The Research on the Investment Value of Online Fitness App in China

Abstract

Nowadays, more and more people prefer to use online fitness app rather than go to fitness room, when they want fitness. As the product of a combination between the technology industry and the fitness industry, the online fitness app is changing people's fitness habits from the traditional way. Other researchers focus on the effect of online fitness app on users fitness habits and drivers. However, from the perspective of investors, this research adopted the People, Opportunity, Context, and Deal (POCD) framework, which is often used on the analysis of venture investment, to study if the online fitness app in China is worth investing in and using Keep company as an example to complete the research. There are many opportunities in the online fitness industry like the convinence of application, more and more people want to start fitness, and the effect of COVID-19, but people and context are competitive disadvantages in Keep company like top managers without enough experience. The conclusion is that there are some issues in the company's business model. The customer retention rate is low, and the company earns less money than its expenditure on the advertisement. Based on these reasons, the company is not worth to be invested now. It also reflects that there are some issues in this new industry, investing it should be consideration careful.

Within the Lens of “Keep”: The Convergence of Consumer Context and Brand Development in Chinese Fitness Apps

“…The fitness and exercise market in China is transitioning to online platforms (Wang, Yin, & Zhu, 2021). Keep, an exercise app, is a prominent player in this market.…”