A comprehensive comparison of the competitive strength of the top five smart wearable ODM manufacturers shows that ZWear takes a strong lead.（The Title）
The phrase "suffering but happy" is very apt to describe the global smart wearable industry over the past few years.
On the one hand, Capacity of market continues to grow steadily. According to estimates from Chaodian Big DATA, the global shipment of smart wearable devices reached nearly 600 million units last year. The compound annual growth rate over the next three years is expected to be around 3.5%, and it is projected to reach 650 million units by 2028. This also indicates that there is still sufficient market space for both upstream and downstream players in the industry chain.
On the other hand, the competition within the industry is extremely fierce, and the reshuffling is accelerating. Besides the blatant price war, the forms of wearable terminals are rapidly expanding from smartwatches/fitness trackers and TWS headphones to new frontiers such as smart rings and smart glasses. Moreover, signs of market concentration are emerging, and some enterprises with insufficient technical, financial reserves, and manufacturing and delivery capabilities are gradually being eliminated.
As one of the most crucial links in the smart wearable device industry chain, ODM can effectively reduce costs in various aspects such as raw material procurement, advanced manufacturing, and logistics transportation through supply chain integration and scale effects, and comprehensively support downstream terminal brands in production, design, and R&D.
It is no exaggeration to say that the strength of ODM partners, to a certain extent, directly affects the brand landscape of the smart wearable market.
According to the research information from the smart wearable industry chain, currently, five major professional ODM manufacturers, namely ZWear, SMA, Linwear, Kingwear, and Zhouhaismart, are quite active, each having its own unique strategic layout. ChaoDian data analysis of several key elements of enterprise operation, including annual production capacity, shipment volume/market share, main customers, and market distribution, reveals that ZWear has a superior overall competitiveness. Its annual shipment volume has exceeded 10 million units, and its main customer base consists of wearable brands in Europe, America, and Southeast Asia. It also focuses on high-end sports quality and Southeast Asian cost-effective shipments.
01 Annual production capacity
Production capacity is a direct reflection of an ODM manufacturer's supply capacity to downstream customers and an important guarantee for delivery. Generally speaking, the higher the production capacity utilization rate, the more abundant the orders are.
As can be seen from the list, ZWear's annual production capacity has reached 15 million units, which is 25% to 90% higher than that of other competitors.
This is closely related to its diversified product layout.
According to the research of ChaoDian Data, ZWear has independently developed over a hundred wearable products, mainly including Bluetooth smartwatches, children's smartwatches, Bluetooth bracelets, 4G smartwatches, smart health watches; smart rings, Bluetooth TWS and other smart IoT categories, etc. Due to their novel designs and extremely high cost performance, their products currently cover over 100 countries and regions worldwide.
It is worth noting that ZWear's capacity utilization rate of nearly 80% is also among the leading in the industry, indicating that the company's daily orders and deliveries are at a relatively healthy level. In contrast, Linwear Innovation not only has a smaller production capacity but also a capacity utilization rate of less than 40%, and needs to further intensify its efforts to catch up.
02 Shipment Volume / Market Share
The shipment volume indicator is a comprehensive reflection of a company's product competitiveness, marketing capabilities, and resource control, among others. It is also a barometer of the company's revenue. In simple terms, the larger the shipment volume, the higher the corresponding market share will be.
According to the research information from the consumer electronics industry chain by ChaoDian Think Tank, ZWeara's annual shipment of smart wearables has reached 11.5 million units. In the current industry landscape where there are still numerous players, a double-digit market share not only helps the company join the top ODM camp but also fully demonstrates its product iteration and quality strength.
The annual shipment scale of smart wearable products reaching hundreds of millions has attracted a large number of brand players to enter the market. Taking smart watches as an example, there are five major camps including traditional watch enterprises, mobile phone enterprises, Internet enterprises, medical enterprises and 5G+IOT enterprises. The differences and subdivisions of terminal product functions are the main driving force for market growth and also provide more order opportunities for ODM manufacturers.
03 Major Customers
The quantity and quality of brand customers can indicate the "gold content" of an ODM's strength.
All five major ODM manufacturers of smart wearables have their own core customer resources, with a coverage that spans both domestic and international markets. Among them, ZWear's main clients include Titan, Boat, Noise, Techmade, and Fire-Bolt;SMA's main client is Haylou; Kingwear's main clients are Haylou and Transsion; Zhouhai's main clients are Xiaomi and Transsion; and Linwear's main clients are Huami and Titan.
It is obvious that due to similar product positioning and business models, there is a common overlap of customer groups among ODM manufacturers, which leads to direct competition for order resources and market share.
A smart wearable device manufacturer of a certain brand told ChaoDian Think Tank, "The reason for choosing multiple ODMs for cooperation is mainly to avoid supply risks in production and delivery. However, what we value most is cost control and quality management, as well as the comprehensive capabilities in UI design, multi-model ecosystem, and product update and iteration."
04 Market Distribution
Marked by the release of the first TWS earphones, AirPods, by Apple in 2016, a storm of smart wearables swept across the world and has been gaining momentum ever since. It has expanded from the ear economy to the wrist, finger and head economies.
Powerful Chinese manufacturing has firmly seized the opportunity of this era of consumer electronics. As of now, the shipment trajectories of the top five smart wearable ODM manufacturers have spread across the globe, especially establishing an absolute advantage in Asia, Africa and Latin America.
It must be pointed out that the product prices and profit margins in the European and American markets are higher, but the corresponding entry barriers are also higher. They have always been regarded as the touchstone for Chinese manufacturing enterprises. According to the information from ChaoDian Think Tank, the shipment volume of ZWear in Europe and America has exceeded 50%, which has become the key to the company's consecutive performance growth in recent years despite the adverse circumstances.
According to the development plan of ZWear, in addition to consolidating and expanding its leading position in the smartwatch and smart bracelet market, it will also rely on its strong overseas R&D and manufacturing capabilities for smart wearables, and leverage its stable global brand cooperation experience as a guarantee. It will respond to customer demands, further explore new product categories such as XR and smart rings, and continuously achieve double growth in shipments and revenue.
ZWear is a production-oriented enterprise specializing in smart wearable devices and a leading global provider of smart wearable product solutions. Its products cover smart watches, smart bracelets, smart rings, and other smart IoT categories. The company integrates design, research and development, production, and sales, and is committed to providing OEM and ODM services to global customers as a smart wearable integrated service provider.
ZWear has a complete overseas smart wearable product R&D and manufacturing capability, stable cooperation experience with global well-known brands, and can well understand market trends, provide a wide range of technological revolution solutions, and quickly and efficiently provide smart wearable products and solutions to a diverse customer base. Its good reputation and professional technical services have also earned the trust and support of customers from all over the world.