Tuesday, October 14, 2014

Smart bottles


Personal tracking devices are fast catching up with the consumers, whether be it those smart pods attached to your body to determine the calorie intake, or the wrist, or arm bands that traces out how much exercise you have got. In this promising segment, a particular set of devices which monitor liquid intake is fast emerging. Many Startups are vying for this segment like Vessyl, Jomi smart water bottle Sleeve, the Hug, Ilumi and Blufit to name a few. Some of the initial prototypes have varying features and the companies seems to have priced them accordingly.

Features
The basic feature in the segment which all companies seem to target is to measure the water intake or in effect the water hydration level of the drinker. An iphone and an Android App to show the hydration levels is also another points-of-parity feature.
Vessyl is probably the most advanced of the lot, this product determines which liquid is poured into it and also gives the calorie consumptions of the same. Thus, if you are drinking too much coffee then the Vessyl can flag you down before it is too late. Vessyl can detect upto 40 liquids in the segment. And probably stands out with this additional feature.

Market Opportunity
Fitness tracker segment has boomed to a 100-120 million dollar industry in the US, gaining majorly over the last two year with only three companies (FitBit, Jawbone and Nike) claiming almost all of the industry Share. These activity trackers are configured to access the amount of exercise done by the user. Docter’s have been professing about proper liquid intake for quite some time now but the idea to exploit this has caught on with the industry only recently. The big players have not yet jumped in for now, but there are some rumors that Apple is trying out a Health based platform which will enable integration of many such tracker devices with the smartphone in a seamless way.
None of the Liquid intake trackers are in the market and it make take another 6 months before you see some of them, thus there is a decent opportunity but significant risk as well since it is an untested market. Also, hydration is not an immediate need felt by most consumers, it make take a while for this product segment to catch up. Fitness freaks will probably be the early adopters and rolling out a marketing campaign in Gyms and health centers may work well. Again for the companies to grow they would need to invest more in advertising to educate the customers.  
On the onset, the market segment may generate only a few million dollars in revenue.

 Competition
At the base level, four of the five companies that I have looked at have similar offerings. They determine the amount of liquid consumed and analyze it and display the findings on the phone. With no significant differentiation, the competition may turn out to be tough with the focus being mainly on the ease of use, design,  accuracy and price.
Vessyl has an additional differentiation with its capability to determine the liquid which is pored into it. This information will be useful in several health related activities, such as caffeine monitoring, apart from determining the hydration levels. This capability may soon get replicated by the other companies as well but as of now Vessyl has an advantage in the industry segment.

Pricing
Vessyl is priced at a pre-order rate of 99$ and the rest of the products are in the range of 50-60$. So most of the players are trying to price at the same level without looking to undercut. Cheap Chinese imitations may soon follow atleast at the base level if some head way is made by the current players.

Design
The image shows the different products, a flashy and sleek design which gives out a brand impression of health consciousness may work out for now.


Finally, hydration based health products are potentially testing the markets as of now, whether the time has come for such products or whether it will remain a small niche with the early adopters remains to be seen.