Hot off the premiere of Guess? (GES) smartwatch debut at CES last month manufactured by Martian, there’s been a lot of news in this emerging category. Since then, Swatch Group (SWCAF) announced their intended entry with a direct competitor to the Apple Watch (AAPL), providing notification and payment solutions, and in late January Tag Hauer announced a partnership with Silicon Valley for their own smart watch products (after very publicly poo-pooing the Apple Watch). To top things off the hotly anticipated Apple Watch itself caused a stir when it was revealed that the battery life could last as little as 2.5 hours with heavy use.
So what does this mean for the category as a whole, and for the licensees of designer watches? These three distinct strategies: Go-it-alone entry (Swatch), separate licenses for smartwatches (Guess?), and partnerships to add technology to existing brands (Tag) both create opportunities and risks for existing watch manufacturers and retail channels. Mary Epner Retail Analysis is closely watching this category as sales are expected to start as early as Spring.
Stay tuned… time will tell!
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