100,000 paying member users, 900 yuan customer unit price, 56% repurchase rate.
The pet brand Dou Chai we recently met was founded in 2014. It was good at starting with private domain traffic in the early days, attracting customers with a subscription system + extreme and thoughtful service, and gradually forming its own core user. According to the data provided by the company, the average customer unit price of users is about 900 yuan (quarterly and half-yearly periodic packages), the repurchase rate of renewal is about 56%, and 20% of new customers come from referrals.
Traditional pet brands, many of which are S2B2C models, that is, ordering through B-end distributors to stores across the country, and then sold to consumers. The start of Dou Chai is to attract users through a lot of pet content. At the beginning, Doichai adopted a large amount of online KOL cooperation content. This content was not product promotion, but brand and service promotion. That is, through a large number of KOLs and pets, promote free services of Dou Chai and attract a large number of fans. To form the initial private domain.
Source: Dou Chai
When the content and services have formed a certain brand trust, users will switch to buy Dou Chai’s products. Dou Chai provides subscription-based staple food for dogs and cats. The set meal varies from quarter to half a year. The food for pets varies according to different body types. The shortest set meal price is 680 yuan. According to the company, Dou Chai currently has 800,000 users, of which about 15% are converted into paid subscription users, and there are about 100,000 paid member users.
On the product level, Dou Chai cooperates with Fobe, China’s largest pet food foundry, and its products are mainly staple food, including 40+ SKUs for food and supplies. For different channels, the products of Dou Chai will also be different to avoid the problem of arbitrage.
In fact, many brands will provide related pet content, medical treatment and pet knowledge knowledge services outside of the product, but Doichai is particularly important in the service. The team size of Dou Chai is about 200 people, including a team of 130 peopleThey are all doing things related to service and pet consultation, providing consultations on medical treatment and maintenance 24 hours a day. The team includes a large number of professional pet doctors, nutritionists, nurses and other professionals. The focus of the evaluation of the team is also customer satisfaction-oriented, rather than direct sales-oriented.
Compared with traditional e-commerce channels, such as difficulties in new creation, low repurchase, and high cost of acquiring customers, Dou Chai sticks its customers with a heavy service and provides pet products, including staple food and supplies. Word-of-mouth communication continued to bring referral traffic, and the operating system entered a virtuous circle.
Source: Dou Chai
In 2019, on the basis of private domains, Dou Chai pets began to enter the omni-channel development. Through the distributor channel, the product was put into more than 2,000 offline stores for sale. Dry food has also become one of the best-selling products. At the brand level, the company signed a film and television celebrity Yang Shuo in 2019 as a spokesperson. The company’s focus this year is on the one hand to continue to promote the cooperation of offline pet store channels, on the other hand, it will also start the operation of Tmall channels to consolidate the brand image.
Douchai pets received tens of millions of yuan in financing led by Jinding Capital in April this year. It will be used for R&D investment, new media, and channel laying, further building on the advantages of private domain traffic, and gradually expanding the construction of all channels, including Tmall and offline, to build the Dou Chai brand.