What opportunities are there for Tencent Xiaomi to tap into the pet market?
In recent years, the pet track can not be overemphasized as "hot".
On the 618 Shopping Festival not long ago, smart pet devices were sold "crazy". According to the official data of various e-commerce platforms, during the "good start" period of Tmall 618, the sales of pet products surged by more than 1300%; Sales of JD 618 Pet Intelligent Drying Box increased by 300%. The "busyness" and "laziness" of the excrement removing officers have made pets enjoy the convenience brought by the scientific and technological life, and at the same time, they have also become popular in the consumption of smart pet devices.
Pet smart devices are just the tip of the iceberg of the hot pet consumer market, and other tracks behind them are also driving into the fast growth lane. The report "Pet Companion in the Mobile Era - Online Consumption Trend and Marketing Insight of the Cat and Dog Pet Industry" released by Tmall and Alibaba's mother shows that in 2020, the sales of online shopping market related to cats and dogs will exceed 30 billion yuan, up 35% year on year. The officials used real gold and silver to promote many new pet consumer brands, such as Pet Pendant, pet food brand Maifudi, and pet medical brand Xinruipeng.
In addition to these, what are the new trends in the pet market? What other areas of pet consumption are still blue oceans? Station C selected the pet related reports released since 2020, from the four modules of industry overview, industry trends, key categories and marketing opportunities, to review the gold digging points in the pet market that are still worth digging.
1 Industry overview
The domestic pet market began to take shape as early as the 1990s. The 2021 Pet Food Industry Consumption Insight Report released by CBNData mentioned that with the further relaxation of pet care policies and the gradual improvement of pet care concept, pet consumption began to enter a rapid growth stage in 2011.
The prosperity of pet consumption benefits from the sharp rise in the pet raising base of Chinese people. From cats and dogs, fish and birds to reptiles and rodents, the number of pet owners and types of pets are also increasing, and the scale of the pet market is growing. According to the Research Report on the Development Trend of Pet Economy of Suning Financial Research Institute, from 2010 to 2019, the consumption scale of the pet market increased from 14 billion yuan to 220.4 billion yuan, and it is expected to reach 231 billion yuan in 2020, with an average annual compound growth rate of 32% within a decade.
Compared with the double-digit penetration rate of the pet market in North America and Europe, the penetration rate of China's pet market is only 6%, which means that there is still much room for growth in the domestic pet market.
2 Industry trends
Eat: The master should not only "eat well", but also "eat well"
According to the data of Tmall Global, in terms of the choice of pet food, the officials who shovel excrement pay more attention to safety and health. In recent years, compared with the traditional favorite food, the search for "imported raw meat grain" produced from high-quality meat sources in the country of origin has risen sharply, and it has been selected as the new "food" by the officials who shovel excrement. The growth rate of raw meat staple food and snacks exceeded that of the industry as a whole by more than 6 times. In particular, the female excrement removal officials in Shanghai "would rather buy less essence for three years, just to let the masters eat more imported food for one year".
In order to make the masters eat more specifically, the officials who shovel (pick up) excrement have also trained themselves as "the party of spoiled food". According to CBNData's Insight Report on the Health Trend of Cats' Diet, the consumption of staple food accounts for nearly 40% of pet spending; When choosing staple food, pet owners should pay attention to the health factors such as nutrition ratio and ingredient composition. According to the diet and digestive system of dogs and cats, high protein and other staple foods with specific efficacy and ingredients have become popular products.
Yang: The master "can't get off the line of fire with minor injuries", but he must be vaccinated on time for physical examination
For pet owners, pets are already family members, and their health is more important than anything else. From nutrition products, health care products, vaccines to medical treatment and physical examination expenses, they will never relent. CBNData consumption big data shows that thanks to the outbreak of the pet market, online pet health care consumption has steadily increased, pet owners have more diversified pet care, and the number of cat and dog nutrition products alone has increased by more than 30% in the past year.
Among these officials, the "spending preference" of Generation Z is stronger. Tmall data shows that although the Z generation pet keepers are young, their pet medical consumption potential is full. In addition, they have a strong sense of pest control for pets. The post 90/95 generation contributed 50% of the online pest control consumption.
Sunshine: Ta people not only raise themselves, but also enjoy basking in pets and absorbing pets
Today's pet owners, it is not enough to have pets themselves, they want more. More and more pet content not only satisfies the audience, but also feeds a group of cute bloggers and KOL.
According to the Kwai data, one of every two Kwai pet authors earns money. In Kwai alone, the number of pet e-commerce sellers increased by 157% from September 2019 to April 2020, with more than 1.4 million monthly orders.
In addition to carrying goods, pet content has also begun to become more and more diversified, which can meet users' needs in many aspects, such as emotion and good things acquisition.
3 Key Categories
pet food
From the perspective of online consumption trend, the scale of pet consumption has accelerated in the past three years, and each segment of the track has "fully blossomed": pet food, beauty and cleaning products, daily necessities, toys, clothing and accessories and other categories have grown. Among them, pet food is stable in the big track, accounting for nearly 60% of consumption.
Product: staple food is still the "main force", and snacks catch up
CBNData's 2021 Pet Food Industry Consumption Insight Report shows that the staple food is a large consumer category of pet food, and the growth rate of snack consumption leads the race. As a necessity, staple food accounts for a large proportion of online consumption, while the growth rate of snacks shows that more and more pet owners tend to give their pets personalized food enjoyment. In addition, the rapid expansion of cat population boosted the online cat food consumption to 54%, catching up with dog food.
In cat food, although the traditional expanded food occupies a large market share, the emerging cat food category has risen. CBNData's Cat Diet Health Trend Insight Report shows that the number of brands producing cat food online has increased by more than 10 times in three years, becoming a fast expanding and hot track.
Consumers: women and Generation Z have strong consumption power
CBNData online cat food consumer portraits show that female consumers have made more outstanding contributions, accounting for more than 70%; From the perspective of intergenerational distribution, Generation Z has become the backbone of cat food consumption. Nearly 70% of online dog food consumption contribution also comes from women; From an intergenerational perspective, the young post-90s generation has become the main consumer, and the growth of Generation Z is fast.
Pet Care
Pet keepers will never be soft on the cost of pet maintenance. The consumption level of a single pet in China has exceeded 5000 yuan. With the improvement of the national living standard, pet keepers now pay more attention to the health of pets and scientific pet care. Take care of pets from pet feeding, vaccination, health care products, physical examination and other aspects.
Channel: Traditional offline pet medical scene is rapidly online penetration
In recent years, the online scale of the pet medical market has accelerated expansion, and more and more pet keepers have entered the online pet medical market. With the enhancement of the richness of online related products and services, the online consumption power of pet owners has been strengthened, and the annual per capita consumption level has increased year by year.
Pet Content
With the expansion of the pet market, various sub sectors of the pet industry have developed, and the pet content has gradually enriched, covering more and more "cloud attracting pet" users, and the size of the pet population has exceeded 500 million.
Channel: The content and KOL distribution are scattered, but "Kwai old irons" love hair and look
QuestMobile's 2020 Mengbao Economic Insight Report shows that Mengbao has become an important creative vertical field. As a content platform for Mengbao KOL's creation, short videos attract more creators to join. Kwai, Tiktok, Xiaohongshu, Weibo and WeChat official account are five typical content platforms with a high penetration rate and a high proportion of the number of active users of Mengbao KOL. Among them, the number of cute KOLs of Kwai accounts for more than 60%.
Users: The whole people love it. Most young people are "cat pie"
People of different ages have different attitudes towards whether they love cats or dogs. Data shows that cute pet dogs are favored by more middle-aged, elderly, married and male users, while cute pet cats are favored by more young, unmarried and female users.
The domestic pet food market ushered in a golden age, and the rise of domestic products was just in time
Against the background of strong growth in pet consumption, a large number of emerging brands have entered the market, and the domestic pet food market will usher in a new round of reshuffle. Domestic brands should give full play to their own advantages, seize opportunities, focus on category R&D and innovation, and create a more anthropomorphic upgrade in food materials, technology and flavor; Pay attention to the reasonable matching of nutrition proportion and functional ingredients, and at the same time, comply with the needs of pet owners and purchase food materials globally.
In addition to strengthening the layout of online channels, brand promoters should also evolve from extensive entertainment marketing to in-depth exchanges with consumers in more professional knowledge areas to help pet owners achieve scientific feeding.
Women and Z generation pet owners are more sensitive to pet related consumption
Women and Gen Z consumers are more willing to pay for pets in all aspects. CBNData consumption big data shows that the young Generation Z has become one of the main groups of online pet food consumption, with outstanding performance in terms of both consumption scale and growth rate. It is worth noting that these young people, who are willing to spend money on pet food, begin to prefer Chinese products in the choice of pet food brands.
The post-95 generation, who grew up in the Internet era, is the main consumer of online pet medical services. The consumption proportion of female pet raisers is significantly higher than that of men, and the consumption of female pet raisers is more prominent after 1995.
The pet market is injecting AI intelligent elements
With the continuous improvement of various new technologies, the pet food market will also set off a new splash. For example, in the food track, the support of fresh locking technology makes it possible to "table" pet meals; AI application accelerates the implementation, enabling the intelligent transformation and data management of pets in all aspects of food, clothing, housing and transportation, so as to improve the quality of life of pets and achieve real-time management and early warning of health status, and ensure the health of pets in an all-round way.
Thanks to the growth of the pet market, more and more excellent emerging pet brands have emerged in China. In order to "get out of the circle", brands began to try to layout offline business. The White Paper on the Growth of 2021 China's New Consumer Brands released by CBNData mentioned that with the recovery of the offline economy after the epidemic, pet owners pay more attention to offline consumption experience, and the pet health care and pet medical industry will also usher in huge development space, which also provides more possibilities for pet players to grow.