But this pace could slow as Beijing moves to tighten regulations out of concern that smartwatches could hurt children’s daily lives and learning.
In mid-August, a fifth-grade student was browsing smartwatches in the XTC section of a store in Guangzhou, Guangdong province. “Most of my classmates have smartwatches and about 20 of them bought XTC,” she said.
XTC, owned by Guangdong-based BBK Electronics, started selling smartwatches in 2015. Most go for between 598 yuan and 1,998 yuan (US$86 and US$288).
In addition to regular functions such as phone, camera and payment, the top-end Z8 model enables users to monitor body temperature and heart rate, and even identify which floor of a building the user is on.
According to Chinese think tank Huajing Industry Research Institute, 29.9 million smartwatches for children were sold in China in 2020 – almost double the 15 million in 2016. BBK sold the most in 2020 and now commands a market share of more than 30%, followed by Huawei Technologies at 20% and Beijing Qi Bao Technology at 10%.
BBK’s XTC brand boasts a high market share thanks to its Weiliao messaging app, which lets users register as friends, exchange messages, and create groups just by placing smartwatches next to each other.
“I exchange messages with my friends using Weiliao all the time,” said the fifth-grade student.
Chinese online media has noticed the growing popularity of the app, with some sources saying that “Weiliao could threaten the position of WeChat, China’s biggest messaging app.”
But the government still has a say and is strengthening regulations in wake of the rapid spread of smartwatches.
The standing committee of the People’s Congress in the southern Chinese province of Fujian on July 28 passed a regulation that prohibits students in kindergartens, elementary schools and junior high schools from bringing smartphones and smartwatches to class. The provision took effect on Sept 1.
According to Chinese media, the country’s ministry of education last year issued a notice that in principle forbids children from bringing smartphones to schools. But Fujian became the first province to explicitly prohibit children from bringing smartwatches and other electronic devices.
The province stipulates that children can bring smartwatches to schools with prior government approval, but the gadgets will be managed by schools.
“Using smartphones and other devices at schools can have a serious effect on the normal learning and the healthy development of the mind and body of children,” a provincial official said.
“As the children’s smartwatch market grows, security concerns grow over information leaks and health issues,” said the Huajing Industry Research Institute.
If similar regulations are adopted by other provinces, XTC and other leading smartwatch makers could see a downturn in sales and make it hard for smaller brands to survive.