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@TheNexBand www.thenexband.com
New Business Models for Wearables
Background
@TheNexBand www.thenexband.com
BUSINESS MODEL
Traditional Physical Goods
Mobile Applications
Virtual Goods
NET MARGINS
<10% Net Margins
30-35% Net Margins
High margins but <10% recover investment
THE HOLY GRAIL - HIGH MARGIN, RECURRING REVENUE
What we looked for in terms of business models
@TheNexBand www.thenexband.com
The beauty of Razor Blade and Subscription Models
@TheNexBand www.thenexband.com
@TheNexBand www.thenexband.com
What were some of the innovative business models?
PAY PER DOWNLOAD
IN-APPADVERTISING
SUBSCRIPTION MODELS FREEMIUM
@TheNexBand www.thenexband.com
Gaming
$3 BILLION AND HUNDREDS OF MILLIONS TOYS SOLD
@TheNexBand www.thenexband.com
Jewelry
REVENUES OF $2.4 BILLION IN 2015
@TheNexBand www.thenexband.com
Collectibility — The one consistent mechanic throughout time
@TheNexBand www.thenexband.com
But how does this translate in the wearable world?
@TheNexBand www.thenexband.com
Wearables have high abandonment rates after just a few months of use
No recurring revenues
Locked into single function
Most engaged demo is ignoredGen Z is largely ignored and represents 26% (67M) of the populationLow Margins.
The Problem
@TheNexBand www.thenexband.com
Underserved Hyper Social Market
Gen-Z Underserved
@TheNexBand www.thenexband.com
Modular, hackable, socially designed for Gen Z
Five touch-sensitive programmable buttons called Mods™
High margin, recurring revenue
@TheNexBand www.thenexband.com
The Opportunity — Nex
Nex is Engaging
Mods are a living piece of hardware that can be shared and associated with content and permissions
Videos, games, photos, music — The “mix tape” for the new generation
Customize the appearance of your Nex
Share content and hacks
Full control over privacy
PLAY MUSIC
CHATGAMING
CONTROL IOT
SHARE CONTENT
@TheNexBand www.thenexband.com
Nex is Hackable
Create an infinite amount of “Hacks” in seconds
Mods act as five shortcut buttons on your wrist
Partnered with IFTTT
You don’t need to be a developer
You don’t need to rely on 3rd party apps
@TheNexBand www.thenexband.com
Nex is Gaming
CHARACTER WEAPON POWER-UP
Like Skylanders on your wrist — but alive
in the cloud
@TheNexBand www.thenexband.com
The “Razor blade” Business Model
Recurring High Margins
Highly Licensable
Flexible API/SDK
Naturally Viral and Collectible
Nex - $129
Mods - $12.99
@TheNexBand www.thenexband.com
Avoid the race to the bottom…
@TheNexBand www.thenexband.com
The Nex Bandthenexband.com The world’s first modular smart band
Adam Adelman Founder [email protected]
$10 OFF WITH COUPON CODE
AWE2016
