Pet track to the sea! Is the overseas pet market really only wonderful?

The development of modern society rushes on unceasingly, and individuals are as small as a drop in the ocean, being pushed forward by the torrent of the times. While society is evolving rapidly, people are more and more prone to loneliness, and the fullness of the emotional world cannot keep up with the pace of technology.

In the compact and anxious rhythm of modern life, loneliness is as silent as a shadow in a corner of life. People are a contradictory mixture of rationality and sensibility, loyal to life, but also longing for love and belonging. With such emotional needs, loneliness has become a business to be sold, and the pet economy is one of the branches of this business that is growing day by day.

Nowadays, the role played by pets has changed from a functional position of watching the door and keeping the house to a family member that touches human joy and sorrow, and more and more young people are keen to invest emotionally in their pets to fill the emotional gap by establishing an intimate connection.

Pets are like a good medicine, enriching the spiritual world of today's people and giving rise to a booming 100 billion dollar market. Data shows that the global pet market will reach $232.5 billion in 2021, growing at a compound annual growth rate of 6.1%, and is expected to jump to a market size of $350 billion by 2027.

In the global economy under pressure, the pet economy can go through the cycle and go upstream. How did the "pooper scoopers", who are so passionate, manage to shovel out such a hundred billion dollar market? But is the business of going abroad really that good? Is the overseas pet market really only beautiful?

"Fire and ice": not all is "good" for pets at sea

The year 2012 can be regarded as the "first year of investment" in the domestic pet circuit, before that, the primary market and pet-related investment cases are rarely heard of, and the C-end brands at sea is lacking.

At that time, earning foreign exchange for overseas pet brands was almost a "must" for pet food factories in terms of survival and development. At present, it is close to the listing of "one step away" from the good treasure pet and Fubei pet, at the beginning of the establishment of both.

With a large amount of capital in recent years, new brands continue to emerge, the original "small and beautiful" pet track has become more and more crowded, the volume of the domestic market has become increasingly unable to meet the needs of brand development. It is also in this context, the European and American markets have become a must-have.

Compared to the domestic, Europe and the United States pet industry development is relatively mature, the epidemic home during the period is to raise the pet electric business fever, domestic sellers such as Tianyuan pet, in Heng pet sales have risen.

In the case of Tianyuan Pet, for example, since 2019, Tianyuan Pet has been actively expanding its online business, and the opening of its own store in Amazon has driven significant growth in its overseas sales revenue.

From the data, its sales performance in Amazon was significantly higher than other platforms in 2021, and its revenue from its self-operated store in Amazon platform exceeded 14.28 million yuan, accounting for 25.06% of its self-operated online revenue.

In terms of market segmentation, Tianyuan Pet's foreign sales revenue from the North American market in 2021 was 496 million yuan. The other major market, Europe, has slightly lower foreign sales revenue than the North American market, at 364 million yuan. It is understood that Tianyuan Pet's customers in North America are mainly supermarkets and e-commerce companies, with the U.S. market dominating, accounting for more than 85% of its North American export revenue, and the share of other markets is also increasing year by year.

Under the market dividend, more small and medium-sized brands are attracted to join the "war".

Just completed three rounds of financing of the uncard, in 2020 to start the layout of overseas business, 2021 officially "go to sea". It is reported that a large part of the three rounds of financing will be invested in the globalization of channels and supply chains, as well as the construction of the overseas business center and brand center in Singapore for overseas business services.

Another newcomer to the pet industry, "Pidan", has also started to go abroad. The path to the sea can be said to cover almost all aspects.

First of all, pidan set up its own independent station overseas, independent station set up bilingual Chinese / English, and the page layout is clear, simple, and close to the design style of the product. Even when I searched in Google Chrome with the keyword "pidan pet", I could see two pages for cats and dogs.

Secondly, pidan has been stationed in the United States Amazon, Australia Amazon and Facebook Shop and other global e-commerce platform. However, in different e-commerce platforms, pidan online products are different, but the same is that the price of goods in overseas is much higher than the domestic price.

However, according to Hugo cross-border Amazon sales test data show that the domestic red-hot Pidan in the Amazon North America site in the last 30 days of business is lackluster. Only two products nearly 30 days of sales amounted to more than 10,000 U.S. dollars, the best-selling is a cat leash.

According to senior Amazon operations Wang Hao pointed out in the analysis, Pidan one of the cat litter priced at $15.99, FBA shipping costs $7.4, this Listing is likely to be a loss, profits are swallowed by shipping costs more than half. This phenomenon also shows that Pidan seems to have not yet found a product and differentiated approach that is suitable for going abroad, and its road to go abroad is still long and difficult.

The "it economy" is in the wind, and capital is moving in the wind

The gradual sublimation of contemporary people's spiritual aspirations has pushed the pet economy to continue to heat up. In the face of lackluster social relationships and fast-paced urban life, people are thirsty for a place to rest their souls' anxious soil.

Today, the pet market "anthropomorphization", the consumer group younger become the trend, many young people through the cat jerk dog to relieve stress, to obtain emotional value and emotional return. For them, pets are like relatives, so they do not hesitate to put energy and money into pets, and such a consumer trend is also blowing the rapid growth of the pet economy.

Around the world, the "it economy" is booming, with the United States being the largest pet kingdom. By 2021, the pet penetration rate in the United States will be as high as 70%. The emotional attributes of pets also induce many Americans to willingly spend a lot of money for them. According to Nielsen IQ, U.S. consumers spend more than $175 billion on pet products each year.

The pet economy is gaining traction not only because of the emotional effect it brings. In a macroeconomic downturn, the pet market is showing strong counter-cyclicality, growing against the odds of epidemics, inflation, and other adverse external factors.

A report by online pet marketplace Rover shows that the cost of pet ownership continues to soar for Americans in an inflationary situation, with annual pet food inflation rising 3.7% in February, while pet services, including veterinary care, soared by 5.8%. However, the survey found that despite the increasing cost of pet ownership, "pooper scoopers" are still willing to pay for the good life of their pets.

According to foreign research institutions, even during the U.S. recession in 2010, pet consumption still achieved solid growth. The counter-cyclical properties of the pet economy and the huge market potential are also the first to be understood by the sensitive capital.

On August 18, "the first stock of dog leash" Yuanfei Pet officially registered A shares, in a "green grassland" of the stock market rose, listed so far successfully reached ten consecutive board.

The listing prospectus shows that the first half of 2022 source fly pet revenue of 548 million yuan, an increase of 14.45%; net profit of about 111 million yuan, an increase of 71.85%.

According to industry data released by the American Pet Products Association, pet food sales rose 13.6% year-over-year in 2021; sales of pet supplies, live animals and over-the-counter drugs grew 17.80% year-over-year and are expected to continue to grow in 2022. Thanks to the benign development of the downstream market, Yuanfei Pet's performance showed a steady upward trend and successfully killed the capital market.

With the rapid growth of pet consumption, the huge market opportunity has also attracted more and more capital. Recently, another pet big selling Goodbaby Pet GEM listing debut application will pass. The company has been developing and selling its own brand since 2012, and has successfully developed into a "private brand + OEM" business.

Furbulous was founded in Shanghai at the end of 2021 with a core product line of smart pet products. Yet the pet brand, which was founded less than a year ago, announced the completion of a multi-million dollar angel round of funding not long ago, and the pet market's gold-sucking power is evident.

Today, the pet circuit is booming, and the strong vitality is attracting more and more companies to take the wind out of the sea. The entry of a large number of companies and brands is also driving the pet industry chain to become more and more complete, and has given rise to a wide range of consumer branches.

We can see that refinement, high-end, intelligent and sustainable are becoming the four major vane of the current pet industry. Although this track is hot, but if you want to kill, you must control the market trend, not only from the segmentation of the field to cut, pull the differentiation advantage, but also to focus on customers, to build product power, focusing on brand building.