improvement of IoT scenarios, the monitoring of more health indicators, and the installation of other sensing technologies such as somatosensory control.
3. Improve the stickiness of bracelet users and make full use of the conversion of bracelet users to watch users
Based on the high degree of overlap between bracelet and watch manufacturers, the stickiness of bracelet users is improved, and the bracelet users are fully developed to become potential users of future watch products. For manufacturers that have worked in the wristband market for a long time, a large number of wristband users have provided a potential user pool for watch products. Improving the experience of wristband products will help accelerate the development of the watch product line. For manufacturers new to the wristband market, wristband products are an important product for exploring the market to reach low-demand and low-budget users at this stage. Strengthening the stickiness of wristband users from the initial stage will provide brand reputation in the wristband market. Lay a good foundation with the recommended value.
IDC China Senior Research Manager Pan Xuefei believes that with the improvement of people's living standards and the impact of the epidemic, sports health scenes have gradually received more attention, of which wrist-worn products are an important part of the sports health scene. With the enrichment of products and manufacturers' participation, the market will be further segmented in terms of functions, prices, and target users in the future, and the wrist wear market in the middle and low price segments will be oriented to a wider audience and contain huge market space.