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Business / Technology

China's fitness market on the fast track

By Wang Zhuoqiong (China Daily) Updated: 2015-02-16 08:10

Wearable band shipments will grow 129 percent year-on-year to reach 43.2 million units in 2015, of which 28.2 million will be smart bands and 15.0 million will be basic bands, according to the latest forecasts by Canalys.

China's fitness market on the fast track

A customer inspects a sports bike in a Wal-Mart outlet in Fuzhou, Fujian province. An increase in the nation's waistlines and blood glucose levels means many people have started to think more about getting exercise, such as riding a bike or jogging. [Photo provided to China Daily]

Canalys tracks wearable device shipments and segments the market into smart bands, which are capable of running third-party apps, and basic bands, which are not.

Apple will be the biggest driver behind wearable band shipments in 2015, according to its research.

"By creating a new user interface tailored to its tiny display, Apple has produced a smart watch that mass-market consumers will actually want to wear," says Canalys analyst Daniel Matte.

"The sleek software, variety of designs and reasonable entry price make for a compelling new product. Apple must still prove, however, that the final product will deliver adequate battery life for consumers."

Many market observers have questioned why consumers would want a smart band, justifiably demanding compelling use cases. Hoping to address these concerns with its new wearable, Apple has demonstrated a variety of use cases, including health and fitness and personal communication, as well as other areas, such as mapping for walking navigation, workout and activity tracking, and mobile payments.

Meanwhile, low-end Chinese vendors are playing a greater role in the wearable band market, according to Canalys.

One such example is Xiaomi Corp, which has dramatically lowered the price of basic bands with its Mi Band.

Long-term, wearable bands from all vendors must provide value to consumers beyond the existing capabilities of smartphones in order to justify the purchase of an additional device.

"Basic band vendors, such as Fitbit and Jawbone, will enjoy the advantages of their lower pricing for the immediate future," according to Canalys Vice-President and Principal Analyst Chris Jones.

"Eventually, however, stronger smart band competitors to the Apple Watch will likely emerge and push smart band pricing down. This market will undergo disruption similar to that suffered by feature phones when smartphone prices fell."

Wearable band shipment data and five-year forecasts are taken from Canalys' Wearable Technology Analysis service, which provides quarterly market tracking, including country-level estimates.

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