data driven parenting: digitization of mother and child care

Data Driven ParentingDigitization of Mother and Child Care

Data Driven Parenting: Digitization of Mother and Child Care | Copyright © 2015 Grail Research, a division of Integreon

Mother and Child Care | A Growing Segment

Over

210 million pregnancies

globally

Around

130 million newborns

globally

With over 210 million pregnancies and 130 million of newborns, and a market size of USD 80 Bn for pregnancy and birth related products, the mother and child care ecosystem is expected to

continue to grow and offer

new opportunities to sector participants.

This growth will be mainly

driven by rising child-related expenses, especially on education and healthcare.

Current

37%increase

In the Last Decade | 2003 - 2013

45%increase

36%increase

Average expenditure on a child in a middle income family(aged 0-17)

Child care and education expenses

Total expenses on a child aged 0-2 years

USD 80 billion

Pregnancy & birth related personal

products


Growth of the mother and child care market will also be facilitated by

technology innovations in consumer devices (especially wearables and

apps) and advancement in healthcare technology systems –which are expected to enable faster access of patient data and a unified view of mother and child.

Adjoining Market Segments Facilitating Growth | 2015–17

Consumer Technology Enhancements Healthcare IT Advancements

39%increase

9.4 billion CONNECTED DEVICES

45%increase

59.9 million WEARABLE DEVICES to be shipped

17%increase

USD 1.1 trillion+Internet of Things

(IOT) MARKET

26%increase

7%increase

42%increase

USD 36.9 billionBIG DATA MARKET

USD 56.7 billion HEALTHCARE IT MARKET

USD 7.4 billionmobile HEALTH MARKET


KeyDrivers

1

2

3

5

6

4

Receive Postpartum

support

Manage anxiety and

fear

Remote Monitoring

Ensure baby care

and comfort

Facilitate conception

Provide economic child care

The mother and child care market has seen a

proliferation of apps, technology products and wearable devices, driven by a number of

needs that parents have across the continuum of care, from conception to child care and education

Drivers for Digitization in the Mother and Child Care Ecosystem

1. PREGNANCY RELATED APPS | 47% of mobile data plan subscribers who use at least one health-related app on their smartphones or tablets

use an app related to pregnancy. “I downloaded Glow, …linked me to studies on the average time it takes couples to conceive. It kept me

going. I tracked and we tried”. — Woman at advanced maternal age, Research Participant

2. FIRST TIME PARENTS | “Fear, especially of something undefined, is pretty much the best sales motivator there is when it comes to baby

products”. “When I got to see my kid was breathing, it was a relief to my anxiety” — First time mom, Research Participant

3. REMOTE MONITORING FOR WORKING MOTHERS | 51% of professional and technical positions in the US are held by women, who are facing

rising child care costs. The day care for children in the US is available at high costs, with nanny costing about USD 700 per week, leading to

high acceptance of baby monitors and wearables tech. “Its good to have a device to see if my baby is fine, even when am at work”. —

Professional Woman,

Research Participant

4. SAFETY AND BABY MONITORING | 75% of the parents of the approximately 4 million babies born annually in the US purchase a baby

monitor or tracker. “Using baby monitor gives us peace of mind. It syncs up with my smartphone, making it very easier for us to keep an eye

on our baby from another room”. — New parents

5. MATERNAL SUPPORT AND CARE | “…the emphasis during this time is generally on the baby, but the mother is also recovering…but resources

for women during postpartum are lacking”. — Chester Street Publishing, Inc.

6. COST OR CARE | The cost of child care has risen by 70% in the last 30 years in the US. During 2008–12, the sale of the US companies offering

child day care increased by an average of 6–7%.

Mother Care


Apps and wearable sensors are helpingwomen track their body vitals, physical activity and stress levels — from conception to post-birth—enabling better health monitoring and reducing the chances of complications

Digitization of Mother Care Ecosystem

Mainly apps that focus on information on menstrual cycle, period, ovulation and fertility management

1. Health and nutrition2. Fertility signs3. Pregnancy test4. Mood tracking5. Fertility alarm

Availability of several apps and wearables for pregnant women

Focus on fetal development and on mother and fetal vital signs monitoring

Smart maternity wearables that also shield the child in the womb from radiation

1. Health and nutrition2. Kick counter3. Weight management4. Fatal heart monitoring5. Pregnancy exercises

Apps address common post-birth issues like breast-feeding problems, weight management and postpartum depression support

1. Health and nutrition2. Lactation3. Weight management4. Meditation support5. Depression

management

Conception Pregnancy Post Birth

1 2 3Limited tele-health services on reproductive health and conceiving a child

Tele-health services for high-risk pregnancy consultations are emerging, but are still limited

Lack of education on post-delivery family planning and tele-health services during and post pregnancy

met unmet met unmet met unmet

Barriers


The growing need of

pregnancy support and care has led to the launch of innovative apps and wearable devices to help

expectant mothers.

However, new mothers have only limited offerings available which are often addressing very specific needs.

Popular Companies and their Products in the Ecosystem

Conception Pregnancy Post Birth

An app with ovulation calculator and calendar

Tracks critical health data such as moods, cervical fluid, basal body temperature, sleep, lifestyle and blood pressure

Helps in predicting irregular periods and provides support

Analyses and reports the user’s most fertile period, health summaries and statistics

More than 50,000 downloads on Google Play

Price: Free

Price: USD 149

A wearable device, designed like a pendant that monitors fitness activity, sleep quality, stress levels and tracks menstrual cycles of women

Provides personalized insights for healthier living through LEAF app

Raised USD 4.5 MM (As of May 2014) through VC investors in seed round

A smartwatch that records baby’s motions, movements and daily kicks

Syncs data to the user’s smartphone with mobile app

Shares personalized alerts, reminders and recommendations through its proprietary app

Raised ~USD 18,526 through joint crowd-funding campaign

Price: USD 126

An app and a fetal heart rate monitoring system to help in listening, recording, monitoring, and sharing baby’s heartbeat

Its FDA-approved heart rate monitor uses ultrasound technology and connects with the app

Also, offers ultrasound gel and t-shirts Sales of USD 20,000 in the initial six months

at store and website (as of Oct 2013)

Price: USD 139

An app with meditation programs for new and expecting parents

Provides support to mothers through guided meditation program to avoid mental illnesses such as depression

It is designed by experienced mental health professionals

More than 5,000 downloads on Google Play

Price: Free

Child Care


Digitization of Child Care Ecosystem | 1/21/2)

Measures heart beats, temperature, movements and sends SMS and email alerts to smart devices

Continuously senses, records and sends alerts of a child’s temperature to mobile device

Monitors heart rate, skin temperature, breathing, motion and sleep position of a child, and notifies via mobile devices

Tracks baby’s temperature and medication, and provides time-stamped record using free apps

Locates the position of the child and

adjusts distance and alarm levels using a

mobile device

Monitors temperature, quantity,

and time of baby’s feeding and sends

alert to mobile devices using Bluetooth

Monitors irregularity in baby’s urine using a

non-toxic test strip panel that is scanned

by a mobile app

Bounces up and down and sways from side-to-side to

provide comfort to the seated baby using smart mobile devices

Measures baby’s weight with precision before and after feeding, to monitor milk consumptionThe child care ecosystem is

witnessing an explosion of smart technology wearables for tracking the child development and nutrition, for providing comfort and for ensuring child safety, by allowing every vital to be accessible on a smart device.

Baby Scale

PacifierRocking

Chair

BabyMonitor

Diapers

Thermometer Baby Bottle Holder

Smart Clothing

Child Movement

Tracker

Development

Nutrition

Comfort

Safety


Digitization of Child Care Ecosystem | 2/21/2)

The child care market has seen the emergence of

several small players,often VC-funded, resulting

in the digitization of all devices across the ecosystem.

However, players still need to address parental concerns, ensure the right level of personalization, and resolve potential regulatory barriers. More importantly, these devices, although ‘smart’ are often still disconnected and

unable to provide a unified view of the child health

Nutrition Comfort SafetyDevelopment and

Growth

Focus Areas

Body Temperature

Heart Beat

Weight Management

Sleep Patterns

Milk Temperature

Feeding Quality

Feeding Time Check

Seating Comfort

Urine Irregularity Check

Room Environment

Child Movement

Car Safety

Companies

Exmovere, MonBaby, Owlet, TempTraq, Fever Smart, Kinsa

Withings, Sleevely Pixie Scientific, MamaRoo, BlueMasetro

Kiband, Child Angel

met unmet met unmet met unmet met unmet

Barriers: Lack of regulatory oversight or clinically proven results by third-party agencies on areas of emotional, mental and physical impact Perceived and associated risk of cancer for signal/senor waves and choking on devices. Lack of devices that lead to disease prevention or resolve issues, such as indigestion, or prevent deaths due to SIDS Lack of features such as personalization to child’s behavior and personality traits, or coaching features to help them learn faster


Pricing of Smart Wearable Tech in Child Care Ecosystem

Smart wearables across the child care ecosystem

command significantly higher prices and potentially high margins compared to standard products.

Standard Smart Price Increase

Trumpette Owlet 5,679%

Veridian Temptraq 221%

Built NY Sleevely 282%

Fisher-Price 4moms 362%

Motorola Mimo 150%

Avent BlueMaestro 2,537%

Pampers Pixie Scientific 941%

Salter Withings 216%


Popular Companies and their Products in the Ecosystem

Several new smart devices

are being launched by

niche players to help parents track their baby’s health, addressing parents’ needs for better child care.

1Temp TraqPrice: $25

Measures, Monitors, and records baby’s temperature 24x7, and also sends alerts to smart devices using Bluetooth

Charts body temperature, which can be shared with the doctor using its proprietary

2Sleevely

Price: $29

Monitors temperature and the quantity of baby’s milk Transmits data to iOS-enabled smart devices using Bluetooth Shares personalized alerts, reminders, and recommendation through its

proprietary app Charts baby’s growth with others in the same age group Attained ~14% of its goal of USD 85,000 for its first round of production

3mamaRooPrice: $240

An infant seat that bounces and moves in 5 unique motions (Car ride, Kangaroo, Tree Swing, Rock-a-Bye, Wave) and works with Bluetooth

Controls motion and sound using the 4moms app Raised USD 60 MM in funding, as of Sep 2014

4Sprouting

Price: $299

Monitors baby's heart rate, skin temperature, motion, and sleep Tracks room temperature and humidity levels Compatible with Bluetooth, integrates with a mobile app that sends out alerts

when the baby is awake and/or needs attention Raised USD 6.6 MM in funding, as of Jan 2015

5BlueMaestro

Price: $36

Transmits data using Bluetooth and free app Compares and analyzes the temperature data in graphs Records and administrates medication data which can be shared with doctors Allows parents to locate the pacifier using its proximity sensor


Opportunity assessment of

segments within the digital health ecosystem

Market dynamics and company

profiling across the wide ecosystem

CI and Social media

analysis to identify new trend and unmet

needs

Customer segmentation and purchase journey of

wearable tech

Market entry strategy support |

brand equity and tracking

Grail Research Offerings and Support in the Digital Health Segment

© 2015 Grail Research, a division of Integreon

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This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

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data driven parenting: digitization of mother and child care

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