Two products can be completely different but worn in the same location. Many would argue that Fitbit wrist trackers and smart watches are competing products. However there are a few aspects looked over on why the two aren't threats to each other. Reasons why smart watches aren't a threat to Fitbit include:
- Fitbit is a market product whereas smart watches are a market accessory product.
- Fitbit is a personal fitness tracker in comparison to a smart watch enhancing your smartphone.
- The consumer for the Fitbit products are diverse to those in the consumer pool for smart watches.
Fitbit products and smart watches are not competing products simply because of the product descriptions. Fitbit ChargeHR for example is a main line product that provides fitness information, sleep quality & quantity, & your heartrate patterns whether it is resting or during exercise. Fitbit produces a product that will enhance your ability to comprehend your fitness performance & sleep patterns with visual and interactive charts. In comparison we have the iWatch from Apple. The iWatch is an accessory product produced by Apple to increase the ease of their product usage. With the iWatch you can view incoming phone calls and text messages. This gives you the ability to communicate or act right away by being able to view this information on your wrist. With the comparisons stated it is simple to see that the two products are targeting completely different consumer markets. Fitbit targets the consumers that are fitness enthusiasts or those looking to make a lifestyle change. Whereas, the smart watch targets those in the technological market or those who are just trying to increase their ease of use with the iPhone. With different target markets it is very possible that both Fitbit and smart watches will thrive because in reality they aren't competing products.
Of course the target markets are not split evenly and the two will have target market overlap. At this point it would be up to the consumer on which product they would like to purchase. This is where the illusion of Fitbit and smart watches being competing projects comes from. For this reason it is important to compare and contrast two products before making a purchase so you don't experience buyer's remorse.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.