Ouraring Shifts Focus: Targeting Women, Moving Away From Fitness Enthusiasts

The Evolving Landscape of Smart Ring Technology

Dorothy Kilroy, Oura’s chief commercial officer, notes that prominent figures like Mark Zuckerberg, Jack Dorsey, and Prince Harry are users of the company’s smart ring. However, during a recent conference in Toronto, she revealed a surprising trend: the fastest-growing segment of Oura’s user base is comprised of women in their early twenties.

Oura's Position in a Competitive Market

This observation underscores a pivotal moment for Oura, the 13-year-old Finnish health tech firm that pioneered the smart ring category and established it as a billion-dollar industry. Currently, the company faces increasing competition from brands such as Samsung’s Galaxy Ring, Ultrahuman, and Whoop, each aiming to gain market share.

The central question isn’t Oura’s current dominance – holding 80% of the smart ring market – but its ability to sustain this leadership as the wearables market diversifies. Furthermore, it’s being considered whether Oura requires universal demographic appeal to maintain success.

The Power of Word-of-Mouth Growth

Kilroy, with eight years of experience at Airbnb, recognizes a similar growth pattern. She suggests that 90% of Airbnb’s revenue is driven by positive customer experiences, and at Oura, it’s fueled by users sharing their positive sleep score results.

This organic growth is particularly evident among “corporate athletes” – high-performing professionals prioritizing health optimization for sustained performance. These individuals are recognizing the importance of prioritizing well-being as a long-term career strategy, focusing on sleep, exercise, and metabolic health.

Demographic Shifts and Retention Rates

This demographic, primarily millennials and Gen Xers with disposable income, has been instrumental in Oura’s success. The company reported a doubling of revenue last year and anticipates a similar increase this year. Notably, Oura boasts a 12-month retention rate in the high 80s, significantly exceeding the industry average of the low 30s, indicating consistent user engagement.

However, a shift is occurring. Younger consumers, particularly men focused on fitness gains, are increasingly drawn to competitors like Whoop, which has become popular among athletes and gym enthusiasts.

Integration of Wearable Data and Clinical Biomarkers

Recent competitive moves have intensified. Whoop’s announcement of a new blood-testing service, closely followed by Oura’s partnership with Quest Diagnostics for blood testing, highlights a shared vision: integrating wearable data with clinical biomarkers. Kilroy emphasized the value Oura provides to its members when discussing the timing of these announcements.

The Appeal of Subscription Models

Ultrahuman presents a different approach, offering a similar upfront cost to Oura but without the $5.99 monthly subscription fee. While visually comparable, reviews generally favor Oura’s design and user experience. However, the “no subscription” model appeals to younger consumers experiencing subscription fatigue.

Kilroy dismisses concerns about losing customers to price-sensitive buyers, citing Oura’s strong retention rates and the value users derive from the product.

Focus on Core Users and Emerging Trends

Kilroy emphasizes that Oura isn’t necessarily striving to capture every demographic. The company’s strategy centers on retaining its core user base while attracting new segments organically. The growing interest from young women is a key trend, linked to a broader focus on mental and physical well-being.

“We see that they’re drinking less alcohol,” Kilroy stated. “They’re really focused on their mental health.”

Expanding Feature Sets for Women’s Health

This momentum has prompted Oura to enhance features related to cycle tracking and fertility insights. The company claims a 97% accuracy in detecting ovulation due to its precise temperature sensing capabilities. Recent additions include perimenopause features and expanded pregnancy support.

A Health Platform, Not Just a Fitness Tracker

Oura is prioritizing its growing female user base over pursuing young male athletes focused on metrics like VO2 max. The company positions itself as a comprehensive health platform, emphasizing preventative health, burnout prevention, early disease detection, and overall wellness.

Drawing from her experience at Airbnb, Kilroy stresses the importance of focusing on product development and features.

A Larger Market for Holistic Wellness

This strategy is based on the belief that the market for individuals seeking to optimize sleep, manage stress, and improve overall well-being is larger than the market for athletes obsessing over training data.

Oura’s expanding retail presence – now in 4,000 stores – and its network of 1,000 API partners support this approach. The company also employs over 30 PhDs and MDs and collaborates with leading research institutions like UCSF, UC Berkeley, and Stanford, bolstering its clinical validation.

Expanding into Biomarker Monitoring

Blood testing is one avenue for expansion. Oura’s partnership with Dexcom, a maker of continuous glucose monitors, allows users to integrate glucose data with their ring metrics. Kilroy’s personal nine-month trial revealed the significant impact of stress on glucose levels.

Navigating Public Relations Challenges

Oura faced scrutiny this summer regarding its ties to the Department of Defense, including a previously canceled $96 million contract. Privacy advocates raised concerns about surveillance and data sharing, given the sensitive nature of biometric data and defense contracts.

Kilroy firmly stated that Oura does not share member data with the U.S. government, clarifying that data shared with the DoD is for research purposes on military personnel.

The Importance of Trust and Data Privacy

Kilroy acknowledged the challenges of correcting misinformation and emphasized the paramount importance of trust when a device collects sensitive health data. Oura’s retention rates demonstrate user trust, while the recent controversy underscored its fragility.

Strategic Focus and Future Outlook

While Oura may not capture the entire Gen Z market, its focus on preventative health and overall well-being positions it for continued success. Unlike competitors targeting specific niches, Oura is betting on a broader appeal to individuals prioritizing holistic health.

Correction: This story originally reported that Oura once struck a $96 million contract with the DoD; that particular contract was subsequently canceled. We regret the error.