High growth of sports APP market attracts capital market attention

High growth of sports APP market attracts capital market attention Date:2015-04-11 09:53

In the era of rapid technological advancement and high health awareness, almost all users with smartphones are equipped with an app that involves exercise and fitness. Otherwise, they will be considered by your peers as you are out.

There is a total of 3,045 applications for the term "sports" on the Apple Software Platform. Among them, there are slaps and slaps that focus on running and walking, and sports social software to move around. There are also many applications that are more targeted, such as focusing on female weight loss or men's fitness instruction. Many sports apps have been downloaded more than a million times on a single platform.



At present, there are 24 million registered users and 2 million daily active users. Liang Wang, senior director of operations, said Liang.å’•å’š APP was launched in 2012. The user's choice of sports methods in å’•å’š APP is mainly running and cycling. The most used tools are tool attributes, such as the monitoring of movement trajectories. Due to the addition of sports and social functions such as sports games, the enthusiasm of users to participate has continued to climb.

It is understood that there are more than 3 million users in Yue Run circle, and the use of APP is mainly concentrated in the early morning and evening. Our products are mainly for running users, there are also many walking and trail runners. Mr. Wu from Guangzhou Yue Run Information Technology Co., Ltd. said that in addition to the speed and positioning tools, the Yue Run circle has also added social elements, and the usage rate of the running record and running circle is high.

Apps that focus on sports and social networking are also popular with sports fans. About Sports is a sports social app based on geographic location and flagship activities. Founder Jiang Zhiwei told reporters that the campaign helped users find sports enthusiasts with common interests, with downloads of around 100,000. As the weather gets warmer, the user’s liveliness increases gradually.

According to a report from the survey company IHS Electronics and Media, the sports and fitness application market is expected to see growth of up to 63% in the coming years. IHS forecasts that the worldwide installed capacity of such applications will increase from 156 million in 2012 to 248 million in 2017.

Differentiated competition to win users

Sports have become just what urban people need, but after all, there are too many similar products. One of the few APPs that attracts and retains a large number of users has its own way of success.

Sports people are lonely. Sports social activities increase user activity and it is easy to improve user stickiness. The concept of Shen Bo, the founder of the company, is also the consensus of the industry: The use of users' common interests and hobbies to construct a unique social system is the foundation of the product.

Many sports apps nowadays come from social networking and win users through different interests. For example, the campaign builds a local sports social platform. Its label is the regional and organizational offline activities of the sports crowd; the appointment coach is an APP platform for professional coaches, liberating sports fans and coaches from the club, and the label is the coach. Our user base is a football fan in Shanghai. OLA cheering is an application only for football communities. Shen Jun, director of operations, told reporters that they provide users with different small communities: teams, stars, and football culture. Users can chat about football, evaluate football, and play football.

In fact, how to build a community is a great test for entrepreneurs: Regardless of the movement in a segmented field, users must first have content to read, learn, and communicate. Some powerful businessmen will also invite well-known star athletes, including some professional coaches, to enrich community culture and improve the content of the community. Some users themselves also have the need to generate content. By sharing more users and interacting with other users, the resulting social needs will be more real. Over time, some people will take the lead to hold offline games, such as running, ball, cycling, and fitness.

User data or profit point

The rapid growth of the sports APP market has attracted the attention of the capital market. In 2014, about 12 sports APPs were invested in venture capital. It is understood that in March last year, Dingwang obtained a financing of RMB 10 million. Seven months later, the network has also completed a financing of US$30 million.

In spite of the multiple rounds of financing, the company has not yet achieved profitability. You already have a rough profit model. Leung said that although he first started with wearables, he is essentially an Internet company. Currently, Handan has opened a data platform that allows third-party hardware products to access and expand the source of user data. Leung said that it is possible to analyze the sports data uploaded by users in the background to provide users with sports health-related products and services. In the future, Handan will also introduce third-party sports brand partners. In essence, big data mining is still in the process of laying. This will be one of the profit points in the future.

The founder of a sports app bluntly stated that the essence of the Internet is to occupy users first, and to maintain high-frequency use, profitability naturally follows. But Liang Zhenpeng, a senior consumer electronics industry analyst, is not optimistic. There are too many similar products and it is impossible to charge users. The profit point depends on the placement of advertisements, but the advertisement implantation not only requires the user base to be extremely large, but also has the risk of damaging the user experience.

However, there have been individual mobile applications that combine users with offline sports and venues to make money. Applications such as Sports, Leqi Football, Fun Sports, etc. all take the O2O route, and divide or receive annual fees for orders from local sports venues, as well as peripheral services such as sports equipment, sports training, and event tickets. For fitness enthusiasts to provide the most thoughtful service.

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