“I used to make investments for many big customers in American private banks. When I saw the project, I came into contact with many entrepreneurs, especially in the health care industry. So my initial idea was to make a medical imaging software.” Jin Xin, founder and CEO of k-ems, told lazy bear sports. “But because this is a project directly applied to surgery and requires strong channel capabilities such as hospitals and manufacturers, our industry accumulation is not deep enough, so it is difficult to break into this complex system.”
At the beginning of its establishment, k-ems adopted the studio mode with a single store area of 50-150 square meters. At present, the company has 20 Direct stores and more than 230 franchise stores nationwide. Among them, the franchise store is mainly 50-100 square meters, equipped with 2 sets of EMS equipment. Direct stores have two modes: one is about 200-300 square meters, equipped with more EMS equipment; The other covers an area of 700-1500 square meters. In addition to EMS equipment, it can also place the fitness equipment of the traditional gym. In addition, k-ems has also set up a special EMS fitness room in the formed gym, and the two sides share the profits.
From the perspective of target users, EMS is positioned as medium and high-end, reducing the fitness time of 1-2 hours in the traditional gym to 20 minutes, so as to adapt to people who have certain consumption ability and fitness needs but do not have enough time.
In terms of site selection, k-ems is mainly distributed in the core business district, office building area and medium and high-end community. The average number of people in a class is controlled at 1-2 to emphasize “privacy”.
In terms of charging, k-ems implements course package and recharge payment for customers. All courses are reserved and purchased through its wechat applet. The price of basic EMS courses is 398 yuan per class, which is the same as that of a single private class in the medium and high-end gym at this stage. In order to ensure the exercise habit of members 2-3 times a week, the course package sets a valid period.
“We didn’t spend money on the first publicity. We relied on the ‘word of mouth’ of seed users, and the marketing cost was almost zero. Our first store had about 100 seed users, which was the source of most franchisees later,” Jin Xin recalled.
According to the data provided by the company, k-ems maintains a 30% – 40% to store conversion rate, and the member repurchase rate exceeds 60%. In the first tier cities, the average number of members of k-ems mature stores is about 100-200, and the average monthly turnover can reach 100000-200000.
On the basis of ensuring the service quality, the gym can quickly replicate by outputting standardized products and models. The ultimate goal of k-ems is to be a platform company. Therefore, the store franchise fee of the fourth generation equipment just launched by k-ems is adjusted from 368000 yuan to 128000 yuan. On this basis, k-ems will be drawn according to class hours. “The price adjustment is more to spread faster in the market,” she said.
As a relatively mature way of fitness in European and American countries, EMS has entered as early as around 2014. However, at that time, due to insufficient market awareness and poor user experience, some pioneers failed to achieve the expected results.
Over the past year, this new fitness model has gained more recognition, ushered in a period of development, and has been favored by capital.
According to the statistics of lazy bear sports, as of the beginning of this year, at least five foreign EMS brands have entered and officially put into operation by means of agency or establishment of companies. At present, 10 start-ups have entered the field of electric pulse fitness, and many have obtained financing.
Looking back on the development history of the gym industry for more than 20 years, the first one to come out is the traditional annual card making gym, which takes the pre-sale and sale of cards as the main business form, and the curriculum content research and development mostly comes from a third party. Since 2014, national fitness has been raised to the national policy level, capital and entrepreneurs have poured in one after another, and the era of consumption upgrading has come. Users’ demand for fitness is no longer limited to the provision of space and hardware. The operation mode of the gym changes first, and the monthly card and secondary card impact the annual card system. Since then, driven by capital, new gyms such as Lexus, super orangutan and shape have completed a round of innovation in operation mode and sales mode.
When the mode gradually runs through, there is not much left in the uncultivated direction of the fitness market, which makes the hardware revolution represented by EMS be valued again.
Moreover, the number of gyms and private education has continued to grow in recent years, and the proliferation of Xiaobai users has also provided new market opportunities for emerging fitness methods.
In addition, whether it is the improvement of fitness equipment and wearable devices, the design of fitness courses and even the operation and management of the gym, science and technology and intelligence have been adopted and concerned by the industry in recent years.