Is the 300 billion scale pet economy easy to do? The popularity of new year's goods for pets reflects the new trend of consumption in the Year of the Tiger-the domestic pet economy is accelerating and becoming an incremental market. The pet economy has greatly promoted the social consumption in China. Is the 300 billion scale pet economy easy to do?
Is the pet economy of 300 billion yuan easy to do 1 In recent years, all major consumer brands have set off a craze of "cats and dogs".
For example, McDonald's launched a limited cat nest package, Xicha opened a pet-friendly theme store, Perfect Diary launched a puppy eye shadow tray matching Li Jiaqi's pet Never, Starbucks launched a cat claw cup and so on.
In fact, the marketing idea of bundling with pets has indeed enabled these enterprises to obtain a double harvest of traffic and sales.
McDonald's 6,543,800+limited edition cat nests were all sold out in one day, and related Weibo topics were discussed over 100 million; The pet-friendly theme store opened by Xicha attracted many consumers to take photos and punch cards; The perfect diary and the puppy eye shadow tray that Li Jiaqi's dog never signed together were snapped up in less than 1 minute in the live broadcast room in Li Jiaqi; Starbucks' cat claw cup is even more "a cup is hard to find".
Behind the "big sale" is the love and pursuit of new things by emerging consumer groups, which also reflects the rise of the pet market in China.
One side of pet economy: a booming market
According to the data of White Paper on Pet Industry in China in 2020, the number of pets and the number of pet owners in China are increasing continuously. In 2020, the number of dogs and cats in China has exceeded 654.38+0 billion, and the number of dogs and cats has reached 62.94 million, an increase of 2.8%; Among them, over 60% of pet owners are located in first-and second-tier cities. The increase in the number of pets has driven the pet industry into a broader blue ocean market.
"I'd rather save money and give my pet a better living condition." This is the inner monologue of many pet owners at present. The industrial chain of the pet industry can be divided into three parts: the upstream is pet adoption and trading, the midstream includes pet food and supplies, and the downstream includes pet grooming, foster care, medical care and insurance services.
It is precisely because pets are playing an increasingly important role in people's lives. Around the pet industry chain, the whole industry began to "grow rapidly".
According to the data released by Taobao, in 20 1 1, the "double 1 1" cat food has surpassed baby milk powder and won the first place in the "most popular imported goods". In the same year, during the "Double 12" period, the sales of Mao Hanfu, Hefeng pet quilt, pet dryer and kennel electric blanket increased significantly.
During the Spring Festival this year, products such as pet dinner and pet couplets are also very popular on the e-commerce platform. Take the pet New Year's Eve dinner as an example, the price ranges from tens to hundreds of yuan, and the highest is nearly 1,000 yuan.
Pet consumer goods have been involved in all aspects of pet daily life. China Pet Consumption Market Report 2020 shows that in 2020, the per capita annual consumption of a single pet in China is 6,653 yuan, an increase of 19.6% compared with 556 1 yuan in 20 19 years. This shows that pet owners are more and more willing to spend money on their pets.
At the same time, according to "20021White Paper on Pet Consumption Trends in China", the scale of pet economy is close to 300 billion yuan in 2020, and it is expected to reach 445.6 billion yuan in 2023.
Source: iResearch, Red Star Capital Bureau.
The number of pets and consumers' willingness to spend money on pets are increasing. Under the huge market scale, the pet track is particularly attractive.
According to the data of Sky Eye Survey, since 20 15, the pet track has quickly become the "fragrant cake" of capital. In the following years, regardless of the amount of financing or the amount, the market enthusiasm did not decrease. According to incomplete business statistics, there were 42 financing cases in domestic pet industry in 20021year, and the disclosed financing amount has exceeded 3 1 100 million yuan.
The key areas of market concern mainly include pet food, pet products and pet medical care.
Pet food is a necessity that runs through the whole life cycle of pets. It has the characteristics of high frequency of use, strong demand and high repurchase rate, so it is the most important field in the whole pet consumption structure. In 20021year, there were 16 financing incidents in the pet food field, and the accumulated financing amount exceeded1600 million yuan.
Source: open information, a glimpse of business
Pet products are necessary for pets' life, and they are other consumer goods except food, and are developing in the direction of intelligence at present. In 20021year, there were 13 financing incidents in the field of pet products (including pet intelligence), and the accumulated financing amount was nearly 300 million yuan, which was the second largest market segment after pet food.
Source: open information, a glimpse of business
Pet medical treatment is a subdivision with the highest capital and technical threshold in the pet economy, covering three categories: pet diagnosis and treatment, pet medicine and pet vaccine. 202 1, there were five financing incidents in the pet medical industry, and the accumulated financing amount reached 700 million yuan. Judging from the amount of financing, 202 1 enterprises that have raised over 100 million yuan in the pet industry are mainly concentrated in the field of pet medical care.
Source: open information, a glimpse of business
In addition, according to the data of Sky Eye Survey, by the end of 2002110, there were more than 750,000 pet-related enterprises in China, and the growth rate of newly registered enterprises in the first half of 2002/kloc-0 was as high as 237.74%.
The entry of new players and the increasing capital make the pet track full of vitality and excitement.
B side of pet economy: listed companies sitting on the "cold bench"
Although the pet economy looks very hot, there are relatively few A-share listed companies focusing on the pet economy in China at present, mainly including Petty (300673. SZ), Zhongchong (00289 1. SZ) and Yiyi (00 1206. SZ), a manufacturer of pet products. At the same time, the enterprise is relatively small and the business coverage is relatively narrow.
1, performance of pet listed companies
From the perspective of company revenue, according to the financial report data of various companies, the operating income of Petty, Zhongchong and Yiyi 202 1 in the first three quarters was 9150,000 yuan, 20120,000 yuan and 944 million yuan respectively, with year-on-year growth rates of -5.8%, 24.2% and 2.2% respectively. The high income of Zhongchong in the first three quarters was mainly due to the acquisition of 70% equity of New Zealand pet cannery PFNZ, which was included in the consolidated statement in the third quarter. Aside from the acquisition factor, the growth of corporate revenue in the first three quarters was relatively weak.
In terms of net interest rate, the net interest rate of each enterprise is not high. The net interest rates of Petty, Zhongchong and Yiyi 202 1 in the first three quarters were 8.78%, 5.26% and 10.98% respectively. In addition, in the performance forecast of 20021,Patty indicated that the net profit attributable to shareholders of listed companies in 20021decreased by 47.75% ~ 2 1.62% compared with the same period of last year, mainly due to the epidemic situation and other factors in Vietnamese factories.
At the same time, the main sources of income of the three companies are from overseas. The financial report shows that in the whole year of 2020, the overseas and other business income of Petty, Zhongchong and Yiyi accounted for 85. 14%, 75.89% and 88. 13% of the total revenue respectively. The core of overseas business is to provide OEM services for foreign pet brands.
Because enterprises mainly adopt the mode of "OEM", the gross profit margin of enterprises is not high. In contrast, the United States focuses on making fresh pets (FRPT. US), a fresh natural pet food enterprise, has a gross profit margin of over 40%. In addition, the "OEM" mode of these domestic enterprises also needs to face the risk of raw material cost changes in upstream production, and there is no own brand premium. Without the core voice, it can be said that all the money earned is "hard money".
Source: Corporate Financial Report, Red Star Capital Bureau.
There is still a long way for enterprises to build their own brands.
In order to improve the brand influence and increase the bargaining power of products, these domestic enterprises, which started from OEM, are trying to launch their own brands and gain more profit space.
For example, Zhongchong shares launched "Wanpy Naughty" and "Zeal True" in the domestic market, and launched pet snack brands "Wanpy", "Beef Dried Time" and "Top Trees" in overseas markets; Petty shares launched its own brands, such as Good Family Health Guardian, Tooth Chewing, Jueyan Meat Road, Petty, CPET and so on. Yiyi shares launched its own brand HUSHPET.
However, it is not easy to build your own brand. On the one hand, the end users of the pet track are scattered, and it is difficult to reach the consumer level quickly; On the other hand, the buyers and users of pet food are separated, and consumers tend to buy brands they trust, so it is relatively difficult to obtain customers.
This may lead to the embarrassing situation that enterprises spend a lot of money on marketing in order to launch their own brands, but the market response is flat. For example, the first batch of Qi Bo pets (BQ. ) Domestic pet e-commerce companies listed in the United States, the company first launched the "Qin Yi" with cost-effective route, and invited Jerry to endorse it, and then launched the "frozen dry goods" brand "Magic Coffee" with light luxury route. However, the situation of these two private brands is not optimistic, product sales have always been difficult to improve, and the proportion of private brands' net income has also been in a downward trend. The financial report shows that in fiscal years 20 19, 2020 and 202 1, the net income brought by private brands accounted for 25.9%, 19.2% and 15. 1% respectively. According to the financial report of the company
For these domestic listed companies, I'm afraid there is still a long way to go to get brand dividends and gain more recognition from consumers.
Reflection on surface a and surface b
On the one hand, there is a huge market and competing capital, on the other hand, the development path of listed companies is not mature enough, and there seems to be a "fault" in the capital level of pet track.
The main reason for the "fault" is that the domestic pet market is still in a period of barbaric development, the overall market is disorderly and the concentration of the whole industry is also low.
Looking at the pet food industry again, according to Euromonitor data, in 2020, the domestic pet food market CR 10 only accounts for 18.2% of the market size of the pet food industry in China, that is to say, there are many players in the pet food industry, but few brands really have the right to speak in the market. In addition, due to the low threshold of the pet products industry, the demand for pets is diversified, and the industry is highly dispersed, and no big brands run out.
However, due to the asymmetry of information and resources in the pet medical market, in recent years, the whole industry has shown a state of "frequent chaos". According to the report of whale quasi-pet medical industry, in 2065,438+09, the number of pet hospitals in China was 10000 ~ 15000, of which large chain hospitals accounted for less than 15%. Many problems such as opaque fees, low medical level and poor service quality in pet medical industry need to be solved urgently.
China has a large population base. At the same time, due to the aging population and the pressure of young people's lives, there is huge room for imagination in the future of "other economies". On the other hand, the development of China's pet market is still in the primary stage, and the industry still needs time to practice the law of survival of the fittest. For players, this is both an opportunity and a challenge.
Is the 300 billion scale pet economy easy to do? Buying new clothes, preparing a big meal and doing a beauty salon have become the "three-piece set" necessary for pets in the New Year? Yes, you heard me right.
According to a survey of an e-commerce platform, in 2022, pet new year's goods were selected into the top ten fastest-growing "new" new year's goods for the first time, and the imported goods related to "clothing, food, housing and transportation" of pets ushered in a sales peak, among which the search volume of pet new year's gift packages doubled, and the sales of canned pet staple food and cleaning products increased by over 60% year-on-year.
The popularity of new year's goods for pets reflects the new trend of consumption in the Year of the Tiger-the domestic pet economy is accelerating and becoming an incremental market.
In the New Year, not only people should have a new look, but pets should also have a "new image". In recent years, with the companionship of pets becoming a new way of life, the role of pets is no longer "housekeeping", and more and more people are willing to pay for pets. During the Spring Festival, many people take their "hairy children" to bathe and beautify themselves, put on new clothes for the Year of the Tiger, buy food and grass, buy toys for the New Year, and order "Pet New Year's Eve", which costs a lot.
The same is true in daily life. High-quality pet food, insect repellent and sterilization, and seeking medical advice after illness are all just needed by pet families, not to mention many pet owners who eat carefully and have fun and live a high-quality life for cats and dogs. Behind Meng Chong, a complete industrial chain covering food, trade, supplies and services from birth to death has been formed. According to the White Paper on Pet Industry in 20021China, the market size of dogs and cats in China reached 249 billion yuan, up 20.6% year-on-year, which was 8 percentage points higher than the total retail sales of social consumer goods in 20021year, indicating that the pet economy has played a huge role in promoting social consumption in China.
The vigorous development of pet economy has its profound historical background. With the continuous improvement of material living standards, on the one hand, with the "Z generation" (1people born in 2095-2009) becoming the new main consumer, they are more willing to spend for pets in order to please themselves; On the other hand, the aging population in China is increasingly prominent, and the number of single youth, dink families and families with few children is also increasing. During the epidemic, more and more people fell in love with "cloud pet attraction" ... The superposition of various factors led to the rapid development of pet economy, from niche market to 100 billion mass market.
Despite the hot market, China's pet industry started late, and there are still weak shortcomings such as lack of strict standards and various consumption. The existing products and services are difficult to meet the growing needs of pet owners. How to choose cost-effective food for "hairy children" and where to find a professional doctor are all difficult problems for pet owners, especially the tens of thousands of yuan of pet medical expenses and chaotic service charges, which make many people embarrassed and burdened. How to promote the standardization, quality and standardization of pet industry is a difficult problem to be solved urgently in the future.
Is the pet economy of 300 billion yuan good? 3 "Pet shops usually bathe a cat in 60 yuan, and the price will increase to 100 yuan during the Spring Festival." During the Spring Festival, shovel officials were also very helpless.
With the increase of pets, a series of related industries, from pet food, pet clothing, pet toys to pet supplies, have shown a prosperous scene during the Spring Festival.
Does the booming pet industry bring fire to the listed companies in the pet industry?
Pet track continues to heat up
According to the consulting data of Ai Media, from 20 15 to 2020, the scale of China pet market has been growing continuously. In 2020, the market scale will be 295.3 billion yuan, a year-on-year increase of 33.5%. With the development of society, the concept of keeping pets will continue to spread, and the extended service of the pet market will continue to improve. The development prospect of pet market is optimistic. It is estimated that by 2023, the market size of China's pet industry will reach 592.8 billion yuan.
In fact, as early as the "Double Eleven Shopping Festival" of 202 1, the popularity of the pet industry has already appeared.
Tmall Pet Battle Report shows that as of 8: 00 am on 202 1, 1,1,the cumulative turnover of Tmall pets has exceeded the "Double Eleven" in 2020. Among them, 49 pet brands are among the clubs with a million yuan, and the number of pet items with a million yuan reaches 308.
During the period of 20021"Double Eleven", the consumption growth rate of seven categories, namely, pet smart products, pet skin medicine, pet medical service, baked food, prescription food, freeze-dried cat food and mixed cat litter, was the most significant.
It is not difficult to see from the data that the pet market is constantly subdivided. Take the most basic pet food as an example. At first, the main products were mainly cat food and dog food. Later, the sub-track of pet snacks, pet nutrition products and health products gradually extended, and the product categories began to be enriched. For example, cat strips, hair cream and canned cats for cats have become the key targets for shovel officials to join the shopping cart.
An important reason for the segmentation of the pet market is the change of people's concept of keeping pets. At first, people kept pets more for their functions, such as keeping dogs to protect their homes. However, with the gradual improvement of the economic level, people began to pay more attention to the emotional level, and slowly, the companion value attached to pets began to dominate.
At the same time, the rise of "single economy" and "silver hair economy" is also catalyzing people's attention to spirit and emotion, which has promoted the development of pet industry to some extent. Nowadays, young people either choose to live alone or are busy with their careers. At this time, if economic conditions permit, it is undoubtedly a good choice to keep one or more pets to accompany you. At the same time, pets can also play an important role in companionship when parents can't accompany them.
However, although the pet track is quite hot, it is not as hot as the pet industry for listed companies in the pet industry.
What the hell is going on here?
Difficulties faced by pet listed companies
According to public information, there are currently four listed companies in the domestic pet industry, including Petty (300673. SZ) and Zhongchong (00289 1. Shenzhen), Yiyi (00 1206. SZ, a manufacturer of pet products, and Qi Bo, a pet e-commerce company listed in the United States.
In terms of quantity, there are fewer listed companies in the pet industry. In terms of performance, from the situation of 202 1, there has also been a certain decline.
Take Zhongchong Co., Ltd. as an example. The main business of Zhongchong Co., Ltd. is the research and development, production and sales of dog and cat pet food.
According to the quarterly report of 200213, Zhongchong achieved a revenue of 20.10.2 billion yuan in the first three quarters of 2002/kloc-0, a year-on-year increase of 24.20%. The net profit returned to the mother was 965,438+0,765,438+0.30 yuan, a year-on-year decrease of 4.765,438+0%. Among them, Zhongchong Co., Ltd. achieved a revenue of 755 million yuan in the third quarter of 2002/KLOC-0, a year-on-year increase of19.48%; The net profit returned to the mother was 365,438+0,026,5438+0.80 yuan, a year-on-year decrease of 386,5438+0%.
Petty, who is also a pet food manufacturer, faces the risk of double decline in revenue and performance. According to the quarterly report of 200213, Patty's revenue in the first three quarters of 2002/kloc-0 was 9150,000 yuan, down 5.84% year-on-year. The net profit returned to the mother was 78,684110,000 yuan, down 5. 19% year-on-year. Among them, petty 202 1 achieved revenue of 204 million yuan in the third quarter, down 47.77% year-on-year; The net profit returned to the mother13,726,600 yuan, down 65.44% year-on-year.
65438+20221October13rd, Patty released the annual performance forecast for 20021,and estimated that the net profit attributable to shareholders of listed companies would be 60-90 million yuan, down 47.75%-2 1.62% year-on-year.
Compared with the decline of net profit of Zhong Chong and Patty, the mid-year report of fiscal year 2022 showed that the net loss of Qi Bo pets belonging to the parent company was 7,849,654.38+million yuan, with a simultaneous decrease of 50.40%.
In addition to the decline in performance, pet food is also exposed to the risk of raw material price fluctuation caused by the rising tide of raw material prices since 20021.
Zhongchong Co., Ltd. once stated in the 20021semi-annual report that its main raw materials are chicken breast, duck breast, leather rolls and other meat products. The impact of raw material price fluctuation on its operation includes the direct impact on operating costs. If the price of raw materials rises, there is generally a lag in price adjustment with customers, which will lead to a decline in gross profit margin in the short term.
For domestic pet industry listed companies, brand effect will also become the key point for enterprises to break through themselves.
Taking Zhongchong as an example, Zhongchong shares have always shown the characteristics of internationalization in revenue performance, but they are still weak in domestic market and brand building, and need to be further strengthened.
202 1 semi-annual report shows that the main business income of zhongchong shares mainly comes from overseas markets. In the first half of 2002/kloc-0, Zhongchong's overseas income was 943 million yuan, up by 25.39% year-on-year; Domestic income was 3,654,380,400 yuan, a year-on-year increase of 33.00%.
The pet industry is still optimistic about capital. According to the data, the total financing of 202 1 China Pet Raceway exceeded 3.62 billion yuan, and there were 57 financing cases.
In addition, the pet penetration rate in China (that is, the proportion of households with pets in all households) also has some room for growth. At present, the pet penetration rate in China is only 22%, compared with 68% in the United States, 52% in Canada and 57% in Australia.
Therefore, the fiery pet track is both an opportunity and a challenge for pet companies that refine the track. After improving the quality of their products, how to build their own brand will also become a crucial factor affecting the future development of enterprises.