Set up a pet medical “aircraft carrier”.
Editor’s note: This article is from WeChat public account “Investment sector”(ID: pedaily2012) by Shirley.
Traveling out on vacation, what about pets at home?
Investigation reporters found that during the National Day Golden Week, the price of Beijing pet-hosting services ranged from 50-300 yuan/day, from pet cages to independent single rooms, with different prices and different accommodation environments. The store generally provides dog walking services, and will send video reports to the owner sooner or later. These pet hotels have one thing in common – business is very hot.
In fact, this is just the tip of the iceberg of the 100 billion pet economy. Along with the rise of the pet-loving army, these years around a pet, a number of sub-segments were derived. In addition to pet hosting, pet food, beauty, photography, medical, social, funeral… This new group has produced countless new consumption.
Unexpectedly, behind the cat and dog is a billion business, and the keen VC/PE organization has already smelled this blue ocean. In recent years, top investment institutions including Gaochun Capital, Sequoia China, Dachen, KKR and others have taken action. Among them, Gaochun Capital has invested at least 1 billion US dollars in the pet industry from 2016 to 2018, and has invested in more than 100 pet companies. In addition, it cooperated with Ruipeng Group to form the first “pet carrier” for pet medical treatment in China with a scale of over 1,000 stores.
90 pet pet bills: spends 400 yuan per month, ill from 2000 (
“It’s economical” is coming.
This National Day holiday, arrange yourself, and arrange pets, is the correct way to open a pet family. With the belief of “love it, spend money for it”, Li Jing has booked a separate room for the pet hotel for the cat. “More than 200 per day, it is expensive, but more assured.” These cats have been accompanying Li Jing for years.
Investigation reporters found that during the National Day Golden Week, the price of Beijing pet-hosting services ranged from 50-300 yuan/day, from pet cages to independent single rooms, with different prices and different accommodation environments. The store generally provides a dog-walking service, and will send a video report to the owner in the morning and evening. In addition, some pet stores need to bring their own pet food.
Visited nearly 10 pet hotels in Chaoyang District, Beijing. The reporter found that their business is very good, no caseouter.
Obviously, more and more young people are willing to pay for pets. According to the “White Paper on Pet Industry in 2018”, the annual consumption of single-pets for cats and dogs is 5016 yuan, an increase of 16% over 2017, and an average of more than 400 yuan per month.
The cost of raising a pet is getting higher and higher. Li Meng, who had just graduated, had a deep understanding of this. She was a teacher at a college in Nanjing and just started raising dogs. “One month’s living expenses are almost entirely for dogs.”
She calculated an account: a dog needs 1 rabies vaccine for 1 year, 80 yuan for 1 needle, deworming once every 3 months, 1 month for in vitro, and bathing once a month for 1 month; In terms of diet, the puppy now eats milk cake, more than 110 packs, and also bought other snacks and toys for it; dogs are the most expensive to get sick. It took more than 2,000 to make a film last month… To the end, Li Meng bluntly said, “I didn’t dare to buy a little pet supplies, I have to make money quickly, or I can’t afford it.”
Overview of Beishang Guangshen, “Li Meng” are everywhere, and these 90s have become the mainstay of the pet consumer group.
This is a potential industry. Along with the rise of the pet-loving army, a number of sub-segments were derived around a pet. In addition to pet hosting, there are also pet food, beauty, photography, medical, social, funeral, etc..
The rise of pet medical “sorghum”: At least $1 billion in 3 years, more than 100 companies
Faced with this vast market, VC/PE organizations with a forward-looking vision are hard to hide, and they have already laid out their layout.
Among them, Gaochun Capital is the most active. In these years, Gaochun Capital has deepened the pet market, and its investment map has spread all over the world. It has formed a “sorghum system” in the pet medical field. According to incomplete statistics, from 2016 to 2018, there are more than 100 pet-related companies in Gaochun Capital, and there are many layout circuits, including pet medical, retail, and supplies.
The rumors spread, the sorghum’s pet layout stems from a seminar a few years ago on the theme “Aging of Chinese Society”. At that time, Zhang Lei was more likely to be accompanied by old-age life. It is believed that this will accelerate the development of the pet industry, and since then it has opened the road of high-slaughter-style pet investment.
The initial attempt did indeed pay off for the sorghum. In 2017, Gao Song spent $233 million with a well-known investment institution such as Sequoia Capital, investing in a company that provides online pharmacies and home delivery services for veterinarians – Vet First Choice. Two years later, the company was listed on the Nasdaq with a market capitalization of $4.5 billion, and the investment is said to bring lucrative returns to Gaochun.
Compared to overseas, Gao Wei’s layout in China is more focused. According to statistics, more than 80% of the pet projects invested by domestic sorghum are pet hospitals. In August 2018, Gao Song, who was constantly sweeping the goods in the pet medical market, ran into the Ruipeng Group. The two parties coincided with each other and the new Ruipeng Group, which was formed by strong alliance, shocked the entire pet industry.
According to the plan, Gaochun Capital includes more than 700 pet hospitals including Yun Chong (Barbie Hall), An An, Cai Xing (Popular Health), Ainuo, Chongfuxin, Najia and other partners. It will be integrated with about 450 pet hospitals including Ruipeng Pet Hospital, Meilian Zhonghe Animal Hospital, Kate Cat Special Hospital, Beijing Hengai Animal Hospital, Shenzhen Love Pet Hospital, Baker and Shidong 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 over 1,000 in China.
Of course, institutions active in the pet investment arena are not just sorghum. In fact, Dachen Caizhi made the first round of investment in Ruipeng Pet in 2015, becoming the first institutional investor introduced by Rui Peng, and carried out four consecutive rounds of additional investment in the follow-up development of Rui Peng. Witnessed the growth of the pet industry giant. In addition, well-known institutions such as IDG Capital, KKR, Shenzhen Venture Capital, and Qianhai Fund have laid out the pet-related market.
One-year consumption of 200 billion, In the future, what are the opportunities in the pet market?
The pet industry’s “sucking power” should not be underestimated.
According to the “2019 China Pet Industry White Paper”, the number of pet dogs and cats in China’s cities and towns was 99.15 million in 2019, an increase of 7.66 million compared with last year; the market for dogs and cats reached 202.4 billion yuan, compared with 2018. 18.5%. Among them, the total consumption of pets in Beijing, Shanghai, Xi’an and Chengdu reached 48.6 billion, accounting for 24.01% of the entire pet market.
Although the size of China’s pet market is huge, the penetration rate is not high. Previously, Qingtong Capital mentioned in the “2018 Pet Consumption Trend Report” that the number of pets in China is currently the third in the world, but the proportion of family members is only 6%, far less than the penetration rate of pets in the United States, Germany, Japan and other countries. More than 30%, China’s pet market development space is still very large.
There are more and more related entrepreneurs. The company’s data shows that in the past two years, many petsThe brand got the financing, and the amount is large. Most brands have a single financing amount of more than 10 million yuan. Among them, the Internet Food Brand Crazy Puppy recently has two financings of 100 million yuan and 300 million yuan respectively.
Overall, the financing brands cover pet products, pet food, pet hospitals, community services and other circuits. Among them, pet products are the most popular; among investment institutions, Shenzhen Venture Capital, Shun Capital, Morningside Capital, Tiantu Investment and others have shot. From the stage, it is still concentrated in the early stage.
It is worth noting that in addition to VC/PE institutions, Internet industry capital has also appeared in pet investors. On September 17, Xiaomi’s investment and Shunwei Capital completed the A round of investment in Beijing Cat & Dog Technology Co., Ltd. This is the second investment in pet companies in Xiaomi in the past month. On August 23, Xiaomi war led the FURRYTAIL tail to complete the industrial and commercial changes.
In the past two years, some new changes in the pet industry have caught the attention of VC organizations. For example, with the focus on the power line, the pet brand crazy dog achieved a rapid blush, which once broke the monopoly of pet grain companies. Another dog food brand, Wang Zifan, put his eyes on the vibrato and used short video for brand communication. In addition, pet-hosting methods such as home-feeding and sending out foster care are also emerging.
So, what opportunities are there in the future pet market? At a salon not long ago, Li Ying, a partner of Zhonghai Investment, made a prediction. “On the one hand, consumption habits will gradually spread from first- and second-tier cities to third- and fourth-tier cities, and even lower-tier cities.” The pet city service market in the city is worth exploring.
On the other hand, as the number of pet owners continues to increase, the awareness of pets continues to increase, and there will be a large number of personalized brands and service economies, such as the rise of funeral, beauty, and maintenance services.