Excitement is building in the IT retail markets around two areas: the Internet of Things, and Wearables. In both these areas, there are vanguard products already available on the market today that indicate a huge potential for sales.
Wearables are dividing into two categories, “single-function” and “smart” devices. The “single-function” typically will be the mass products, as they can be cheap and do one job well. The “smart” devices such as Apple Watch and Samsung Gear S are the high end multi-function devices, and are creating new markets for IT retail products by crossing over into the luxury goods category. With the right branding, these have the potential for huge sales coupled with good margins.
With the Internet of Things, the possibilities for IT retail are also substantial because each solution – almost by definition – requires a multiplicity of single integrated devices. Instead of buying one sensor to control multiple legacy devices, if we take lighting as an example, products such as Philips Hue have light bulbs with integrated controllers where the consumer is obliged to buy multiple units. Start thinking other functions just in the home such as central heating, and the possibilities for expansion of IT in a retail environment are becoming larger by the day.
Of course, predictions have been made in the past, but ultimately all depends on manufacturers not only exciting the imagination of the consumer and getting them to swipe their credit cards, but also hitting the right price point.