September is the first time we got a blank Amazon order," said Zhong Peihong, investor relations manager of fitness equipment brand manufacturer Daiyu Technology. He also explained that the meaning of a blank order is: fill in as you like, and how many goods can be shipped. Amazon takes as many goods.
Because of the strong demand for fitness in the European and American markets, Daiyu's order visibility has been extended to the second quarter of 2021.
Daiyu is a self-owned brand fitness equipment manufacturer. At present, 70% of its business comes from the United States. Driven by the epidemic, the demand for personal home fitness has soared. Sales of treadmills, elliptical machines, and flywheel machines on the Amazon platform have accelerated. In 2019, Daiyu Yu’s sales to Amazon are only 22,000 units, but from January to July 2020, Daiyu’s single-sales to Amazon has soared to 150,000 units.
"Demand is high, and consumers choose the high-end and most expensive models under the epidemic," said Zhong Peihong. Also, due to the continued demand for home fitness equipment, the Daiyu Changhua factory's 6 production lines were fully full, and I found it in June to July. The co-factory contracted three lines, but it was still not enough. In September, two additional lines were added, and another production line was planned in October to fill the capacity gap.
This figure reflects that the monthly revenue has also accelerated proportionally. From January to February, Daiyu’s revenue was still only more than 400 million yuan. After jumping to 700 million yuan in March, it has climbed to 1.115 billion yuan all the way to August, a historical record. The new high, with revenue of 6.257 billion yuan in the first August, not only exceeded the revenue of the whole year of 2019, but also increased by 70% over the same period last year.
At the same time, there is a fever for home fitness instructors around the world. The world’s most famous fitness equipment unicorn Peloton uses an innovative model of live fitness courses. This year’s membership performance has doubled and it will buy Taiwan's foundry in 2019. Mei Technology has obtained Flywheel foundry resources and commissioned Lishan to manufacture treadmills. Due to good demand, this unicorn has also visited Daiyu several times.
On the other hand, Lululemon, a major manufacturer of yoga and fitness products, bought the new Mirror for US$500 million. Apple also announced the Fitness+ service, which shows the popularity of personal virtual fitness trainers, partially replacing the one-on-one courses in physical gyms, but most virtual fitness trainers It is not a one-to-one interaction.
These newly created fitness instructor courses lack interactivity and are not personal. For example, coach Peloton cannot chant a certain student remotely: Amy, don't stop and be lazy! accelerate! Coach Mirror doesn't care if your posture is right or not. The video just goes on live, providing a mirror for you to compare your posture, but is the posture really correct? Apple’s Fitness+ focuses on recording physiological values. Analysis by Yan Zhiqiang, vice president of business of GoMore, Bojing Medical Electronics.
Bojing Medical Electronics is a sports technology innovation founded in 2011. The team has developed a physical strength algorithm that can personalize physiological analysis, further establish physical strength models, and provide personalized training suggestions. For example, when a user starts running today, and a warning message appears when the speed and heartbeat are matched, an early warning will be immediately given: if the physical strength is not good today, it is recommended to do moderate exercise; or according to the user's expectations to challenge the goal, a phased prescription will be given.
Therefore, it is optimistic about the difference in services. Daiyu invested in Bojing Medical Electronics in 2019 and obtained personal fitness coach algorithm technology. In 2019, we also invested in Bojing Medical Electric, as well as Bai Wen from the industrial computer factory Guangding and fitness factory. The three companies together hold 20% of the shares, and the sportswear manufacturer Shamina is the largest shareholder with more than 20% of the shares. .
Daiyu's first wave of fitness equipment shipped with Bojing Medical Electronics App chose to test the water temperature in China. It is expected that on Double 12 will launch 30 equipment with App subscription service. Zhong Peihong explained that on the one hand, demand in Europe and the United States is in short supply, and the local business team still needs time to grasp the characteristics of new products. On the other hand, China has a strong demand for fitness. Daiyu hopes to expand the Chinese market through the subscription system.
"China's fitness equipment is the world's most competitive place." Yan Zhiqiang said that the local low- and medium-priced equipment is overflowing, and many equipment also demand "intelligence". In addition to recording fitness data, it can also voice control to accelerate or decelerate the treadmill. Bojing Zhiyi will cooperate exclusively with Daiyu for one year.
In the next step, Guangding cooperates with Daiyu and Bojing Zhiyi to develop a more complete home coaching program, combining weight training, aerobics, and community, with 3D visual recognition for posture correction, and a 40-inch large screen. A new generation of AI coaches, paired with Daiyu's flywheel or treadmill, hopes to create a small home gym subscription service.
