Trying out the video games console for the primary time at his house in San Francisco, the then 29-year-old was once a great deal inspired by way of the motion-sensor era that allowed customers to keep watch over their on-screen avatar with frame actions. Wii made exercising a fun and positive activity that the whole family could do together, that was very striking for me, says Mr. Park, now 41.
I thought, how can I capture this magic and make it portable? His concept was once to create a wearable health tracker, and in April 2007 he and pal Eric Friedman based an organization referred to as Fitbit. Today the San Francisco-based trade sells greater than 15 million gadgets 12 months wristbands and watches that report a consumer’s center fee, the choice of steps they’ve walked, and different workout statistics. Yet the company has confronted tricky occasions in recent times. Demand for health trackers has cooled, concurrently Fitbit has confronted a larger festival from the likes of the cell phone giants Apple and Samsung, that have introduced out their very own sensible watches.
As an end result, ultimate 12 months Fitbit noticed its annual gross sales fall by way of nearly a 3rd to $ 1.6bn, whilst losses greater than doubled to $277m. Mr Park, who has the manager government identify, is assured that he can flip issues round, as the corporate expands into the healthcare sector. Mr. Park advanced his interest in the era as a young person rising up in Cleveland, Ohio, the place he realized to code the use of programming languages like Basic and Pascal. He says he cherished taking computer systems aside and hanging them back in combination once more. I gravitated to computers because I knew I liked what I was seeing, Mr. Park says.
After he completed high school he said some extent in medication at Harvard University, however quickly dropped out to paintings at funding financial institution Morgan Stanley. However, finance did not attraction both, so he left and began his first tech start-up within the overdue 1990s, at the peak of the then dotcom increase. The trade, which specialized in e-commerce transactions, flopped in 2001, and so Mr. Park began every other company with Eric Friedman, who’s as of late Fitbit’s leader era officer. Their project, Wind-Up Labs, created equipment for virtual picture modifying and picture sharing. It briefly attracted the eye of CNET Networks, a Californian era media staff, which obtained it for an undisclosed sum in 2005.
That acquisition gave me my first real look at how a big technology firm operates, says Mr. Park, who joined CNET for 2 years after the deal. It was a formative experience for me because I learned how executives manage teams, how to lead people. After his Nintendo Wii epiphany, Mr. Park surrenders CNET and got to work with Mr. Friedman on Fitbit. With just a small workforce at the back of them, Mr. Park needed to spend “many days and nights” programming the company’s tool platform by way of himself. He and Mr. Friedman additionally toured Asian factories to be informed about a production of their monitoring gadgets.
Eric and I were software engineers, not operations people, so we needed to find out how to build hardware in a short span of time, says Mr. Park. In the mid-2000s, health fanatics had been the use of low-end pedometers to trace their steps, however not anything actually virtual had come to the marketplace. However, when Fitbit introduced it crammed an opening available in the market and grew speedy. The luck of the corporate was once helped by way of the advance of its app, which enabled customers to attach and compete with every different online. We saw how the social aspect of Fitbit motivated people to exercise, says Mr. Park. We found that every friend you add to your Fitbit community increases your steps-per-day by 700.
Fitbit grew speedy and it indexed at the inventory marketplace to a lot of hype on 17 June 2015. Its stocks reached a top of just about $50 in July 2015, however they’re now buying and selling across the $five mark. Ramon Llamas, an era analyst at analysis staff IDC, says that Fitbit must amplify what it gives its consumers with a purpose to higher compete. Fitbit collects immense amounts of data on how people get fit, but what else can you do with that data? he says. If I was a Fitbit user, I’d want insights and advice that can help me. But they aren’t providing that. Mr. Park says he’s assured of Fitbit’s proceeding position within the health monitoring sector. No single company will win the space of using digital tech to help people get motivated to be healthy, he says. There will be multiple winners and we’re fine with that scenario.
The company does desire a win in 2018 despite the fact that, and in March it unveiled a brand new smartwatch referred to as Versa. A simplified, more economical model of earlier fashions, it has earned reward from device reviewers, and would possibly lend a hand Fitbit get well some misplaced marketplace proportion. At the similar time, it’s proceeding to amplify into the healthcare business. This 12 months Fitbit invested $6m in Sano, an organization creating a coin-sized glucose observe that customers would put on their pores and skin like a patch. It may be running with biotech company Dexcom on tactics to let Fitbit customers monitor their glucose ranges on their smartwatches. We want to grow our business beyond wearables, Mr. Park says. In five years from now, I want people to see us as a consumer electronics company but also as a digital health company that provides both devices and software to help people meet fitness goals or manage health conditions.