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Universita' Degli Studi Di Padova UNIVERSITA’ DEGLI STUDI DI PADOVA DIPARTIMENTO DI SCIENZE ECONOMICHE ED AZIENDALI “M.FANNO” CORSO DI LAUREA MAGISTRALE IN BUSINESS ADMINISTRATION TESI DI LAUREA “WEARABLE TECHNOLOGY INDUSTRY: CHALLENGES AND OPPORTUNTIES IN THE EUROPEAN MARKET” RELATORE: CH.MO PROF. PIERGIORGIO DAL SANTO LAUREANDA: POZZOBON FEDERICA MATRICOLA N. 1105613 ANNO ACCADEMICO 2016 – 2017 Il candidato dichiara che il presente lavoro è originale e non è già stato sottoposto, in tutto o in parte, per il conseguimento di un titolo accademico in altre Università italiane o straniere. Il candidato dichiara altresì che tutti i materiali utilizzati durante la preparazione dell’elaborato sono stati indicati nel testo e nella sezione “Riferimenti bibliografici” e che le eventuali citazioni testuali sono individuabili attraverso l’esplicito richiamo alla pubblicazione originale. Firma dello studente _________________ Table of Contents Chapter 1: Introduction & Acknowledgements .......................................................................... 6 1.1 Acknowledgements ........................................................................................................... 6 1.2 Reason for research ........................................................................................................... 7 1.3 Structure of the research ................................................................................................... 7 Chapter 2: The current situation of the fashion industry, target customers and the digital revolution .................................................................................................................................... 9 2.1 Fashion market: portrait of the current situation .............................................................. 9 2.1.1 Challenges and obstacles .......................................................................................... 10 2.1.2 Europe’s insight........................................................................................................ 14 2.1.3 Trends and evolution ................................................................................................ 19 2.1.4 Projections of the industry........................................................................................ 25 2.2 Demand and types of customers ................................................................................. 28 2.2.1 Characteristics .......................................................................................................... 29 2.2.2 Perceptions and changes........................................................................................... 32 2.3 The era of digitalization .................................................................................................. 35 2.3.1 Mobile dependency of users ..................................................................................... 38 2.3.2 Social media influence ............................................................................................. 40 2.3.3 Internet of things ...................................................................................................... 44 Chapter 3: Wearable technology .............................................................................................. 48 3.1 What is wearable technology .......................................................................................... 48 3.2 Trends and data ............................................................................................................... 50 3.3 History ............................................................................................................................ 54 3.4 Fields of usage of WT ..................................................................................................... 57 3.4.1 For health.................................................................................................................. 59 3.4.2 For fitness ................................................................................................................. 61 3.4.3 For beauty ................................................................................................................. 63 3.4.4 For educational purposes .......................................................................................... 65 3.4.5 For the smart home ................................................................................................... 65 3.4.6 As tool for emotional communication ...................................................................... 67 Chapter 4: Technology & Fashion ........................................................................................... 69 4.1 Key factors considered by fashion and high-tech brands ............................................... 70 4 4.2 Opportunities and downsides for fashion and technology companies ............................ 73 4.3 When design meets technological innovation ................................................................ 74 4.4 Acceptance from customers ............................................................................................ 76 4.5 Customers’ perceptions and challenges and opportunity of the industry ....................... 78 Chapter 5: Big players in the WT market ................................................................................. 84 5.1 Smartwatches and activity trackers ................................................................................. 85 5.1.1 Apple Watch, Fossil Smartwatch, Samsung Gear, LV Tambour Horizon .............. 86 5.1.2 Examples of activity trackers: Fitbit Alta and Swarovski Shine ............................ 95 5.2 Augmented Reality devices .......................................................................................... 100 5.2.1 Google Glass .......................................................................................................... 101 5.2.2 Spectacles by Snapchat .......................................................................................... 103 5.3 Smart textile .................................................................................................................. 104 5.3.1 Levi’s + Google ...................................................................................................... 105 5.3.2 Polo Tech by Ralph Lauren .................................................................................... 107 5.4 Smart jewelry ................................................................................................................ 108 5.4.1 Ringly ......................................................................................................................... 109 5.4.2 Bellaleaf by Bellabeat ............................................................................................ 111 5.5 Smart shoes ................................................................................................................... 113 Chapter 6: Conclusion ............................................................................................................ 115 6.1 Bibliography and webgraphy ........................................................................................ 118 6.1.1 Books, Research papers ......................................................................................... 118 6.1.2 Webgraphy ............................................................................................................. 121 6.2 Appendix ....................................................................................................................... 126 5 Chapter 1: Introduction & Acknowledgements 1.1 Acknowledgements Firstly, I would like to thank Professor Piergiorgio Dal Santo who has guided me in the elaboration of this work. He always has given to me precious advices and guidelines to reach this important goal. His help has been essential to have the opportunity to contact Fossil Group. I would like to thank Fossil Group represented by Francesca Fabris (PR Manager at Fossil Italy) and Antonio Nigro (Vice President EMEA at Fossil Group) who gave me the possibility to submit an interview in order to analyze the market. In addition, I would like to thank my family, my boyfriend and friends who have always supported me during this path. 6 1.2 Reason for research Wearable technology is a new field of innovation which is under the spotlight in this decade. Technological innovation is advancing at an unexpected pace and this encourages divisions and hi-tech companies to develop new devices which can transform our life. Smartwatches, activity trackers, augmented reality devices, smart textile are entering in the mass market and these new technologies attract different targets of customers but especially Millennials generation. What is lacking in these hi-tech devices is the attention for design and style which is hidden by their functionalities. The aim of this research is to sift through this industry and understand its connection with fashion. In fact, many brands have understood the importance of the aesthetic part in attracting a wider range of customers. Through win-win partnerships, these devices are transformed in fashion devices in which sophistication and class are recognizable. The choice to analyze and to describe as much as possible the European market is due to the fact that most of fashion houses were founded in Europe where style and prestige in fashion are unique. In addition, in Europe, wearable technology still registers
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