equities
Consumer demand for the quantified self
The first conventional quantified self device, counting users’ steps over the course of the day, was launched in 2009. Since then, a number of world-leading brands have entered this rapidly-growing market and burgeoning investment trend.
|
Need to know
|
|---|
First steps
Fitbit1 launched in 2009 and can be considered the first proper model of wrist-borne digital activity tracker. Apple entered the market with its smartwatch in 2015, combining the activity tracking functionality of the Fitbit with some smartphone functionalities and some vitality measurements like heartbeat.
Other brands like Garmin, Samsung and Huawei followed with similar devices and the smart watch showed an exponential growth take up rate in line with, or even slightly faster, than the smartphone a decade before that. Google parent Alphabet closed the acquisition of Fitbit in January 2021 for USD 2.1 billion, which the company believes is expected to help spur innovation in wearable devices.1
A growing market
At the end of 2021, 11% of US citizens were using a smart watch, up from zero in 2015. According to CCS Insights, Apple sold more watches than the entire Swiss watch industry in 2019; and Apple is currently not even the best-selling smartwatch brand. In 2020, 200 million smartwatches were sold and recordtrend.com anticipates that this number will double by 2026.
Figure 1: US smartwatch penetration
Source: TradingPlatforms in “US smartwatch market is on the rise, to hit $10 billion this year.” GSMarena (July 2021).
From hype to trend
With more consumers, from young to old, using smart devices to measure all sorts of activities and vital signs; with both technology and healthcare companies making inroads into quantified self, and with the first signs of quantified-self data being used by the healthcare system, we conclude that the quantified self has moved beyond the initial hype phase and has become a real long-term trend. A trend that has the potential to change both our lifestyles as well the healthcare system, giving rise to attractive investment opportunities, in our view.
Our World Brands strategy harnesses the quantified-self trend through its focus on digitalisation and consumers’ pursuit of personal wellbeing through active and engaging lifestyles. Wearable devices are a growing feature of this fitness trend, and are also increasingly linked to healthcare systems.
To find out more about the quantified self and the investment implications, read the full paper: ‘Quantified Self: from hype to trend’
Source.
[1] Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document.
important information.
This document is issued by Lombard Odier Asset Management (Europe) Limited, authorised and regulated by the Financial Conduct Authority (the “FCA”), and entered on the FCA register with registration number 515393.
Lombard Odier Investment Managers (“LOIM”) is a trade name.
This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This material does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of LOIM and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. This material contains the opinions of LOIM, as at the date of issue.
Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.
Source of the figures: Unless otherwise stated, figures are prepared by LOIM.
Although certain information has been obtained from public sources believed to be reliable, without independent verification, we cannot guarantee its accuracy or the completeness of all information available from public sources.
Views and opinions expressed are for informational purposes only and do not constitute a recommendation by LOIM to buy, sell or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change. They should not be construed as investment advice.
No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient, without Lombard Odier Asset Management (Europe) Limited prior consent. In the United Kingdom, this material is a marketing material and has been approved by Lombard Odier Asset Management (Europe) Limited which is authorized and regulated by the FCA. ©2022 Lombard Odier IM. All rights reserved
