http://mhealthinsight.com/2015/05/05/join-us-at-wearables-europe-london-27-28-may-2015/

1. Developing a Viable
Wearable Technology Business
to Penetrate
into the Mass Market
Seokmin Moon
Ceo of Lineable Inc.

2. CONTENTS 1. Current WT Industry
2. WT Business Development
3. Case Study : Lineable

3. Copyright 2015 © by Lineable Inc.
1
Current WT Industry

4. The Paradigm Shifts
and Market Opportunity
CURRENT WT INDUSTRY
Copyright 2015 © by Lineable Inc. 4
ICT Industry Cycle
PC INTERNET SMARTPHONE WEARABLE
1987
IBM PC
Compatible
1994
Netscape
Yahoo
2007
APPLE
iPhone
?

5. CURRENT WT INDUSTRY
20122011 2013 2014 2015
FitBit Ultra
Oct. 2011
Nike
FuelBand
Feb. 2012
FitBit One
Sept.
2012
Pebble
Jan.
2013
FitBit Flex
May.
2011
Samsung
Galaxy
Gear
Sept. 2013
Nike
FuelBand SE
Nov. 2013
Samsung
Gear Live
June.
2014
Motorola
Moto 360
Sept.
2014
Jawbone
UP3
Early
2015
Apple
Watch
March.
2015
(Expected)
Jawbone UP
Nov. 2011
Sony
SmartWatch
June. 2012
Google
Glass
Feb. 2013
Sony
SmartWatch 2
Sept. 2013
Samsung
Gear 2 And Fit
April. 2014
Jawbone
UP24
Nov. 2013
LG G
Watch
June.
2014
Samsung
Gear S
Nov. 2014
LG G Watch R
Oct. 2014
FitBit Force
Jan. 2014
The Wearable Computing Market Report: Growth Trends, Consumer Attitudes, And
Why
Smartwatches Will Dominate (BI Intelligence, 2014)
Copyright 2015 © by Lineable Inc. 5
Wearable Device
Release Date Timeline

6. CURRENT WT INDUSTRY
Copyright 2015 © by Lineable Inc. 6
3%
Yes, currently own
and use one
2%
Yes, owned one no longer use it.
34%
Yes,
but never
seen one.
34%
Yes, Seen them
never owned one
26%
No
No
Yes, seen them never owned one
Yes, currently own and use one.
Yes, owned one no longer use it.
Yes, but never seen one.
Wearables Survey (CCS Insight, 2013)
Have you Heard of Smart Watches?
High Awareness but
Low Ownership of Wearables

7. CURRENT WT INDUSTRY
Copyright 2015 © by Lineable Inc. 7
Declining Rate of Sustained
Activity Tracker Use Over Ownership
3 6 9 12 15 18 21 24
100%
75%
50%
25%
0%
Time
(months)
Rate of Sustained Utilization
Inside Wearables (Endeavour Partners,2014)

8. Copyright 2015 © by Lineable Inc.
2
WT Business Development

9. How to Develop
a WT Business Model to
Penetrate into Mass Market ?
Focus on the Needs and the Price

10. Copyright 2015 © by Lineable Inc.
2-1
Connecting
User Needs and
Wearable Technology

11. NEEDS
Copyright 2015 © by Lineable Inc. 11
I Don’t See The Point
I Don’t Like Wearing A Watch
Price: They Are Too Expensive
I Just Don’t Want to Spend A Lot Of Money
On A Watch
All smartwatches I Have Seen Are Ugly
Other
0% 10% 20% 30% 40% 50% 60%
51%
13%
8%
6%
7%
15%
The Wearable Computing Market Report: Growth Trends, Consumer Attitudes,
And Why Smartwatches Will Dominate (BI Intelligence, 2014)
Why Aren’t you
Interested in A Smartwatch

12. Copyright 2015 © by Lineable Inc. 12
NEEDS
USERS
NEEDS
PROBLEM
SOLUTIONS
WEARABLES
Connecting with
Wearables Users Needs
“What are the needs?”
↓
“ What problem do we need to solve? “

13. Copyright 2015 © by Lineable Inc.
2-2
PRICING STRATEGY
: Service Based Business Model

14. Copyright 2015 © by Lineable Inc.
PRICE
Pricing Pyramid
Asking price compared
To Market Value
Percentage of potential
Buyers who will look at property
+15%
+10%
Market Value
-10%
-15%
10%
30%
60%
75%
90%

15. Copyright 2015 © by Lineable Inc. 15
• Recent smart phone markets depicts how low the profit margins
are, except for a few manufacturers such as Apple
• Wearable devices would follow the trails of the smartphone industry
Profit margins less than 2% in 2013
PRICE
Lessons from Smartphone Industry

16. Service
Based Business
Copyright 2015 © by Lineable Inc. 16
Product
Based Business
Service Based Business Model
• If profits cannot be made from selling hardware (product based business),
should go for a service-based business
PRICE

17. Copyright 2015 © by Lineable Inc.
3
Case Study
Lineable : $5 Wearable
Tracking Beacon for Kids

18. Lineable
Lineable is a service to protect our children
It is consist of a wristband and an application.
Lineable Application has Alert & Tracking function.
Copyright 2015 © by Lineable Inc.
Lineable Service

19. Only
$5

20. Copyright 2015 © by Lineable Inc. 20
ACHIEVEMENT

21. “THE KING OF AFFORDABLE
WEARABLE DEVICE”
AFP

22. "So, every parent on this earth, using
Lineable smart wristband, is
protecting your children. It’s like
getting a membership of a fraternity
of parents who have taken a oath of
never losing their children again. If
you are not a parent, still you can add
yourself this noble cause. Just,
download the app and show any lost
child his or her home.“
Ampercent Tech Blog
Copyright 2015 © by Lineable Inc. 22
ACHIEVEMENT
“Let’s protect our kids together.”

23. Copyright 2015 © by Lineable Inc. 23
Taemen World Mission
Taemen World Mission has been
voluntarily running campaigns for
preventing missing children with
Lineable
VOLUNTARY CAMPAIGN
WITH LINEABLE
ACHIEVEMENT

24. Different
Copyright 2015 © by Lineable Inc.

25. 어떤 문제를 해결해야되는가? 인류보편적 가치 – 아이들의 보호
-How can we find what people
really want?
-How can we find the needs that
applies to as many people as
possible?
True needs of the public
Copyright 2015 © by Lineable Inc.

26. Copyright 2015 © by Lineable Inc.
Exploring
Selective technology
at the lowest cost possible.

27. Copyright 2015 © by Lineable Inc.
Protecting Children
Alert Tracking

28. Copyright 2015 © by Lineable Inc.
Fixed
Beacon
Mobile
Beacon
REVERSE
Beacon

29. Copyright 2015 © by Lineable Inc.
TrackingAlert

30. CROWDSOURCING GPS
People can share their smartphone resources
to make a safe zone for children.
Copyright 2015 © by Lineable Inc.

31. Copyright 2015 © by Lineable Inc.
Price

32. Focused on
the core functions
Final cost of $5
Copyright 2015 © by Lineable Inc.

33. Let’s Protect Our Kids Together