Sports Tech unit one!Keep’s Hong Kong listing is imminent

2022-07-22 0 By

Sports big business 2823, welcome the attention leading sports industry information platform article | grove big business reporters late February 25, Fried king of online Revelations news: Keep hearing has formally submitted to the Hong Kong stock exchange main board listing application, Goldman and cicc the IPO for its co-sponsors.After 7 years of establishment and 8 rounds of financing, Keep has gradually become the largest online fitness platform in China and the world. Its latest valuation has already exceeded 2 billion DOLLARS.The funds raised by Keep will be used for technology and product innovation, fitness content innovation and development, marketing and publicity.According to the report, Keep ranked first among fitness apps and smart fitness device brands, with 70.1 percent of Chinese fitness users and 64.2 percent of Chinese smart fitness device users aware of the Keep mobile app.Keep has the highest market share in China’s fitness crowd’s online fitness app market and smart fitness equipment market, with 44.7% and 38.8% respectively.In terms of the business model, the fitness solution developed by Keep covers the entire fitness life cycle of users.Keep, whose products mutually promote each other in a closed-loop business model, achieved revenue of 1.159 billion yuan in the first nine months of 2021, up 41.3 percent year-on-year, according to the prospectus.The company’s main revenue sources are: private brand fitness products, membership and paid classes, advertising and other.In terms of its own brand fitness products, Keep’s sales have grown rapidly from 390 million yuan in 2019 to 640 million yuan in 2020. In the first three quarters of 2021, Keep’s sales of fitness products have exceeded the annual performance in 2020.As of December 31, 2021, Keep is the largest yoga mat brand in China in terms of cumulative gross merchandise volume (14.9% market share), and ranked no.1 in spinning bike sales in China.In the view of big sports business, Keep has become a well-deserved “wild consumption” main position in the fitness field.Take double Eleven as an example, the number of Keep female buyers is 2.08 times that of men. Smart jump rope, yoga mat, spinning bike and other popular products all hit the pain points of women’s sports health, such as reducing fat and shaping.It is worth mentioning that Keep’s marathon MEDALS have also been a huge hit, with the sanrio family’s big-eear dog medal selling 400,000 units in a single race, attracting more potential athletes to download the App.”No one would say no to a big-eared dog,” and “Keep has the password of wealth.”The core factors of Keep Big-eared dog MEDALS are soft, cute and eye-catching, with high appearance level, which caters to the psychological and emotional needs of female consumers. In addition, the quality control of the MEDALS itself is very good. Users have released their love for Keep big-eared dogs on social media and it has spread, driving more female consumers to take part in the Keep campaign.Keep’s cartoon MEDALS allow users to optimize and iterate their sports experience in a content-centered way, which is one of Keep’s long-term strategic directions.More than 10,000 excerpted classes have been posted on the Keep platform, ranging from online exercises, short track speed skating lessons, online marathons, girl group dance and Tibetan dance.The popularity of home fitness has directly boosted Keep users.In 2021, Keep’s annual average monthly active users reached 34.4 million.The average number of monthly active users (MAUs) reached 41.75 million in the third quarter of 2021.In terms of user portraits, more than 70% of Keep users are born in the 1990s, with female users slightly more than male users. More than half of Keep users come from First-tier, new first-tier and second-tier cities in China.At the level of membership and paid courses, the monthly fee of Keep is 19 yuan, while the annual membership service includes 248 yuan of annual membership, and the joint membership launched in cooperation with iQiyi and other companies, the prices are 218 and 248 respectively.According to the prospectus, in the first three quarters of 2021, Keep earned 380 million yuan from members and online paid content, up 32.8% year on year.In 2021, the average monthly subscription membership increased more than four times from 800,000 in 2019 to 3.3 million, and the membership penetration rate increased from 3.5% to 9.5%.More and more young people show their “self-discipline” and “healthy” attitude towards life by becoming Keep members.In terms of advertising, Keep’s user data and platform tone have opened up space for increasing advertising. Advertisers from all walks of life, such as finance, beauty makeup, medical equipment, food and clothing, have opened their own accounts and themed activities on Keep, gaining sales and public praise.For example, since the launch of guanneng · Pet interactive fitness course, more than 1.7 million people have taken the courses and practices in the Keep website in the past three months.Keep’s revenue from advertising and other services reached 120 million yuan in 2019 and 130 million yuan in 2020, respectively, and 140 million yuan in the first three quarters of 2021.The steady stream of advertising orders for Keep’s pet interactive fitness class for pet food brands is a recognition of Keep’s iterative innovation ability. “Keep keeps everything” has become the consensus of the majority of brands.What is more valuable is that Keep has occupied the entrance of intelligent fitness through smart hardware such as wristbands, further developed gamification fitness content, accumulated user data, and demonstrated its ambition to become the first sports platform of the next generation and build a larger scene ecology.The AR skiing game launched by Keep during the Spring Festival uses camera AI recognition technology to allow users to experience the pleasure of skiing from the first perspective in the home fitness scene, which is more visual impact than Peloton’s game.Keep’s original game-like design of fitness content will attract more advertisers’ attention and launch in the future.Before the IPO, Wang Ning, founder and CEO of Keep, owns 18.61%, Peng Wei, co-founder, 2.26%, Liu Dong, co-founder, Wen Chunpeng, 1.18%, GGV GGV Capital, 16.14%, SoftBank, 10.39%.Other investors hold 50.25%.At present, the rate of overweight and obesity among Chinese adults has exceeded 50%, nearly 20% of children aged 6-17 and 10% of children under 6 years old. Overweight and obesity has become an important public health problem affecting people’s health.The root cause of the above situation is still the high threshold of sports and fitness and the insufficient effective supply of content and services, especially for women and students, the supply gap of inclusive sports content services is huge.In 2021, the penetration rate of online fitness people in China reached 45.5 percent, compared with 67.9 percent in the United States.As various key factors continue to drive the growth of The online fitness market in China, the penetration rate of the online fitness population in China is expected to reach 57.4% by 2026, according to a research report.With the penetration rate of online fitness reaching 57.4% in China, Keep has launched a “10,000 people Stretch Program” and a “Choice gym program” to help users slim down and boost their wallets.Around the “Ten thousand People expansion plan”, Keep plans to invest 10 billion traffic resources and 50 million cash rewards to support high-quality fitness content creators through IP-based operation, and at the same time expand the commercial development of copymasters, so as to greatly enhance the commercial influence of top creators while realizing profits.In 2021, the number of creators on the Keep platform increased by 32% year-on-year, and the frequency of PUGC content consumption exceeded 5.2 billion.These creators image sunshine health, demonstrative effect is remarkable.On the one hand, they are the girlfriends of ordinary users, encouraging them to participate in sports regularly and quantitatively.On the other hand, creators can also understand users’ deep demands through community interaction and produce content on demand.Statistics show that the Keep community has had 1.7 billion interactions in the past year.Keep believes that building a community around fitness is a powerful complement to the core fitness experience, making it more motivating, competitive and connected.Huang Jingjing, vice president of Keep, pointed out that Keep hopes to create more than 150 million fitness creators within a year, and to achieve 10,000 fitness professionals earning more than 10,000 yuan in a single platform within three years.As a result, it is conservatively estimated that Keep’s premium fitness content will reach at least 150 million people.The “Preferred Gym Program” has clarified Keep’s offline operation model.For THE C-end, Keep will adjust the price of group operation courses in offline stores from the previous 89-129 yuan per session to 49 yuan. Consumers pay per view without having to apply for a card, which saves decision-making cost and payment pressure.In addition, consumers will use and experience the Keep smart bracelet to record sports data during the class, opening the deep integration of offline and online sports life.Keep’s offline stores are oriented toward the B-end. Keep has comprehensively upgraded its cooperation with traditional gyms, created the Keep brand VI and class booking system for each store, and sent professional coach teams to enter and operate.It is reported that Keep and gyms are divided into steps.This helps gyms to reduce costs and increase efficiency, and broaden the channels for attracting customers and sources of income.Keep says it plans to open more than 100 offline stores a year.It is foreseeable that With its brand awareness and price advantage, Keep will greatly increase the market share of offline group gym and acquire a large amount of offline users’ exercise data, becoming the leading brand of offline gym in China.Common prosperity reflects the quality attribute of high level supply of material life, spiritual and cultural life and high quality consumption.As Keep says in its prospectus: “In this era, everyone should be able to enjoy fitness anytime, anywhere, and fitness should be integrated into their daily lives to give people constant strength.”As a worthy unicorn in the field of sports science and technology, Keep will further help the country to build a high-quality, fully covered and equalized public service system for national fitness, and promote the quality and sharing of sports services throughout the life cycle of people.Note: The pictures used in this article are from the Internet