Wearable Technology Show 2017: New Developments in Smart Apparel and Mixed Reality
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1 Wearable Technology Show 2017: New Developments in Smart Apparel and Mixed Reality 1) The Fung Global Retail & Technology team attended the Wearable Technology Show 2017 in London this week. During the two-day event, we saw the latest developments in the smart apparel industry, including innovations in augmented reality (AR), virtual reality (VR) and mixed reality (MR). 2) The fashion industry is still in the early stages of adoption in terms of smart apparel, but the future of the technology is promising. Collaboration between apparel companies and technology firms is key to product development. The technology can enable apparel retailers to improve engagement with consumers. 3) MR is a fundamental shift from 2D to 3D access to digital information. It holds important implications for the way consumers interact with physical products and digital environments. At present, tech giants are key in the development of the technology, but in the future, fashion companies will likely play a significant role in the widespread adoption of MR among consumers. The Fung Global Retail & Technology team attended the Wearable Technology Show 2017 on March 7 and 8 in London. The event showcases the latest and future developments in smart textiles, wearable technology, AR, VR, MR and the Internet of Things. Our focus on the first day of the show was the current state of the smart apparel industry and the relationship between apparel companies, tech firms and retailers in terms of product development and distribution of the technology. On day two, we saw the latest developments in, and future potential of, MR. 1
2 The Current State of the Smart Apparel Industy One of the main talks on day one of the show summarized the current state of the smart apparel market. Ben Cooper, who works for global apparel and footwear firm VF Corp., moderated a panel that included Sven Böhmer, from smart fabrics manufacturer Statex; Matthew Drinkwater, from the London College of Fashion; Mili Tharakan, from Tilt, a startup that produces connected play rugs for children; and Michael Reidbord, who works for wearable technology and IoT firm Kloog. The discussion focused on three main points: The value proposition of smart apparel: Beyond utility garments, the market for smart apparel is still in its infancy. In fashion, there is no compelling reason to wear smart apparel, but the functionalities enabled by the technology represent exciting opportunities. For example, smart apparel can enable new forms of communication, such as consumers sharing what they are wearing on social networks. The rapport between tech and apparel firms: In smart apparel, it is important for apparel and tech companies to collaborate closely throughout the entire product development process. Also, there must be a degree of flexibility: companies should not just focus on their own vision and expect their partners to adapt, but should think in terms of shared objectives. The rapport with retailers: Apparel companies can offer a strong proposition to retailers through smart apparel. Connected clothing can enable retailers to see what happens in the after-sales environment, such as when a customer stops wearing the garment. In this way, smart apparel can inform relevant targeted-marketing messages that can be sent to the customer at just the right time. Here are our other top takeaways on smart apparel: A seminar on How Wearables Affect Fashion highlighted that the infrastructure needed for wearables is not in place yet and still requires considerable investment. Challenges also remain with integrating smart technology into clothes and simplifying the supply model to make smart apparel affordable for the mass market. Intelligent Textiles, a firm that uses conductive yarn to create clothing that can sense pressure, stressed that smart textiles are not yet penetrating the mass market and are being adopted on only a small scale despite the low cost of the technology and the high margin that these products make. The company believes that there is friction between the textile and technology sectors in terms of cost and production synergies. CuteCircuit, a developer of LED garments, introduced the HugShirt, the world s first haptic telecommunication wearable, and the SoundShirt, a garment that allows people with hearing impairments to feel the sound of music through touch from the shirt. The company noted that the garments are machine washable, rechargeable and lightweight, but that they cannot currently be manufactured on a large scale, which is inhibiting mass-market adoption. Finally, we spoke to AiQ Smart Clothing, a smart apparel manufacturer exibiting at the show. The company showcased a running outfit with embedded connected technology: the top is made with connective fabric that collects the wearer s data (such as heart rate), which are then conveyed to a smartphone or other device through a Bluetooth transmitter attached to the garment. 2
3 Fashion Companies Will Play a Key Role in MR Adoption On the second day of the show, we attended a panel discussion on the prospects for MR, which is an evolution of AR and VR technologies: AR enhances a physical object with digital content generated by sensors placed on the object. Information from the sensors is transmitted to a digital device such as a tablet or a smartphone, on which the user views the related digital information. VR is a computer-generated simulation of a 3D environment that a user can interact with through hardware such as a headset. MR combines AR and VR by using advanced sensors and computing power to create a VR environment that incorporates the physical objects that surround the user. AiQ Smart Clothing s connected running top Source: Fung Global Retail & Technology Steve Dann, Founder and CEO of AR/VR firm Amplified Robot, moderated a discussion between Asad Arshad, from tech firm ifavour; Tom Emrich, from AR/VR incubator Super Ventures; Oliver Kibblewhite, from VR and creative production firm Rewind; and Tom Carter, from MR firm Ultrahaptics. The discussion covered the impact of MR on people s lives, how the technology is going to be used by consumers and which companies will lead development of the technology. Impact of MR on people s lives: MR can have a significant impact. The technology is a fundamental shift from 2D to 3D digital content. Companies will use the technology as a marketing tool and as a way to enhance their interaction with consumers. How the technology is going to be used: AR can be accessed simply via a smartphone, but VR requires the user to wear a headset. MR also requires a headset, at least at present. However, MR can be used to reduce the hardware needed to interact with the digital world by enabling commands in digital form rather than in physical form. For example, an Amazon Dash Button could be replaced by a virtual button that appears through MR only when a consumer needs to restock an item in his or her pantry. What companies will play a key role in MR: Currently, tech firms lead the way in the development of MR. However, fashion companies are expected to play an important role in the widespread consumer adoption of MR, as it could be embedded in regular accessories or apparel in the future. Eyewear firm Luxottica launched AR glasses in October 2016 and Safilo is expected to launch a pair in summer
4 To find out more about AR and VR, we spoke with executives from Amplified Robot at the company s booth on the show floor, where the company was showcasing a VR set used for medical training. Via a headset, a user can enter a virtual operating theater and interact through commands activated by the user pointing their eyes at them. We also saw an AR children s book with pictures that can be activated to display further digital information on a tablet. Key Takeaways Two main points emerged from the talks at the Wearable Technology Show 2017: The smart apparel industry is still in its infancy, but shows significant potential for the future, such as the possibility of developing new forms of engagement between retailers, brands and consumers. A close collaboration between the fashion and tech industries is key for the expansion of the sector in the future. The fashion industry is expected to play an important role in consumer adoption of MR in the future, as embedding the A children s book incorporating AR from Amplified Robot Source: Fung Global Retail & Technology technology in clothing and accessories will help it to become part of consumers everyday lives. MR has the potential to transform the way companies engage with consumers. 4
5 Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: Hong Kong: China: Filippo Battaini Research Associate Katie Marshall Research Assistant Hong Kong: 8th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: London: Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0) New York: 1359 Broadway, 9th Floor New York, NY Tel: FungGlobalRetailTech.com 5
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