Wearable Electronics in Hungary

PROSPECTS

Positive performance for all devices within wearable electronics

Wearable electronics continued to record another year of double-digit growth in both retail volume and current value terms in 2019 in Hungary. This was supported by the positive performances of all devices within the category, including activity bands, which bucked the declining trend of other countries, providing a simple entry-level product to older consumers who may not want or understand more advanced activity or smart wearables.

Smart wearables will continue to appeal to tech-driven younger Hungarians although declining unit prices will expand consumer reach

Smart wearables continued to record a strong performance in 2019, although its higher unit prices compared to activity wearables, even analogue activity watches, meant that its overall share within wearable electronics remained lower. However, with Hungarians’ increasing disposable incomes and greater interest in following healthier lifestyles, in addition to the rising trend for smart technology, smart wearables continues to attract a certain affluent consumer segment of young tech-driven Hungarians.

Digital activity watches mainstay of category offer affordable options while analogue offers consumers classic luxury look

Activity wearables continued to dominate retail volume sales of wearable electronics in 2019, supported by the ongoing positive performance of activity watch (digital), which is the largest category. Digital activity watches offer consumers the chance to own a multisports watch that can track a number of activities and offer various functions, but are more affordable than smart wearables and analogue activity watches.

COMPETITIVE LANDSCAPE

Another year of strong sales for Xiaomi in activity wearables

Xiaomi Corp retained its leadership of activity wearables in 2019, after taking over from Fitbit Inc the previous year. The Chinese player continued to gain strong retail volume share, offering consumers innovation with affordability.

Samsung feels pressure from innovative competitors

Samsung retained its leadership of smart wearables in 2019, although it lost significant retail volume share to its closest competitors Huawei and Fitbit in an increasingly intense landscape. However, Samsung continues to offer the widest range of smart wearables, with its Gear Sport model, which has waterproof capabilities suitable for swimmer, remaining popular.

New launches of smaller brands may struggle to make impact within increasingly consolidated landscape

A number of higher-end brands are venturing into wearable electronics, with launches from Fossil and Michael Kors, although their availability is likely to be limited to watch specialists and internet retailing in Hungary. Fossil now offers new touchscreen smartwatches which are Android and iPhone compatible with a number of features including allowing consumers to pay using Google Pay wherever mobile payments are accepted.

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