How to breakthrough in China pet industry?

Date: 2021-01-14 Compiler:

From 2010 to 2019, the average compound annual growth rate of China's pet market is about 34.55%. Many domestic brands have emerged on the market. Starting from 2014 and 2015, keeping pet as family member has gradually become a new lifestyle. The increase in the number of cats and dogs has promoted the growth of e-commerce market.

Compared with the traditional retail model, the pet industry is extremely unique. On one hand, most transactions of pet supplies occur online; on the other hand, because grooming, shower, medical service rely on offline section.

However, the general trend of the "Internet economy" has profoundly affected various industries. Consumers can obtain all kinds of information more conveniently. The phenomenon of information asymmetry and price barriers in the past is gradually disappearing, and the boundary between traditional online and offline channels has become increasingly blurred.

What follows is the plight of the survival of traditional channel stores. According to Taobao data, the number of physical pet stores in Beijing, Shanghai, Guangzhou and Shenzhen has decreased by 18% in the past year: from more than 7,000 to more than 5,000; while the number of pet supply stores on Tmall has increased from more than 16,000 shops in 2019 to 29,000 shops so far. The present domestic pet market, whether it is the medical channel or the pet supplies channel, is in the stage of shifting from the rapid development stage to the market competition stage.

The online purchase has increased the uncontrollable sectors of stores and brands in offline channels. In the future, all business elements will be fully digitized. It can be seen that the transformation and upgrading of pet stores should also start with the datalization of operations, and establish their own data asset management system. As the terminal of the retail industry, the store is the last link to carry the entire new retail logistics system, and the terminal store is bound to be the most important service terminal of the entire huge new retail logistics system.