Eliot once said, "Animals are the closest friends—they never ask questions or accuse." Perhaps it is precisely because of this that in the current declining birthrate and aging society, pets have become an important emotional support for many people, and the relationship with humans is becoming more and more intimate. Under the general trend of consumption upgrading, this intimate relationship has gradually spawned a huge pet economic market.
Since 2017, a number of pet concept companies have successively landed on A-shares, with outstanding market performance and continuous release of profitability. Since the epidemic, the emotional value of pets has become more prominent. The domestic pet economy market has recovered rapidly, and the scale growth rate of overseas markets has even exceeded the pre-epidemic level. In this context, Hangzhou Tian Yuan Pet Products Co., Ltd. (stock code: 301335 abbreviation: Tian Yuan Pet) opened its application today and will soon be listed on the Growth Enterprise Market (GEM), ushering in new members in the core track of the pet industry.
A pioneer in the pet industry, one-stop covering pets' food, clothing, housing and transportation
As a family bred animal with companion function, pets are generally regarded as family members, and their living needs are synchronized with those of breeders, thus deriving a wide range of pet industry chains such as life, food, medical treatment, beauty and even funeral. Founded in 2003, Tian Yuan Pet mainly focuses on the design, development, production and sales of pet supplies, and also has pet food sales business.
In terms of pet supplies, Tian Yuan pet products cover more than 5,000 multi-series and full-category pet products such as pet litter mats, cat climbing frames, pet food, pet toys, pet clothing, and electronic supplies; In terms of pet food, the company authorizes the sale of well-known international and domestic pet food brands such as Chan, Akenna, Mars, Nestle, McFudy and Xinshidai's own brand products through cross-border import and other means, mainly for cats and dogs.
Tian Yuan Pet not only covers the food, clothing, housing and transportation of pets, but also innovates and develops around the various needs of pets and owners, and has launched electronic pet products with automatic and intelligent functions (such as automatic feeders, electronic water dispensers, etc.), and creatively developed a variety of new products such as pet cabinets, pet side tables, and pet shoe stools, which meet the consumer needs of pet family interaction, space saving, multi-purpose and unified style.
With the vigorous development of the pet market in recent years, the overall performance of Tian Yuan Pet has achieved good development. According to the prospectus, from 2019 to June 2022, the company achieved operating income of RMB1.049 billion, RMB1.450 billion, RMB1.854 billion and RMB864 million respectively, and the net profit of non-attributable parent in the same period was RMB87.1744 million, RMB100.3292 million, RMB96.2866 million and RMB47.3114 million, always maintaining a stable growth trend and showing good growth.
At the same time, as a one-stop service provider of pet supplies that has been deeply engaged in the industry for nearly 20 years, Tian Yuan Pet has also been widely recognized by customers and the industry, and its products have successfully entered the international pet market such as the United States, the European Union, Australia, Japan, etc., and large chain supermarkets such as Wal-Mart, Kmart AUS, TRS, Birgma, KOHNAN, Amazon, Chewy and other internationally renowned e-commerce, as well as Fressnapf, Petco and other large pet supplies chain enterprises. A long-term and good cooperative relationship has been formed.
Since 2009, Tian Yuan Pet has been awarded the "Certified Supplier" certificate by China Manufacturing Network and the "Golden Sincere Enterprise" certificate awarded by Alibaba for many times, and was awarded the "Excellent Enterprise in China's Pet Industry" by the Pet Food Products Inspection and Quarantine Branch of China Entry-Exit Inspection and Quarantine Association in 2011 and the "Industry Leading Award" by Zhejiang Pet Products Industry Association in 2018.
The supply chain system is reliable and efficient, and more than 2,000 new products are launched every year
China's pet industry started late, and it was not until the 90s of the 20th century that it began to take shape. In contrast, developed countries such as Europe and the United States are more mature, and have also formed some large-scale pet franchise stores, chain supermarkets and other pet product operating enterprises with their own sales channels and product brands.
Therefore, foundry and export-oriented have become the two basic characteristics of domestic pet enterprises, but Tian Yuan Pet is not a simple OEM processing.
The company has a design and development team with strong design ability and fast market response, and launches more than 2,000 new product catalogs every year. At the same time, due to the global pet products market, the company's product center pays attention to targeted product development according to the cultural customs, lifestyles and pet types of different countries, while fully considering the habits and behavioral characteristics of various pets, paying attention to the shopping preferences of the owner, so as to adapt and promote customers' one-stop purchase of multi-category pet products by continuously strengthening the development of a full range of categories, multiple styles and creative new products.
In the production and supply process, in order to achieve the effective supply of many categories of pet supplies, Tian Yuan Pet adopts a product organization method combining independent production and outsourcing production, and has established its own production line for two key "bulky products" of nest mats and climbing frames; Other products make full use of the supporting resources for the production of light industrial products in the region, adopt a production mode based on external processing, give full play to the comparative advantages of the industrial chain division of labor, and focus business resources on high value-added business links such as product development and design, supply chain management and customer development and maintenance.
On the whole, although Tian Yuan Pet also participates in the development and design of products and some production links, it does not focus on or position the production and processing function of products, and the company breaks through the traditional ODM/OEM model and realizes the integration of traditional light industry processing supporting cooperation resources with the company's new operating formats. In view of the characteristics of many pet supplies, diverse styles and low degree of standardization, an efficient and reliable multi-category product supply chain management system has been formed, which meets the one-stop and multi-frequency purchase needs of customers and further strengthens the company's market competitiveness.
Overseas markets are enduring, and the domestic "it economy" is just in time
In the 80s of the 20th century, cats and puppies began to be used as prototypes for animation creation, riding the east wind of the animation industry's vigorous development, and the number of cats and dogs in Japan continued to rise, driving the development of the pet industry. The pet industry in Europe and the United States has experienced nearly a hundred years of development, and the market space is still growing.
According to Euromonitor, the global pet goods market (excluding services) was $159.6 billion in 2021, with the United States being the world's largest and most mature pet consumption market. According to the American Pet Products Association (APPA), about 67 percent of households in the United States own at least one pet. According to Tianfeng Securities Research Report, "Since the epidemic, the United States has added about 9 million pet dogs and 5 million pet cats, an increase of 9% and 7% respectively." In 2021, the size of the US pet market reached US$123.6 billion, an increase of nearly 20% year-on-year, an increase of 12 percentage points compared with the year-on-year growth rate in 2019, far exceeding the pre-pandemic period and achieving high growth under a high base."
Europe is the world's second largest pet consumption market, according to data released by FEDIAF (European Pet Food Industry Federation), the European market reached 51.2 billion euros in pet consumption in 2021, of which pet supplies were 9.5 billion euros.
In the face of the enduring overseas market, Tian Yuan Pet has participated in large-scale professional or comprehensive exhibitions at home and abroad, such as Nuremberg Pet Show in Germany, Orlando Pet Expo in the United States, Asian Pet Exhibition, China International Pet Products Exhibition and Canton Fair, and regularly organizes market research, while promoting the company's products and contacting new and old customers, it also keeps abreast of the latest development trends and market frontiers of the global pet industry.
In addition, Tian Yuan Pet has also set up subsidiaries in the United States, Japan, Germany, the United Kingdom, Cambodia and other places to ensure smooth and timely communication with global customers.
On the other hand, China's pet industry is currently in a stage of rapid development. With the improvement of consumers' economic level and the change of ideological concepts, people have further derived the need for companionship and emotional value from the instrumental positioning of "cat and mouse, dog nursing home". According to the "2021 China Pet Industry White Paper", the size of the mainland pet market reached 249 billion yuan in 2021, achieving a year-on-year growth of 20.4%, and the CAGR in the past three years reached 13.4%, higher than that of the United States and Japan.
However, the current penetration rate of pet families (dogs and cats) in mainland cities and towns is still far lower than that of mature markets in the pet industry such as the United States, and with the increase of per capita income and the growth of pet owners in the future, the domestic pet industry has a vast market space and market potential.
Tian Yuan Pet is also constantly expanding the domestic market, the company has formulated an online and offline sales model in response to the current general trend of domestic e-commerce development, and added pet food business on the basis of the original pet supplies in order to better develop domestic sales channels and increase customer stickiness.
At present, the products sold by Tian Yuan Pet in the domestic market are mainly its own brands, and the company also cooperates with well-known overseas brand enterprises to sell related products with the help of its own channel advantages, such as the company's new expansion in June 2022 to obtain the domestic agent sales right of the Italian high-end pet care brand "yuup", which will help the company further enrich the domestic pet product line.
This time in the capital market, Tian Yuan Pet intends to raise 589,584,400 yuan, in addition to reasonable expansion to meet the huge market demand, but also for e-commerce and information construction, aiming to expand online e-commerce business, further increase customer coverage, and then expand the company's sales scale.
In general, as an early domestic enterprise to enter the pet industry, Tian Yuan Pet has a certain first-mover advantage and has accumulated high-quality customers in many places around the world; At the same time, the company is located in the Yangtze River Delta region, and its geographical advantages enable the company to carry out product organization methods that combine independent production and outsourcing production, reduce costs and improve efficiency, and meet the one-stop, multi-frequency purchase needs of customers.
In the face of the future situation of overseas markets and domestic markets, the company is also actively integrating the industrial chain, better grasping market opportunities by strengthening the localization services of overseas branches and improving domestic business channels, and moving forward to become the world's leading provider of all categories of pet products.
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