The Keep Store experience store is a summary of Keep’s commercialization ideas. Keep hopes to showcase the exploration of sports products in the past year to the public in an aggregated way. At the same time accumulate more offline retail data. After experiencing early scale accumulation, Keep is trying to build barriers in branding.
Editor’s note: This article is from WeChat public accountNew Business Intelligence NBT (ID: newbusinesstrend ),Author Zhang Youfa, editor Luo Lizhen, is authorized to publish.
The Keep Store Experience Store is a summary of Keep commercialization. Keep hopes to showcase the exploration of sports products in the past year to the public in an aggregated way. At the same time accumulate more offline retail data. After experiencing early scale accumulation, Keep is trying to build barriers in branding.
Keep as a technology sports brand is welcoming a new stage of development.
An important data is that the revenue of Keep’s sports consumer products is expected to reach 1 billion in 2019, more than half of total revenue. In the revenue of sports consumer products, smart hardware accounts for 35%, sports equipment accounts for 40%, and food accounts for 25%.
This also shows that Keep has always wanted to build a multi-sports product ecosystem, and not just the online sports content to win the Keep is closer to his goal. At the same time, this is also a proof of Keep’s ability and possibilities for hematopoiesis.
The offline experience store that just opened soon Keep Store is a summary of Keep commercialization. At the corner of the first floor of Shanghai Kaide Star Trade Shopping, this 100-day limited-time store is divided into almost all sports products of the Keep brand. The small screen in the store plays the course content of keep, and the treadmill placed at the door reminds the user of the difference between this store and other sports brand stores.
This experience store, Keep hopes to showcase the results of the exploration of sports consumer products over the past year to the public. Another expectation is that they hope that this limited-time store can really enter the offline zero for Keep.The sales industry has accumulated more valuable data.
“When you talk about the offline, you should think that it should be a cool offline venue. Think in the direction of the image store and the exhibition hall. This is not friendly.” Accepted group on the media open day on October 15th. During the interview, Liu Dong, a partner and vice president of Keep, told reporters that keep didn’t make this flash shop more conceptual, and tried to make it more like a long-term physical store.
After experiencing early scale accumulation, keep is hoping to create more distinct barriers to branding. In multiple vertical areas, keep is thinking more deeply. Faced with market cultivators that have existed for many years in these areas, Keep needs to find its own differentiation advantage.
In the field of smart hardware that was first cut, keep is based on hardware and content integration capabilities. In terms of training equipment, keep is aiming at the more segmented long-tailed goods such as yoga mats and sports knee pads. In terms of food, Liu Dong judged that the meal replacement market is in a period of change, and Keep is looking for growth opportunities through a variety of meal-based meal replacement meals.
Understanding the new variables requires matching the user attributes of Keep. In the field of smart fitness, Peloton, which is already on the market, is regarded as a benchmark company of Keep in China. But Liu Dong believes that the two have different ideas for smart fitness equipment. Peleton’s courses are aimed at users who want to go to the gym, and the products emphasize the sense of substitution, while Keep’s App users are more inclined to the family scene: “The course does not need to be too high gorgeous.”
These businesses are still relying on e-commerce ports for the time being. In Liu Dong’s view, the online traffic value of the Keep brand has not been fully explored. Keep Store doesn’t mean that the company will quickly enter offline retail, but more like an early preview of the future.
In Liu Dong’s longer-term vision, Keep’s offline retailing and offline sports space, Keepland, form a complex form: “My own ultimate goal, Keepland and retail, light food together, is a flagship Shop. This ultimate store is the restore under Keep online.”
The following is an interview with Liu Dong, the media such as “New Business Intelligence NBT”:
The meaning of Keep Store
Q: From a strategic perspective, what is the plan for Keep’s future offline store in Shanghai?
A: We don’t have a plan to open (long-term) offline stores. This Keep Store is also in the form of a flash shop. Keep tried the technology sports brand for only one and a half years, or online, regardless of category, channel or brand, there is still a lot of space on the online traffic level.
Q: Why did you choose CapitaLand?
A: Site selection mainly depends on operations, and is not particularly planned. Beishang Guangshen has our main user base, but it is rarely done offline in Shanghai, so we made calories in Joy City, Beijing.After the department store, I wanted to come to Shanghai. We want a longer cycle, closer to the shape of the store, which is not particularly expensive for those who meet these conditions.
Q: According to the staff in the store, the construction of this shop was done by Keep himself. There was no relevant experience before. Did you encounter any challenges when doing it?
A: When I talked about the offline, I thought it should be a cool offline venue. I wanted to go to the image store and the exhibition hall. It was not friendly and far from the user. The better the store, the more like selling goods. Now the flash shop is training, yoga, clothing and clothing together, because our App Mall is like this.
The characteristics of the store are gradually precipitating. For example, there should be a screen, but the conditions are limited. It is really necessary to open a large screen, and the treadmill and bracelet courses are put up, like an App to restore to the offline. Because this store is a flash shop, the degree of restoration is still far away.
Q: How does keep determine the store’s modules and SKUs?
A: We follow the Keep users on product development. For example, from the scene, the users on the Keep App are definitely training, outdoor, and yoga. The store is to concentrate the things on the e-commerce, and pick the type that users like most.
Q: What was the original intention of opening this store?
A: There are two purposes. First, we have developed so many products in a year and a half, hoping to be in the way of product aggregation, that is, the way the store appears. Second, our online consumer goods are increasing at a rate of 300% per year. We want to understand the (offline retail) industry through the flash shop. We will look at daily traffic and conversion rates, and repurchase rates. It is now open for 1 week and seems to have exceeded Kade’s daily sales record.
Q: Is the passenger flow online or offline?
A: I think there are many people who come up with the initiative. At this stage, the flash shop is designed to be close to the user, combined with online activities, and slowly taken it as a brand event, and doing it under control.
Q: Will the offline store play a very important role in the future?
A: The line must be done. My own heart is 50% on the line and 50% off the line.
Differentiation advantage
Q: Keep has made a lot of attempts in commercialization, including paid members, light food, fitness equipment, etc. What are the different advantages of Keep’s commercial products compared to other fitness apps?
A: The outside world has seen that Keep has done a lot of things, but we have internalThink it is very organized. Mainly two major directions, the App makes commercial exploration, and at the same time launches products on the sports brand. The popularity of the App promotes users to accept consumer goods, and the products bring new users to the App.
Providing matrix services around Keep users on the tech sports brand. The first category is intelligent hardware, which is the core product of Keep. The second level, user training, yoga and outdoor sports equipment, these sub-categories of big brands have no energy to do, small brands fight price. Further down the consumption of life.
Q: Are there any challenges in the process of commercialization?
A: The pointcut is correct and very important. In the past year, building this product structure is a challenge we face. We are concerned that there are too many types of products and it is a big challenge for the supply chain and funding.
So in the early stage, it was cut from smart hardware. This relatively single product is large enough and the scale can support the operation. And it coincides with the Keep gene and can be differentiated. Our smart treadmills are the first to be combined with the course, and now all treadmill manufacturers in China are now doing content.
Q: Does the company have an overall goal for commercialization? How is the completion of commercialization goals this year?
A: I look at this in stages. In 2018, it was the first year. At that time, I used smart hardware to cut in. The key word is to make the business scale, so that the business form can develop (revenue), instead of relying on Burn money.
In 2019, we emphasized development. At that time, we proposed to grow 300%, which is actually very radical. Consumer goods are now roughly the size of 1 billion a year, similar to expectations. The speed of development makes our business operations more efficient, we can focus on products, so that everyone’s awareness of the product is more clear.
Q: Xiaomi’s and Keep’s bracelets are very popular, so what are the hardware advantages of the Keep bracelet?
A: This industry has reached the level of 40 million shipments in one year. Several factories are also relatively open, so it is difficult to differentiate the hardware. We will try our best to keep the same level of industry. Software is something that Keep has been exploring. We want to make the connection between hardware and software better.
In the past, everyone developed in parallel, and Xiaomi and Huawei did smart wear, which reduced costs and opened the supply chain. Keep has been doing content for the past 4 years, verifying the content needs of hardware users through treadmills. There is no intersection in the two directions, we want to explore the possibility of intersection. The bracelet is such a product.
Q: There is still a big gap in the market for low-fat light-food products. How do you enter the market to check the products?
A: When entering the food field, the product form of the meal replacement is in a period of change. The previous meal replacement was called a meal replacement milkshake, which was simple in composition but difficult to adhere to. We hope to control calorie intake through a combination of multiple categories. In addition, I believe that the future direction is the meal replacement meal. We are working with the Otsuka Group in Japan, they willUse konjac flour to make rice.
Q: Some smart treadmill brands will do live broadcasts, emphasizing the interaction during sports. How do you think about this idea?
A: The starting point for Keep users is to exercise at home. Rather than not having to go to the spinning classroom, they practice at home. These two scenes are particularly different. For those who want to go to the classroom, the entertainment and scenes of the course are very important. There are three seats, the coach has been chatting, and DJ. However, App users only need to follow the course, and the degree of gorgeousness of the course is not so important. Moreover, the number of simultaneous online users and the cost of input are not the issues that need to be considered at this stage.
Q: How do people who buy a treadmill insist on exercising?
A: Our treadmill is 3 times more than a regular treadmill. When we do the running course, we will distract the user’s attention and divide the 45-minute class into 9 segments. If the user does not want to run fast, the data will be uploaded after the exercise, and the motivation is also strong.
Q: But the treadmill is really high compared to other household products.
A: I think the best sports products in the family are spinning bikes, but this market has not been educated. Many spinning bicycles in China are magnetic vehicles for rehabilitation and cannot be exercised.
The sales of treadmills are large, because many people in China feel that they should add a fitness device at home. So users want treadmills to be small, quiet, and have courses that are definitely better than treadmills. We are going to launch a bicycle product in October. The bicycle is symmetrical, and the resistance is adjusted by the computer. This is the direction combined with the future.
Q: What upgrades do we have in the future compared to other gyms?
A: I am talking about one of my ultimate goals. In the future, Keepland will be a flagship store with retail and light food. You can buy some equipment on the 1st floor, just like MUJI (Muji).
I think the store of the ultimate form is the restore under Keep online, because Keep also has courses, goods, physical stores, social content, content research, and goods can be bought. This includes thinking about the retail system. I think this is what I want more. Our advantage is integrated operation.
Brand feeling
Q: The retail industry relies heavily on brands. How does the Keep brand culture look like?
A: When it comes to the brand level, it is very abstract and still in the process of being established. But there are some ideas, such as self-discipline giving me freedom. And we feel that users have (change) space for good experience products.
Q: Are we the main price/performance ratio?
A: Not an absolute price/performance ratio. We give the best experience at a price that users can accept. For example, the treadmill, the first experience of the Keep treadmill is good, there is a preferential price under this premise. We hope that users who buy Keep clothes will be the same as those in Uniqlo.
Q: You seem to care about the tonality of this dress. How can the supply chain be guaranteed?
A: I am sure to serve the public and make products at the price accepted by the public. Lululemon (famous yoga clothing brand) is comfortable, because with its own spinning fabric, I can come up with a fabric that is closer to him (but at a lower cost).
The supply chain focuses on two things. One is to judge the future trend. For example, I think that the treadmill should be a home appliance in the future, and the panel is like a remote control. The electronic part is definitely not a traditional treadmill manufacturer. The second is that the magnitude can reach the supplier’s approval of you, we do the treadmill, the supplier is willing to recommend better products,
Q: Since last year, the community has been re-optimized by capital. What is the ambition of Keep to promote the community?
A: We have been working in the community, but our community purpose is not the same as the little red book. We hope to produce more content. Keep used to do content on its own, and content boundaries go out, you need UGC. Users in the community, people to generate content, we are also releasing content tools to them.
Q: Keep from a tool to now hope to create a successful technology sports brand, how is the value of traffic reflected?
A: The entrance to the mall in our app is very deep. Most people think that if the app has traffic, it will do the goods well and introduce the traffic. I don’t think it should be this kind of thinking. To be a consumer product, product power is critical. We did not put the conversion efficiency of our own traffic in the most important position, we are more concerned about the sales of products in Jingdong Tmall.
Q: Anta, Li Ning, and Xtep have grown up in the past six months. Does Keep have any idea on sports equipment?
A: They are all developing in life and sports fashion. Instead, I am going to the professional side to make the fabric more comfortable and to make the experience better.
Q: In terms of core technology, this year, some brands have begun to specialize in this one. Do we have some ideas?
A: I will do the most things that users are most interested in. For our users, cutting-edge technology is not the point they are most concerned about on Keep. Like a treadmill, I don’t do big screens, but do content and data. Because I know that the purpose of the user to buy a treadmill is to exercise, not to watch TV.