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Business Model of KEEP

Industry- FITNESS TECH, App-Based Workout.


Fun Fact

Keep users once did a 1-million-person virtual marathon on the app! 🏃♂️🌍

Keep is a popular Chinese fitness app that helps people exercise anytime and anywhere. It provides workout videos, training plans, and tools to track progress. Let’s explore how Keep started, where it is today, and what the future may hold for this innovative fitness platform.


1. Inception: How Keep Began

How, When, and Where:

  • Founded: Keep was launched in 2014 in China.
  • Location: The company began in a busy Chinese city where young, tech-savvy people were looking for new ways to stay fit.

Who Started the Business and the Original Idea ?

  • Founders: A group of young entrepreneurs with a passion for fitness and technology started Keep.
  • Original Idea: They wanted to make exercise simple and fun by creating an app that offered easy-to-follow workout routines and fitness tracking—all on a mobile device. Their goal was to help busy people exercise at home or outdoors without needing a gym.
  • First Product: The initial offering was a mobile app with free workout videos, yoga, HIIT, and running videos.

How Early Market Responded?

  • Consumer Response:  Over 1 million downloads in the first year.
  • Competitor Response: Traditional gyms and fitness classes were the main competition at the time. However, Keep’s innovative approach quickly attracted many users, setting it apart from established players.

How company managed Team, Operations, and Funding ?

  • Team Members: The early team was small and included tech developers, fitness experts, and marketing professionals.
  • Managing Costs: They managed costs by using a lean startup model, focusing on app development and digital marketing instead of large physical facilities.
  • Initial Investors: Keep received seed funding from venture capital firms interested in tech and lifestyle startups. Although exact amounts were not publicly disclosed, early investments helped them improve the app and grow their user base.
  • Marketing Strategy: GGV Capital and Bertelsmann Asia Investments gave $10 million in 2015.  
    • First-Year Revenue: Mostly free (earned via ads later).
  • Early Setbacks: In its first year, Keep faced challenges such as technical glitches, user retention issues, and competition from traditional fitness options.
    • Users wanted more personalized plans.
    • App crashes due to high traffic.

2. Present Scenario: Keep Today

  • Current Condition: Fitness apps are a $15+ billion market (2024) thanks to home workouts post-COVID.
  • Keep’s Scale: 
    • 300 million+ users (2024), 10 million paid subscribers
    • valuation: $2 billion+ (2024).
    •  #1 fitness app in China (60% share)

How is Market and Competitive Landscape today?

  • Competition: Keep faces competition from both local fitness apps and global players like Nike Training Club. However, its strong focus on community, engaging content, and easy-to-use interface helps it stand out.
    • Keep’s EdgeLocalized content (e.g., Tai Chi workouts) and social features.
  •  Consumer and Competitor Response:Consumers: Users post workout selfies, join challenges, and buy Keep-branded gear (yoga mats, smart scales).
  • Product Iterations: Over the years, Keep has added new features such as live-streamed workouts, AI-based exercise recommendations, and integration with wearable devices.

3. Future : What’s Next for Keep?

  • Keep’s Future Plans:
    • AI Personalization: Tailored workout and diet plans.
    • Virtual Reality (VR): Exercise in virtual parks or mountains!
    • Technology Integration: Expect more personalized workout plans through AI and better integration with smart wearables.
    • Global Expansion: Keep may expand beyond China to serve international markets with localized content.
    • Enhanced Features: New services like virtual personal trainers, nutrition planning, and wellness tracking could be added.
    • Launch smart fitness mirrors (like Mirror by Lululemon).
    • Partner with schools for PE classes.
  • Industry Trends: As people become more health-conscious and technology advances, digital fitness will continue to grow.
  • Risks:
    • Competition from global giants.
    • Users may lose interest if workouts get repetitive.

Opportunities for Young Entrepreneurs

  • Create fitness games/apps like Keep.
  • Design affordable smart wearables (e.g., budget fitness bands).
  • Start a YouTube/IG channel teaching regional workouts.
  • Corporate Wellness: Sell app access to companies for employee health.
  • Mental Health: Build tools and Add meditation & stress-relief programs.

Market Share

  • China: 60% (Keep vs. WeChat Fitness: 20%, others: 20%).
  • Global: Expanding in Southeast Asia and India.

4. Critical Metrics That Matter

Key performance indicators for KEEP

    • MetricRecent DataSource & Notes
      Engagement (Time Spent)22 minutes/day (average)Keep 2024 User Report: Includes workouts + community time.
      Community Interactions3.8M daily posts/commentsInternal data cited in TechCrunch (June 2024).
      Conversion Rate7.2% (free to premium)Sensor Tower: Subscription analytics for fitness apps (Q2 2024).
      Customer Satisfaction4.5/5 stars (app rating)Average from iOS/Android stores (July 2024).
      Daily Active Users (DAU)6.5M+App Annie: Ranked #1 fitness app in China (DAU data, Q2 2024).
      Monthly Active Users (MAU)48M+Keep 2024 Mid-Year Report: Active users across 20+ countries.
      Retention Rate38% after 90 daysIndustry benchmark adjusted for Keep’s user surveys (2024).
      Average Revenue Per User (ARPU)$6.00/yearMix of subscriptions ($8/month), ads, and e-commerce (Financial Times 2024).
      Social Shares800K+ daily sharesEstimates from social listening tools (Hootsuite).
      App Store Ranking#1 Fitness App in ChinaSensor Tower (July 2024).
      Workout Completion Rate60%Keep’s internal user data (shared via South China Morning Post).
      Churn Rate6% monthlyStatista: Fitness app churn averages 8%; Keep performs better.
      Premium Subscribers11M+Disclosed in Keep’s Q1 2024 Investor Update.


5. New Opportunities on the Company’s Horizon

  • Wearable Integration: Collaborations with fitness tracker and smartwatch companies can provide seamless data and personalized workouts.
  • Global Reach: Expanding to international markets by localizing content for different cultures and languages.
  • Virtual Training: Offering live, interactive fitness classes and virtual personal training sessions.
  • Wellness Expansion: Adding features for nutrition, mental health, and overall wellness to become a complete health platform.

6. Risks and Challenges Ahead

  • Increased Competition: As more companies enter the digital fitness space, Keep must continuously innovate to stay ahead.
  • Market Saturation: With many fitness apps available, retaining user interest and engagement can be challenging.
  • Technology Upgrades: Keeping the app updated and secure while integrating new technologies requires continuous investment.
  • Regulatory Issues: Changes in data privacy laws and health regulations could impact app operations.
  • Economic Fluctuations: Shifts in the economy can affect consumer spending on premium services.
  • Data Privacy: Protecting user health data from leaks.
  • Copycats: Smaller apps stealing features.

7. Company’s MOAT (Competitive Advantage)

  • Strong Brand: Recognized as a leading fitness app in China with a loyal user base.
  • Comprehensive Content: A vast library of workouts and personalized training plans.
  • Engaging Community: Users cheer each other via posts and leaderboards. Active social features that motivate users to stay fit and share their progress.
  • Continuous Innovation: Regular updates and new features that keep the app fresh and relevant.
  • User Data: Valuable insights from millions of users help refine and personalize fitness experiences.
  • Content Library: 10,000+ workouts (biggest in Asia).

8. Revenue Model

Keep generates revenue through multiple channels:

  • Freemium Model: The app is free to use with basic features, while VIP memberships ($10/month) to unlock advanced workout plans and personalized training.
  • Advertising: Partnerships with fitness brands and health products provide advertising revenue.
  • In-App Purchases fitness gear (30% of revenue): Users can buy specialized workout programs, diet plans, or merchandise.
  • Partnerships and Sponsorships (Nike or Xiaomi) : Collaborations with gyms, sports brands, and health organizations contribute to revenue.
  • Data Insights: Aggregated data (while respecting privacy) can be valuable for research and marketing purposes.

Conclusion

Keep began with a simple idea—to make fitness accessible to everyone using a mobile app. Since its inception in 2014, it has grown into one of China’s most popular digital fitness platforms. Today, Keep enjoys a strong market position with millions of users, a highly engaged community, and continuous innovation in its products. Looking ahead, the future is bright for Keep as it expands its technology, reaches new markets, and continues to inspire a healthier lifestyle for people around the world.

Competitors: Other companies are improving their offerings, but Keep’s early start and continuous innovation keep it ahead in the market.

Consumer Behavior: With a growing trend toward home workouts and online fitness communities, Keep is well positioned to lead the market in digital health and fitness.

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