In addition to the established vendors, original design manufacturers (ODMs) and semiconductor vendors in China are ready to take on the next generation of consumer. There are a growing number of local Chinese vendors that have launched fitness wrist bands, putting pressure on established players such as Fitbit and Jawbone. Although these vendors currently have a primarily local market focus they will eventually turn to international expansion.

"Products and offerings among Chinese vendors are similar to those of other vendors with a variety of form factors, operating systems, connectivity and sensor options," said Ms. McIntyre. "International expansion will start to accelerate in 2015 and in this context we expect several Chinese vendors to build on Android Wear in parallel to create more appeal. Certainly, they are faced with the same hurdles regarding design as all international vendors, but we also expect them to leverage one thing that has been to their constant advantage in the smartphone and tablet market: the cost advantage of the Chinese supply chain ecosystem. Chinese vendors might well be able to bring Android Wear based smartwatches to very affordable price points below $150 with decent designs and sensors — driving mass market adoption."

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