Sports technology platform Keep responded to the cancellation of offline fitness business: it is a normal business adjustment

According to news from this site on March 25, comprehensive interface news and "power plant" news, the sports technology platform Keep responded to the news of "abolition of offline fitness business" today, This This is a normal business adjustment, and it also means that Keepland has recently suspended the operations of 9 cooperative stores in Guangzhou.

This site attaches a brief summary: Keep was previously said to be planning to shrink Keepland, its offline fitness and sports space, and lay off employees in the operations department. The store expansion plan in Guangzhou also came to an end due to layoffs. At the same time, Keepland, which is still open in Beijing, will not renew its lease after it expires, and will gradually close its self-operated stores.

The report mentioned that Keepland is an offline sports space developed by Keep in March 2018. It adopts a "single appointment payment" group exercise class model. It once relied on the online platform to attract traffic and relatively flexible The business model has attracted a considerable number of students. It is reported that the root cause of the news of "significant contraction" may be that Keepland, which is backed by a traffic platform, is still unable to withstand the overall downturn of the offline gym industry. According to previous reports on this site, according to data from Keep’s 2023 semi-annual report, the company’s total revenue reached 985 million yuan during the reporting period. After adjusting according to non-IFRS, the company's net loss was 223 million yuan, which was significantly reduced from the net loss of 317 million yuan in the same period last year.

Keep’s revenue mainly comes from three aspects, namely, its own brand sports products, membership subscriptions and online paid content, as well as advertising and other areas. Private brand sports products achieved revenue of 466 million yuan in the first half of 2023, accounting for 47% of total revenue; while membership subscriptions and online paid content have become Keep’s second largest source of revenue, achieving 4.49 during the same period 100 million yuan in revenue, accounting for 46% of total revenue. This shows that private-label sports products, membership subscriptions and online paid content play an important role in Keep's business model and have made important contributions to the company's steady growth and profitability.

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