What are the ambitions of Keep from fitness to general?

Estimated read time 9 min read

The nine years of KEEP, in the first year after listing, is undergoing a comprehensive change.

On March 27, Keep held a new version of Keep 8.0 with the theme of “Everywhere” in Beijing. At the same time, it announced the update of the company’s mission vision, further serving the national fitness, and stimulating the national movement.The new version of Keep has added multiple sports categories such as balls, hiking, rock climbing, and opening more external hardware connections to improve data records and analysis functions.At the same time, social functions are also more complete, upgrading clubs, medals, and master courses.

One day later, Keep released the fourth quarter of 2023 and the annual financial report.The most highlight of these is the sharp narrowing of 55.7% to 295 million yuan; at the same time, the gross profit margin increased from 40.7% in 2022 to 45%, an increase of 4.3 percentage points.

Keep released version 8.0 new app 丨 From: Keep

New products and the latest financial reports show that Keep has two levels of changes:

  1. User and scene level,From the family living room fitness scene to a wider range of outdoor sports scenes, the user base covers is more generalized.
  2. At the level of commercialization,From the beginning of self -operated consumer goods revenue, shift to more attention to the increase in the income of subscriptions and value -added services, and brought about the improvement of gross profit margin and decrease in losses.

Today, with the disappearance of the mobile Internet dividend, and the environment of the capital market is more tense, Internet companies are facing greater growth and profit pressure.Keep has also changed several times in the past, and compared with the past, this adjustment is very different.

When it was established in 2015, KEEP’s initial positioning was to provide a fitness tool APP for free training courses, and then gradually extended to offline, and launched light food, fitness supplies, fitness equipment and other sports consumer products around the user’s “eating and wearing practice” fitness scene.

In 2020, realizing that the core users are mainly at home, and the increasing indoor fitness needs of the epidemic, Keep announced this year that it will focus on family sports scenes and provide users with one -stop sports solutions.

With the end of the epidemic, outdoor sports have grown rapidly in the past two years, and outdoor sports such as flying disks, cross -country running, hiking, skiing, etc. have become popular on social media.Keep is also trying to launch more outdoor sports gameplay. The most successful is the medal gameplay that combines the challenge of outdoor ride running, which is not only popular among young people, but also brings more commercial income to Keep.

Keep is not satisfied with the past positioning.At the press conference on March 27, Zhao Qian, senior vice president of Keep, announced a new mission and vision.

  • Mission: Stimulate every exercise to make the world full of vitality
  • Vision: Become a free sports field for 1 billion athletes

KEEP’s previous mission was to “let the world move”, which emphasized help to help fitness users.The new mission emphasizes “inspire every exercise”,It means that Keep will expand the comprehensive expansion of crowd, category, scenes, functions and attributes on the basis of the past.

  • Popularity expansion: From the past main positioning of fitness people (especially fitness Xiaobai), expand to a wider range of sports people.
  • Category expansion: From the past based on indoor courses and outdoor riding, it expands against anti -movement such as balls, climbing, skiing, swimming and other anti -movement.
  • Scenario expansion: On the basis of past home scenes, strengthen the exploration of outdoor scenes.
  • Function expansion: Optimize data records and analysis functions, and open more third -party hardware access.
  • Attribute expansion: Launch a series of social attributes such as fitness sharing templates, sports route sharing, sports clubs, etc., starting from the daily needs of ordinary fitness people such as training, finding fellows, and drying fitness photos to strengthen community attributes.

Specifically, in the newly released version of the 8.0 APP, the category covered by Keep has increased to more than 60 categories, including indoor fitness projects such as courses, boxing, Pilate, and ball, swimming, flying, skiing, rock climbing, etc.Outdoor or needed professional venues.At the same time, Keep also supports more than 50 connections of external devices. In the past, Keep, which focused on one -stop fitness services, mainly provided its own intelligent products.

In addition, Keep has greatly strengthened the outdoor route function.More than 100,000 running routes have been launched in more than 300 cities across the country.And launched a series of special running campaign records, including climbing, walking indoor, walking, hiking, etc.

KEEP has also been updated in terms of gameplay and content.In terms of curriculum, the current KEEP has about 5,000 official courses, of which 15% are AI courses. At the meeting, Peng Wei, co -founder of Keep, said that he will continue to increase this ratio.More IP cooperation and launching richer gameplay.

Obviously, Keep wants to open up the space and commercialization of user growth and commercialization by expanding the field of pan -movement.

But Keep expansion is facing a series of challenges.First of all, for users, most traditional movements have their own circles and models. It is not easy for Keep to kill in. It is necessary to invest a considerable energy in operation to change the user’s habit.Today’s strategy will set a direction for Keep, but if you want to truly complete the mission upgrade, Keep also needs to continue to improve product power.

In addition, entering the field of pan -movement means that Keep needs to introduce more traditional sports partners, such as various casino, climbing halls, swimming pools, and sports experts of various sports projects.The interests of the project are also intricate, and it is not easy to develop these categories.

But Keep also has its own advantagesEssenceOn the one hand, today is a good time. With the end of the epidemic, the demand for outdoor sports is increasing. Many newcomers are poured into these traditional sports projects. This is a rare opportunity for Keep to expand new sports categories.

On the other hand, cutting in from user operations is also a part of Keep.In the nine years of entrepreneurship, the attempts of KEEP Top Circle have also been conducted several times. The main problem in the past is always wanting to cut in from the industry.The best.

If such an attempt can further open the commercialization of Keep, which may be more important for Keep than getting out of the living room.

Affected by macro factors such as interest rate hikes last year, the capital market was tight, and Keep was also affected. Its latest valuation was approximately HK $ 2.134 billion, which was a low point in the past.Today, the capital market values the profitability of enterprises more. Keep adjusts its business strategy, which is conducive to boosting investors’ confidence.

Keep is essentially a community that provides fitness content and services. In the past, a problem of Keep in commercialization was:The proportion of “sports peripherals” such as selling fitness supplies and consumables is too high, and the commercialization of content and services in its own advantages needs to be improved.

The former is a typical “bitter business” -ly, although the camp is very high, the gross profit margin is low (usually only 10-20%, and the individual categories can reach 30-50%), and the supply chain management and logistics management involved are very very very good.Complicated; in contrast, the latter’s business models such as advertising, subscriptions, value-added services, etc. not only have high gross profit margins (usually can reach 50%-80%), but also have more controllable management and investment.

Keep has realized this problem, and has been trying to improve the commercialization of content and services in the past few years.For example, the launch of better custom curriculum promotes the subscription rate, and at the same time, the joint expert launches a separate high -level courses, and the IP of the joint young people to launch sports medals. These attempts have achieved results.

According to the financial report, the gross profit margin of 2023 increased from 40.7% of the previous year to 45%, an increase of 4.3 percentage points, and the gross profit margin increased for four consecutive years.And promoted the sharp narrowing of losses, from 30.2% in 2022 to 13.8%.

The increase in membership subscription and value -added service revenue is a direct reason for KEEP to increase gross profit margin and reduce losses.According to the financial report, the revenue of KEEP membership subscriptions and value -added services in 2023 reached 996 million yuan, an increase of 6 percentage points in the previous year.

And if Keep walks out of the living room and the platform strategy of entering the pan -sports field is successful, Keep has the opportunity to open a larger commercial space.

The first is more sports courses, which can form greater differentiation with previous free fitness courses, especially some outdoor sports groups have high payment capabilities.On the one hand, you have the opportunity to increase the existing member penetration rate; on the other hand, you can also launch more customized members or curriculum services for the vertical class.For example, last year, KEEP launched a live broadcast senior member of the dynamic bicycle real -sense riding and live class classes.

In addition, the KEEP medals have developed rapidly in the past two years, but the problems in the past were relatively single categories, mainly riding.After the introduction of more sports categories, Keep also has the opportunity to enrich the medal product system, bringing more users and income growth to this product.

Finally, there is another detail at this conference that Keep is trying to become more open.For example, the new vision no longer emphasizes becoming a “smart sports operator”, but a sports field for 1 billionth; for example, it has access to more external devices, and the pursuit of providing integrated services in the past, smart devices connected to the platformIt is mainly self -employed brands.

Keep has a monthly living user of 30 million, but the latest quarterly advertising revenue is only 196 million yuan. The user’s advertising value still has room for continuing to excavate.And more open and entering more vertical movements means that Keep’s advertising business has more growth opportunities.

With entering the field of pan -movement, Keep can no longer make dozens of full -link products with different sports categories. Hardware and content open cooperation are an inevitable choice. This lighter change may make KEEP have longer long -term.development of.

*Source of the head map: Visual China

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