Two major announcements in the smart jewelry space—a subcategory of wearables combining fashion jewelry and technology solutions—have caught our attention. These devices address the problem that most women tend to carry their smartphones in handbags, where they do not see/hear incoming calls and messages. Back in January Cuff, the much publicized smart jewelry startup that combined a removable technology insert with a variety of jewelry designs, announced a partnership with Richline, a division of Berkshire-Hathaway (BERK) that will create a wide distribution arrangement with an Intel-inside-like co-branding. And earlier this month start-up Trellie (pictured) announced a similar removable solution and partnership with an unnamed jewelry company that works with brands such as Marc Jacobs, Kate Spade, Macy’s HSN and Nordstrom.
This is a distinct shift from the one-style/single function smart jewelry that dominated the press in 2013-2014 and exemplified by the highly-funded Ringly and struggling-to-deliver Memi. In our opinion a removable technology/lots of jewelry combinations will win out over time, and additional multiple-jewelry/removable-technology platforms such as BlueJewelz are also in play to carve out their piece of the pie. The question is whether competing platforms and incompatibility will create a VHS vs. Betamax scenario where consumers stay on the sidelines until one wins out. What is interesting—and what we’re watching closely—is how the branding and distribution will play out in mass retailer and jewelry store chains. Will an exclusive technology platform mean consumers are tied to a single brand for more jewelry options for their technology? That may simplify the selection process and create repeat purchase opportunities. Or it could just be a confusing mess.
We’ll be on the front lines to sort it out and provide clear perspective as products hit store shelves.
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