More than half (53%) of Millennials are excited about the future of wearable technology, according to PwC’s Consumer Intelligence Series – The Wearable Future report – an extensive U.S. research project that surveyed 1,000 consumers, wearable technology influencers, and business executives, as well as monitored social media chatter to explore the technology’s impact on society and business.
The report shows that 20% of American adults already own a wearable device and the adoption rate – on par with tablets in 2012 – is quickly expected to rise.
Millennials remain the target segment for wearable technology, although not every segment has embraced this burgeoning technology.
Consider that 33% of surveyed consumers who purchased a wearable technology device more than a
year ago now say they no longer use the device at all or use it infrequently, the report says.
Price, privacy, security, and the lack of “actionable” and inconsistent information from such devices are among consumers’ main apprehensions with the category. What’s more, 82% of respondents were worried that wearable technology would invade their privacy and 86% expressed concern that wearables would make them more vulnerable to security breaches.
Here are three potential benefits for wearable technology:
1. Improved safety: 90% of consumers expressed that the ability for parents to keep children safe via wearable technology is important.
2. Healthier living: More than 80% of consumers listed eating healthier, exercising smarter and accessing more convenient medical care as important benefits of wearable technology.
3. Simplicity & ease of use: 83% of respondents cited simplification and improved ease of technology as a key benefit of wearable technology.
“Businesses must evolve their existing mobile-first strategy to now include the wearable revolution and deliver perceived value to the consumer in an experiential manner,” Deborah Bothun, PwC’s U.S. advisory entertainment, media & communications leader, said in a release. “Relevance is the baseline, but then there is a consumer list of requirements to enable interaction with the brand in a mobile and wearable environment.”
Consumers have not yet embraced wearable health technology in large numbers, the report says, but they’re interested. More than 80% of consumers said an important benefit of wearable technology is its potential to make health care more convenient. Companies hoping to exploit this nascent interest will have to create affordable products offering greater value for both users and their healthcare partners.
Wearable technology will soon become an integral part of many retail experiences, the report says.
“It is poised to create an enhanced customer experience – better, more informed service; faster checkout; greater access to deals; and more real-time input into purchasing decisions,” the report notes. “Rather than shopping across multiple channels – at home, on-the-go or in-store – the new consumer experience will be omni-channel, fueled by wearable devices and comprehensive analytics. Though, the biggest concern for consumers is potential breaches of privacy and security surrounding personal data, shopping habits, increased use of payment tokens (rather than card/bank data) and recent investments to avoid brand tarnishing will attempt to address these concerns.”
Consumers, especially Millennials, desire wearable technology in the retail space to reward them for being faithful customers, the report adds.
“One in two Millennials said they would be strongly motivated to wearables if it has apps/features that reward those who frequently use it,” the report notes.