On October 25th, the inaugural meeting of the Pet Industry Branch of the China Animal Husbandry Association (hereinafter referred to as the "Pet Industry Branch") and the first China Pet Industry Summit were successfully held in Beijing, and representatives of industry associations, brand owners, the Internet and other industries gathered together to discuss new ideas for the transformation and development of the pet economy in the era of consumption upgrading.
At the meeting, Liu Lu, general manager of JD's retail pet business, was invited to deliver a speech with the theme of "Product + Service Two-Wheel Drive Helps the Development of pet industry" to share the latest industry trends. She said that although the market ushered in the rise of the cat economy, functional and scene segmentation iterations and other changing factors, consumer demand for high-quality products, the demand for scientific pet expertise and services is unchanged. Currently, the theme is "Love? The Jingdong 11.11 Global Love Season with the theme of "Upward Power" is in full swing, Jingdong Pet accurately grasps the trend of quality pet raising, adheres to reliable products and services, creates a one-stop safe pet platform, and seeks progress with partners to jointly promote the formation of quality consumption ecology.
The big blue ocean continues to nurture new scenarios and upgrade professional needs of the "small blue ocean"
How hot is the "pet economy"? The data shows that the pet industry has maintained a rapid growth rate of more than 25% before 2019. After 2020, the industry growth rate has slowed down year by year, but it is still better than the traditional FMCG industry, withstanding the double background test of the normalization of the epidemic and the overall downturn of the world economy. At present, the penetration rate of Pet Families in China is still hovering at a low level of 17%, and the penetration rate of Pet Families in Japan and the United States is 2.2 and 4 times that of China, which means that the domestic pet industry still has a lot of room for imagination.
From the perspective of consumer groups, the trend of rejuvenation is significant. Jingdong platform consumption data shows that the proportion of the Z generation population has increased significantly, of which the "small white users" in the Z generation are the opportunity market, and a higher proportion of this group of people is taking care of their pets and has a more active Internet shopping frequency. It is worth mentioning that the army of cat owners is even larger. From the rapid growth of cat snacks, cat dry food and new health care products released on the JD platform, it can be seen that the "cat economy" is rising strongly.
At the same time, consumers' quality preferences have been further strengthened. Consumers pay the highest attention to healthy pets and nutritional components, and the wave of "scientific pets" has arrived. On the one hand, it is manifested in the "pickiness" of product ingredients, ingredient visualization, high meat and high protein products are more likely to be favored by consumers. On the other hand, consumers also pay attention to the improvement of their pet professional knowledge, especially the Z generation "small white users" lack of experience, do not know how to deal with pet illness, how to choose pet food, etc. In addition, consumers' demand for intelligent products and innovative categories under subdivision scenarios is high, and new trend products such as pet water dispensers and smart cat towers are widely popular, marking the arrival of the era of "lazy people raising pets" and "refined pets".
Based on the above trends, it can be seen that the "pet economy" is ushering in a comprehensive consumption upgrade, whether it is an incremental market or a stock market, it has considerable development prospects. Behind the continuous emergence of new trends and new products in the pet industry, it reflects the good wishes of pet owners to urgently improve the quality of life of pets, and the trend of pet breeding is developing in three directions: specialization, intelligence and refinement.
In sharp contrast to this background, consumers still have many pain points that have not been met, including more subdivided scene needs, professional pet knowledge guidance, the establishment of food quality standards, and a sound after-sales service system. Consumers urgently need a one-stop solution platform, adding "safety valves" in terms of cost performance and service. In this case, Jingdong Pet landed the "safe pet" strategy, covering the four major needs of "eating with peace of mind", "using with peace of mind", "consultation and peace of mind", and "service peace of mind", helping consumers save peace of mind and money, and also tapping more opportunities for partners.
Synchronize with market demand to create a one-stop platform for safe pet raising
In order to better serve pet owners and meet the needs of product and service upgrades, Jingdong Pet implements the "safe pet" strategy around the three major directions, and unites many partners to create a one-stop safe pet platform worthy of consumer trust, and jointly promotes the formation of a win-win and symbiotic pet industry ecology. These three directions include: First, category segmentation through digital user operation to empower merchants and brands. Second, accelerate development through two-wheel drive of products and services. Third, create a global omni-channel layout.
First of all, based on its own big data advantages, JD.com helps merchants to anchor new market segments, new trends, and new needs faster, and find new growth momentum. During Jingdong 11.11 this year, the "Eat with Peace of Mind" section launched the "Staple Food Promotion Quality Certification" service, allowing pet owners to enjoy high-quality and reliable pet staple food selection services. On the basis of the existing pet food industry standards such as national standard and American standard AFCO, Jingdong Pet has established a new "Jingdong Platform Full-price Pet Food Promotion Standard". At present, more than 300 high-quality staple foods have been labeled as "quality certification", and pet farmers can buy it with confidence as long as they look for the label, which greatly reduces the screening cost.
Secondly, Jingdong Pet launched a series of upgraded services such as "Safe Taste", "Jingdong Health Pet Hospital" and "Pet Medical Card", which continued to increase in products and services, and the two-wheel drive brand owners developed rapidly. The "Taste with Peace" service is specifically aimed at after-sales scenarios, and consumers can enjoy the return refund service if the purchased goods are unable to eat normally within 15 days of signing for the goods. "Jingdong Health Pet Hospital" provides 7X24 hours online pet health consultation and consultation services to solve pet health problems in real time. At present, more than 3,000 registered pet doctors are on standby to achieve "peace of mind". The "Pet Medical Card" service, which focuses on pet medical insurance reimbursement, can help consumers reduce the cost of pet raising, and it has the characteristics of efficient direct compensation, 0 deductible, full disease compensation, and 80% high compensation ratio. These services have steadily increased the trust of consumers and filled in the gaps and deficiencies in the service chain of brand owners.
Finally, Jingdong Pet synchronously increased the size of the line, and joined hands with O2O stores to bring a wealth of same-city retail goods and one-hour same-city delivery services, gradually improving the omni-channel ecology. At present, the omni-channel business of Jingdong Pet has completed the layout in 45 cities in 24 provinces across the country, and more than 1,000 "Jingdong Pet" O2O stores and nearly 1,000 explosive products in the store have been launched, which can achieve a 29-minute fast delivery experience within 3-5 kilometers. It is expected that in the next 2 years, Jingdong pet O2O stores will expand to 10,000, so that more users can enjoy "Jingdong quality".
At present, Jingdong Pet covers the whole life cycle services such as pet eating/use, pet medical treatment, pet insurance, etc., and its consumer insight ability and quality assurance and service innovation are leading the industry. The strategic positioning of Jingdong's one-stop safe pet service platform has been recognized by both the market and brand owners. Under the background of the normalization of the epidemic and the slowdown in the overall growth rate of the industry, Jingdong Pets still maintains rapid growth. From 2019 to 2021, the number of JD merchants has increased significantly, and more and more merchants have realized the value of JD.com's high-quality customer base. The cutting-edge brand factory Patnow and Weishi, the OEM-based enterprises Fubei and Hanou, and the cross-industry giants Yili and Midea have all chosen to lock in brand growth through the JD pet platform. Jingdong's one-stop safe pet ecosystem is growing.
Demand is the starting point and cornerstone of all business logic, Jingdong Pet deeply grasps the changes in the trend of consumption upgrading, continuously extends the service chain, benefits more partners and makes the standards of the entire industry more perfect. Liu Lu is full of confidence in the strategic prospect of "raising pets with peace of mind", she said, "Jingdong Pets will rely on the advantages of supply chain, digitalization and service, hope to work with industry partners to promote the quality and service improvement of the pet industry, and is committed to continuously optimizing and improving the consumer experience and continuing to work hard to jointly promote the high-quality and high-quantity development of the pet industry." "Jingdong 11.11 is in full swing, consumers are enthusiastic about shopping, and Jingdong Pet will write an industry legend with the majority of partners."
This article originated from the Financial Circle Network
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