Wearable Tech Market Predicted to be worth £104.7 million to UK Retailers this Christmas

Nov 05, 2014

UK wearables revenues set to be up 182% on Christmas 2013 making this festive season the new high point in the growing wearables category

  • • 1028800 million wearable devices predicted to be sold in the UK this Christmas across core wearable technology areas

  • • People in the UK are forecast to spend £104.7 million on wearable technology this Christmas, more than Germany, Spain and The Netherlands who were also polled

  • • The wearables market as a whole is forecast be worth £313.6 million in 2014 for UK retailers, the second highest in Europe after Germany

According to research released today by Samsung Electronics, 2014 is set to be the year that the wearables sector begins making a significant economic impact with its predicted value across the UK, Germany, Spain and the Netherlands expected to hit £924.2 million by the end of the year. The value of the market in the UK is predicted to total £313.6 million by the end of 2014 with Christmas set to be the time that retailers can expect the wearables sector to have the most impact on sales.

The report, commissioned by Samsung Electronics and prepared by the Centre for Retail Research (CRR), looks at the wearables category across the UK, Germany, Spain and The Netherlands.

A Wearable Christmas
Total Christmas sales of wearable technologies in the UK are expected to rise by 182% (£67.64 million) this year to £104.7 million totalling 1028800 million units. In terms of spending behaviour, unit sales are broken down as follows with fitness and activity trackers expected to be the most popular this Christmas across Europe.

UNIT SALES OF WEARABLES (MILLIONS) CHRISTMAS 2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare TOTAL
UK 0.0135 0.1566 0.067 0.4749 0.3168 1.0288
Germany 0.0103 0.1543 0.0739 0.3344 0.3927 0.9656
Spain 0.0043 0.0571 0.036 0.1968 0.1643 0.4585
The Netherlands 0.0016 0.0285 0.0112 0.0522 0.0693 0.1628
Total 0.0297 0.3965 0.1881 1.0583 0.9431 2.6157
UNIT SALES OF WEARABLES (MILLIONS) CHRISTMAS 2014
UK
Smart Glasses 0.0135
Smart Watches 0.1566
Multimedia & Smart Cameras 0.067
Fitness & Activity Trackers 0.4749
Healthcare 0.3168
TOTAL 1.0288
Germany
Smart Glasses 0.0103
Smart Watches 0.1543
Multimedia & Smart Cameras 0.0739
Fitness & Activity Trackers 0.3344
Healthcare 0.3927
TOTAL 0.9656
Spain
Smart Glasses 0.0043
Smart Watches 0.0571
Multimedia & Smart Cameras 0.036
Fitness & Activity Trackers 0.1968
Healthcare 0.1643
TOTAL 0.4585
The Netherlands
Smart Glasses 0.0016
Smart Watches 0.0285
Multimedia & Smart Cameras 0.0112
Fitness & Activity Trackers 0.0522
Healthcare 0.0693
TOTAL 0.1628
Total
Smart Glasses 0.0297
Smart Watches 0.3965
Multimedia & Smart Cameras 0.1881
Fitness & Activity Trackers 1.0583
Healthcare 0.9431
TOTAL 2.6157

Source: CRR

Equally in the UK, fitness and activity trackers are predicted to be the most popular wearable device accounting for almost £29 million of the total £104.7 million predicted spend on wearables this Christmas. This is followed by smart watches and healthcare wearable devices which will account for £25.04 million and £22.01 million respectively.

The evolution of the wearables sector - the 2014 success story?
According to the research, 2014 is set to be the year of the wearables, with the sector breaking into the mainstream consciousness. Based on retail figures from 2013 and 2014, the market is predicted to grow by 181% in terms of revenue in the UK by the end of this year, an increase of £202.05 million for the UK retail sector in 2014 alone. Fitness and activity trackers are expected to drive the most revenue for the retail sector at £80 million by the end of 2014, up from £39.1 million in 2013.

However, the biggest growth area in the UK in terms of unit sales is predicted to be in the smart watch category with an increase of 667% in 2014. The UK is also the country with the highest growth in unit sales of wearables across Europe, at 120.8%, followed closely by Germany (118.2%) and Spain (117.2%).

Andy Griffiths, President of Samsung UK & Ireland, comments: “The wearables market has exploded over the past 12 to 18 months with some incredibly exciting and innovative products entering the market. As the benefits wearable technology can offer become better understood, it is natural that the sales within this sector will grow and we are delighted to see predictions of 121% growth and sales reaching €395 million in the UK alone by the end of this year. At Samsung, we are passionate about bringing to market products that enhance peoples' lives and hope that as we continue to innovate in the exciting wearables space that our products will continue to excite and engage people.”

William Kim, AllSaints CEO, comments: “Wearables have a key part to play in the future of fashion retail and this research today from Samsung underlines their potential to totally reinvent the sector.

The last decade has seen an evolution in verbal and written communication - today I have five ways I can instantly speak with anyone in the business whether in our atelier, our distribution centres or our global stores. The next decade will see an evolution of non-verbal communication - wearables and the internet of things will communicate information at a rate never before seen allowing businesses to be more efficient and enabling greater emphasis on the customer experience. For AllSaints this is the truly exciting part.”

For further information visit: www.samsung.com/uk/

Notes to Editors:
1. All figures taken from the report, ‘The Retail Prospects for Wearable Technology in 2014 in the UK, Germany, Spain and The Netherlands’ which was commissioned by Samsung Electronics and conducted by the Centre for Retail Research, Nottingham in September 2014. The report looks at the importance of and the role the wearable market is playing on the retail sector Christmas period and provides sales forecasts by drawing data from national statistic authorities, independent research organisations and a survey of a cross section of 50 key retailers per market. The report deals with four countries; the UK, Germany, Spain, and The Netherlands. ‘Christmas’ is defined as the six-week period from mid-November to the end of the year.

2. Christmas figures: Source: CRR

SALES REVENUE AT RETAIL FROM WEARABLES (£ / € MILLIONS) CHRISTMAS 2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare TOTAL
UK £11.63 / €14.67 £25.04 / €31.58 £17.09 / €21.55 £28.97 / €36.53 £22.01 / €27.75 £104.74 / €132.08
Germany £8.86 / €11.17 £24.68 / €31.12 £18.84 / €23.76 £20.39 / €25.71 £27.29 / €34.41 £100.06 / €126.17
Spain £3.70 / €4.67 £9.13 / €11.51 £9.18 / €11.58 £12.02 / €15.16 £11.43 / €14.41 £45.46 / €57.33
The Netherlands £1.38 / €1.74 £4.56 / €5.75 £2.86 / €3.61 £3.18 / €4.01 £4.82 / €6.08 £16.80 / €21.19
Total £25.57 / €32.25 £63.41 / €79.96 £47.97 / €60.50 £64.56 / €81.41 £65.55 / €82.65 £267.06 / €336.77
SALES REVENUE AT RETAIL FROM WEARABLES (£ / € MILLIONS) CHRISTMAS 2014
UK
Smart Glasses £11.63 / €14.67
Smart Watches £25.04 / €31.58
Multimedia & Smart Cameras £17.09 / €21.55
Fitness & Activity Trackers £28.97 / €36.53
Healthcare £22.01 / €27.75
TOTAL £104.74 / €132.08
Germany
Smart Glasses £8.86 / €11.17
Smart Watches £24.68 / €31.12
Multimedia & Smart Cameras £18.84 / €23.76
Fitness & Activity Trackers £20.39 / €25.71
Healthcare £27.29 / €34.41
TOTAL £100.06 / €126.17
Spain
Smart Glasses £3.70 / €4.67
Smart Watches £9.13 / €11.51
Multimedia & Smart Cameras £9.18 / €11.58
Fitness & Activity Trackers £12.02 / €15.16
Healthcare £11.43 / €14.41
TOTAL £45.46 / €57.33
The Netherlands
Smart Glasses £1.38 / €1.74
Smart Watches £4.56 / €5.75
Multimedia & Smart Cameras £2.86 / €3.61
Fitness & Activity Trackers £3.18 / €4.01
Healthcare £4.82 / €6.08
TOTAL £16.80 / €21.19
Total
Smart Glasses £25.57 / €32.25
Smart Watches £63.41 / €79.96
Multimedia & Smart Cameras £47.97 / €60.50
Fitness & Activity Trackers £64.56 / €81.41
Healthcare £65.55 / €82.65
TOTAL £267.06 / €336.77


SALES REVENUE AT RETAIL FROM WEARABLES (£ / € MILLIONS) CHRISTMAS 2013
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare TOTAL
UK £0.10 / €0.13 £2.9 / €3.66 £5.7 / €7.19 £12.5 / €15.76 £15.9 / €20.05 £37.1 / €46.79
Germany £0.10 / €0.13 £3.1 / €3.91 £5.7 / €7.19 £12.1 / €15.26 £14.8 / €18.66 £35.8 / €45.15
Spain £0.04 / €0.05 £1.4 / €1.77 £2.5 / €3.15 £5.5 / €6.94 £5.6 / €7.06 £15 / €18.97
The Netherlands £0.04 / €0.05 £0.6 / €0.76 £1.1 / €1.39 £1.9 / €2.40 £3.5 / €4.41 £7.1 / €9.01
Total £0.28 / €0.36 £8 / €10.10 £15 / €18.92 £32 / €40.36 £39.8 / €50.18 £95 / €119.92
SALES REVENUE AT RETAIL FROM WEARABLES (£ / € MILLIONS) CHRISTMAS 2013
UK
Smart Glasses £0.10 / €0.13
Smart Watches £2.9 / €3.66
Multimedia & Smart Cameras £5.7 / €7.19
Fitness & Activity Trackers £12.5 / €15.76
Healthcare £15.9 / €20.05
TOTAL >£37.1 / €46.79
Germany
Smart Glasses £0.10 / €0.13
Smart Watches £3.1 / €3.91
Multimedia & Smart Cameras £5.7 / €7.19
Fitness & Activity Trackers £12.1 / €15.26
Healthcare £14.8 / €18.66
TOTAL £35.8 / €45.15
Spain
Smart Glasses £0.04 / €0.05
Smart Watches £1.4 / €1.77
Multimedia & Smart Cameras £2.5 / €3.15
Fitness & Activity Trackers £5.5 / €6.94
Healthcare £5.6 / €7.06
TOTAL £15 / €18.97
The Netherlands
Smart Glasses £0.04 / €0.05
Smart Watches £0.6 / €0.76
Multimedia & Smart Cameras £1.1 / €1.39
Fitness & Activity Trackers £1.9 / €2.40
Healthcare £3.5 / €4.41
TOTAL £7.1 / €9.01
Total
Smart Glasses £0.28 / €0.36
Smart Watches £8 / €10.10
Multimedia & Smart Cameras £15 / €18.92
Fitness & Activity Trackers £32 / €40.36
Healthcare £39.8 / €50.18
TOTAL £95 / €119.92


PERCENTAGE GROWTH SALES REVENUE FROM WEARABLES CHRISTMAS 2013-2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare Weighted Averages
UK 11530% 763.4% 199.8% 131.8% 38.4% 182.3%
Germany 8760% 696.1% 230.5% 68.5% 84.4% 179.5%
Spain 9150% 552.1% 267.2% 118.5% 104.1% 203.1%
The Netherlands 3350% 660% 160% 67.4% 37.7% 136.6%
Total 9032.1% 692.6% 219.8% 101.8% 64.7% 181.1%
PERCENTAGE GROWTH SALES REVENUE FROM WEARABLES CHRISTMAS 2013-2014
UK
Smart Glasses 11530%
Smart Watches 763.4%
Multimedia & Smart Cameras 199.8%
Fitness & Activity Trackers 131.8%
Healthcare 38.4%
TOTAL 182.3%
Germany
Smart Glasses 8760%
Smart Watches 696.1%
Multimedia & Smart Cameras 230.5%
Fitness & Activity Trackers 68.5%
Healthcare 84.4%
TOTAL 179.5%
Spain
Smart Glasses 9150%
Smart Watches 552.1%
Multimedia & Smart Cameras 267.2%
Fitness & Activity Trackers 118.5%
Healthcare 104.1%
TOTAL 203.1%
The Netherlands
Smart Glasses 3350%
Smart Watches 660%
Multimedia & Smart Cameras 160%
Fitness & Activity Trackers 67.4%
Healthcare 37.7%
TOTAL 136.6%
Total
Smart Glasses 9032.1%
Smart Watches 692.6%
Multimedia & Smart Cameras 219.8%
Fitness & Activity Trackers 101.8%
Healthcare 64.7%
TOTAL 181.1%


UNIT SALES OF WEARABLES (MILLIONS) CHRISTMAS 2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare TOTAL
UK 0.0135 0.1566 0.067 0.4749 0.3168 1.0288
Germany 0.0103 0.1543 0.0739 0.3344 0.3927 0.9656
Spain 0.0043 0.0571 0.036 0.1968 0.1643 0.4585
The Netherlands 0.0016 0.0285 0.0112 0.0522 0.0693 0.1628
Total 0.0297 0.3965 0.1881 1.0583 0.9431 2.6157
UNIT SALES OF WEARABLES (MILLIONS) CHRISTMAS 2014
UK
Smart Glasses 0.0135
Smart Watches 0.1566
Multimedia & Smart Cameras 0.067
Fitness & Activity Trackers 0.4749
Healthcare 0.3168
TOTAL 1.0288
Germany
Smart Glasses 0.0103
Smart Watches 0.1543
Multimedia & Smart Cameras 0.0739
Fitness & Activity Trackers 0.3344
Healthcare 0.3927
TOTAL 0.9656
Spain
Smart Glasses 0.0043
Smart Watches 0.0571
Multimedia & Smart Cameras 0.036
Fitness & Activity Trackers 0.1968
Healthcare 0.1643
TOTAL 0.4585
The Netherlands
Smart Glasses 0.0016
Smart Watches 0.0285
Multimedia & Smart Cameras 0.0112
Fitness & Activity Trackers 0.0522
Healthcare 0.0693
TOTAL 0.1628
Total
Smart Glasses 0.0297
Smart Watches 0.3965
Multimedia & Smart Cameras 0.1881
Fitness & Activity Trackers 1.0583
Healthcare 0.9431
TOTAL 2.6157

3. 2014 figures: Source: CRR

TOTAL SALES REVENUE AT RETAIL FROM WEARABLES (MILLIONS)
2013 2014 % growth based on revenue
UK £111.55 / €140.67 £313.6 / €395.45 181.1%
Germany £133.19 / €167.95 £369.3 / €465.69 177.3%
Spain £59.68 / €75.25 £157.8 / €198.99 164.4%
The Netherlands £30.83 / €38.87 £83.5 / €105.30 170.8%
Total £335.25 / €422.74 £924.2 / €1165.43 175.7%
TOTAL SALES REVENUE AT RETAIL FROM WEARABLES (MILLIONS)
UK
2013 £111.55 / €140.67
2014 £313.6 / €395.45
% growth based on revenue 181.1%
Germany
2013 £133.19 / €167.95
2014 £369.3 / €465.69
% growth based on revenue 177.3%
Spain
2013 £59.68 / €75.25
2014 £157.8 / €198.99
% growth based on revenue 164.4%
The Netherlands
2013 £30.83 / €38.87
2014 £83.5 / €105.30
% growth based on revenue 170.8%
Total
2013 £335.25 / €422.74
2014 £924.2 / €1165.43
% growth based on revenue 175.7%

SALES REVENUE AT RETAIL FROM WEARABLES (£ / € MILLIONS) 2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare TOTAL
UK £31 / €39.09 £77.3 / €97.48 £56.8 / €71.62 £80 / €100.88 £68.5 / €86.38 £313.6 / €395.45
Germany £32.7 / €41.23 £85.7 / €108.07 £70.8 / €89.28 £71.8 / €90.54 £108.3 / €136.57 £369.3 / €465.69
Spain £12.9/ €16.27 £30.2 / €38.08 £31.2 / €39.34 £40.3 / €50.82 £43.2 / €54.48 £157.8 / €198.99
The Netherlands £9.5 / €11.98 £21.1 / €26.61 £14.6 / €18.41 £13.6 / €17.15 £24.7 / €31.15 £83.5 / €105.30
Total £86.1 / €108.57 £214.3 / €270.24 £173.4 / €218.65 £205.7 / €259.39 £244.7 / €308.58 £924.2 / €1165.43
SALES REVENUE AT RETAIL FROM WEARABLES (£ / € MILLIONS) 2014
UK
Smart Glasses £31 / €39.09
Smart Watches £77.3 / €97.48
Multimedia & Smart Cameras £56.8 / €71.62
Fitness & Activity Trackers £80 / €100.88
Healthcare £68.5 / €86.38
TOTAL £313.6 / €395.45
Germany
Smart Glasses £32.7 / €41.23
Smart Watches £85.7 / €108.07
Multimedia & Smart Cameras £70.8 / €89.28
Fitness & Activity Trackers £71.8 / €90.54
Healthcare £108.3 / €136.57
TOTAL £369.3 / €465.69
Spain
Smart Glasses £12.9/ €16.27
Smart Watches £30.2 / €38.08
Multimedia & Smart Cameras £31.2 / €39.34
Fitness & Activity Trackers £40.3 / €50.82
Healthcare £43.2 / €54.48
TOTAL £157.8 / €198.99
The Netherlands
Smart Glasses £9.5 / €11.98
Smart Watches £21.1 / €26.61
Multimedia & Smart Cameras £14.6 / €18.41
Fitness & Activity Trackers £13.6 / €17.15
Healthcare £24.7 / €31.15
TOTAL £83.5 / €105.30
Total
Smart Glasses £86.1 / €108.57
Smart Watches £214.3 / €270.24
Multimedia & Smart Cameras £173.4 / €218.65
Fitness & Activity Trackers £205.7 / €259.39
Healthcare £244.7 / €308.58
TOTAL £924.2 / €1165.43

PERCENTAGE GROWTH IN UNIT SALES OF WEARABLES 2013-2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare Weighted Averages
UK N/A 667.3% 32.2% 104.6% 59% 120.8%
Germany N/A 614.5% 34.8% 53.9% 110.3% 118.2%
Spain N/A 472.4% 337.1% 89.7% 87.6% 117.2%
The Netherlands N/A 594.2% 257.5% 52.7% 88.8% 110.8%
Total N/A 605.3% 325% 77.5% 87.20% 118.2%
PERCENTAGE GROWTH IN UNIT SALES OF WEARABLES 2013-2014
UK
Smart Glasses N/A
Smart Watches 667.3%
Multimedia & Smart Cameras 32.2%
Fitness & Activity Trackers 104.6%
Healthcare 59%
TOTAL 120.8%
Germany
Smart Glasses N/A
Smart Watches 614.5%
Multimedia & Smart Cameras 34.8%
Fitness & Activity Trackers 53.9%
Healthcare 110.3%
TOTAL 118.2%
Spain
Smart Glasses N/A
Smart Watches 472.4%
Multimedia & Smart Cameras 337.1%
Fitness & Activity Trackers 89.7%
Healthcare 87.6%
TOTAL 117.2%
The Netherlands
Smart Glasses N/A
Smart Watches 594.2%
Multimedia & Smart Cameras 257.5%
Fitness & Activity Trackers 52.7%
Healthcare 88.8%
TOTAL 110.8%
Total
Smart Glasses N/A
Smart Watches 605.3%
Multimedia & Smart Cameras 325%
Fitness & Activity Trackers 77.5%
Healthcare 87.20%
TOTAL 118.2%

UNIT SALES OF WEARABLES (MILLIONS) 2014
Smart Glasses Smart Watches Multimedia & Smart Cameras Fitness & Activity Trackers Healthcare TOTAL
UK 0.036 0.4834 0.2227 1.3115 0.986 3.040
Germany 0.038 0.5359 0.2777 1.1774 1.5583 3.587
The Netherlands 0.015 0.1889 0.1224 0.66 0.621 1.607
Spain 0.011 0.1319 0.0572 0.223 0.355 0.778
Total 0.1 1.34 0.68 3.372 3.52 9.012
UNIT SALES OF WEARABLES (MILLIONS) 2014
UK
Smart Glasses 0.036
Smart Watches 0.4834
Multimedia & Smart Cameras 0.2227
Fitness & Activity Trackers 1.3115
Healthcare 0.986
TOTAL 3.040
Germany
Smart Glasses 0.038
Smart Watches 0.5359
Multimedia & Smart Cameras 0.2777
Fitness & Activity Trackers 1.1774
Healthcare 1.5583
TOTAL 3.587
The Netherlands
Smart Glasses 0.015
Smart Watches 0.1889
Multimedia & Smart Cameras 0.1224
Fitness & Activity Trackers 0.66
Healthcare 0.621
TOTAL 1.607
Spain
Smart Glasses 0.011
Smart Watches 0.1319
Multimedia & Smart Cameras 0.0572
Fitness & Activity Trackers 0.223
Healthcare 0.355
TOTAL 0.778
Total
Smart Glasses 0.1
Smart Watches 1.34
Multimedia & Smart Cameras 0.68
Fitness & Activity Trackers 3.372
Healthcare 3.52
TOTAL 9.012

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