At the end of December last year, Tang Yingzhi, the co-founder, co-CEO and CFO of Boqi Pet, said in an interview with the media that he hoped the company could achieve profitability in the third quarter of 2021. Can Boqi be profitable this year? Will there be any changes in the future strategic direction?
Speaking of future positioning, Fang Kai said frankly that Boqi will become a combination of Chewy (the largest pet vertical e-commerce in the United States) and Petco (the giant pet retailer in the United States). "We think this is the breaking direction of the vertical category integrated platform."
As a well-known domestic pet e-commerce company, Boqi Pet was once dubbed the "Chinese version of Chewy". Chewy went public in the United States in June 2019. But with the increase of Boqi Pets offline, the business models of the two have been significantly different.
Unlike the subscription purchase service that Chewy relies on, Boqi Pet will bet on the offline to retain users.
"It is undeniable that the advantages of online. The sales have shown the result of online crushing offline. But in terms of stickiness, service level, and experience, offline is still It has an irreplaceable effect." Fang Kai said.
"We want to become a combination of Chewy and Petco. This is the direction of the vertical category integrated platform. Through the offline membership system and value-added services, some previously price-sensitive things will become less sensitive and increase the repurchase of a single member. Rate, and the profit margin on a single product." Fang Kai said.
Currently, Boqi’s revenue continues to grow, but it is still unprofitable. The latest financial report shows that the company’s total revenue for the third quarter of fiscal 2021 is 312.9 million yuan, a year-on-year increase of 23.2%. Revenue has increased for two consecutive quarters year-on-year. After deducting the impact of equity incentive fees, the company’s net loss is 30.5 million yuan, compared with the 2020 fiscal year. Net loss in the third quarter of the year narrowed by 46.0%.
At the end of December last year, Tang Yingzhi expressed the hope that the company could achieve profitability in the third quarter of 2021.