Based on the theme of pet e-commerce, this paper analyzes the industry status, market status, user portraits and other aspects in this direction, and provides a certain direction for related products.
Editor’s note: This article is from Everyone is a product manager, the author is only awkward.
1. Document Purpose
Collect, analyze and discuss current industry status by analyzing the market environment of pet items, explore user group characteristics and core pain points, and provide direction for product development.
Second, industry analysis
2.1 Macroeconomic Analysis (PEST Analysis)
PEST analysis refers to the analysis of the macro environment: the four factors of politics, economy, society and technology are used to analyze the situation faced by enterprises.
2.1.1 Politics Politics
(1) The pet policy is gradually liberalized and improved
Since 1980, due to the epidemic of rabies epidemics, the Ministry of Health prohibited the raising of dogs, and after 2000, the relevant policies were introduced and regulated by the North, Guangzhou, Shenzhen and Hangzhou. The policy of raising pets was gradually banned and released. .
Source: Ai Media Consulting / Data Source: National Bureau of Statistics
(2) The rise of the pet industry in the country, the supervision is gradually overweight
In recent years, in order to supervise pet-related industries, the state has introduced a series of laws and regulations, and has carried out many rectifications to strengthen supervision and regulation, and promote orderly and healthy development of the industry (information source: Ministry of Agriculture of the People’s Republic of China).
(3) National regulations and strengthening the construction of talent teams
With the rise of the pet industry, accompanied by extreme shortage of veterinarians, it also restricts the development of the domestic pet medical and pharmaceutical industries.
In 2016, the country issued the National veterinary health development planThe draft of the consultation (2016-2020) proposes to deepen the reform of the veterinary management system and mechanism, and build a regulatory service standard system to strengthen the construction of veterinary talents. (Source: Ministry of Agriculture of the People’s Republic of China)
(4) More than 90 social organizations related to pets in China in 2019
By benefiting from the experience of many foreign social organizations, China has established numerous pet associations. As of May 2019, 93 social organizations related to the keyword “pets” registered at the local level, and 576 social organizations related to the keyword “animals” were registered. At present, China has formed a pattern composed of local chapters, various professional committees, and various clubs.
Source: Ai Media Consulting / Data Source: Chinese Social Organization Public Service Platform
2.1.2 Economy Economy
(1) Increase in per capita disposable income
Single-workers and second-tier city workers are more willing to pay for pets. Singles are often more likely to choose pets and have more time to take care of them.
The following table also includes expenditures on purchasing food, supplies, medical care, pet services, etc. The second-tier and above city workers are more willing to bear the cost of pets because of their high salary.
Data Source: Aurora Big Data
(2) The number of Chinese pet families exceeds 60 million
As of 2018, the number of pet families has exceeded 60 million, of which the total number of dogs in urban areas is about 50 million, and the total number of cats in urban areas is about 40 million.
The proportion of family pets in major developed countries in Europe and America is basically above 50%, while the per capita GDP of China’s first-tier cities has begun to approach the developed economies. With the rise in per capita disposable income and the aging of the aging population, the proportion of Chinese family pets will continue to rise.
Image Source: Ai Media Consulting
2.1.3 Society Society
(1) Single economy and silver economy promote the rise of pet economy
In 2017, China’s marriage registration was 2016.1 million pairs, down 7.0% from the previous year. In 2018, China’s birth rate was 10.9%, a decrease of 1.5% from 2017. Pets have the companionship function, which can become the spiritual sustenance of single youth, but also relieve work and life pressure.
Since 2014, the population of people over the age of 65 has increased year by year, reaching 155.0 million by 2018. Pets can improve the happiness of the elderly, replace the children’s company, and resolve loneliness.
China’s birth population, a new low in 20 years in 2018
Source: National Bureau of Statistics, National Securities Research Institute
59.1% of pet owners regard pets as their own children, followed by relatives, accounting for 27.8%. In addition, married people are more willing to treat pets as children, accounting for 47.6%, and single groups are more willing to pets. Seeing their loved ones, alleviating loneliness, accounting for 50.1%.
Data Source: “2019 China Pet Industry White Paper”
(2) The prevalence of cloud-sucking pets has also greatly stimulated pet-related consumption
58% of the unfamiliar people have the behavior of sucking pets, which accounts for 71% of the pets. Both pet owners and unpopular people prefer dogs and cats.
Data Source: Aurora Big Data
2.1.4 Technology Technology
(1) The development of online payment and online shopping has promoted consumption in the pet industry
83.9% of consumers will purchase pet food through Tmall/Taobao. Online consumption is not only rich in products, but also cheap and transparent, and more convenient, and more in line with the rhythm of urban residents.
Source: “2017 China Pet Industry White Paper”, Changjiang Securities Research Institute
(2) Internet development has spawned the spread of video, text and images by various platforms.
The sharing of original content for pet entertainment promotes the love of the crowd. Moreover, these platforms are also convenient for advertising. Compared with the advice of professionals such as doctors or pet shop owners, the younger groups are more inclined to obtain information from all over the Internet. In the process of active understanding, they also promote consumption.
Data Source: Aurora Big Data
2.2 Competitive Situation (Porter Five Force Model)
The Porter Five Force Model analyzes the basic competitive situation of an industry. The five main sources of competition are the bargaining power of suppliers and buyers, the threat of potential entrants, the threat of alternatives, and, lastly, competition among companies in the same industry.
2.2.1 Vendor
A Pet Food Supplier
The largest consumer module in the pet market, mainly including staple foods, snacks, and health products, of which the main grain accounts for the largest proportion.
Current domestic petsThe competitive landscape of the staple food market is still dominated by brand competition, and because the foreign pet market matures earlier, it is still dominated by foreign brands. Foreign brand pet staple foods are more reliable, more nutritious but more expensive.
The domestic brands are the opposite. Domestic independent brands have more self-operated stores, and foreign big manufacturers have few direct sales shops in China. They are generally sold through domestic agents or overseas purchasing channels. The overall price is relatively transparent, and the bargaining power is not strong. Is the channel true and reliable?
Data Source: “2019 China Pet Industry White Paper”
Data Source: Strawberry Pie
B Pet Medical System
Medical care is the grayest module in the pet-related market. There is no uniform standard for fees and information is asymmetric. Most concentrated in the central city of first- and second-tier cities, but they compete with each other, and the trust between doctors and patients is low (only 52.9% of pet owners are satisfied with medical services, 47.1% of pet owners are not satisfied with medical services), high fees, etc., culling rate Higher, bargaining power is not strong.
Data Source: “White Paper on China’s Pet Industry in 2018” / Data Source: Aurora Big Data
2.2.2 Purchaser
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Pet Feeders: At present, most pets need to be involved in general daily necessities, toys, food, pet grooming, pet medical treatment, from the traditional “free-range” way to “intensive”.
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Live pet shop/pet grooming shop: These two are usually combined into one, that is, selling live pets, and also driving sales of pet foods and supplies with different focuses. It is both a consumer and a seller, but it consumes more than a regular pet owner.
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Pet Medical System: A major consumption point for pharmaceuticals, and a clinic that also serves pet grooming and food products.
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Stroller Feeders: Many caring people, even if they are not owners, buy food to feed stray animals.
2.2.3 Industry competitors
A Integrated E-commerce
E-Pou Mall, Boqi Network, etc.: Wired Internet shop, Taobao shop and mobile APP market, food-based, supplemented by supplies, the main pet objects are dogs and cats, the advantage is large volume, high degree of commercialization, There are some brands that work together, but online reviews are mixed. At present, some content services are being developed, and UGC assessments, medical guidance, and feeding guidelines are provided, but they are still immature.
B Self-owned brand e-commerce
Crazy Puppy: Different from the previous two, for self-produced and sold, facing the dog pet market, the online + offline store direct mode, the emergence of the past two years, the high cost performance – low-end market, is seen For the “millet” brand in the mobile phone.
C Community E-commerce
There are pets, whales, bells, pets, etc., similar to the “Little Red Book”, mainly based on content, supplemented by the mall. It seems to satisfy the pet market segment market demand, but the content traffic is still far less than other mainstream platforms (small red book, vibrato, B station, Weibo, etc.), and the mall has no advantage, which is a relatively inferior category.
2.2.4 Potential entrants
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Upstream suppliers: especially food supplies, which are major consumer exports, and upstream suppliers are not only “real and reliable” but also “lower prices”.
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WeChat Channel: Many scattered merchants or pet shop owners will expand their customer base through offline transactions, and then directly sell goods through WeChat friends circle.
2.2.5 Alternatives
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Offline purchase channels: Many pets live stores will own pet food and supplies. These shopkeepers are often able to establish trust with pet owners, and pet stores have low-cost purchase channels and have certain price advantages. .
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Handmade custom food: At present, the main food for dogs and cats is dominated by No ValleyHowever, the real good food is expensive, so many pet owners will do it themselves, and even on the Internet can directly buy ready-made food processed by fresh ingredients, rather than commercial grain.
2.2.6 Summary Analysis
Overall analysis, in which direct competitors are mainly existing e-commerce platforms with large volume and high degree of commercialization, and have accumulated a large number of users with high trust (because the pet food market is mixed, pet owners) Most of them are office workers, afraid of trouble, and the price of the same specification product does not fluctuate in a short period of time. Once the trust is established, it is more difficult to break), and the supply market is accompanied by the food market. However, there are not many official marketing channels for big brands. Coupled with the uneven word-of-mouth of these e-commerce companies and the small number of brands, the influence is still insufficient.
The biggest competitor among potential entrants is the upstream supplier. Although their advantages are obvious, there are currently few upstream suppliers directly.
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One is that sales are faster and more convenient than retail,
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Second, the foreign grain import channels themselves are costly, time consuming, risky, expensive, and relatively small audiences;
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The third is that most of the domestic brands are not well-known, the word-of-mouth is mixed, the quality inspection is not as mature as foreign countries, and most of them are not as well-known as the mature e-commerce platform. Therefore, it is difficult to form a competitive advantage in the short term as a whole.
III. Market Status
3.1 Market Stage
The market stage is generally divided into the import phase, the development phase, the maturity phase and the exit phase. Judging from the previous macro analysis, foreign brands still rely mainly on Haitao purchasing, lacking official channels, and domestic brands have different quality control standards. Last year, the Ministry of Agriculture issued a series of regulations and requirements. The medical system is completely regulated by the market, there is no supervision and standards for prices, and there is no channel to regulate the contradiction between doctors and patients. Market demand has spawned a number of market segments, but there has not been an industry monopoly, so the industry is considered to be in the development stage.
3.2 Market size
(1) The pet industry has a promising market
The Chinese pet industry reached a market scale of 170.8 billion yuan in 2018, with a growth rate close to 30%. In recent years, the growth rate has continued to rise. It is estimated that by 2020, the market size will reach 300 billion.
Data Source: Ai Media Consulting
(2) The pet food industry is at its peak
The pet food industry reached a market size of 93.40 billion yuan in 2018, with a growth rate of 86.8%, a significant increase from 2017.
Data Source: Ai Media Consulting
Fourth, user research
4.1 User group characteristics
(1) Female, young, and highly educated are the main population characteristics
Data Source: Ai Media Consulting
(2) The main occupation is mostly corporate staff
In the professional statistics of pet consumer users in China, the enterprise staff stood 28.3%, followed by the housewife 12.8%. Most of these groups are empty-nest people under work and economic pressure, lacking companionship.
Data Source: Ai Media Consulting
(3) There are many new cats in the first-tier cities, and more dog users in the fourth-tier cities
Wang Xingren prefers quiet and peaceful third- and fourth-tier cities; Iridium prefers new first- and second-tier cities where life is faster and more convenient. It may be because dogs need to put more energy into their companionship and a wider space, and the regulation of dogs in first- and second-tier cities.More strict, and cats do not need to be paralyzed, only indoors can be raised, quiet, more suitable for breeding in large cities.
Data Source: MobData Institute
(4) More unmarried people
Most pet owners are not only unmarried but have no property, and cats and cats are even worse. Most of the income is at the middle-lower level, and the proportion of houses and vehicles is not high.
Data Source: MobData Institute
4.2 Target Market
According to the above data analysis, the target market is more inclined to the first- and second-tier cities, single or unmarried young struggle groups. This group of users accepts new things faster and is more susceptible to Internet information. Some data show that the daily life of the pet owners prefers “quietness”, leisure time likes to chase or go online, and is used to online shopping and online payment.
4.3 Market Positioning
Overall, market positioning tends to serve younger struggle groups, especially novice pets, aiming to provide more effective information and save on pets and energy costs (community original content). In addition, from the above data, although the growing popularity of pets is a trend, the majority of the pet owners are low- and middle-income people, and cost-effective goods are the core (commodity part).
4.4 SWOT Analysis
SWOT analysis (Strengths Advantage, Weaknesses Weakness, Opportunities Opportunity, Threats Threat) is actually a way to synthesize and generalize all aspects of internal and external conditions of the enterprise, and analyze the strengths and weaknesses, opportunities and threats of the organization. .
IV. Conclusions
After the rise of the domestic pet industry, the number of pets and related consumption is increasing at a high rate every year. China’s population is huge, but the current pet consumption is still far lower than that of developed countries, but the concept of scientific nourishment has gradually Second-tier cities are popular.
But the current market pain point, from two major directions – food supplies and medical care, are not perfect in China.
Popular users, especially novice pets, receive huge amounts of information from the Internet every day, but can’t make their own judgments. The food supplies bought for pets are difficult to distinguish between true and false, and pet medical treatment is not satisfactory.
The foreign pet industry is relatively mature, and the country is gradually standardizing at present, but the industry also needs to establish standards. But you need to grasp two cores:
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Provide reliable purchases of resources or channels;
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Provide expert scientific knowledge.