Study: Watch buyers getting smart, retailers should too

Smartwatch-based commerce only represents a sliver of total e-commerce, but that may soon be due for a change.



According to new research from Mintel, smartwatch sales are set to boom in the near future. While only 6% of Americans currently own a smartwatch, 21% of consumers who purchased a watch in the past 12 months say they are very interested in the smartwatch trend. And 24% of consumers have bought a watch in the past 12 months.



Furthermore, 37% of men age 18-34 who have purchased a watch in the past 12 months are very interested in a smartwatch. Mintel research also shows watch-buying consumers are generally becoming more interested in the technological capabilities of watches. Thirteen percent of consumers who purchased a watch in the past 12 months did so to advance technological capabilities, while only 9% did so to for a specific reason such as diving or running.



“There is a very real possibility that smartwatch sales could cannibalize sales of other watches over the next five years,” said Diana Smith, senior research analyst, retail & apparel at Mintel. “This scenario assumes that the current smartwatch buzz manifests into sales that can withstand momentum as more functional apps are created, more developers launch new products and prices come down.”



Higher smartwatch sales will not automatically translate into more watch-based commerce. However, the widening availability of the platform and growing consumer interest in the technological capabilities of watches provides a strong opening for retailers and payment app providers. Preparations should be made now, so when smartwatches become much more common in a couple of years an effective watch-based customer experience will be ready.