An investigation of Wearable technology for the international fashion industry to propose strategies that respond to consumer needs
Meng-Hsi Chin N0595266 MA International Fashion Business Dissertation Image0: Wearable future (Source: Vogue, 2014).
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MA International Fashion Business 2014/15
MA International Fashion Business FASH40083: Dissertation Declaration
This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged, and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue I recognise the right and duty of the Board of Examiners to recommend what action should be taken in line with the University's regulations on assessment contained in its handbook.
Signed: ................................................................................................................. Date:.....................................................................................................................
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Abstract
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Introduction
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Aims & Objectives
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Methodology
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Literature review
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Result
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Discussion
4 Image 1: Technetics Blog. (Source: Technetics, 2015.)
Table of Contents
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Conclousion
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Recommendations
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List of Illustrations
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Bibliography
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Appendix 1 - PESTEL
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Appendix 2 - Questionnaire
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Gantt Chart 5
Abstract
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Wearable technology is being seen as the future of fashion since clothing and technology continue to converge in recent years. It will have a significant impact on the fashion industry and change consumer behavior. The purpose of this study is to investigate the external factors and internal beliefs that influence consumer acceptance of wearable technology in order to propose strategies that can respond to consumer needs. This paper uses Roger’s diffusion of innovation as the fundamental theoretical framework to further explore other potential theories models such as the Technology Acceptance Model (TAM) and the pattern of innovation. By using the TMA model, this study traces the factors that can influence consumers when adopting a wearable technology. By using the pattern of innovation, this study goes further to determine the barriers that stop wearable technology from reaching out to the mass market and demonstrate ways by which the manufacturing processes can be improved upon. Furthermore, this paper explores the implications of wearable technology in the future. The new engagement with consumers will become more personalized, and more difficult for marketers due to the restricting screen of wearable technology. Finally, this paper proposes a peer-to-peer strategy that responds to consumer needs tracing through the TAM model.
Image 2: The future of wearable technologies. (Source: Meta Verse, 2015.)
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Introduction
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Wearable technology and smart clothing have been peddled since its inception as the “future of fashion�. Clothing with embedded technologies is rising in fields such as health, wellness, sport, fitness and corporate wear. The market for functional clothing has been expanded by sports activities as well as interest in fitness and health. Initially wearable technology was developed for military use, however, wearable it has become progressively sophisticated in style and detail, and it was benefited from the rapid development of fabric and fibre technology and the methods of modern garment construction. These influences, encouraged by marketing hype, have been adopted in products from sports to healthcare and corporate wear markets (McCann et al., 2005). The fashion industry is moving forward to a step that has never seen before. Wearable technology is emerging. Advanced materials and technologies are turning around the apparel industry. The breakthrough has opened innumerable possibilities for fashion industry. Within the fashion industry, wearable technology relates with smart fabric, which allows consumers wear more functional clothes for particular used. To embed more functionality material in fabric requires highly investments in research and development (R&D). And according to a research by Forbes, it is a well investment in promising returns. There are some brands already eyeing on wearable technology and make high invest on it. For example, Ralph Lauren is the first luxury fashion house to think wearable, which developed a sports shirt that monitors heartbeat, respiration and stress levels (Axwen, 2014).
9 Image 3: The future of wearable technologies. (Source: Meta Verse, 2015.)
Figure1: Top 10 Apparel. (Source: see as BrandZ 2014.)
Wearable technology and clothing continue to converge, and apparel brands that have integrated with technology have growth in value. For example, Nike’s brand value rose 55% in 2014 with pioneering the intersection of apparel technology and community over social media (Figure1). The Apparel consumers still have a strong desire to purchase clothing, but consumers are now seeking value and choosing to invest in brands that provide fashion with longevity in addition to function. Middle market brands informed by high-end fashion successes. Consumers now have less concerned about sticking out an image with logos, more concentrated on how brands could make them feel confident and discriminating (BrandZ, 2014). Despite the fact that the advanced technologies have been functional in recent decades and that the applications are notable for a huge number of consumers, wearable technologies have not become successful in the mass market yet, but persist in being novelty and niche. Commercial developments in wearable technologies are few and far between, and most cannot reach substantial profit (Dunne, 2015). Therefore, this study is aim to determine the reasons that are preventing wearable technology to reach the mass market, and to understand the factors that affect user's adoption process of innovative technology in order to propose strategies that for the fashion 10
industry.
Image 4: The future of wearable technologies. (Source: Meta Verse, 2015.)
Wearable technology is predicted to ship worldwide with huge numbers. With an increasing number devices that will provide the potential transform consumers’ understanding and behavior. Therefore, wearable technology will impact on the current ways that businesses operate. The implications have been widely discussed including personalized contents, wearable technology applies in the workplace and the new relationship between consumers and brands (The guardian, 2014). One of the aims in this study is to explore the potential strategies that fashion brands should be pay attention to.
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Aims & Objectives
1. To explore the external factors which influence fashion consumer to adopt a wearable technology. 2. To understand the internal factors which influence fashion consumers’ attitude toward using a wearable technology. 3. To find out the reasons that wearable technology have not yet reached to the mass market. 4. To find out what are the implications of wearable technology for the international fashion industry. 12
Outcomes
Image 5: Wearables will transform the health care industry. (Source: Internet Medicine, 2015.)
1. To determine the major external factors and internal factors that influence consumer adopt wearable technology over TAM model. 2. To examine consumer behavior in terms of adopting wearable technology. 3. To determine the barriers that stop wearable technology to reach the mass market. 4. To propose recommendations of strategies of wearable technology for the fashion brands. 5. To determine the implications of wearable technology.
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Image 6: Future technology (Source: Top HD gallery, 2013.)
y g o l odo
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R e s e a r c h methodology
I m a g e 7: We a r a b l e s w i l l transform the health care industry. (Source: Internet Medicine, 2015.)
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Literature review At beginning of the study, it is necessary to conduct literature reviews to have basic understand of relevance studies. Greener (2008) suggests that any research studies either inductive or deductive for academic research requires critical analyzing literature reviews to clarify the idea of theoretical context and to help identify the purpose of the study outcome. Greener further explains that literature reviews have three types: 1) Primary literature sources: company literature, unpublished research, conference proceedings, blogs and personal websites. 2) Secondary literature sources: books, journal articles, news, and published reports from government and private institutes. 3) Tertiary literature sources: citation index, dictionary, encyclopedias, catalogues and debase (Greener, 2008).
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Methodology The research methodology combines primary research and secondary research methods to qualify the data. The research methodology can be explained through “The Research Onion� (Figure6) (Saunders, Lewis and Thornhill 2012), which describes the whole processes of the research methodology effectively.
Figure2: Research Onion
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The research philosophy is used Interpretivism, which advocates that it is important to understand the differences between humans in our role as a social actor. The significance of the interpretivism is emphasis on managing research among people rather than objects. Therefore, it is important to understand the perspective of the research subjects (Saunders, Lewis and Thornhill 2012). And this paper is a business research, which is part of the social research.
The approach will be undertaking both the deductive and inductive approaches as surveys. The ground theory will be used in the study. Goulding (2002) explains that ground theory can be widely used in business and management issues. It is certainly helpful to predict and explain behaviors, as much of business and management issues are strongly related to consumer behavior, and this study will be discussing the consumer perspective by using the ground theory to validate the primary and secondary data. Suddaby (2006) further argues that ground theory is not just the best example of the inductive approach. It is important that researcher should consider data collected under conceptual level in order to make a conclusion that contains theoretical framework.
A mixed method approach will be used in this study. Mixed method approach in terms of when both qualitative and quantitative methods are adopted in the research. This study will use Mix method - qualitative and quantitative research techniques to collect data and ‘qualitise’ both qualitative and quantitative data. Due to the time is constrained on the final dissertation; a cross-sectional study will be used in order to manage the time horizon so that data will be collected from multiple sources.
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Theoretical framework To get better understanding and comprehension of the research issue, secondary research and literature review have been conducted to have knowledge of the issue. Also, Roger’s diffusion of innovation theory has been applied as the major theoretical framework to draw the foundation for research issue. Also, other potential theories and model such as technology acceptance model and pattern of innovation will be applied and identified during the literature review and secondary research.
Research Methods
Secondary research Secondary research will be employed on external environment changes, competitive economy, technical product innovation, consumer preferences and acceptance of consumer psychology, etc. Also, the technical product innovation could affect fashion industry and further implication such as strategies changes and the longevity of the technical product to achieve competitive advantage. Case studies will be conducted to see how the current brands that have developed technical product increased their market share and brand value. The research sources will be used on books, The Internet, journal articles, magazine, business reports, debates and case studies of relevant brands.
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Primary research This study will use several primary researches to collect data to ensure the credibility of the data.
1. Questionnaire The design of questions is based on technology acceptance model, by using the model to trace the external factors, internal factors and the purpose of consumers using wearable technology. Through questionnaire to collect consumers’ opinions to get the basic understanding of factors that drive consumers purchasing wearable technology, and the consumer needs on wearable technology. Also questionnaire has the enormous benefit of collecting data largely over The Internet; once a large data has been collected that will allow the researcher to analyze the data quantitatively. However, the drawback will be having the chance of low response and less interactive.
2. Interview The interview questions are designed based on multiple models such as diffusion process, the pattern of innovation in order to get the information from industry experts. By using interview will be able to make the researcher to look in-depth at the perspective of participants. Furthermore, the interview allows participants and researcher to have conversations more interactively to get more insights from participants. In this paper, Interview will be conducting with experts who have experience and knowledge in the field of wearable technology to understand the insights of technical product development and fashion industry’s attitude of current and future trend on wearable technology. However, the disadvantage of using interview is that participants might not willing to share their whole opinions to the researcher.
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Ethical consideration The ethical issues are important to academic research; on every research stage will take ethical consideration into account. At every research method will inform every participant that this study is for academic purpose and participant will be totally confidential, and hand out the completely designed guideline of ethical clearance form to participants to sign. After participants taking the survey, they will receive the information and have access on the major finding.
22 Image 8: Wearables will transform the health care industry. (Source: Internet Medicine, 2015.)
Limitation The study under the research processes might be influenced by some factors such as author’s personal experience, bias and limited knowledge of the business. Also, the quality of the result might be affected by timeconstrained, and sampling of participants are random selected and transparency of business information. Thus, the major finding might not be completely objective.
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Literature review
25 Image 9: Building a case for business wearables (Source: Channelnomics, 2015).
Functionality Wearable technologies are designed accessories, garment and jewelry that combine style with functional technology. The functional clothing can increase the cognitive features of users’ skin. Clothing is usually referred as the second skin. Today this is not just a metaphor anymore as wearable technology can provide functional uses for consumers. The purposes of using wearable technology are newly defined as physical function and social function. Physical functions are protection, usefulness and attraction. Social functions are communication, expression and social status (Seymour, 2008).
1. Physical Function The term 'wearable computing’, indicates the use of electrical engineering, wireless communication network and physical computing, making wearable clothing or accessories functional (Seymour, 2008). Wearable computing is an achievement to make technology truly be part of users’ life. By embedding computing devices or sensors into clothing or creating a new form that can be used (Starner, 1996). Wearable computing is function as computer and can be worn, carried and attached to the body. The range of wearable computing applications has expanded to many different purposes including healthcare, sport, information and entertainment (Buenaflor and Kim, 2013).
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Image 10: Building a case for business wearables (Source: Channelnomics, 2015).
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1.1 Wearable computing The term 'wearable computing’, indicates the use of electrical engineering, wireless communication network and physical computing, making wearable clothing or accessories functional (Seymour, 2008). Wearable computing is an achievement to make technology truly be part of users’ life. By embedding computing devices or sensors into clothing or creating a new form that can be used (Starner, 1996). Wearable computing is function as computer and can be worn, carried and attached to the body. The range of wearable computing applications has expanded to many different purposes including healthcare, sport, information and entertainment (Buenaflor and Kim, 2013).
1.1.1 Healthcare Sensors and devices that are embedded into wearable technology enable users to monitor medical conditions and gather data for improving health. For example, users are allowed using wearable computing for obesity control, biomedical monitoring and chronic prevention (Park and Jayaraman, 2003).
1.1.2 Sport Fitness-bands typically dominate the wearable technology market in the sport field. Fitness-bands usually carry a couple of sensors in the band to track users’ movement. Health-related sensors are often used in fitnessbands for monitoring pulse, skin temperature and activities (Business insider, 2014). There is a notable movement from band-based product toward in-built wearable technology such as footwear. By implanting sensor into footwear that allows users to measure speed, step and activity. This kind of wearable technology can help athletes place, transfer and adjust their performances accurately (Varga, 2014). 28
1.1.3 Information and entertainment Smartwatches are the best example of function as a computer to constantly feeding information to wearers. For instance, The Apple watch allows users sync data with iPhone over Bluetooth wireless connection. Several Apps are supported on the watch, including Siri, messages, map, calendars, email, newsletter and other third-party apps such as Twitter. Also, Apple Watch can control music playing on iPhone/iPod to keep wearers entertaining (The guardian, 2014).
1.2 Smart Clothing The concept of smart clothing has been defined as a "garment-integrated device that augment the functionality of clothing, or which impart information-processing functionality to a garment" (Dunne et al., 2005, p.2). Baurley (2004) states that “smart� means a capacity to sense stimuli from the environment, then react or adapt behavior to the circumstances. Thus, science has integrated fashion and technology functions exist at the same time in the new conceptual wear (Baurley, 2004). The vision of smart clothing is to make textile combining smart fabric and computing power into clothing. The idea of computing technology and smart fabric for the textile industry provides an opportunity to develop textiles with new forms of behavior and functionality (Berglin, 2013). For example, Uniqlo has launched Heattech in 2007, partnered with Toray Industries - a material company in Japan. Heattech garments are made from woven fabric created with hollow fibre thread that can generate warmth as the absorb moisture from the air. Heattech garments are designed to cover the body much like heavy wool but without the bulk. Softness is also created by the addition of milk protein which contains natural amino acids (BoF, 2010).
Image 11: Wearable technologies: The internet of body parts (Source: The red wire, 2014).
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2. Social Function Alongside with physical function, social function is also a consideration for consumers when adopting clothing (Stokes and Black, 2012). Suh et al. (2010) suggest that symbolic value is the impression that wearers give to other people. Lamb and Kallal (1992) developed a FEA consumer needs model (Figure 3), which indicates the needs of clothing consists functional, expressive and aesthetic.
Figure3: FEA consumer need model, Source: (Lamb and Kallal 1992)
Expressive considerations refer to the aspect of a communicative symbol while aesthetic considerations represent the human desire of beauty (Lamb and Kallal, 1992). Sonderegger (2013) states that the communication of the users’ personality and their relation to aesthetic and social environment is one of the important functions of smart clothing. Smart garments have to be usable and good to look at. Some studies have shown that the usability rating are highly correlated with attractiveness rating, which indicates that more attractive products are also regarded as more usable (Sonderegger, 2013). Clothing is one of the products that highly represents to aesthetic and expression of the user. For most common cases in wearable technology, consumers want to enjoy advanced technology and fashion at the same time without awkwardness (Sue et al., 2010). For example, Google glasses is the most hyped wearable technology, it allows users to send emails, explore the internet, take a picture over voice control. Google has invited people to apply Google glasses as they go about their daily lives. However, those people who applied Google glasses have received assaulted comments and mocking on the streets (The guardian, 2013). Thus, smart clothing must meet the requirements of users with regard to functionality, self-representation and fashion style in order to be accepted and go on the market (Sonderegger, 2013). 30
Social influence and group dynamics also play key roles in motivation when consumers are adopting wearable technology. According to Ananthanarayan (2012), “an individual in the group reflects more on her daily activity due to the collective experience of sharing or competing with her peers” (Ananthanarayan, 2012, pp: 237). This interaction can drive a social group to adopt wearable technology to have common goals such as health goal, or compete with each other. Another finding suggests that the technology-savvy young adults are seriously influenced by peer pressure, trends and perceived social prestige (Anderson and Lee, 2008). Feltham (1998) explains that the reference group plays a key role in attitude formation. The reference group including friends and family that influences the behaviour of the social communication activities. People of today are looking for acceptance from their peers including friends and family to boost their self-confidence and to mingle with their social surrounding. Dotson and Hyatt stresses that many clothing marketers are using “peer to peer” strategy to create demand, especially in the youth market. Grant and Stephen (2005) further state that to a great extent, consumer behaviour is carried out under the influence of others and through the socialisation process (see as Fernandez, 2009:88).
Image 12: Dancing into Wearable technologies: The internet of body parts (Source: Intel Free Press, 2015).
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The Trend
The trend
Image 13: Future technology (Source: Top HD gallery, 2013.)
The battle of wrist - smartwatches have been drawing eyes in 2015 since Apple released the Apple Watch to compete with the likes of Samsung, LG and Motorola, the war of wearable technology has begun (the guardian, 2015). Attention has been covered on wearable technology recently, with thought about how intensely embedded into consumers’ daily use. Wearable technology will become the driven force for the brands and retailers to transform their business operations (Arthur, 2014). Tech experts are predicting that wearable technologies will become as essential as the smartphone to everyday life. Smart materials, fabric and new technologies can integrate every aspect of life from virtual interactions to electronic transfers. For example, Nike’s Aeroloft running vest using mapped zone of the body, rip-stop nylon material and wicking panels that allow users to stay warm without overheating (Trainor and Ribert, 2014). A study conducted by research firm IDC in 2014 showed that 19.2 million wearable technologies were expected to ship worldwide, and the number is estimated to reach 112 million by 2018 (Arthur, 2014). Digital consultant Ashley Norris states that there are three wearable trends in 2015:1) the growth of smartwatches battle, 2) the integration of technology with clothing and 3) facilitation of the use of wearable technology in business. Analyst Gartner has forecasted that smart clothing is the largest potential growth wearable type to reach 26 million items by 2016 (The telegraph, 2014). 32
However, even though there are many bold predictions, the majority of fashion brands are still hesitated in investing wearable technology. The lack of style and design are tied to the one of the main issues for the wearable technology market today. According to the investment director at asos.com - Daniel Bobroff: “To date, wearables’ ‘dirty little secret’ has been their inability to captivate their audience beyond an initial three months of use, ending their lives chucked away in a drawer. So rather than follow the crowd aimlessly, we are waiting for the next generation of wearables that are truly fashionable, solve real-life problems and do so via an imaginative and expanding experience that we are compelled to use every day.” Brands are excited about the trend of wearable technology, but they rather stay cautious (Arthur, 2014). The reason fashion brands stay hesitant in putting investment on wearable technology is that wearables are not consumer essentials yet (Arthur, 2014). Nevertheless, wearable technologies are on the rise and moving forward to entrepreneurs, the shift of wearable technology is required to get user engagement in order to hit the bigger number of adoption (TechTarget, 2013).
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The barriers of
Technological barrier
wearable technology Hunter states that always-connected is the big issue, current wearable technology products such as smartwatches and Despite the potential advantages of wearable technologies, there are some significant barriers that challenge wearable technology to be utilized in large scale and reach to mass market such as, technological barriers, price and aesthetic.
fitness-trackers usually have to connect with smartphone or devices in order to use the applications to monitor wearers’ movement and activities (Fastcompany, 2013). Also, battery life is a challenge that wearable technology has to face it. In most common cases, wearable technology has to be charged and cannot be used 24 hours (Business insider, 2014).
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Image 14: Building a case for business wearables (Source: Channelnomics, 2015).
Socail barrier The aesthetic is a crucial element of wearable technology. According to Business insider, wearable technology sometimes sacrifices aesthetic for functionality. Wearable technology is meant to be visible so that it takes the aesthetic issue to another level, which is when wearable technology is on your body, it becomes intimate and self-expression. Plus, in some cases, wearable technology is not yet socially acceptable. For example, Google glasses have already made efforts on appeal by partnership with Ray-Ban and Oakley to design more attractive frames, however, it doesn’t change the fact that users are wearing a wearable computing device on their face. It would make people concern their privacy issues (Business insider, 2014).
Price barrier According to a research firm GfK, there is
a large amount of awareness of wearable
technology among consumers, but the high price on current products were found to be the biggest b a rrie r fo r th e co n su me rs. Sma rtwa tch e s
currently cost between £150 and £200 on average, the intention of purchase was cut in
half from 24% to 12% in consumer aged 16-24 as
well as Google glasses normally cost between £400 and £600, the intention of purchase drop from 32% to 10%. Therefore, price points are a
barrier that is restricting wearable technology
to more affluent audiences. Currently, the sale of wearable technology only relies on early adopters. If brands want their wearable technologies to have mass appeal, to create
an affordable price is important. This can only be fulfilled by rethinking the process of
manufacturing to spur developers to experiment
with the cost-driving components of wearable technology (Entrepreneur, 2013 and BGR, 2013).
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The implication of wearable technology Workplace Wearable technology is about to increase in popularity in a new era; some businesses are already working out how these devices can be used by corporations. By using wearable technology in the workplace that can provide hands-free operation for employees, which means that employees can receive and review data over voice commands on-the-go, besides, to send the data back to the system. PayPal and Samsung have also planned to create an app that allows payments to be made through smartwatches, which provides handy features for any professional on the move. In the retail, wearable technology enables workers to access information without leaving the customer’s side, which can increase retail productivity and enhance customer care (KC business, 2014 and PwC, 2014). However, businesses concern wearable technology that uses in the workplace could expose private information. Enterprises will need to be constantly transparent with data and business information. Trust must be at the foundation of the wearable relationship from implementation to action (PwC, 2014).
E-commerce Wearable technologies are forecasted widely to take off in the future. The opportunity of e-commerce could be extended to devices like smartwatches, Google glasses and headset, which enable the fashion retailers to collect highly accurate and applicable data on individual (Yieldify, 2015). According to UKTI’s report that a quarter of wearable devices will be utilized for e-commerce. Mobile devices have already changed consumer purchasing behavior; wearable technology will strengthen the ability of consumers to shop anywhere. The “always on” consumer culture and the market that contains multiple touch points for displaying and others for sell-though make the market everywhere (UKTI, 2014).
Engagement As the wearable technology emerges, it will become a new channel for consumer engagement. Wearable devices will be constantly feeding information to consumers, and reinforce the engagement. Currently, social media on wearable devices are limited to the receipt of notifications. Due to the limited screen size on wearable devices, the new platform will emerge to facilitate meaningful content to interact with the consumer on wearable devices (SocialMediaToday, 2014). Marketers must be more creative with their content as it will be received on limited screen. The content must be short, concise, snappy and attention grabbing in order to attract consumers in a restrictive time and screen size. This is important for the brand to engage and influence their audiences through wearable devices (commsAxis, 2015).
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Image 15: Future technology (Source: Top HD gallery, 2013.)
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Consumer Adoption
According to nielsen’s report in 2014, the majority of wearable technology owners are relatively young with 48% of people between ages 18-34, and both men and women are likely equal to put on wearable technology, and consider themselves as early adopters (only 25& consider themselves as mainstream). On the consumer preference, fitness bands are the most popular devices with 61%, followed by smartwatches with 45% and Healthcare devices with 17%. Sahin (2006) explains that early adopter account 13.5% in the Roger’s innovation adoption curve (Figure 2). People in early adopter stage rely on group norms and values. Early adopters are more easily toward to become opinion leaders and inspire their social group to purchase new products (Sahin, 2006).
Figure 4: Innovation adoption curve. Source: (See as Kaminski, 2011).
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However, Gerard (2014) argues that the curve is a mathematical model. Without a better understanding of early adopters, it can lead to product ideas that have no relationship to reality, and it also could be a trap for brands and businesses when pursuing early adopters. The word-of-mouth of early adopters is the goose that lays golden eggs. Commonly it works, but after a while - if early adopters find a flaw in a product or get bored with it, early adopters often disconnect with the product & cease to use it. When majority notices it, they might do the same. Endeavor Partners’ study indicated that one in ten Americans over age 18 owns a wearable tech, but these devices fail to keep long-term engagement for users, and a third of US consumers who have owned one and dropped off the device within the next six months (Tolentino, 2014).
The motivations that drive consumers to buy wearable technology depend on the type of device and the benefits that they offer to the individuals daily lifestyle or routine. For example, smartwatch is for the convenience and entertainment purpose, and the fitness band is for health. When Consumers choose wearable technology, they are looking for special characteristic to fit and match their needs and styles. Functionality and comfort are the upmost important factors with 81% and 79% (nelson, 2014). The characteristics of Wearable technology adopter have higher household income and own smartphone or tablet ready to connect with technologies and applications, also interest in Health status. Tom Emrich, a wearable technology expert, states that as fashion brands come into play, more women will buy wearable technologies than men (MaRS, 2014).
Image 16: RUN IN ANY CONDITION WITH NIKE WINTER RUNNING GEAR (Source: Nike news, 2014).
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Green Image 17: The latest in wearable tech (Source: USA today, 2015).
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Environmental concern
The green movement is a shift towards a
For example, Pauline van Dongen, an individual
more conscious industry. This can be seen in
label, has created solar-fiber, which is a flexible
many various products and services markets.
photovoltaic fibre that transfers sunlight into
Environmental concerns are especially relevant to
electrical energy via yarn. The Wearable Solar
fashion industry with its use of energy, material,
collection currently has two designs, dress and
ethical and working condition. The eco-friendly
coat made of leather and wool, which generate
clothing is becoming more toward consumer
energy over their integrated solar cells. When
conscious. The awareness of sustainability and
worn in full sun for two hours, both garments
eco-friendly become imperative and more
can produce energy for charging a smartphone.
circulated for the fashion industry. For example,
The solar cell fibre is designed can be folded and
many companies have been prompted by eco-
unfolded. Pauling van Dongen says: "Wearable
consciousness and enhancing its corporate social
Solar is a sustainable answer to our increasing
responsibility to retain and attract customers
demand for energy and connectivity while
(Holgar et al., 2009). Clothing products are now
also anticipating the vastly expanding wearable
being expanded by 'smart' and 'intelligent' textile
technology market." (the guardian, 2014).
innovations. Smart textile has been utilised within
Consumer’s environmental attitudes are showed
garments and is now being exploited for its
through their concerns for the environment,
electrically conductive properties within wearable
and likely to be an important motivation in
electronics applications. Smart textile innovation
influencing consumers’ purchasing decision and
is now addressing to environmental sustainability
behavior. Environment attitudes are considered
concern (McCann et al., 2005).
to affect intentions to behave responsibly in clothing consumption, also have indicated that the concern of individual for the environment can influence decision-making that related to apparel consumption (Hwang, 2014).
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Innovative product development
Product innovation is the potential catalyst for strategic growth for businesses. Product innovation is a crucial management assignment in markets experiencing technological change. The most common reason why companies continue changing and innovating their products or services is fear of competitors who may provide more attractive alternatives to consumers (Johne and Snelson, 1990). In this era of harsh competition, product innovation is a way for business firms fighting a war of survival and obtaining the competitive advantage. This is the reason that business firms spend high investment every year on research and development (R&D), and developing new products and services in order to track the changing needs and demand of the customers (Abdul and Syeda, 2014). According to a study by Forbes, wearable technology is a good investment for fashion brands with promising profit returns. There are some brands already eyeing on wearable technology and make high invest on R&D, such as Ralph Laure and Nike (Axwen, 2014).
Image 19: We’re what’s next (Source: Hathway, 2015).
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Image 18: We’re what’s next (Source: Hathway, 2014).
Innovation Betje (1998) defined that “innovations are new things applied in the business of producing, distributing and consuming products or services”. Freeman and Soete (1997) also defined innovation as “The first commercial application or production of a new process or product” (see as Syeda, 2014). Smith (2006) claims the fact that innovation involves commercial exploitation and application of ideas and inventions in order to trade in the marketplace (Smith, 2006). Hillier (2014) states that innovation is part of the development process of products or services which proceeds an ideas or inventions to market. For the fashion industry, designers must select and source appropriate materials, technologies for supporting the innovative development of wearable technology, which is functions and looks good to address the demand of users (McCann et al, 2005). McCann et al. (2005) state that to create attractive and interesting wearable technology, the development of wearable technology need to blend functional clothing design with practicality in the design process as well as creativity. The needs of end-users have to be taken into account with the help of graphic, product and industrial design. Important progress in the consumer research has been made to clarify and understand the emotional and cognitive reactions of consumer value of designed product including aesthetic, quality, functionality and usability (McCann et al., 2005).
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Image 21: We’re what’s next (Source: Hathway, 2015).
Commercialization Smith (2006) has suggested that Innovation contains invention, commercialization and diffusion (Figure 3). Smith further explains that innovation is closely connected to the invention. In fact, the invention formulates part of the process of innovation. Invention implicates new discoveries, new ideas and new breakthrough. However, inventions are not usually prepared for market. Therefore, innovation also requires commercialization into the process, which means to bring activities that facilitate new products or services onto the market. Commercialization normally involves research and development (R&D) to make sure that inventions are able to use steadily and safely, also to ensure that inventions are capable of being manufactured. Also, marketing, organization and finance are also involved in commercialization in order to assure that potential users are aware of it and could approach to it. Diffusion is closely connected with the acceptance of consumer adoption in innovation. Diffusion could be relatively slow, it also could be rapid such as internet services innovation, as social media and e-commerce growing rapidly (Smith, 2006).
Invention
Commercialization
Diffusion
Figure 5. Invention, commercialization and diffusion
Dale and others (2004) suggest that the first process in the new product development and commercialization is to investigate marketing, corporate, sourcing and manufacturing to decide how they have impacts on development and sale of new product. The marketing strategy involves assessment of customer segment needs (Dale et al., 2004). Stanley and others argue that the ability to develop and commercialize technological innovation is based on the interaction between a firm's strategic orientation and its selection of target market; and the way it implements its market orientation.
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Pattern of Innovation
Diffusion
Abernathy and Utterback (1978) have suggested a
Roger’s diffusion of innovation is the most common
framework to explain the patterns of innovation processes,
theory for investigating the adoption of technology. Roger
which can be used to examine wearable technology. The
(2003) states, “A technology is a design for instrumental
framework is to understand the underlying driver when an
action that reduces the uncertainty in the cause-effect
innovation emerges. Therefore, organizations that understand
relationships involved in achieving a desired outcome”.
the underlying drivers can help improve their capabilities to
Adoption is a decision of the full use of an innovation as the
embrace new opportunities. According to the framework,
best course of action available, and rejection is a decision
the pace is initially high in product innovation curve and
of not to adopt an innovation. Diffusion of innovation
the reason behind that is the high degree of uncertainties
always refers to the process of people adopt an innovation.
while process innovations curve (in term product lifecycle)
Also, Roger defines diffusion as “the process where an
performance is poor with low quality and low production
innovation is communicated through certain channels over
speed as a consequence. When the product is improved, the
time among the members of a social system” (see as Sahin,
rate of product innovation slows down due to the dominant
2006 ). The diffusion of innovation theory is often used
design progress with reduced uncertainties. Development of
for guiding technical innovation where it is presented and
product standards and lower uncertainties allow companies
modified in ways to meet the needs among the members
to change focus from product to process innovation. At
of a social system until a saturation point is achieved
the end of the cycle, both curves reach a certain level of
(Figure5). It also highlights the power of communication
development, both curves decline (Abernathy and Utterback,
and peer network within the adoption process (Kaminski,
1978).
2011).
46
Figure 6: Pattern of innovation.
Figure 7: Diffusion process. Source: (See as Kaminski, 2011)
Image 22: Hussein Chalayan : Fashion, Innovation and Technology (Source: Ashley Mauerhofer, 2012).
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Technology Acceptance Model (TAM) Davis (1986) introduced Technology Acceptance Model (TAM) and proposed TAM to address users’ acceptance or rejection of technology. In general, the aim of using TAM is to provide an explanation of the determinant factors of technology acceptance (Davis et al., 1989). The key purpose of TAM is to trace the impact of external factors on internal beliefs, attitudes and intentions. Perceived ease of use and perceived usefulness are the major two beliefs to explain the use of technology. TAM also indicates that external factors meddle indirectly or directly influencing perceived ease of use and perceived usefulness. Perceived usefulness and perceived ease of use are the major internal factors that influence users’ attitude toward using and behavioural intention to use, and thus ultimately relating to the actual use (Legri et al., 2003).
Figure 8: Technology Acceptance Model.
48
Image 23: We’re what’s next (Source: Hathway, 2015).
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50
Image 24: Wearable Technology And Digital Healthcare Strategies Should Shift Focus To Chronic Medical Illness. (Source: Forbes, 2015).
Result
Over online Questionnaire to reach participants as much as possible, the primary research data has been collected and the author has categorized data into three groups: Generation X, Y, and Z. 1. Generation Z was born between 1994 and 2012 and are less than 21 years old as of 2015. 2. Generation Y was born during 1977-1994 and are in the 21-36 age range as of 2015. 3. Generation X was born during 1965-1977 and are in the 37-50 age range as of 2015.
51
52
53
54
55
Image 25: Wearables will transform the health care industry. (Source: Internet Medicine, 2015.)
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Discussion 57
Using Roger’s diffusion theory as a fundamental theoretical framework, and in order to further explore and discuss the issue of consumer acceptance or rejection of wearable technology, the Technology Acceptance Model (Figure) is applied. The model is used to explain the consumer acceptance process and trace the impact of external factors on internal beliefs, attitudes and intentions.
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The macro environment has indirectly impacted on consumers’ awareness and buying decisions. The political and economic environment has shifted towards the wearable technology level. Analysts have shown strong confidence in wearable technology on economic aspects such as investing in wearable technology stock; they have indicated that wearable technology will become the mega trend in the future. Also, governments have shown a willingness to invest in the development of wearable technology to achieve competitive advantages for their countries. Consumer behaviors were changed by technology, as smart mobile devices and social media have already changed the ways consumers shop and communicate with their social group. Technologies have also stimulated changes in business; the fashion companies use social network sites to inspire peer pressure, peer competition and brand communities for more sustainable behavior (AppendixPESTEL). Primary research data shows that the major external factor that influences Generation Z and Y consumers is peer influencing at 76% and 51.6% respectively. And so are 32.5% of Generation X consumers. Venkatesh & Davis (2000) stress that social influence is one of the external variables. Social influence refers to the perceived social pressure to perform or not to perform an action. It seems essential in deciding how social influences can impact on the commitment of users towards using technology for explaining, understanding and predicting the usage and acceptance behavior (Venkatesh and Davis, 2000). Park (2009) suggests that social context is an important external variable that affect social influences and peer pressure on the personal acceptance of technology use (Park, 2009). As one of the external variables, the green movement in the fashion industry has drawn the attention of stakeholders in recent years. Consumers now have high awareness of ethical fashion and green fashion. Therefore, fashion brands have started building ethical policies and green consciousness into their strategies to gain interests from consumers (Appendix-PESTLE). However, primary research data shows that environmental concerns are the least factor that consumers of all generations consider when buying wearable technology. Also, according to experts, when it comes to the price factor, eco-friendly products usually have a higher price compared to similar products. . As a result of less regard for environmental concerns consumers are less likely to pay more to buy them.
Image 26: Building a case for business wearables (Source: Channelnomics, 2015).
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Image 27: Building a case for business wearables (Source: Channelnomics, 2015).
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In the TAM model, intention to use technology
Internal beliefs have a strong impact on
is determined by perceived ease of use and
attitude towards actual usage. Primary research
perceived usefulness. Perceived ease of use is
data indicates that each generation has a
the extent to which a person believes that using
different purpose of using wearable technology:
the technology will be convenient and free of
Generation Z tends to use wearable technology
effort. Perceived usefulness is the extent to which
for entertainment and information, Generation
a person believes that using the technology will
Y tends to use them for sports and fitness and
enhance performance (Venkatesh & Davis, 2000).
Generation X tends to use them for healthcare. As
Hwang (2014) has expanded perceived aesthetics
a result, perceived aesthetics has an impact on
and comfort into the model. Since the design is an
entertainment,information and fitness products.
element of a personal image, the design aspect
As stated in the literature review, clothing is one
should be discussed in the TAM model to examine
of the products that highly represent aesthetics
consumers’ decision making. According to primary
and self-expression of the user. In most instances,
research data, perceived aesthetics is the major
consumers want to enjoy advanced technology
internal factor among Generation Z (54%) and Y
and fashion at the same time without a feeling of
(38.3%). As for generation X, perceived usefulness
awkwardness (Sue et al., 2010). Perceived usefulness
is the major internal factor at 45% with Generation
is often considered for healthcare products as well
Y at 33.3%. However, perceived ease of use and
as fitness products. The fields of sports, fitness and
comfort are less influential in consumers’ decision
healthcare utilize wearable technologies the most in
making about wearable technology.
the current market. Consumers’ interests in health issues have increased demand in the healthcare and wellbeing products markets (McCann et al., 2005).
Figure 9: Wearable Technology Acceptance Model.
Peer-influencing Aesthetic
Combine above discussions to draw wearable technology acceptance model. 61
62 Image 28: We’re what’s next (Source: Hathway, 2015).
Roger’s diffusion of innovation states
Business insider states that wearable
Nevertheless, price and design
that innovation proliferates in markets
technology is still in the early stage
challenges are preventing wearable
through diffusion from the factors that
of adoption. It indicates that wearable
technology from reaching the mass
influence consumer adoption (Lehamann
technology has not yet proliferated
market. As stated in the literature
and Esteban Bravo, 2006). Also, Roger
to the early majority and late majority
review, wearable technology sacrifices
defines diffusion as “the process where
(Business insider, 2014). However,
aesthetics for functionality; clothing
an innovation is communicated through
primary research indicates that
is meant to represent user’s self-
certain channels over time among the
consumers are excited about wearable
expression and status. Also, primary
members of a social system” (Sahin,
technology.In the future wearable
research indicates that aesthetics
2006). By using the innovation adoption
technology will get into next phase.
is a major internal belief that drives
curve, it can be explained how wearable
Moore (1991) combines innovators
consumers’ attitude towards intention to
technology spread in the social system.
and early adopters into one group - the
actually use a product. Price is a barrier
Primary research demonstrates that the
early market, and the early majority and
that stops wearable technology from
popularity rate of wearable technology
the late majority into a second group -
enjoying widespread use. According
is relatively low at around 20%.
the mainstream market. Moore further
to Karinna Nobbs, - Senior Lecturer
According to the survey, nearly one-
discusses that the early market and
at the British School of Fashion, prices
fifth of consumers consider themselves
the mainstream market need different
are averagely high and some designs
as early adopters. Besides, consumers
communication strategies. Otherwise,
are still too geeky and clunky. If prices
who already own wearable technology
products will fail to reach mass
drop and technology is made more
consider themselves as early adopters.
diffusion (Moore, 1991).
invisible, it will become more desirable for consumers (Business insider, 2014).
63 Image 29: We’re what’s next (Source: Hathway, 2015).
Pattern of innovation
Figure 10: Pattern of innovation.
The pattern of innovation can be applied to explain
For fashion brands, research and development (R&D)
the relationship between product and production
is crucial to the design and production of proper
process. As explained in the literature review, a new
wearable technology, but it involves high investment
product has low-speed production process (in terms
costs and similarly high chances of failure. According
of manufacturing). When the new product rate
to primary research, experts state that collaboration
decreases, that means a product is improved. This
between fashion brands and technology companies
often results in reduced uncertainty about aspects
or licensing out products can decrease the variables
such as design and performance and subsequently
and costs involved and increase product outreach.
increase in the speed of manufacturing. For example,
If the cost comes down, the price of the product
Google glasses have a high rate of new, but its
normally comes down as well. As one of the experts
production process is slow. As an example, Google
has drawn a hierarchy to explain how price points
glasses are a very clever and highly advanced
affect sales volume. At the top of the hierarchyis a
innovation product, but its use has failed to spread
vision product with high price and small sales volume.
out due to the high price and unacceptable design, so
At the bottom of the hierarchy is an accessible
that its manufacturing process stops at the beginning
product with low price and big sales volume. The
of the curve. Hence, finding a new way to speed up
concept of this model relates to trickle-down theory.
the production process is crucial.
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The trickle-down theory was first introduced
This is where the second force begins: people in
by Torstein Velben in 1899. Velben noted that
the upper classes are constantly looking below
technologies and consumer goods originally come to
them to make sure that they are not being imitated.
the market at a high price point that only the upper
They respond to the desires of lower classes to
classes can afford. Over time, other companies
impersonate them by abandoning the fashion and
manufacture more accessible products so that the
adopting new fashion (Solomon and Rabolt, 2009).
lower classes begin to buy them. Also, the trickle-
It can be explained that the influence of celebrities
down theory has been widely used to understand
trickle down to the mass market. According to
fashion consumption. It states that there are two
primary research, one of the experts says that
conflicting forces that drive fashion changes. First,
celebrities have the ability to affect the average
the lower classes try to adopt the status symbol of
consumer and build the connection between brands
the classes above them as they climb up the ladder
and consumers. For instance, Nike has used celebrity
of social mobility. Presiding styles created with the
endorsements to create demand and promote new
upper classes in mind therefore trickle down to the
products on the market. Shoe products that are
lower classes.
attached to NBA stars like LeBron James, Derrick Rose and Michael Jordan are usually manufactured in mass quantities (Time, 2013).
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The implications of wearable technology have been widely discussed. As experts note, there will be many license operations and collaborations between fashion brands and technology firms, which could improve the manufacturing process. Also, wearable technology has its impact on the workplace, advertising and e-commerce. As stated in the literature review, wearable technology will create new channels to engage with consumers. Over two-third of participants are willing to receive information on their wearable devices. Marketers and advertisers must be prepared and look for ways to deliver messages directly to consumers through currently restricted media. The future of new advertising will mean that data is accurately targeted, enhancing the push and pull of information to create timed and relevant messages (PwC, 2014).
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Image 30: Building a case for business wearables (Source: Channelnomics, 2015).
As experts point out, personalized contents will be more important in omni-channels. Wearable technologies will be able to collect highly accurately and intimate personal data, allowing fashion brands to analyze data and provide personal contents to create a consumer-centered experience (Yieldify, 2015). For example, the capability of personalized contents could be used in location-based offers. The retailers could track the consumers’ locations on their wearable devices, and obtain information about their preferences and sustain a list of promotions. They could correlate all this data in real-time and push out the right promotion at the right time to consumer’s wearable devices (Practical ecommerce, 2015). Wearable technology can be seen an extension of e-commerce channels and should soon become the latest channels of consumer engagement. Wearable technologies could allow brands to have direct communication channels to engage with their customers. Wearable technologies will reinforce the capacity of e-commerce that enables consumers to shop anytime and anywhere (PR Newswire, 2015).
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Image 31: Technetics Blog (Source: Technetics, 2015).
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Peer influencing is seen as a major external factor that can drive
As stated in the literature review,
consumers to purchase wearable technology, and each generation
technolog y-savvy young adults
has different characteristic. Generation Z has never lived without
are influenced by peer pressure,
the Internet, thus they are used to advanced technology and
trends and perceived social prestige.
multiple sources of information. “Peer acceptance” is very
Also friends and family play a key
important to Generation Z; they need belongings and their self-
role to drive the behavior of social
concept is partially determined by their social groups. Generation
communication activities. They are
Y individuals lived in the period of technological revolution, and as
looking for acceptance from their
global boundaries become more transparent, they are used to a
peers to boost their self-confidence
diverse universe where boundaries are vague and anything seems
and to get along with their social
possible. Generation Y individuals are image-driven and state
surrounding. For example, when
personal status through their images. Also, they have immense
young people see their friends using
needs for peer acceptance, connecting with their social group. For
mobile technology, they also buy and
Generation X, multiculturalism and thinking globally has become
use such technologies. Interestingly,
the norm. Generation X experienced the increasing impacts of the
if peers all own the same item, it is
personal computer and World Wide Web. They value their family
no longer considered a product of
and are influenced by their family. (Kaylene and Robert, 2010).
status (Eastman et al., 2014).
Park and Stoel (2005) states that peers are a source of emotional influenceon social decision-making; they can influence relativistic beliefs and emotional arousals which in turn can lead to attitude change. Moreover, social media reinforces the peer influencing effect. According to consumer survey, online channels including social media are the most used in receiving information on wearable technology. Research has found that young people are more reliant on information on social media (Scheresberg, Lusardi, & Yakoboski, 2014). Today, many fashion brands are using peer to peer strategies to create demand. For example, Nike has moved away from traditional advertising to digital marketing with high investment in social media including Facebook, Twitter and Instagram, and its own social community called Nike+. Nike+ allows consumers to share their daily activities and compare with other users’ activities in the community through Nike’s wearable technology product called Nike Fuel. Nike Fuel can track a user’s activity data and upload to Nike+, which can then be shared on other social media. Nike uses the power of social media and its own online community to engage with current users and influence users’ peers and social surrounding (Digital fire fly marketing, 2013).
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Conclusion 70
Image 32: RUN IN ANY CONDITION WITH NIKE WINTER RUNNING GEAR (Source: Nike news, 2014).
Wearable technology has its presence in the market, but it is not a consumer essential product yet. The popularity rate is relatively low, and is considered only for early adopters, although consumers are excited about wearable technology in the future. This research makes use of the TAM model to trace the external and internal factors that can drive the consumer to adopt wearable technology. Peer influence is a major factor that can influence Generation Z and Y, and up to 32.5% of generation X. Peer to peer strategy seems to be an effective way to market wearable technology to consumers as social media facilitates and reinforces the peer influencing effect on consumers. Also, majority of consumers are using social media to receive information about wearable technology. Aesthetics and usefulness are the major internal factors that can drive all generations’ attitudes towards creating the intention to actually use a product. The factors slowing down the spread and mass use of wearable are design and price barriers. As discussed, brands need to find ways to speed up the manufacturing process such as through collaboration and licensing out to manufacturers, and wipe out the design barrier and trickle down the price point to reach the mass market. The post-mobile era shall see the new ways of engagement between brands and consumers, and contents will be more personalized. Also, e-commerce will be extended from big screens to restricting screens.
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1
Recommendations The fashion industry needs to get ready to develop contents and apps that fit on wearable technology. Wearable technology is being seen as a natural extension of online and mobile channels. Wearable technology creates the newest channels for advertising. Brands who take advantage of these emerging channels can deliver more personalized contents and informed services. It can provide consumers with faster checkout, greater access to deals and more real-time input into consumer buying decisions. This is the future of engagement for brands. By creating personalized and relevant interactions, brands can be placed at the top of the mind of customers (Accent, 2015).
Peer to peer strategy on social media. Social media has changed consumer behavior and communication with their peers. This change that is driven by social media can be applied to the consumer decision-making process and marketing communication. In social media, peer communication involves interactions about products among individual consumers through social networks. User-generated online product reviews can proliferate over social media with great impact on marketing, which can affect user’s peers’ decision making (Wei et al., 2011). Plus, social media offer the opportunity to engage with consumers. The interaction on social media not only allows the fashion brands to share and exchange information with consumers but also allows consumers to share and exchange with their peers. The interaction changes the traditional roles of brand sales
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and consumer received orientation. Indeed, consumers now often add value by posting content and even become keen advocates of products, which can influence buying decision of others in the peer-to-peer interaction. Therefore, peer communication on social media has a significant impact on motivating consumers’ attitudes towards shopping orientations and decision- making (Sashi, 2012).
2
Trickling down the price point by collaborating or licensing out. Fashion brands should collaborate or license out products to technology companies. The fashion brand needs to eliminate the design and price barriers to wearable technology, and as backed by evidence from surveys, consumers want products to be aesthetic as well as functional at the same time. As fashion brands are not experts in technology, partnering with specialists is crucial for the production of more stable and usable wearable technology. Cross-sector collaboration argues that partnerships can offer missing abilities to complete each other’s business model, or even to co-create new and innovative multi-business models. Collaboration allows firms to share market expertise and sourcing channels in order to gain market share. Collaboration can improve the quality of products and stabilize manufacturing uncertainty to create values for the consumers. The licensing operation can increase the speed of the manufacturing process. By providing the patent right to other companies that can help to enhance product quality and manufacturing processes returns could be maximized as parties can specialize in what each does best. Partnering with other companies or licensing out to other companies can both minimize costs and risks, and facilitate the manufacturing process. As a consequence of reductions in cost and risk, the price of the product can become lower and more accessible for consumers (Teece, 1986 and Dehan et al., 2010)
Also, with trickling down in mind, celebrity endorsements can be used to make the product reach the mass market. Celebrity endorsements have been widely used to support marketing practices. Many studies state that celebrity endorsements can result in substantial profit returns for companies, and more favorable advertisement rating. The consumers tend to believe the credibility of celebrities (Spry et al., 2009). Celebrities have the power to trickle down products from upper classes to lower classes by creating desire for products they endorse.
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List of illustration
Figures Figure 1: BrandZ, 2014. BrandZ, 2014 Global Top 100 brands [online]. BrandZ report. Available via: http://www.wpp.com/wpp/marketing/brandz/ [Accessed 18 Mar 2015] fig. Figure 2. Research onion: own diagramed. Figure 3. FEA consumer needs model: Lamb, J., & Kallal, M., 1992. A conceptual framework of apparel design. Clothing and Textiles Research Journal January 1992. vol. 10, no. 2, page. 42-47. Figure 4. Innovation adoption curve: Kaminski, J. 2011.Diffusion of Innovation Theory [Online]. Canadian Journal of Nursing Informatics, 6(2). Theory in Nursing Informatics Column. Available at: http://cjni.net/journal/?p=1444 [Accessed 28 June 2015]. Figure 5. Invention, commercialization and diffusion: own diagramed. Figure 6. Pattern of innovation: own diagramed. Figure 7. Diffusion process: Kaminski, J. 2011.Diffusion of Innovation Theory [Online]. Canadian Journal of Nursing Informatics, 6(2). Theory in Nursing Informatics Column. Available at: http:// cjni.net/journal/?p=1444 [Accessed 28 June 2015]. Figure 8. Technology Acceptance Model: own diagramed. Figure 9. Wearable technology acceptance model: own diagramed. Figure 10. Pattern of innovation: own diagramed.
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MaRS, 2014. Wearable Tech: leveraging Canadian innovation to improve health. MaRS report [online]. Available at: http://www.marsdd.com/wp-content/uploads/2015/02/MaRSReportWearableTech.pdf [Accessed 10 June 2015]. McCann, J., & Hurford R., & Martin, A., 2005. A Design Process for the Development of Innovative Smart Clothing that Addresses End-User Needs from Technical, Functional, Aesthetic and Cultural View Points [Online]. Wearable Computers, 2005. Proceedings. Ninth IEEE International Symposium on . Available at: http://ieeexplore.ieee.org/xpl/abstractAuthors. jsp?arnumber=1550788&tag=1 [Accessed 15 June 2015]. Park, S., Jayaraman, S., 2003. Enhancing the quality of life through wearable technology. Engineering in Medicine and Biology Magazine, IEEE. Vol. 22, Issue. 3, pp.41-48. Park, S.Y., 2009. An Analysis of the Technology Acceptance Model in Understanding University Students' Behavioral Intention to Use e-Learning. Educational Technology & Society, Vol.12, No.3, pp.150–162. PwC, 2014. The wearable future. Report [Online]. PwC report. Available at: https://www.pwc.se/ sv_SE/se/media/assets/consumer-intelligence-series-the-wearable-future.pdf [Accessed 18 July 2015]. Practical ecommerce ,2015. Wearable devices to impact e-commerce [Online]. Practical ecommerce. Available at: http://www.practicalecommerce.com/articles/79011-Wearable-Devicesto-Impact-Ecommerce [Accessed 23 July 2015]. PR newswire, 2015. Wearable Technology: A New Channel for Customer Engagement [online]. PR newswire. Available at: http://www.prnewswire.com/news-releases/wearable-technology-a-newchannel-for-customer-engagement-300061689.html [Accessed 23 July 2015]. Research methodology, 2010. Deductive approach [online]. E-book. Available at: http://researchmethodology.net/research-methodology/ research-approach/deductive-approach-2/ [Accessed 04 June 2015]. Scheresberg, C., Lusardi, A., & Yakoboski, P.J., 2014. College-educated millennials: An overview of their personal finances. Joint report from the TIAA-CREF Institute and the Global Financial Literacy Excellence Center, 1-38 Stanley F. & Slater & Jakki J. Mohr., 2006. Successful Development and Commercialization of Technological Innovation: Insights Based on Strategy Type Journal of Product Innovation Management. Volume 23, Issue 1, pp 26-33. Sashi, C.M., 2012, Customer engagement, buyer-seller relationships, and social media. Management Decision, Vol. 50 no. 2 pp. 253 - 272. Sahin, I. 2006. Detailed review of Roger’s diffusion of innovation theory and educational technology related studies based on Roger’s theory. The Turkish Online Journal of Educational Technology. Vol. 5, Issue. 2, Article 3. 79
Syeda, Z., 2014. Impact of innovation on consumer behavior: A case study of PAK electron limited. European journal of business and innovation research UK. Vol.2, No.6, pp.93-108. Smith, D., 2006. Exploring innovation. 2nd edition. New York: McGraw-Hill Higher Education. Spry, A., & Pappu, R., & Cornwell, T.B., 2009. Celebrity endorsement, brand credibility and brand equity. European Journal of Marketing, Vol. 45 no. 6 pp. 882 - 909. Starner, B., 1996. Human-power wearable computing. IBM SYSTEMS JOURNAL, Vol. 35, No. 3&4. Solomon, M.R., 2009. Consumer behavior in fashion. 2nd edition. United Stated of America: Pearson education. SAUNDERS, M., LEWIS, P. and THORNHILL, A., 2012. Research Methods for Business Students. 6th ed. United Kingdom: Pearson. Seymour, S., 2008. Fashionable technology. 1st edition. Austria: Springer Wien New York. Shu, M., Carroll, K., Cassill, N., 2010. Critical review on smart clothing product development. Journal of Textile, apparel, technology and management. Vol. 6, Issue. 4. Stokes, B., Black, C., 2012. Application of the Functional, Expressive and Aesthetic Consumer Needs Model: assessing the clothing needs of adolescent girls with disabilities. International Journal of Fashion Design, Technology and Education. Volume5, issue 3, pp. 179-186. Sonderegger, A., 2013. Smart garment - the issue of usability and aesthetics. Department of psychology University of Fribourg [Online]. Available at: http://www.ubicomp. org/ubicomp2013/adjunct/adjunct/p385.pdf [Accessed 16 June 2015]. Social Media Today, 2014. 7 predictions for the future of wearables tech an social media interaction [online]. Social media today. Available at: http://www.socialmediatoday.com/content/7predictions-future-wearable-tech-and-social-media-integration [Accessed 21 July 2015]. Trainor, L., Ribert, G., 2014. Tech, Data, Heart [Online]. WGSN. Available at: http://www.wgsn.com/content/search/reports/#/wearable%2520tech [Accessed 04 June 2015]. Teece, D., 1986. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. ScienceDirect. Vol. 15, Issue. 5, pp. 285-305. The telegraph, 2014. Wearable technology: 2015 is the year of smart bra [Online]. The telegraph. Available at: http://www.telegraph.co.uk/news/predictions/technology/11306735/wearabletechnology-trend.html [Accessed 08 June 2015]. The guardian, 2013. Google glass: getting to grips with ‘geek aesthetics’ [Online]. The guardian. Available at: http://www.theguardian.com/technology/2013/mar/09/google-glass-geek-aestheticsfashion [Accessed 09 June 2015]. TechTarget, 2013. Trend alert: wearable devices are about to take off [Online]. Tech Target. Available at: http://searchconsumerization.techtarget.com/feature/Trend-alert-Wearable-devicesare-about-to-take-off [Accessed 10 June 2015]. 80
Tolentino, 2014. 9 things wearable tech needs to retain user engagement. Siliconangle [Online]. Tolentino. Available at: http://siliconangle.com/blog/2014/04/02/9-things-wearable-tech-needs-toretain-user-engagement/ [Accessed 11 June 2015]. Time, 2013. The Measure of a Hip-Hop Star? It’s on Your Feet [Online]. Time. Available at http:// business.time.com/2013/12/10/the-measure-of-a-hip-hop-star-its-on-your-feet/ [Accessed 30 July 2015]. The guardian, 2015. 2015 will be the year wearable tech gets under the skin [online]. The guardian. Available at: http://www.theguardian.com/technology/2014/dec/09/wearable-tech-healthsmartwatches-apple [Accessed 12 June 2015]. The guardian, 2014. Fashion meets renewable energy - clothes that charge your smart phone [Online]. The guardian. Available at: http://www.theguardian.com/sustainable-business/sustainablefashion-blog/fashion-technology-renewable-energy-solar-charge-smartphone [Accessed 16 July 2015]. UKTI, 2014. Beyond e-commerce to everywhere commerce [Online]. UKTI report. Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/364406/UKTI_ GREAT_Retail_Ecommerce_2014_spreads.pdf [Accessed 20 July 2015]. Varga, C., 2014. Design direction: sport tech and innovation- wearable technology [Online]. WGSN. Available at: http://www.wgsn.com/content/board_viewer/#/145050/page/1 [Accessed 05 June 2015]. Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model: four longitudinal field studies. Management science, Vol. 46, No. 2, pp.186-204. Wei, Y., & Wang, X., & Yu, C., 2011. Social media peer communicateon and impacts on purchasing intention: A consumer socialization framework. ScienceDirect. Vol. 26, Iss. 4, pp. 198208. Yieldify, 2014. Wearable tech: what it means for e-commerce in 2015 [Online]. Yieldify. Available at: http://blog.yieldify.com/wearable-tech-what-it-means-for-ecommerce-in-2015 [Accessed 20 July 2015].
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Appendix1-PESTEL Political Governments are investing wearable technology innovation by providing funding for companies in order to achieve competitive advantage.
1. Innovate UK encourages innovation in wearable technology by investing up to £210,000. The competition for funding includes the ideas of sports, entertainment, health, hospitality, wellness, design and accessibility (Gov.uk, 2015).
2. In May 2015, president Barack Obama has announced a competition - called “Revolutionary fibers and textiles manufacturing innovation institute” for a $150 million investment in innovating textile and manufacturing in order to make sure that U.S stays at the leading edge of fiber science (Fashion times, 2015).
Economic 1. Analysts are calling wearable technology a mega trend that has hit an inflection point in market adoption and will have strong and widespread impact on economy (BoF, 2013).
2. The market of wearable technology currently focuses on fitness and health. The market is estimated to explode as many entrepreneurs have developed thousands of apps and services that connect with wearable technology (Bof, 2013).
3. Stock analysts suggest investors to buy wearable technology stocks for long-term profits as the revolution of wearable technology is growing rapidly and predicted to continue growing (Money Morning, 2014).
4. Fashion retailer market is very crowded, consumers are also saturated with clothing, and do not need to buy more. Thus fashion retailers need to excel at all aspects of their business – from 82
products, services and channels to environment (Retail weeks, 2014).
Social and technology 1. Internet and technologies have stimulated the changes of business. Those consumer demands have led to an unprecedented level of innovation in the sector, focused on digital solutions and product innovation to consumer needs (Nielsen, 2014).
2. Today, social media surrounds people, and social media is driving a new type of social interaction, conversation and trading. Social media allows users to exchange ideas, participate in events and communicate borderless (ITU NEWS, 2010).
3. Customers’ behavior has changed, as social media has taking place on their social surrounding, consumers are using advices from friends and family over social media (Retail weeks, 2014).
4. Fashion companies use social networks to inspire peer pressure, peer competition and brand communities for more sustainable behaviour (the guardian, 2013).
5. Social media has become an important stage for cross-cultural communication to reach global communities more and more practicable. Global social media helps international brands gain cultural awareness and reduce cultural differences so that brands can reach different countries (insight, 2013).
Environmental 1. The ethical fashion is growing significantly in recent years. The majority of fashion consumers are willing to go without self-interest to buy ethical-made products. Thereby, more and more firms and organizations are developing their ethical strategies to gain interests from consumers. Ethical fashion has typical features such as green fashion and fair trade. The basis of ethical fashion production is by providing fair working conditions and standards to workers, sourcing the organic material for clothes to minimize the environmental impacts and establishing a sustainable business model in the factories’ region (Joerjens, 2006).
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Environmental 2. The fast fashion and just-in-time production currently dominate the fashion industry and lead the fashion trends. This in order has stimulated impact for consumers to buy more than they need which could causes overconsumption. Over the last few years, fashion industry has realized that fast fashion could harm the environment and raise the ethical problems (Pookulangara and Shephard, 2013).
3. Due to the awareness of eco-fashion and sustainability, designers should know the entire clothing cycle in terms of waste reduction. Wearable technology may be able to reduce waste and become more sustainability. For example, most direct approach is embedding solar panel in clothing or accessories. The luxe Diffus solar-powered handbags combines elegance, embroidering techniques, and the use of photovoltaic cells in a unique garment able to generate enough energy to power a cell phone (eco fashion world, 2012). Also, advanced material made wearable technology can reduce the rate of washing, and it can increase the lifespan of garment (ecouterre, 2010).
Legal 1. The race of Intellectual property (IP) in wearable technology has begun. IP could ensure companies remain market leader, competitive advantage and protect their invention from plagiarizing. The first patent litigation is now started in the US, as Adidas takes issue with Under Armour over its MapMyFitness app. Google is also acquiring and developing patent right, in 2013 Google has awarded 2000 patents in the US (WIPO magazine, 2014).
2. Due to wearable technologies are proliferating quickly, IP rights are important weapon for companies. To protect and claim IP rights, it should be considered from inside and outside such as patents, trademarks and copyright etc., each component, skills, methods, functionality, design and appearance are all crucial for companies. Also, companies should consider expedited IP filings as well as varied scopes of IP protection available in different territorialities and under different treaties (Lexology, 2015).
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References Bof., 2013. Wearable Technology Market Set to Explode, Could Reach $50 Billion, Says Credit Suisse [Online]. Bof. Available at: http://www.businessoffashion.com/articles/fashion-tech/wearable-technology-market-set-toexplode-could-reach-50-billion-says-credit-suisse [Accessed 06 July 2015]. Ecouterre, 2010. Is wearable technology hype or hope? [Online]. Ecouterre. available at: http://www. ecouterre.com/is-wearable-technology-hype-or-hope/ [Accessed 06 July 2015]. eco fashion world, 2012. Wearable technology & pro sustainability [online]. eco fashion world. Available at: http://www.ecofashionworld.com/Industry-News/Wearable-Technology-Pro-Sustainability.html [Accessed 08 July 2015]. Fashion Times, 2015. Obama Announces Competition For New Textile Manufacturing Innovation [online]. Fashion times. Available at: http://www.fashiontimes.com/articles/19374/20150318/obama-announcescompetition-new-textile-manufacturing-innovation.htm [Accessed 03 July 2015]. Gov.uk, 2015. Business funding: £210,000 for innovation in wearable tech [Online]. Gov.uk. Available at: https://www.gov.uk/government/news/business-funding-210000-for-digital-innovation-in-wearable-technologies [Accessed 03 July 2015]. ITU NEWS, 2010. The rise of social networking [online]. ITU news. Available at: http://www.itu.int/ net/itunews/ issues/2010/06/35.aspx [Accessed 08 July 2015]. Joerjens, 2006. Ethical fashion: myth or future trend? [online]. Available at: http://www.emeraldinsight.com/ doi/pdfpl us/10.1108/13612020610679321 [Accessed on 10 July 2015]. Lexology, 2015. Intellectual property law and wearable Technologies [online]. Available at: http://www. lexology.com/library/detail.aspx?g=5672b366-fcb7-4606-98f2-e5a3d2d558ec [Accessed 07 July 2015]. Money morning, 2014. Stocks to Buy: Investing in Wearable Technology from the Inside Out [Online]. Money Morning. Available at: http://moneymorning.com/2014/03/11/stocks-buy-investing-wearable-technology-inside/ [Accessed 06 July 2015] Nielsen, 2014. E-commerce: It’s an evolution not a revolution [online]. Nielsen. Available at: http://www.nielsen. com/us/en/insights/news/2014/ e-commerce-its-an-evolution-not-a-revolution.html [Accessed on 10 July 2015]. Retail weeks., 2014. Fashion retail report 2014 - The future of fashion retailing in a digital age [Online]. Retail weeks. Available at: http://www.landsecuritiesretail.com/media/18900/fashion-insight-report-final.pdf [Accessed 06 July 2015]. The guardian, 2013. Technology is crucial to driving changes in consumer behaviour [online]. The guardian. Available at: http://www.theguardian.com/sustainable-business/technology-crucial-driving-change-consumerbehaviour [Accessed 05 July 2015]. WIPO magazine, 2014. The Brave New World of Wearable Technology: What Implications for IP? [Online]. Wipo magazine. Available at: http://www.wipo.int/wipo_magazine/en/2014/03/article_0002.html [Accessed 07 July 2015].
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Appendix2-Questionnaire
Do you own wearable technology in the past 6 months
If yes, do you still using it right now?
Do you consider (still) getting one in the future?
Do you consider yourself as early adopter or follower of wearable technology?
Gen Z
Gen Y
Gen X
Yes
20%
25%
15%
No
80%
75%
85%
Yes
30%
40%
33.3%
No
70%
60%
66.7%
Yes
80%
81.7%
72.5%
No
20%
18.3%
27.5%
Early adopter
16%
21.6%
12.5%
Follower
64%
63.4%
57.5%
Late follower
20%
15%
30%
18%
35.4%
42.5%
76%
51.6%
32.5%
6%
13%
25%
Convenience
18%
13.40%
22.5%
Comfort
6%
15%
17.5%
usefulness
22%
33.30%
45%
New technolgoy What is the major external reason will drive you to purchase peer-influencing wearable technology such as Smartwatch, fitness-band and Sustainabilty and functional clothing. eco-frirendly
What86is the major internal reason that will keep you using wearable technology?
No
20%
18.3%
27.5%
Early adopter
16%
21.6%
12.5%
Follower
64%
63.4%
57.5%
Late follower
20%
15%
30%
18%
35.4%
42.5%
76%
51.6%
32.5%
6%Z Gen
13%Y Gen
25%X Gen
Convenience Yes Comfort No
18% 20% 6% 80%
13.40% 25% 15% 75%
22.5% 15% 17.5% 85%
usefulness Yes Aesthetic No
22% 30% 54% 70%
33.30% 40% 38.30% 60%
45% 33.3% 15% 66.7%
4% 80% 24% 20% 72%
11.6% 81.7% 51.7% 18.3% 36.7%
37.5% 72.5% 42.5% 27.5% 20%
16%
21.6%
12.5%
60% 64%
53.3% 63.4%
25% 57.5%
Late follower TV Commercial
20% 4%
15% 15%
30% 20%
Social Group New technolgoy What is the major external reason Magazine and will drive you to purchase News paper peer-influencing wearable technology such as Smartwatch, fitness-band and Yes and Sustainabilty Are functional you willingclothing. to receive eco-frirendly information from wearable deivices? No Convenience
22% 18%
11.7% 35.4%
15% 42.5%
14%
32%
40%
76% 86%
51.6% 85%
32.5% 70%
6%
13%
25%
14% 18%
15% 13.40%
30% 22.5%
Comfort
6%
15%
17.5%
usefulness
22%
33.30%
45%
Aesthetic
54%
38.30%
15%
Do you consider yourself as early adopter or follower of wearable technology?
New technolgoy What is the major external reason will drive you to purchase peer-influencing wearable technology such as Smartwatch, fitness-band and Sustainabilty and functional clothing. eco-frirendly
Do you own wearable technology What is the6 major in the past monthsinternal reason that will keep you using wearable technology? If yes, do you still using it right now?
Healthcare Yes DoWhat you is consider (still) getting one your purpose of using Sport in thetechnology? future? wearable No Entertainment and information Early adopter Online (Social Do you consider yourself as early Blog and Follower adopter or follower of wearable media, Website.) technology? . Where do you receive information of wearable technology?
What is the major internal reason that will keep you using wearable technology?
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Gannt Chart May Starting date of the week Literature review Secondary research Writing Draft Primary research Data collecting and analysis Correcting Draft Discussion Finalising Hand in
88
4
11
18
25
1
June 8
July 15
22
3
6
Auguest 13
20
3
10
17
31
89
90
91
92