Keep Fitness’s business model test

This is a big market that will reach 3 trillion in 2025, and it is not surprising to attract people from all walks of life. Keep is undoubtedly one of the best.

Since its launch in February 2015, the number of Keep users who have been working as fitness apps has exceeded 160 million and the monthly activity has exceeded 30 million. It has created a speed of accumulating users in the Internet industry: it takes about 8 days to get 1 million users and 39 days to get 10 million.

What makes the peers more envious is that in February 2015, the company successfully completed the angel round financing after one week of online launch; completed the A round of financing in 25 days, completed the A+ round of financing in 60 days, and completed the $32 million C round of financing in 15 months. In the next 3 months, he won the strategic investment of Tencent C+. In July 2018, Keep announced the completion of the $127 million D round of financing, led by Goldman Sachs, Tencent, GGV Jiyuan Capital and other old shareholders. The highest amount of financing in the domestic Internet fitness field to date indicates that Keep’s newly built virtual coaching model has been recognized by investors and has also established its position as an industry leader.

In May 2016, more than a year after the launch of the line in 2015, it surpassed 咕咚 to become the second month of the month. In early 2018, it surpassed the Yueteng circle to become the first in the month of the month. How did Keep stand out and be in the same fitness app? What is the main test for Keep, which has achieved the largest market share?

Positioning for fitness “Little White”

Compared to the content of well-known forums, Keep’s content is not professional, and until now, Keep’s content is still slightly fragmented. However, Keep’s user positioning is precisely for the “small white” users who do not go to the gym, not those who have the habit of going to the gym. The basic needs of these users are simple: dressing is thin, undressing and fleshing, but also facing the four major pain points of traditional fitness: time, place, money, people.

For the fitness pain points of this part of the user, Keep provides users with a mobile Internet app to guide the user to move according to the video at any time and any place. Moreover, the free strategy allows users to get rid of the high cost of private education, and it has become a magic weapon for Keep to attract users.

This is also the “70-point strategy” that Keep founder Wang Ning learned during his internship in the question bank. The progress of 0-70 points can be quickly solved through standard solutions, and the upgrade after 70 points requires customized and refined products. The cost is much higher.

The direction of fitness is divided into three main categories: fat loss, muscle gain, and exercise. Among the three categories, fat reduction is the easiest. As long as the sustained negative growth of calorie intake can achieve more obvious results within a few months, the latter points and technical actions need to be considered more complicated. However, contrary to the increasing order of professional difficulty, the audience of the three are reduced in size.

For the mainstream people in fitness, the goal is nothing more than fat loss, plasticity, and muscle gain. When they open keep, they are marked with such things as “eliminating a small belly”, “working people losing fat”, and “hip muscles”. “The training course of the name is rich and colorful, and the first feeling is that “this app is suitable for me, it can help me to reduce fat, plasticity, and muscle gain.”

In the beginning of Keep’s 2012, “the fitness awareness has just gotten up, we began to focus on more popular beginners, not professional fitness enthusiasts.” Wang Ning bluntly, fitness is boring, usually no It is difficult for a partner, relatives and friends to stay with me. “Keep is a solution to the traditional fitness problem. You can follow Keep at any time and anywhere.” Keep wants to create an online free-sports field. I hope all users can complete all sports training here and know more about the same interests. People.

Therefore, the first step for Keep to seize the user is to provide a “fool” tutorial, so that many “small white” lack of understanding of fitness knowledge, the fitness threshold seems to be very low, it is not difficult to complete some basic actions, so Follow the fitness courses offered by the various courses offered.

Secondly, because work, study, or all sorts of things are full of schedules, many people have difficulty using full, large time to exercise, and keep is just the main fragmentation fitness, for example, the user is now finished, in The lounge is idle, then you can take out your mobile phone, open one of the training courses, and follow the movements. It is this kind of fitness that uses fragmentation time that hits the needs of users.

Building a motion data center

For the rapid development of Keep, Wang Ning attributed it to the high-quality PGC (Professional Generated Content) and product experience on the platform, and emphasized that Keep is a content-centric sports technology platform. In the past four years, the Keep team has been digging into the needs of more users, deepening the product experience, from the initial basic fitness to yoga, outdoor running, cycling, mountaineering and other sports, while targeting the target user base. The actual level, focusing on high-attraction, easy-to-use courses such as fat loss, freehand strength, mermaid line (abdominal tear), core training (plate support).

Wang Ning introduced that although Keep has already deposited more than 1,200 sets of fitness content, it continues to develop more content and enrich the sports category. At the same time, Keep has an active vertical sports community that precipitates more people and produces more diverse content.

In addition to providing PGC content and product experience, Keep also launched star, grassroots V live. This is an important measure for achieving content charges. After all, the sale of courses through “big coffee” and “net red” has proved to be an effective method for Internet companies that have acquired, answered, and conducted content.

At present, Keep introduces value-added user-paid advanced fitness courses, including Li Xian HIIT fat burning challenge, Zou Shiming boxing fat burning, Zou Shiming fighting jump rope. Offline fitness V, the live broadcast of the vest line; safe running slimming live broadcast.

Keep also focused on building a sports data center that records the full lifecycle of each user and currently has more than 2 billion pieces of data. In order to let users stick to and like to exercise on Keep, Keep provides users with a series of data recording, sharing and evaluation functions. It uses data to let users keep track of their own sports achievements, satisfying a certain degree of psychological superiority and social display. Demand, cultivate customer stickiness.

Try to build your own brand e-commerce

Although keep registered users have broken 160 million, “dead traffic” is worthless, and only successful conversion traffic will bring benefits to the enterprise.

From high-quality fitness content communities, to the physical e-commerce model, to the offline fitness space brand, and today’s personalized AI virtual instructors, Keep is basically exploring the path of effective traffic conversion in a new direction every year, although it has not yet been Forming a sustainable hematopoietic sector, but it is undeniable that Keep has jumped out of a fitness tool itself, constantly expanding its boundaries.

In April 2016, the 3.0 version released by Keep launched the e-commerce module. Some lightweight sports goods—such as yoga mats, elastic bands, sports t-shirts, dumbbell fitness equipment—was sold by Keep in a self-operated form. .

Keep’s core product is the “Action Course”, which is free at the beginning. After a period of user habit accumulation, it is very difficult to charge. Products such as physical goods (clothes, yoga mats), knowledge (reporting the principle of reducing fat loss), and services (one-on-one training), etc., are of course for users. If they are free, users may feel that the business has an attempt. Based on this logic, keep extends its product dimension from price-sensitive “action courses” to other price-insensitive categories—goods, knowledge, and services.

Keep inevitably encounters the common problem of tool-based application test water e-commerce – how to improve user conversion rate? The prevailing principle of measuring the operating efficiency of e-commerce companies is mainly to look at the inventory turnover rate, the average sales of individual products, and the gross profit ratio. Although Keep’s consumer positioning is a young white-collar user in first- and second-tier cities, the awareness of Keep is high, but the category of Keep e-commerce sales is not fast-moving, and the repeat purchase rate is low. This is why Keep’s order size has not been able to break through.

Obviously, the e-commerce business’s instinct is difficult to meet the company’s development needs, so it changed the entire Chinese fitness industry pattern, and even affected the majority of people’s fitness model Keep, expanding the strategic focus to a more “heavy” line.

Layout O2O fitness space

In March 2018, on the top floor of Beijing Huamao Shopping Center, Keep opened the first offline gym, Keepland. Keep calls it “sports space” rather than “gym.” Also on the market with the fitness space is a smart sports treadmill named KeepKit.

If you want to exercise in the Keepland fitness space, you need to make an appointment in the Keep app. The general course is 79 yuan. Specifically, the classroom is divided into multiple areas, each with a TV screen in front of it, playing action guide videos and countdowns—just like the ones users see in the Keep app. Following the video played on the TV, the user completes the action in area 1, and moves to the 2nd, 3rd, etc., until the end of the course. The coach will give guidance next to him. More often, his role is to cheer everyone up.

It seems that Keep moves the online experience to the physical space. The user is no longer exercising on the yoga mat in the living room alone, but with more than 20 other users and coaches.

actually not. In the company’s O2O service chain, Keepland shoulders Keep’s mission to connect online and offline communities. In fact, at the Keepland course, the coach collects the data generated by the user during the whole exercise (including heart rate and calorie consumption) through the wristband device. On the big screen in front of the student, the course can be presented and output. Motion Data – This is the “in tandem of experience” between online and offline that Keep wants to achieve.

Peng Yuehui, the CTO of Keep, revealed that the current full-service rate of the first Keepland store is 95%. In 2019, the number of Keepland stores in Beijing will expand to ten.

Wang Ning’s ultimate vision is that Keepland will become the city’s infrastructure. “Opening around you, it serves you like a post office, convenience store, and bank.” Wang Ning said, Keep “is not a four-letter letter”. The company’s goal is – “a lifestyle that truly integrates with young people.”

Virtual coach, or as a killer

Half a year after the online layout, in October 2018, Keep began to lay out the AI ​​business, and the combination of artificial intelligence and fitness became its future business focus. The core foundation of this strategy advancement is the massive user data that Keep has accumulated, including “user’s sociological attributes, athletic behavior data, social data and scene data.”

For more than three years, Keep has digitized the user’s movements through the “App+Intelligent Hardware + Offline Space” service model. Today, Keep wants to make this data more valuable, use this data to provide users with exclusive virtual fitness coaching services, and provide personalized, full-process fitness coaching. The so-called “virtual coach” is not only a “coach” role to the Internet, but a combination of content, data, algorithms and scenarios.

Every Keep user enters the platform and enters a three-stage standardized training of learning/practice/testing, and can enjoy virtual coaching services in every aspect. The problem that the virtual coach needs to solve is similar to that of the offline coach, that is, tailoring the fitness plan according to the user’s specific situation and urging the user to complete. Keep will develop a personalized training and diet plan based on each user’s portrait, and collect the user’s training data through the intelligent hardware terminal, giving action guidance during the training process; Keep will also make a reasonable assessment of the user’s athletic ability. Guide each other to adopt more challenging sports programs, even interact with users and motivate users to stay on exercise.

Peng Yuehui revealed that the technical system of AI is provided free of charge by the platform, but the virtual coaching service has its charging scene. In the future, Keep will integrate virtual coaches into some business scenarios and hardware products to charge users, but the specific charging method has not been fully determined.

This may be the core to support Keep’s future commercial interests. From a business perspective, the value of an offline coach with a user unit time is 300 to 500 yuan in Beijing, but if the machine or algorithm can serve thousands of people, the value generated per unit time will undoubtedly multiply. .

According to the analysis, the virtual coaching service will first attract people who are sensitive to private education costs among Keep users. In the offline gym mode, the real-time private teacher can only teach a limited number of students, and Keep’s “virtual coach” has no time limit, “the cost will be much lower”. Of course, “virtual coaches may only have 70% of the best sports coaches, but users only need to spend 1/10 of the money.” Peng Yuehui said.

However, the important basis for the “virtual instructor” to gain user recognition is the motion track and effect evaluation function. The data algorithm supporting this function is the task that the Keep team needs to continuously improve and optimize. The threshold of motion trajectory evaluation is higher than the teaching itself. To accomplish this task, scientific data marking must be done. “Data markers are difficult because they don’t understand technology when they understand sports anatomy,” Peng Yuehui said.

Need to cross the flow barrier

So far, Keep’s business that generates cash flow is still advertising and e-commerce, but its performance has been unsatisfactory. Whether the “virtual coaching” business can greatly enhance its traffic realizing ability and become a “cash cow” to support the company’s development, depends on whether Keep can use AI technology to improve data algorithms as soon as possible, and provide customers with effective and personalized fitness solutions. Program.

As Wang Ning said, “We want to evolve, we want to change, we want to change. With Keep as the origin, we want to build a sports platform and sports ecology driven by technology and content. This is our next three to five years. What you want to do. Keep this APP may be a digital sports technology platform in the future. We hope to continue to generate more content and services based on this platform, users, social relationships, etc., hope to surround this platform. More empowerment to more applications.”

At the same time, Keep has also entered the world. Its overseas products have been online for less than one year. It has been translated into 18 languages ​​and distributed to more than 180 countries around the world. In 7 months, overseas users have exceeded 10 million.

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