We’ve all seen the rise of wearable tech crowdfunding projects like the Embrace+, Fin: Wearable Smart Ring, and the famous Pebble Smartwatch. The success of some of these smaller projects have attracted the attention of larger brands looking to develop their own wearable tech products, like the Nike+ FuelBand and the Samsung Galaxy Gear Smartwatch.
No doubt, the wearable tech industry is hot right now. New products are launching, stories are being published on major news websites, and new blogs have formed around the topic. So, should you enter this industry?
Size of the Wearable Tech Industry (Forecast)
According to 
WearableTechWorld also made a prediction that the Wearable Technology Market Will Ship 10 Million Units in 2014 and 100+ Million by 2020. However, this prediction includes other type of wearable technology like, smart glasses.
Why should you enter this growing industry?
It can be easy to be intimidated by the idea of competing with big name brands that are launching new hardware products. However, it’s important to remember that some of the top software/hardware companies in the world started small, like when Steve Wozniak and Steve Jobs created the first Apple computer in their garage. Jobs sold his Volkswagen and Wozniak sold his Hewlett-Packard calculator to jumpstart the company.
Now that crowdfunding websites like Kickstarter and Indiegogo exist, you have the ability to not only raise funds for a new product, but to also gather a base of initial supporters, attract some PR, and get your prototype in the hands of real customers.
Don’t underestimate the power of building a small tribe. I don’t know about you, but the cool factor of the Pebble Smartwatch and the fact that it feels like a new movement by a small group of people makes me far more likely to seek out updates for their product than Samsung Galaxy Gear Smartwatch. In fact, Pebble recently launched Pebble Steel, a sick looking version that would be great for business occasions.
So, should you enter this industry? Check out the infographic below, put together by CrowdFundProductions, which highlights the market opportunity.
4 Tips to Keep In Mind
1. Window of Opportunity – I don’t like to be the one to say it, but consumers and the media follow trends. A topic doesn’t stay hot forever, and at some point it will be harder to convince a journalist to write about your new wearable tech product because another topic is trending. In addition, as consumers begin to adopt wearable tech products, they will also form trusted relationships with brands and be less likely to seek out new products in similar categories. Swimming downstream is much easier than upstream.
2. Anticipate Pushback – According to the infographic above, the majority of hardware products in this category do not ship in time. To avoid angry backers (and future customers), plan for this potential delay! Stay in constant communication with your backers and if for some reason you are unable to meet your initial deadline, admit it and offer some kind of benefit, whether that is a simple apology note or a a discount on future purchases. Often times, customers just want to feel they are heard and understood.
3. Research Patents, Trademarks, and Copyright – I can’t stress this enough. Especially when you are making a hardware product, it’s vital you research existing patents, trademarks, and copyrights related to your campaign. Is the product’s domain name already registered? How will you defend against a “cease and desist” letter, should you get one from a competitor.
4. Build Relationships – When you’re in a growing industry, it’s vital that you build relationships with bloggers, distributors, manufacturers, and other entrepreneurs. With regards to other entrepreneurs or inventors, it’s so hard to find people passionate about the same consumer problems with similar values and ethics. When you do find people like this, it could lead to valuable partnerships either now or down the road. The one thing I would recommend on this front is to try to partner with people who are on the same level as you (stage of their product, technical ability) to minimize disputes.
My Question for You.
Are you launching or thinking of launching a wearable tech product? Are you going to crowdfund it? Let me know in the comments below!
