Fitbit (FIT - Free Report) recently rolled out Bitmoji clock feature in select smartwatches in collaboration with Snap, Inc. (SNAP - Free Report) with an aim to make fitness more fun and motivating.
Notably, Bitmoji is a brand of Bitstrips (acquired by Snap in March 2016), which lets one create their own comic strips using a personalized cartoon avatar of themselves.
Fitbit Ionic and Fitbit Versa smartwatch users can avail the Bitmoji clock face enhancement for free. Users only need to connect Bitmoji account by using Snapchat from the link on Fitbit App, to view their personalized Bitmojis.
Bitmojis will alter clock faces on a real-time basis in accordance to changing user activities through the day. When the smartwatch is connected to Bluetooth, alerts pertaining to weather and other reminders indicating status of fitness goals will also be displayed with the aid of Bitmojis.
Making Fitness Social Yet Personalized: A Key Takeaway
Fitbit is leaving no stone unturned to boost customer engagement and expand business by means of partnerships with popular brands.
With Bitmojis integration, the company aims to provide users with a virtual friend who engages and urges the individual to adopt a healthy lifestyle and be accountable for fitness goals.
The latest innovative update for its smartwatches is likely to entice millennial population, in particular, given their increasing allegiance to share the status of attaining individual healthcare goals, and keeping up with the “hashtag” fitness challenges.
Notably, per Fitbit research, users with five or more friends in the Fitbit community “take 819 more steps per day —that’s more than 12 extra miles a month.”
We believe these factors provide a boost to user engagement which favors adoption of Fitbit’s smartwatches supporting the feature, consequently bolstering the top line. This in turn is expected to aid the company improve its competitive position against peers including Apple (AAPL - Free Report) , Garmin (GRMN - Free Report) , among others.
Market Prospects Abound
The fitness tracker space is currently experiencing growing proliferation of wearables globally, due to comfort and ease that these products provide in tracking fitness. Notably, Fitbit sold a whopping 5.6 million wearable devices in the fourth quarter of 2018, increasing 3% year over year.
We believe Fitbit’s enhanced wearable offerings will help it to strengthen foothold in the global smartwatch market, which per Allied Market Research data, is likely to witness a CAGR of 16.2% between 2018 and 2025, and is anticipated to hit $31.1 billion by 2025.
The Fitbit-Snap partnership is a win-win situation for both the companies. Unlike other wearable players, Fitbit moved beyond healthcare alliances to add a bit of social media driven emoji color to its smartwatch, which is commendable.
Meanwhile, Snap is striving to expand the reach of Bitmoji by adding new capabilities to its Snap Kit platform and forming robust collaborations. In fact, PayPal owned mobile payment service, Venmo, is also expected to get Bitmoji support.
Currently, Fitbit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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