Photo courtesy of pet dog Yiyi interviewee
Sino-Singapore Jingwei Client, Nov. 2 (Yan Shuxin) As Double Eleven is approaching, the "poop shoveling officers" are about to stock up food for their owners again.
In the shopping cart of senior "cat slave" Yaoyao, all kinds of cat food, such as dry food, canned food, wonderful fresh buns, and cat pudding, accounted for almost two-thirds, and the total price was at least 2,000 yuan.
Like Yaoyao, there are many people who are willing to "spend big money" for pets.
In recent years, as the demand for pets has increased, the domestic pet industry market has increased year by year, and pet food, as a rigidly-needed product, has shown geometric growth.
According to Euromonitor, an information consulting agency, in 2019, China's pet food market sales were 5.151 billion U.S. dollars (about 34.523 billion yuan), and the average annual compound growth rate from 2016 to 2019 was 30.86%, far exceeding the world average of 3.77%.
The "Krypton-gold"-style pet raising of the "poop shovel officers" has also made related companies taste a lot of sweetness.
A reporter from Sino-Singapore Jingwei noted that recently, pet food concept stocks Petty shares and China Pet shares have successively disclosed the three quarterly reports for 2020. From January to September this year, these two companies not only "increased profits", and their net profits are also year-on-year. Doubled.
No money is not qualified to "shovel shit"
A year ago, the post-90s Yanzi adopted a stray dog on the side of the road and named it Yiyi, and Yanzi has since been officially promoted to a "shit shovel officer."
“I didn’t think about how much money it would cost when I adopted it. I thought it was simple at the time. As long as I could eat a meal, I would give her a meal. However, since she became ill, I realized that keeping a pet also requires a financial basis. "Yanzi said.
Last winter, Yiyi was diagnosed with gastroenteritis by the pet hospital. It took about a week and spent nearly 5,000 yuan.
Since then, Yanzi has become more cautious about Yiyi's food.
"The first dog food Yiyi ate was bought casually online. Later, I got gastroenteritis, so I didn't dare to eat it indiscriminately."
The Sino-Singapore Jingwei reporter learned that in order to take good care of Yiyi, Yanzi also consulted the pet doctor for feeding advice.
Yiyi has an infusion at the pet hospital.
Photo courtesy of respondents
According to Yanzi, Yiyi currently only eats dog food and canned food. Among them, dog food is relatively cheaper. "Yiyi is a small dog. He came to the house for about a year and ate 3 large bags of dog food. The unit price was about 130 yuan (2KG/bag). ."
But canned food is much more expensive.
"Six cans for 200 yuan can only eat for about a month." Yanzi said.
And these are just the most basic consumption of raising a dog.
"Seeing a doctor, doing sterilization, buying clothes, getting vaccinations... Which one does not cost money? In one year, the sum of money spent on Yiyi is 10,000 yuan." Yanzi accepted an interview with the Sino-Singapore Jingwei Client时 said.
Yanzi introduced that in the past year, she spent 360 yuan on vaccinations for Yiyi, and 1699 yuan on sterilization, physical examinations, and deworming.
Raising pets is also testing Yaoyao's economic strength.
Yaoyao and her cat, Ji Ye, have lived together for seven years. They have deep feelings and spend a lot of money.
It is understood that Yaoyao has a monthly income of 12,000 yuan, of which only Jiye spends nearly 1,000 yuan a month.
"Let’s take this year’s Double Eleven as an example. In my shopping cart, most of them are Ji Ye’s things, including litter boxes, drinking fountains, toys, etc., as well as all kinds of cat food. It is estimated that all of these will cost about 3,000 yuan to eat." Yaoyao said.
In addition, Yaoyao also buys some snacks for Ji Ye every month, such as dried fish, biscuits, etc., for a total consumption of about 200-300 yuan.
In fact, "shit shovel officers" who are willing to spend money for their owners are not a minority.
According to a research report by Kaiyuan Securities, 23.90% of pet owners belong to high-consumption groups (that is, the monthly cost of staple food is more than 500 yuan), and ordinary consumers account for about 76.10%.
Among them, most of the high-spending people spend more than 15% of their income on pets.
"Pets are becoming more and more important in modern people's family life, and the standards for raising pets have also improved. The demand for pet food types has become more abundant, and the quality requirements have become higher." said Chen Xueli, an analyst at Kaiyuan Securities.
Whose pocket did the money go to?
The “poop shoveling officers” emptied their wallets, not only to support their owners, but also to make related companies earn money.
A reporter from Sino-Singapore Jingwei combed Wind data and found that there are two pet food concept stocks in the A-share market, one is China Pet Stock and the other is Petty.
Public information shows that China Pet Co., Ltd. was established in January 2002, mainly engaged in the research and development, production and sales of pet food for dogs and cats. It has its own brands such as "Wanpy Naughty" and "Zeal Zhenzhi". The specific products include pets. Snacks, pet wet food and pet dry food, etc.; Petty shares was established in October 2002. Its main products include pet chewing food such as animal skin chews and plant chews, pet nutritious meat snacks, pet staple foods, pet nutrition and health products, and birds Food and edible small animal toys, pet biscuits, etc., have their own brands "PEIDI" "MEATYWAY".
On July 11, 2017, Petty shares were listed on the Growth Enterprise Market; on August 21 of the same year, China Petty shares were officially listed for trading on the SME Board.
These are currently the only two listed companies in the A-share pet food industry.
A reporter from Sino-Singapore Jingwei found that the performance of China Pet and Petty is mainly driven by export. The export model is basically the same, with ODM (namely OEM) as the mainstay, and some independent brand sales as a supplement.
In terms of domestic sales, the two companies mainly sell through pet stores and e-commerce platforms.
New Jingwei in the Pet Food Data Map Photo by Yan Shuxin
It is worth mentioning that as the domestic pet food consumer market heats up, China Pet and Petty are gradually increasing their domestic market layout, and related income is also increasing year by year.
According to data from the semi-annual report, in the first half of 2020, the sales revenue of China Petty and Petty's domestic market was 236 million yuan and 93.141 million yuan respectively, an increase of 54.90% and 67.84% year-on-year.
In the first three quarters of this year, the two companies not only "increased profits," their net profit doubled year-on-year.
On October 21st and October 25th, Petty shares and China Petty shares successively disclosed the three quarterly reports for 2020. From January to September this year, the two companies achieved operating income of 972 million yuan and 1.62 billion yuan, a year-on-year increase of 38.97. %, 33.33%; net profit attributable to shareholders of listed companies was 82.9957 million yuan and 96.243 million yuan, a year-on-year increase of 166.76% and 108.27%.
In the third quarter report, China Pet shares mentioned that the company's operating income in the first three quarters of this year increased by 33.33% over the same period last year, mainly due to the increase in sales.
Petty shares also stated that the increase in orders in overseas markets and sales in the domestic market was the main reason for the company's revenue growth during the reporting period.
The growing pet economy has also attracted new players to run into the field.
The China-Singapore Jingwei reporter noted that the three squirrels have also set their sights on the domestic pet food market.
On April 2, 2020, the three squirrels announced that they planned to use their own funds of 42.256 million yuan to invest in the establishment of 4 wholly-owned subsidiaries, including "Anhui Yangmaohai Pet Food Co., Ltd.".
A reporter from China-Singapore Jingwei inquired on China Trademark Network and found that as early as February this year, three squirrels had applied for registration of multiple trademarks such as "raising a fur child" and "raising a fur child".
The three squirrels have also stated that the company intends to test the pet food market with a new sub-brand.
China Food Industry Analyst Zhu Danpeng believes that at the node of the continuous growth of China's pet food industry, the three squirrels rely on their own platform effects and brand effects to cut into this market, and overall they have a certain amount of imagination.
Domestic pet food may be high-end and high-quality
With the domestic demand for pets and the number of pets increasing year by year, data from many institutions pointed out that China's pet economy is expected to usher in an explosion.
According to the open source securities research report, the domestic pet industry started relatively late and entered the embryonic stage in 1990, after which the number of pets gradually increased.
During this period, the demand for pet food increased. Foreign brands represented by Mars and Royal entered the Chinese market. The concept of pets as companions began to be promoted in the West, and the domestic pet-raising thinking changed accordingly.
Since 2000, the number of domestic pets has approached 100 million, domestic pet product manufacturers have begun to emerge, and pets have gradually played the role of family members.
Since 2010, the number of domestic pets has increased to nearly 300 million, online and offline pet companies and various pet services have emerged, and the concept of pet consumption has been gradually upgraded.
According to iiMedia Consulting's data, in 2018, the market size of China's pet industry reached 170.8 billion yuan, a growth rate of nearly 30%; in 2020, the market size is expected to reach 300 billion yuan.
As a rigid demand product, pet food has shown geometric growth in recent years.
According to Euromonitor statistics, in 2019, China's pet food market sales were 5.151 billion U.S. dollars (about 34.523 billion yuan), and the 2016-2019 average annual compound growth rate was 30.86%, far exceeding the world average of 3.77%.
New Jingwei in the Pet Food Data Map Photo by Yan Shuxin
At the same time, a large number of domestic pet food brands are gradually occupying the market by virtue of their excellent products and channel promotion capabilities.
According to a research report by Kaiyuan Securities, in the domestic pet food industry, domestic brand consumption continues to rise, from less than 40% of consumption in 2017 to nearly 60% of consumption in 2019, which has surpassed foreign brands.
The white paper data of the pet industry in 2019 shows that in terms of staple food for pets, consumers in different cities have large differences in brand awareness. More than 50% of consumers in first-tier cities prefer to buy imported brands, while consumers in second- and third-tier cities are Foreign brands have a low preference; in terms of snacks, there is little difference between domestic and foreign brands, and 48.80% of consumers have no particular preference for pet snack brands.
Chen Xueli pointed out that on the whole, foreign brands have not formed an absolute advantage in staple food, and most consumers do not have too much preference for brands.
Domestic pet food brands have a certain degree of shaping space in staple foods and snacks.
Huatai Securities also mentioned that the domestic pet food industry is in a stage of rapid growth at both ends of the volume and price, regardless of the number of pets, the penetration rate of pets, or the expenditure on pets and the degree of quality of pet food.
“With the prevalence of pet culture, the increase in the number of single and two-person households, and the aging population, it is expected that the number of domestic pets will continue to increase in the future. At the same time, consumers’ pursuit of high-quality pet food will promote domestic pet food to high-end and high-quality pet food. Direction upgrade." Huatai Securities said.
(Zhongxin Jingwei APP)
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