The successful holding of CIPS 2020 brought confidence to the industry. Christmas is coming which means 2020 has come to an end. CIPS team wishes you a Merry Christmas and stay healthy. This year we have suffered a lot, but our industry of love stood strong through difficulties. Lets take a look at the current market situation in China.
Overall calculation of pet owners in China
As of October 2020, the number of pet owners has exceeded 530 million. The proportion of males pet owners takes 54.8%. Pet owners under age of 30 account for more than 54.2%. Pet owners in third, fourth, and fifth-tier cities account for more than 60%.
Permeability of shopping apps in pet section
Comprehensive e-commerce apps are the main choice for pet owners when it comes to online shopping.
Performance of different platforms in China
In terms of the proportions of different consumption types, in October 2020, cat food, dog food, pet tools, pet health care and other categories accounted for 74.3%, 29.1%, 11.1%, and 0.1% respectively.
Among the major platforms, Kuaishou platform pet KOL accounted for more than 60%, Tik Tok and Xiaohongshu accounted for 23.3% and 11.0% respectively. From the perspective of user portraits, dogs are more favored by married, male users over the age of 40, and cats are more favored by young and female users.
Imported products VS Made-in-China, who is favored by the pet shops in China
Beijing Fuli Pet Shop: Currently domestic products in the store account for 40% of the total, and food is mainly foreign brands. The store main business is cats, so cat products sales faster. The sales of MBK (a domestic brand)’s products in the store have always been among the top three.
Yantai City Pet Love: The store opened four years ago. Domestic brands like Dou Chai and Partner Pet sales quite well. Imported brands like Go, Orijen, K9, and Acana are also available in the store, but is no longer being a major part of distribution. In fact, the promotion of imported brands has always started online, and purchases are made also online. For shops, the unit price of imported food is higher but the profit is lower than domestic brands. In addition, imported food is easily out of stock, which requires stock and flow of funds. Once the product is out of stock, customers may go online for purchase. Comprehensively considering that the store selling imported food does not have much benefit except for enhancing the store’s compelling high-end overlook, thus my shop has preferred to sell domestic food.
Favourpets, a chained pet shop: 90% of the store is domestically produced, including MyFoddie, Singen, Pire & Natural, Luscious , Black Nose, Bile, etc.