Wearable Electronics in Chile

2020 IMPACT

Online sales help pick up the slack from store closures during unrest and the pandemic

In spite of the protests in Chile disrupting the operations of many bricks-and-mortar retailers in the major cities during the final quarter of 2019, wearable electronics still managed to record dynamic growth in this year, helped by the increasing popularity of the online sales channel. E-commerce is expected to continue to grow, not least with the COVID-19 pandemic again leading to the closure of physical stores in 2020, and generally fitting well into a world in which social distancing and keeping the touching things to a minimum have become a “new norm”.

Chinese players making cheaper options with displays more widely available

Technological innovation within wearable electronics is driving a migration from non-display to display-enabled devices, resulting in declining activity bands sales and increasing sales of digital activity watches. The entry of globally recognised brands such as Huawei and Xiaomi, as well as other Chinese brands, has helped to reduced product prices, with consumers now able to purchase cheaper activity watches and smartwatches with multiple functions and connectivity options, replacing the activity band tracking devices that do not have displays with more technologically-advanced products that can do everything that the bands could do, and more, but also with the visual benefits of displays.

Contactless payments through wearables

In times of social distancing and strict hygiene protocols, wearables offer an attractive contactless option for payment procedures. Despite the still small, albeit growing, penetration in the overall population, wearables are starting to attract attention in payment solutions, as Visa data shows that around 50% of customer-present transactions in Chile are made through contactless options.

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