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Business insights | meet "it" needs and leverage new markets of more than 400 billion

Business insights | meet "it" needs and leverage new markets of more than 400 billion

With the increase in the income of Chinese residents and the continuous expansion of the pet population, the types of goods and services related to pet consumption have been enriched, and the scale of the domestic pet industry has expanded rapidly. In 2020, the size of China's urban pet market is close to 300 billion yuan, and the compound speed will reach 32.8% in the six years from 2015 to 2020. With the continuous improvement of pet family penetration rate and industry maturity, the pet industry will continue to grow steadily. According to iResearch's forecast, the compound growth rate of the mainland pet industry in the next three years will be 14.2%, and the scale will reach 445.6 billion yuan by 2023.

Business insights | meet "it" needs and leverage new markets of more than 400 billion

Contemporary China's pet industry, enlightened in the early 1990s of the flower and bird market era, with the increasing abundance of pet consumer products and services, changes in demographic structure, changes in pet roles and pet concepts, as well as mobile Internet technology on the pet industry trading model and service model changes, after 30 years of development, the mainland pet industry has experienced a period of enlightenment, incubation, rapid development, and has now entered a stable and mature period of orderly growth.

Under the rise of a new generation of consumers, the mainstream pet types tend to be stable, mostly cats and dogs, the types are diversified, the dog family accounts for 70%, the cat system accounts for more than half, and the multi-category breeding has become a trend. The mainstream population of the new generation of married families has advanced pet owners, and the proportion of pet owners after pan-85s has reached 74%. The proportion of female pet owners is higher, the undergraduate rate among pet owners is more than 70%, and the proportion of pet owners with a monthly household income of more than 1.5w is 72%.

Business insights | meet "it" needs and leverage new markets of more than 400 billion

With the rise of the number of people living alone, pets bring not only companionship, but also a healing force in working and studying outside. Their emotional significance for the younger generation has gradually deepened, the birthday of pet lovers has become an important holiday for many young shovelers, and related pet birthday supplies have also become the business bias of young pet stores. Among them, the popularity of pet birthday clothing has soared the fastest, and original design and custom tide brands are the characteristics of post-90s sellers for pet clothing.

Business insights | meet "it" needs and leverage new markets of more than 400 billion

Last year, Italian fashion brand DIESEL launched its pet collection twice. The first was the capsule collection in March last year, the first time the brand's pet collection was unveiled and successful, and then in November of that year, a second pet clothing collection was launched, which was also the first time it expanded into the accessories space. That puppy capsule collection is an 8-piece set of collections inspired directly by the Fall/Winter 2021 womenswear and menswear collections, designed to allow consumers to create a "harmonious mini wardrobe" with their dogs.

The collection includes denim jackets, coats and mini knitted sweaters, and for the first time includes collars, belts and strap accessories – all made from denim and faux leather with 5Pocket mirrored metal studs and hardware.

Business insights | meet "it" needs and leverage new markets of more than 400 billion

In addition to the fashionability of commodity quality and commodity price is the primary factor to consider, consumers buy pet goods to consider the most is the product's own related attributes, ranking in the top three is product quality, price and safety; nearly 60% of consumers will take into account the needs of pets, such as the particularity of pets, age and weight; brand factors account for the low, indicating that pet owners have a relatively open attitude to the brand, pet consumption rationalization into a trend, pet owners personal preferences account for 70%.

China's pet market started late, but in recent years it has also given birth to excellent pet clothing brands.

For example, the "hippie dog", which specializes in the research and development, production and sales of pet clothing and pet supplies, puts forward the slogan of improving the quality of life of pets in China, and is currently one of the top five pet products e-commerce companies in China, with pet clothing sales ranking first in the whole network, with annual sales of more than 230 million yuan in 2018.

In its own "hippie dog", "nerve cat", "sour bear", "pet dooph", "carbon molecule" and other brands, with its own pet clothing, nest cushion design and development team and production factory, products include pet clothing, toys, accessories, residence, etc. The hippie dog is blended with natural materials such as cotton and linen silk wool, paying attention to comfort while controlling the use of clothing details, combining practical and visual types to create a unique design style.

Business insights | meet "it" needs and leverage new markets of more than 400 billion

With the growth of China's local pet market and the sharp increase in demand, a large number of enterprises that originally provided pet products production for international brands have also begun to target the domestic pet clothing customization market.

The strength of the manufacturers represented by the "Fun Comic School" rely on export quality to enter the domestic market. It is understood that "Fun Pai" has a number of production lines and advanced production equipment, through the ISO9001 international quality management system certification, is one of the few domestic production enterprises that have obtained the ICTI certification of the International Toy Association, the products are exported to the United States, Canada and the European market, and have a team of designers with more than ten years of experience in the pet products industry, which can design convenient, unique, comfortable and fashionable pet clothing according to the size and body structure of different breeds of pets, as well as the comfort and convenience of their wearing.

Business insights | meet "it" needs and leverage new markets of more than 400 billion

From pet grooming, food, medical treatment to apparel, the huge pet market demand is also gradually and rapidly segmented. In addition to the mainstream pets of cats and dogs, the proportion of alien and aquatic pets is also gradually increasing. Pets have long ceased to be just small animals in nursing homes, but special "companions" of the new generation of the city, the generation living alone and even the middle-aged and elderly. China's pet market is developing rapidly, and in this huge new market, China's local pet clothing will give birth to the earliest batch of representative national brands.

Business insights | meet "it" needs and leverage new markets of more than 400 billion