"On the first day the cat slaves returned to Beijing, they had to clean up the hair, clean the cat litter, change the food and water, purchase cat food and cat litter, and cat snacks.
"If it wasn't for Duoduo (the dog's nickname), we wouldn't drive back during the Chinese New Year."
With the prevalence of a large number of urban young people living alone, "sucking cats" and "lucking dogs" has gradually become a new way of life for young people, and it has also become a concern for them every time they travel.
Accompanying and decompressing, with emotional economy as the underlying logic, gave birth to the popularity of the pet economy.
Following the consumption system of human society, raising a pet, its clothing, food, housing, transportation, medical treatment, entertainment, etc. constitute a huge market system, and the market size has reached 100 billion yuan.
In addition, many pet lovers have not been able to bring their pets home due to various practical conditions, which has spawned the online phenomenon of "cloud sucking cats" and offline experience halls such as cat cafes and cat clubs.
Did you have a cat today?
How much would you spend on "sucking cats and dogs"?
Are you willing to spend huge sums of money on pet treatment?
The first step to "krypton gold" for pets is to own a pet. If it is not adopted, the purchase is usually a precious variety, and the cost ranges from several thousand to tens of thousands of yuan.
Someone quietly posted the bill: Xiao Lin, a "shit shovel officer" who owns two cats, "planned carefully" and spent nearly 5,000 yuan on pet daily necessities last year, including more than 1,500 yuan for medical items such as physical examinations.
If not so "restrained", a pet owner's annual consumption of pets can easily "break 10,000".
Duoduo's owner Xiao Ai said, "One person, one cat, three meals and four seasons, daily consumption expenses can be controlled, but medical treatment is really expensive, and it costs a small two thousand to treat a stone."
When you hear the sound of burning money, capital will come.
According to incomplete statistics from Shell Finance reporters, in 2021 alone, the pet industry will receive dozens of financings, covering food, supplies, and medical brands that are well-known in the pet market. In addition to professional investment institutions, there are many well-known Internet investors. There are also technology companies and real estate companies making cross-border investments.
There are more than a dozen companies that started their pet business sprinting for IPOs and targeting secondary market financing. Among them, 4 have been successfully listed, 2 have been delisted, 1 has failed, and 5 are on the way.
However, there is already a market of 100 billion yuan in China, but 90% of the revenue of leading pet companies depends on exports?
When will private brands emerge?
pet bill
The annual consumption of a pet can "break 10,000", and the "pet insurance" is booming with large medical expenses
"Every time I encounter a big promotion, I will squat in the Douban group for discounted cat food and supplies, so they are all very cheap." When it comes to spending money on pets, Xiaolin, a white-collar worker who has two cats at home, said that he would often Find some special offers to reduce the cost of pet ownership.
Even so, the cost of raising pets is not too low.
Last year, Xiaolin spent nearly 5,000 yuan on pet daily necessities, including more than 1,500 yuan for medical items such as physical examinations.
A few days ago, she also placed an order to buy two "large items", a cat litter box and a water dispenser with automatic cleaning function, priced at 1,500 yuan and 250 yuan.
The first step to "krypton gold" for pets is to own a pet. If it is not adopted, the purchase is usually a precious variety, and the cost ranges from several thousand to tens of thousands of yuan.
During the interview, some "shit shoveling officials" told the Beijing News Shell Finance reporter that they were basically "poor".
Taking cat raising as an example, after a year, the consumption of a cat's staple food, snacks, toys, cat litter, water dispenser, cat litter box, etc. is about 3,000 yuan.
However, once a pet becomes ill, it may cost thousands of yuan or more, which is difficult to predict.
The annual consumption of "a minimalist version of poor people's cats" is also about 2,000 yuan.
What about the cost of "rich nourishment"?
A pet owner's annual consumption of pets can easily "break 10,000": a small box of canned snacks for a few hundred yuan, a cat climbing frame and a smart toilet for a few thousand yuan, a pet photo for a set of tens of thousands of yuan, and many pet toys , clothes and niche smart products…
"Fixed 500 yuan a month." When raising her first cat, Xiaoqi spent about 6,000 yuan a year for it.
At the beginning of 2021, she raised a second cat, and her pet consumption soared to nearly 20,000 yuan in one year.
The biggest expenditure item is medical care. In June last year, one of Xiaoqi's cats suffered from gastroenteritis, and the symptoms were similar to cat plague. After examination and treatment, the monthly consumption was more than 8,000 yuan.
"Remember to buy insurance." Like Xiao Qi, pet owners who have experienced pet sickness often tell other pet owners such a few words.
Due to the high cost of pet medical care, pet medical insurance has also emerged.
"0 yuan to get pet medical insurance", a reminder to buy insurance for pets, appears in the pop-up window of the mobile phone from time to time.
On the Ant Insurance insurance agency platform on Alipay's page, pet insurance is also a popular item. Its details show that it is suitable for cats and dogs aged 2 months to 10 years old, and insurance hospitals are all over the country.
In the initial stage of the policy, you can also get two months of free coverage.
In July last year, out of the mentality of giving it a try, Lear (pseudonym) uploaded pet photos on Alipay and opened the "upgraded version 33.25 yuan/month" pet medical insurance program, and obtained a medical reimbursement amount of 15,000 yuan a year.
The details show that the product is underwritten by China Continent Property Insurance Co., Ltd.
One month later, Lear's insured pet suffered from inflammation, and the inspection cost more than 1,000 yuan. After a week of injection treatment, the total cost was more than 2,000 yuan.
Since the pet insurance took effect at this time, Lear's pet received an insurance claim of about 1,000 yuan.
Among the insurance services on the WeChat platform, pet medical insurance is on the hot list. The insurance plans include basic version and upgraded version. The prices are 24 yuan/month and 49 yuan/month respectively, provided by Weibo and China Continent Insurance. Serve.
In some bank clients, pet insurance purchase services are also provided.
capital feast
Aiming at secondary market financing, many companies such as Guaibao pet sprint for IPO around pet food and supplies
What kind of capital feast is created behind the pet "Krypton Gold"?
During the 2021 Christmas promotion, McDonald's launched a pet peripheral product "Hamburger Cat Nest" which was sold out, and even caused the ordering system to collapse for a time.
A linkage between the catering industry and pet elements shows the tip of the iceberg of pet economic potential.
On January 18, the "2021 China Pet Industry White Paper" produced by the Pet Industry Branch of the China Animal Husbandry Association and produced by the pet industry big data platform was released. The research report shows that the dog market size in 2021 will be 143 billion, a year-on-year increase of 21.2% .
The size of the cat market also exceeded 100 billion, a year-on-year increase of 19.9%.
The size of the entire urban dog and cat market reached 249 billion, a year-on-year increase of 20.6%.
In addition, from the perspective of the consumption power of a single pet, the annual consumption of a single dog is 2,634 yuan, a year-on-year increase of 16.5%, and the annual consumption of a single cat is 1,826 yuan, basically the same as in 2020.
Modeled on the consumption system of human society, the pet economy has formed many market systems such as clothing, food, housing, transportation, medical care, and entertainment.
Corresponding to different consumption fields, a number of companies that started out with pet consumer products have gone public, and at the same time, there are also companies that are seeking IPOs.
A reporter from Shell Finance found that many IPO projects in the pet industry are advancing. In December 2021 alone, four pet industry companies updated or uploaded their prospectuses.
Screenshot of Shenzhen Stock Exchange's official website.
On December 14, 2021, Yuanfei Pet updated its prospectus and planned to sprint to the main board of the Shenzhen Stock Exchange.
On the 17th of the same month, Fubei Pet updated and disclosed the prospectus according to the feedback from the regulatory opinions, and planned to sprint to the Shanghai Stock Exchange.
On December 29, the pet food brand "Mai Fu Di", the company's subsidiary, Gubao Pet, issued a prospectus and planned to land on the Shenzhen Stock Exchange's Growth Enterprise Market.
On January 22 this year, the Shenzhen Stock Exchange website showed that the IPO review status of Good Baby Pet was updated to "inquired".
On December 31, Zhongheng Pets released a prospectus, seeking to be listed on the GEM of the Shenzhen Stock Exchange.
However, just 17 days from the release of the prospectus, the IPO process of Zhongheng Pets has been terminated.
On January 17 this year, the GEM website of the Shenzhen Stock Exchange showed that the IPO status of Zhongheng Pet was "terminated (withdrawn)".
In addition, Loos has started to queue up on the Beijing Stock Exchange on June 30, 2021, passed the deliberation of the Listing Committee on January 14 this year, and submitted the Beijing Stock Exchange listing application documents to the China Securities Regulatory Commission on January 21, and the company was accepted from the application materials. It only took 6 months to go to the North Exchange.
Screenshot of Shenzhen Stock Exchange's official website.
In addition to the recent collapse of Zhongheng Pets, the IPO process of Tianyuan Pets is also quite bumpy.
In 2017, Tianyuan Pet submitted a prospectus to be listed on the Shanghai Stock Exchange, which was rejected by the Issuance Examination Committee of the China Securities Regulatory Commission in March 2019.
In July 2020, Tianyuan Pets sought listing again, changing the proposed listing exchange to the Shenzhen Stock Exchange Growth Enterprise Market, which has been approved at the meeting. The Shenzhen Stock Exchange's official website shows that it has submitted for registration on May 14, 2021.
In addition, in 2020, pet industry companies such as Youpai Technology and Qingquan Pets will be delisted.
Recently, according to the "Science and Technology Innovation Board Daily", Wuhu Youpai Nursing Products Technology Co., Ltd. (Youpai Technology) completed the secondary listing guidance and filing, and plans to list on the Growth Enterprise Market.
Several pet companies that are currently conducting IPOs include pet food and supplies in terms of their main business scope.
A reporter from Shell Finance reviewed more than 10 pet companies currently undergoing IPOs and listed companies and saw that the pet capital market is mainly based on food, followed by daily necessities, nursing products, and third-party e-commerce.
Good Treasure Pets, Fubei Pets, China Pets, Petty, and Loosse all focus on pet food, Yuanfei Pets and Tianyuan Pets are mainly engaged in pet daily necessities, Zhongheng Pets, Yiyi Shares, Yoo Pai Technology targets more segmented pet hygiene care products.
In addition, in addition to the A-share market, Boqi Pet, a Shanghai-based company specializing in pet e-commerce, will land on the US stock market in 2020.
Overseas Nuggets
Ninety percent of domestic top pet companies rely on exports for their main business income, and exchange losses fluctuate greatly
Although a domestic market of 100 billion has been formed, most of the top domestic pet companies currently rely on overseas markets to generate income.
Shell Finance reporters noticed that Yiyi shares, Tianyuan Pets, Zhongheng Pets and other overseas revenue accounted for more than 90% of the total revenue.
Among them, Yiyi's financial report shows that its products are mainly sold to the United States, Japan, Europe and other countries and regions.
According to the 2021 semi-annual report, its overseas operating income is 530 million yuan, accounting for 92.50% of the total operating income, a year-on-year increase of 6.92%.
The products of Zhongheng Pet are mainly sold to North America, Europe, etc. Since 2018, the proportion of overseas sales revenue in each period of the reporting period to the main business revenue is 94.39%, 95.60%, 95.82% and 96.66% respectively.
Among them, the sales revenue to US customers accounted for 83.91%, 85.04%, 84.72% and 81.16% of the main business revenue respectively, which is the most important market for the company.
Since 2018, Yuanfei Pet’s overseas sales revenue accounted for 97.36%, 94.91%, 95.50% and 95.74% of its main business revenue in each reporting period, with North America and Europe as the main sales areas.
In addition, more than half of the operating income of many companies is generated in overseas markets, and the proportion of overseas revenue is on the rise.
In 2018, 2019, 2020 and the first half of 2021, the proportion of overseas sales revenue to main business revenue was 77.12%, 80.01%, 83.86% and 85.59% respectively.
A reporter from Shell Finance found that since 2018, the proportion of export sales of Petty shares, Tianyuan pets, and China pet shares has shown a downward trend. Petty shares have dropped from 92.17% in 2018 to 85.65% in the first half of 2021, and Tianyuan pet’s export accounted for Compared with 91.19% in 2018, it has dropped to 71.28%, and the shares of Zhongpet have also declined year by year, and the proportion of export sales has remained above 75% in the past two years.
The proportion of overseas sales revenue is high, the direct risk is exchange loss, and it is easily affected by the fluctuation of international trade situation.
Overseas business is mainly quoted and settled in US dollars, and changes in the exchange rate of RMB against the US dollar will result in exchange gains and losses.
Taking Zhongheng Pet as an example, from 2018 to the first half of 2021, in each period of the reporting period, the amount of Zhongheng Pet's foreign exchange income was 5.0325 million yuan, 2.2643 million yuan, -20.5760 million yuan and -4.9078 million yuan, accounting for the total profit of the current period. The proportion of 180.90%, 4.57%, -18.39% and -11.93% respectively, fluctuated greatly.
Loos shares also made it clear that during the reporting period, the company's exchange losses were -367,800 yuan, -1,065,000 yuan, 4,382,800 yuan, and 1,236,100 yuan, and there was a risk of subsequent large fluctuations in exchange rates that would adversely affect the company's operating performance.
Since 2018, the United States has imposed tariffs on some goods imported from China, including pet treats, jerky, pet traction appliances, and plastic pet household and leisure products.
Pet supplies or food companies operating in the United States have been affected. Taking Yuanfei Pet as an example, in order to alleviate the adverse impact of trade frictions, Yuanfei Pet established a production base in Cambodia in 2020, and maintained comprehensive sales through adjustment of product structure and other methods. price.
OEM
Being a "processing factory" such as Wal-Mart, the product premium is low, and the cultivation of its own brand needs to be improved
As processing suppliers of foreign pet brands, many Chinese enterprises rely on "OEM" income. Under this model, enterprises accept the entrustment of overseas brands for processing, and then the products are sold to overseas markets in the name of the entrusting party.
These products exported overseas are not the company's own brand, but OEM.
Shell Finance reporters found that domestic pet companies are highly dependent on a few fixed supermarkets and platforms for their export. Amazon, Walmart, PetSmart and other world-renowned comprehensive retailers and professional pet supplies chain stores are the main customers of domestic companies.
It can be seen from the financial reports of many companies that the vast majority of overseas revenue relies on OEM, and the proportion of self-owned brand revenue is even less than 1%.
Taking Yuanfei Pet as an example, its OEM products sold in overseas markets include pet traction appliances, pet treats, pet injection toys, etc., and sales revenue accounts for about 95% of its main business revenue.
In contrast, there is only one category of self-owned brand sales overseas, and the proportion of revenue in the first half of 2021 is only 0.02% of the main business.
For companies such as China Pet, Zhongheng Pet, Tianyuan Pet, Loos, Petty, and Yiyi, their own brands also account for a relatively low proportion of their revenue sources.
Relying on the OEM business, a domestic listed company operating pet-related businesses can earn hundreds of millions of dollars in operating income from overseas every year.
On the other hand, the lack of independent brands in the product ratio also makes it difficult to achieve brand premium.
From the perspective of gross profit margin, domestic pet industry companies are generally around 20%.
According to the gross profit margins of its own brands and non-own brands disclosed by Tianyuan Pet, taking January-June 2021 as an example, the revenue of its own brands accounted for 12.16%, the gross profit margin was 30.89%, and the revenue of non-own brands accounted for 87.84% , the gross profit margin was 20.74%.
In each reporting period, the gross profit margin of self-owned brands was higher than that of non-own brands in the same period.
Tianyuan Pet explained that the difference between the company's own brand gross profit margin and non-own brand gross profit margin is mainly caused by the difference in product structure and sales model.
Screenshot of Tianyuan Pet's prospectus.
However, in recent years, with the rapid development of the domestic pet market, pet industry companies have also begun to strengthen the development of the domestic market and focus on using their own brands in the domestic market.
At the same time, in the overseas market business, enterprises also consciously strengthen the cultivation of their own brands.
For example, Loos shares pointed out that it will increase the development of emerging markets, actively deploy the marketing network, expand the influence of its own brands, increase the brand premium, and gradually transition from OEM to OBM.
The development prospects of self-owned brands are highly optimistic about the capital, which is also reflected in the unlisted domestic pet industry enterprises.
According to the company's data, in 2021 alone, the pet industry will receive dozens of financings, covering food, supplies, and medical brands that are well-known in the pet market. Among them, the food industry is the main one. Investors are not only professional investment institutions. In addition, there are also well-known Internet technology companies, and there are also real estate companies making cross-border investments.
Taking last year as an example, in December 2021, Pet Love International, a comprehensive animal medical institution, completed a series C financing of hundreds of millions of RMB; pet e-commerce brand Xiaopei Pet completed a D round of financing of 50 million US dollars, and the e-commerce brand Pet'em even more It will complete three rounds of financing in the first half of 2021, with investment institutions including Panda Capital, Tencent Investment, etc.; Pet food brand Weishi's parent company Chongxing Pet has completed two rounds of financing totaling 600 million yuan within two months. Investment institutions include Xiangfeng Investment, Tencent Investment, etc.; Gao Yejia cat food completed 50 million yuan in Series A financing; pet nutrition brand RedDog also completed angel round financing last year, and received 200 million yuan investment from Jinding Capital and Light Point Capital.
(Beijing News Shell Finance reporter Xi Lili, edited by Chen Li, proofreading Guo Li)