In the recent past, the wearable industry experienced exponential growth which generated increased competition and also created new threats to many companies. Product differentiation is a competitive strategy which can yield profit to businesses if implemented in a proper way. The purpose of this paper is to explore and analyze the product differentiation strategy and the impact on a brand's revenue and market share in the wearable industry, with focus on the Finnish wearable brands in the Gulf region. This paper used the qualitative research method, where the primary sources of information were interviews, desk research, and small-scale test. The secondary sources used include online articles, books, reports and journals. The theoretical part discusses different theories that relate to the differentiation concept and the characteristics of the Gulf region. The research shows the product differentiation process consists of two stages: identification of the key value proposition and the execution of the product development. There is a positive relationship between the product differentiation and brand’s revenue or/and market share based on various brands studies. Additionally, the result summarized a proposed product differentiation strategy for Finnish brands in the Gulf region by three phases: understanding the consumer choice in wearable, Market segmentation, and providing a wide range of products with relevant features that appeal to customer value proposition.