In a landscape shaped by relentless innovation, China’s leading online sports platform Keep has emerged as a vanguard by leveraging artificial intelligence (AI) to revolutionize the fitness market.
AI in Sports: Transforming Training and Fairness
The integration of AI across various industries has now extended its reach into sports, delivering substantial benefits. At the recent Paris Olympics, AI was employed in diverse scenarios such as scientific training, body analysis, and decision support. These technological advancements not only provided athletes with precise training guidance and health assessments, but also ensured better fairness in competitions.
As consumers’ awareness of health and fitness grows, companies like Samsung and Google are accelerating their smart-tech transitions. New releases such as smart rings and smartwatches are evidence of AI being utilized to enhance fitness and exercise regimes.
Emerging Trends in China’s Smart Fitness Market
China’s fitness and wellness industry is also witnessing a surge in intelligent transformation. The market is not only expanding, but becoming more specialized and personalized. Products and content that harness AI are now significant growth drivers. For instance, Keep’s business strategy involves intertwining online content with smart hardware, forming a comprehensive fitness service ecosystem. Impressively, over 90% of its revenues stem from this synergy, fueling diversified income streams and robust commercial growth.
Interestingly, in the first half of 2024, Keep’s revenue hit 1.037 billion yuan, marking a 5.4% year-on-year increase. The adjusted net loss narrowed by 28% to 160 million yuan, achieving a gross margin of 46%.
A detailed breakdown of Keep’s revenue reveals three core segments: proprietary fitness products, online memberships and paid content, and advertising and other revenue streams. The lion’s share of revenue arises almost equally from online content and smart hardware, underscoring the importance of both to Keep’s financial health.
- Proprietary fitness products: 501 million yuan, a 7.5% increase, making up 48.3%.
- Online memberships and paid content: 437 million yuan, accounting for 42.1%.
- Advertising and others: 99 million yuan, a significant 42.4% increase, comprising 9.5% of total revenue.
Collectively, the integration of online content and fitness products has driven Keep’s commercial value, establishing its core competitiveness.
Building an AIoT Ecosystem
Keep has continuously expanded its range from smart bikes and treadmills to wearables like smart bands and watches, extending its intelligent hardware portfolio. These devices interlink to form a complete AIoT (Artificial Intelligence of Things) ecosystem, offering a seamless user experience.
By enhancing the technological depth of devices and integrating them with the app, Keep provides intelligent exercise data and personalized fitness guidance. For instance, Keep’s smart bands sync with the app to offer diverse exercise experiences, including real-time heart rate monitoring and engaging workout programs. Analyzing user data, it crafts tailored exercise plans to improve user engagement and results.
AI-Driven Expansion in Both Indoor and Outdoor Fitness
Focusing mainly on a young, urban user base, Keep has identified a market segment characterized by fast-paced lives and high stress. These consumers value holistic, cost-effective fitness solutions that save time and money.
By marrying AI with exercise science, Keep has enhanced its online content, providing scientific and efficient workout experiences tailored to individual needs. The combination of smart hardware, wearables, and app-based services opens up vast new opportunities.
The combination of software and hardware intelligence is underpinned by Keep’s deep domain expertise and technological innovations in the fitness sector.
Accelerating Smart Fitness Amidst Fierce Competition
Global tech giants like Apple, Samsung, and Google have also made strides in AI-powered fitness devices recently, exemplified by smartwatches with advanced health tracking capabilities. In this dynamic arena, Keep’s application of “AI + Fitness” is becoming increasingly prominent.
Keep’s strength lies in its personalized, data-driven services. Through precise evaluations of users’ exercise capacity and physical conditions, it can devise highly tailored fitness programs that boost user engagement and minimize injury risks. Additionally, Keep invigorates user participation through themed activities and fitness clubs, enhancing community interaction and deepening user engagement with data analytics.
Throughout 2024, Keep has embarked on a platform-wide upgrade and intelligent strategy rollout. These innovations are positioning Keep as a leader in digital fitness, catering to an increasingly diverse range of consumer needs.
Conclusion
As China’s first unicorn in the sports technology sector, Keep has been at the forefront of online fitness with a diversified business model. It faces the critical challenge of moving towards profitability despite growing revenues. By enhancing membership benefits and furthering smart fitness solutions, Keep has established a comprehensive AI-enhanced fitness panorama, spanning from indoor to outdoor activities. As competition heats up, Keep’s intelligent strategies are unlocking a multi-billion-dollar market, redefining the future of the fitness industry.