Behind the cat and dog is a hundred billion business, and the keen vc/pe institutions have long smelled this blue ocean. From 2016 to 2018, Hillhouse Capital invested at least US$1 billion in the pet industry, invested in more than 100 pet companies, and joined hands with Ruipeng Group to form the first pet medical "aircraft carrier" with more than 1,000 stores in China.
When I go out on a vacation, what about the pets at home?
An investigation by an investment reporter found that during the National Day Golden Week, the price of pet custody services in Beijing ranged from 50-300 yuan / day, from pet cages to independent single rooms, the price was different, and the accommodation environment was also different. The store generally provides dog walking services and sends videos to owners in the morning and evening to report the news. These pet hotels have one thing in common – business is very hot.
In fact, this is just the "tip of the iceberg" of the pet economy of 100 billion. With the rise of the pet army, a number of subdivisions have been derived around a pet over the years. In addition to pet hosting, there is also pet food, grooming, photography, medical, socializing, funeral....... This new group has given birth to countless new consumptions.
Unexpectedly, behind the cat and dog is a hundred billion business, and the keen vc/pe institution has long smelled this blue ocean. In recent years, including Hillhouse Capital, Sequoia China, Dachen, kkr and other top investment institutions have been shot, of which Hillhouse Capital from 2016 to 2018 in the pet industry to invest at least 1 billion US dollars, invested in more than 100 pet companies, and joined hands with Ruipeng Group to form the first domestic pet medical "aircraft carrier" with a store scale of more than 1,000.
Post-90s Pet Bill:
It costs 400 yuan a month and often gets sick from 2,000 yuan
"It's economical", menacing.
This National Day holiday, arrange yourself well, but also arrange pets, is the correct way to open the pet family. Adhering to the belief of "love it, spend money for it", Li Jing booked a separate room in the pet hotel for the pet cat, "more than 200 a day, expensive is a little expensive, but more assured." Over the years, this cat has been accompanying Li Jing.
An investigation by an investment reporter found that during the National Day Golden Week, the price of pet custody services in Beijing ranged from 50-300 yuan / day, from pet cages to independent single rooms, the price was different, and the accommodation environment was also different. Shops generally provide dog walking services, and send videos to owners in the morning and evening to report the dynamics, in addition, some pet stores need to bring their own pet food.
Visiting nearly 10 pet hotels in Beijing's Chaoyang District, the reporter found that their business is very good, without exception.
Obviously, there are more and more young people who are willing to spend money on pets. According to the "2018 Pet Industry White Paper", the per capita annual consumption of a single pet by cat and dog owners is 5016 yuan, an increase of 16% over 2017, with an average of more than 400 yuan per month.
The cost of owning a pet is getting higher and higher. Li Meng, who has just graduated, has a deep understanding of this, she is a teacher in a college in Nanjing, just started to raise dogs, "a month of living expenses almost all to the dog spent."
She calculated an account: a dog needs 1 rabies vaccine once a year, 80 yuan 1 injection, deworming once in 3 months, 1 time a month outside the body, bathing once a half a month; dietary, puppy now eats milk cakes, more than 110 more than 1 pack, but also bought it other snacks and toys; dogs are sick is the most expensive, last month sick film spent more than 2000 ... In the end, Li Meng said bluntly, "I didn't dare to buy expensive pet supplies, I have to make money quickly, otherwise I really can't afford to raise it." ”
Looking at the north, Shanghai, Guangzhou, and Shenzhen, "Li Meng" abounds, and these post-90s generations have become the mainstay of the pet consumer population.
Source: The investment community
This is an industry full of potential. With the rise of the pet army, a number of subdivision tracks have been derived around a pet. In addition to pet hosting, there are also pet food, grooming, photography, medical, social, funeral, etc..... All of them have developed vigorously.
The rise of the pet medical "Hillhouse family":
Invested at least $1 billion in 3 years and invested in more than 100 companies
In the face of this vast market, the forward-looking VC/PE institutions are difficult to hide their hearts and have already made a layout.
Among them, Hillhouse Capital is the most active. In recent years, Hillhouse Capital has deeply cultivated the pet market, and its investment territory has spread all over the world, forming a "Hillhouse system" in the field of pet medical treatment. According to incomplete statistics, from 2016 to 2018, Hillhouse Capital held more than 100 shares in pet-related enterprises, with many layout tracks, including pet medical, retail, supplies, etc.
It is rumored that Hillhouse's pet layout originated from a seminar a few years ago on the theme of "China's Aging Society". At that time, Zhang Lei needed companionship from the elderly life, thinking that this would accelerate the development of the pet industry, and since then opened the road of Pet Investment in Hillhouse's wild running style.
The initial attempt did pay off for Hillhouse. In 2017, Hillhouse spent $233 million with well-known investment institutions such as Sequoia Capital to invest in vet first choice, a company that provides online pharmacy and home delivery services for veterinarians. Two years later, the company went public on the NASDAQ with a market capitalization of $4.5 billion, an investment that is said to have yielded a handsome return on Hillhouse.
Compared with overseas, Hillhouse's layout in China is more focused. According to statistics, more than 80% of the pet projects invested by Domestic Hillhouse are pet hospitals. In August 2018, Hillhouse, which was constantly sweeping goods in the pet medical market, met ruipeng group, and the two sides coincided with the new ruipeng group formed by a strong combination, shaking the entire pet industry.
According to the plan, hillhouse capital's more than 700 pet hospitals, including Partners such as Yun pet (Barbie Hall), An'an, Ce Erxing (pet Yisheng), Ainuo, Pet Fuxin, Nagia and other partners, will be integrated with about 450 pet hospitals such as Ruipeng Pet Hospital, Midland Animal Hospital, Kate Meow Cat Specialist Hospital, Beijing Hengai Animal Hospital, Shenzhen Playlike Pet Hospital, Baker and Stone Animal Hospital. It should be pointed out that this integration marks the official birth of the first pet medical "aircraft carrier" with a scale of more than 1,000 in China.
Of course, the institutions active in the field of pet investment are not just Hillhouse. In fact, Dachen Caizhi made the first round of investment in Ruipeng pets in 2015, becoming the first institutional investor introduced by Ruipeng and carrying out 4 consecutive rounds of additional investment in the subsequent development process of Ruipeng, accompanied and witnessed the growth process of pet industry giants. In addition, well-known institutions such as idg Capital, KKR, Shenzhen Venture Capital, and Qianhai Fund of Funds have all laid out pet-related markets.
1 year consumption of 200 billion in the future,
What other opportunities are there in the pet market?
The "gold absorption" of the pet industry should not be underestimated.
According to the "2019 China Pet Industry White Paper", the number of urban pet dogs and cats in China in 2019 was 99.15 million, an increase of 7.66 million over last year; the size of the dog and cat consumer market reached 202.4 billion yuan, an increase of 18.5% compared with 2018. Among them, the total pet consumption of Beijing, Shanghai, Xi'an and Chengdu reached 48.6 billion, accounting for 24.01% of the entire pet market.
Although the pet market in China is huge, the penetration rate is not high. Previously, Qingtong Capital mentioned in the "2018 Pet Consumption Trend Report" that at present, China's pet ownership has ranked third in the world, but the proportion of pet families is only 6%, far less than the Penetration Rate of the Pet Market in the United States, Germany, Japan and other countries by more than 30%, and there is still a lot of room for the development of China's pet market.
More and more entrepreneurs are involved. Enterprise investigation data show that in the past two years, a number of pet brands have received financing, and the amount is large, most of the brands of a single financing amount of more than 10 million yuan, of which the Internet food brand Crazy Puppy recently raised two hundred million yuan and 300 million yuan respectively.
Overall, the financing brand covers pet supplies, pet food, pet hospitals, community services and other tracks, of which pet supplies are the most favored; among the investment institutions, Shenzhen Venture Capital, Shunwei Capital, Morningside Capital, Tiantu Investment, etc. have been sold. From the perspective of stages, it is still concentrated in the early stages.
It is worth noting that in addition to vc/pe institutions, there are also Internet industry capital figures among pet investors. On September 17, Xiaomi ZhanTou and Shunwei Capital completed a round of investment in Beijing Cat, Dog and Dog Technology Co., Ltd., which is Xiaomi's second investment in pet companies in the past month. On August 23, Xiaomi Zhantou led the investment furrytail tail life to complete the industrial and commercial changes.
In the past two years, some new changes in the pet industry have attracted the attention of VC agencies. For example, with the focus of power online, the pet brand Crazy Puppy has achieved rapid popularity, once breaking the monopoly of pet food foreign companies. Another dog food brand, Wang Zai rice, has set its sights on douyin and used short videos for brand communication. In addition, pet custody methods such as home feeding and foster care are also gradually emerging.
So, what are the opportunities for the future pet market? At a salon not long ago, Li Ying, a partner at Zhonghai Investment, predicted, "On the one hand, consumption habits will gradually spread from first- and second-tier cities to third- and fourth-tier cities, or even lower-tier cities." "This means that the pet service market in third- and fourth-tier cities is worth tapping."
"On the other hand, with the increasing number of pet owners and the continuous improvement of everyone's awareness of pets, there will be a large number of personalized brands and service economies, such as funeral, beauty, maintenance and other services."
This article originated from the investment community
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