Who We Are
We are a growing and result-oriented platform that provides users with a comprehensive fitness solution to help them achieve their fitness goals. We generated a majority of our revenue from the sales of our self-branded fitness products during the Track Record Period. We offer extensive and professional fitness content with AI-assisted personalized curriculums, encompassing interactive live streaming classes and recorded fitness courses, that dynamically adjust course content and workout intensity based on users’ athletic levels, fitness goals, daily workout patterns and diet. Our content is complemented by a variety of smart fitness devices, fitness gear, apparel and food, which enables us to seamlessly connect the physical and digital realms to create an immersive one-stop fitness experience.
Our Keep brand is highly influential and has become synonymous with passion for fitness. Keep is the largest fitness platform in China in terms of MAUs, and number of workout sessions completed by users in 2022. 77.5% of fitness population in China knew of the Keep mobile app. We have made efforts to make fitness more accessible to a larger population, encourage tens of millions to become our users, or Keepers, and inspire them to develop a sense of belonging in our community. In 2019, 2020, 2021 and 2022, our platform recorded average MAUs of 21.8 million, 29.7 million, 34.4 million and 36.4 million, respectively. In 2022, our MAUs collectively recorded approximately 2.1 billion workout sessions on our platform. Supported by our compelling offerings and powerful brand, we have been able to quickly expand our user base and solidify our market leading position.
Our Market Opportunity
China has a large yet under-developed and under-served fitness market, previously relying on a traditional model of offline gyms, which typically results in lower access and participation compared to online fitness. The traditional fitness model sets high entry barriers for beginners, as offline gyms and fitness classes are often costly, have time and location limitations, deliver inconsistent quality and user experience, and are less accessible in lower- tier cities in China. We believe that both the size of the fitness population and the annual spending of the fitness population in China present significant growth potential. According to the CIC Report, China had the world’s largest fitness population of 374.0 million in 2022, which is expected to reach 463.5 million by 2027. At the same time, the average annual spending of the fitness population in 2022 was RMB2,518.3 per person in China, which was much lower than that of RMB16,425.2 in the United States, demonstrating significant growth potential.
With our online fitness solution, we have effectively addressed major pain points in China’s fitness market and fundamentally redefined people’s relationship with fitness. Our platform not only enables people to exercise anytime and anywhere, but also creates a personalized, interactive and immersive fitness experience that enables people to train with greater efficiency at a lower cost. These value propositions make us popular among fitness population, and attract many newcomers to our community.
Our Comprehensive Fitness Solution
We have developed a comprehensive fitness solution that covers users’ entire fitness life cycle, from planning fitness goals and accessing fitness courses, to choosing fitness gear and healthy food and tracking measurements such as weight and heart rate.
Online Fitness Content. Our content mainly includes recorded courses and live streaming classes, both of which are developed in-house or created by third parties such as influencers and other fitness content providers. Leveraging AI algorithms, we also provide personalized fitness curriculums that dynamically adjust course content and workout intensity based on users’ athletic level, fitness goals, daily workout patterns and diet, thereby optimizing the training results for our users. We constantly refine our content based on user insights that enable us to create new courses with better efficiency and effect. We also offer our users the opportunity to engage with more customized premium content by subscribing to our membership services. Our platform has experienced a steady increase in our membership penetration rate, from 3.5% in 2019 to 6.4% in 2020, 9.5% in 2021, and further increased to 10.0% in 2022, demonstrating the success of our membership solution.
We require reputable certifications and recognitions in relevant fitness fields for our influencers. We had fitness influencers and third-party content providers of 30, 248, 321 and 642 that published fitness content in 2019, 2020, 2021 and 2022, respectively. We recorded content related fees paid to fitness influencers and third- party content providers of RMB1.3 million, RMB3.0 million, RMB9.0 million and RMB17.7 million in 2019, 2020, 2021 and 2022, respectively. We closely review and evaluate the fitness content produced by fitness influencers and licensed from third-party content providers to ensure its quality before publishing it on our platform. Our operating team supports the production of content by influencers and other content providers and our content development team monitors and screens the content submitted to our platform. We review and ensure that the content does not violate fitness principals and is safe for users to follow and practice. For more details related to how we require reputable certifications and recognitions such as various certificates for fitness training, running and yoga and how we prevent inappropriate behaviors of influencers, see “Business—Professional Course Development,” and “Business—Interactive Live Streaming Classes.”
Smart Fitness Devices. Enabled by an array of innovative features such as AI, automation and social interaction, our smart fitness devices, including smart bikes, wristbands, scales, and treadmills, increase the value of our platform to users by working synergistically with our online fitness content. These devices track and analyze fitness activities, so that our platform is able to automatically adjust workout difficulty level and content recommendations to improve the overall fitness experience. In addition, our smart fitness devices can connect with one another to capture fitness activities across multiple application scenarios, which results in more comprehensive user profiles that we may leverage to offer more relevant recommendations and dynamically adjust fitness curriculums to maximize results. For example:
‧Keep Bike. Our Keep Bike supports dynamic and automatic adjustment of resistance levels in real time based on users’ athletic levels and course targets. When combined with live streaming classes, it simulates a group cycling environment with thematic lighting and music. We were ranked the first in smart bikes as of December 31, 2022 in China in terms of the accumulative GMV of bikes sold.
‧Keep Wristband. Our Keep Wristband monitors various fitness measurements such as heart rate, sleep, and blood oxygen level. Through analyzing these information, our platform can adjust AI-assisted personalized curriculums. Our Keep Wristband also enables users to interact with instructors and among themselves during live streaming classes.
‧Keep Smart Skipping Rope. Our Keep Smart Skipping Rope is linked to the Keep app to record the number of jumps, heart rate and calories burned. Users can track progress to build workout routines and improve fitness performance.
Complementary Fitness Products. Leveraging the insights accumulated through growing user base and positive feedback loop, we identified users’ unmet needs in different scenarios. To that end, we offer a wide range of fitness products under the Keep brand that are designed with quality and style, thereby complementing our online fitness content and smart fitness devices, elevating the overall fitness experience for our users, and promoting our brand and spirit. Our fitness products include yoga mats, dumbbells, gym wear, protective gear, and other fitness accessories. We are China’s largest yoga mat brand in terms of GMV in 2022, with a 18.3% market share. We also offer a broad range of fitness food products, such as meal replacements, fitness snacks, and nutrition supplements, providing a comprehensive solution combining workout and diet to users. Based on users’ fitness goals, our platform is able to recommend customized diet plans, with detailed information such as suggested total calorie intake, macronutrient analysis and other health tips.
Our three business lines complement one another to create a synergistic business model that covers users’ entire fitness lifecycle. By motivating users to complete regular workout sessions, we improve user engagement and guide them on their fitness journey using our comprehensive content offerings. This enables us to convert these users into subscribing members, while also driving sales of our self-branded fitness products, as users tend to purchase smart fitness devices and complementary fitness products, such as fitness gear, apparel and food, to enhance their performance and experience during workouts. At the same time, our self-branded products redirect traffic to our online fitness content. Our fitness product customer subscribing rate was 41.3%, 41.2%, 51.8% and 45.1% in 2019, 2020, 2021 and 2022, respectively. Offline fitness centers also provide opportunities for users to participate in fitness courses and try out our fitness devices, further enhancing engagement with our content and products. In addition, technology empowers the integration of different segments, enables the efficient and reliable operation of our platform, and ultimately drives the effectiveness of our business model. As a result, we have become the one-stop destination providing a comprehensive fitness solution for fitness population in China.
International Operation
In June 2022, we strategically ceased the operation of two international mobile apps, Keep Trainer and Keep Yoga, as a part of our business strategy to streamline and consolidate our offerings to provide better user experience as our Keep app offers similar content and features previously offered by Keep Trainer and Keep Yoga. Keep Trainer and Keep Yoga contributed immaterial MAU historically. The revenue contribution of our overseas operations was also immaterial during the Track Record Period. We currently do not have concrete and detailed expansion plan regarding our business and operations overseas.
Source: Keep Inc. (03650) Prospectus (IPO Date : 2023/06/30) |