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Kazakh startup 1Fit summed up the results of 2024 in the markets of non-CIS countries

For the domestic startup 1Fit, 2024 was the year of international expansion. At the beginning of the year, the company announced a parallel launch in the markets of Southeast Asia, Latin America and the MENA region (Middle East and North Africa), and today a single subscription for various sports, along with Kazakhstan, Uzbekistan and Azerbaijan, is available to users in Malaysia, Mexico and the UAE.

The entry into new countries was preceded by a market study, which included a three-stage study: desk studies of statistical data, traffic testing, and a study of user needs in shortlisted countries.

Last year, Murat Alikhanov, CEO of the company, shared plans to explore Southeast Asian countries such as Thailand, Malaysia and Indonesia. The first country to launch 1Fit in 2024 was Malaysia, the city of Kuala Lumpur.

The stable situation in the country's economy, a high level of English language proficiency and an actively developing services market played in Malaysia's favor. In Malaysia, 1Fit launched in February, and, tellingly, growth in the country's market has not been rapid. The first partners of the Kazakh service were only 13 studios in Kuala Lumpur - a drop in the bucket for a megacity with a population of 8 million people. After some time, the number of partners grew to 50, and users became more interested in the application. Financial indicators have also grown impressively: if in the first month of operation revenue amounted to only $121, then in October it increased to $167,000.

To date, 353 locations are connected to 1Fit in Malaysia, over 60,000 users are registered, and among the most favorite activities are Pilates on the reformer, yoga, cycling, Muay Thai, gym, tennis and massage. The local market is characterized by a high conversion rate from trial versions, as well as a high percentage of guest user conversions to subscribers, which is a good indicator of product quality. The company plans to connect new halls and scale beyond the main Klang Valley region to the states of Penang and Johor, and then to other countries in Southeast Asia.

In Latin America, when choosing between Brazil and Mexico was preferred to the Spanish-speaking country in order not to make additional localization and use the existing team for further expansion in the region.

1Fit entered the market in August and in the first month of operation, revenue exceeded $115,000, despite the fact that the Kazakhstani company began exploring the country not from the capital, but from the second largest city, Guadalajara, using the example of which it was possible to quickly test how much the product would be in demand by the market. The launch in Mexico was the most successful in the company's history.

Today, 1Fit has 2,500 active users and 281 locations in Guadalajara. The most sought—after activities in the local market are intensive workouts, Pilates and stretching. By the end of the year, the number of partners is planned to reach 400, and revenue in the country's market is expected to reach $500,000.

In November, the launch took place in Mexico City, where 1Fit now has 156 locations. The development of the 20-million-strong metropolis is planned to be carried out in stages, allocating marketing resources. In the near future, it is also planned to launch in the cities of Leone and Queretaro, and Colombia and Brazil are considered as countries for expanding their presence in the region.

It was planned to start joining MENA from Turkey or Saudi Arabia, but upon closer examination, the UAE turned out to be a more attractive country in the region, and Dubai was best suited for the Kazakh startup model, where there are many independent fitness halls and studios, prices for fitness services are quite high, but local residents are actively involved in sports.

In Dubai, where 1Fit was released in September, about 200 halls and studios have already been connected in a couple of months, and more than 15,000 users have registered in the application. By the end of the year, the company plans to increase the number of locations to 300. Dynamic growth does not mean that the number of new connections is a priority for a startup in a new market. 1Fit's strategy is to gradually increase the number of locations and users while ensuring process stability and quality service.

Here, high demands on the quality of service are one of the distinctive features of the market. Customers often contact customer support with suggestions for improving the service, which indicates their high expectations and the need for the company to meet these expectations. Interestingly, the peak of sales in Dubai is from 4 a.m. to 7 a.m., when customers attend to personal matters before the start of the working day, as well as in the evening, after 7:30 p.m.

The habit of buying immediately and in large quantities, and the popularity of the "1+1" and "2+1" special offers have led to demand for long-term subscriptions. The company launched a two-year subscription for the second month of its presence in Dubai, which is a very timely indicator for the new market. The preferences of local users are gym, pilates, yoga and padel.

To expand its presence in The UAE company is considering two destinations — Sharjah, where many 1Fit users live, who still travel to Dubai for training, and Abu Dhabi. The UAE capital differs in terms of market composition, the local economy is focused on other segments, and the startup plans to conduct additional research to assess the prospects for further development.

Each country has its own nuances. A strong competitor with exclusive contracts with leading studios has been operating in Malaysia for a long time, and the 1Fit team began training partners and clients to show the value, convenience and flexibility of the product to the local fitness industry.

In the UAE, one of the most difficult tasks turned out to be creating a stable local team that is ready to work long hours. The job market in Dubai is largely shaped by expats, many of whom do not stay in the country for long, so it is not easy to find a specialist with the right competencies and good work experience.

When forming a team in Mexico, it turned out that Mexico City has the most active labor market, while people in the regions are less motivated to work. Bureaucratic procedures were added to the difficulties with hiring staff, which delayed the company's opening process for almost four months.

Each 1Fit launch in a new market is considered as a hypothesis until stable growth rates are achieved. At the same time, the company is constantly working to explore new countries, carefully analyzing the opportunities for scaling, as 1Fit has big goals — to become a Kazakhstani startup with 1,000,000 customers abroad and launch in 20 countries within five years.

Currently, 104,000 active users are engaged in a single subscription from 1Fit in six countries, and the number of locations exceeds 2,000 halls and studios. 70% of 1Fit users purchase a fitness subscription for the first time in their lives. For the company, this is an indicator of moving in the right direction, consistent with its mission to make a healthy lifestyle accessible to everyone.

Author: Anna Reznik, Deputy Editor-in-Chief of Forbes Kazakhstan magazine

Source: Forbes Kazakhstan

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