The pet food industry has huge market potential and broad development prospects. The advancement of urbanization, the increasing emotional needs of "empty nest youth", aging population, and DINK families, as well as the improvement of pet family status, are the main factors promoting the continuous expansion of China's pet market. In recent years, the large-scale intervention of capital has become an accelerator and booster for accelerating the expansion of the pet market. We expect the pet market size in China to be approximately 149.7 billion yuan in 2017, reaching 281.5 billion yuan in 2020, and the CAGR from 2017 to 2020 will reach over 23%. As the largest segmented market, pet food is expected to have a market of nearly 100 billion yuan in 2020, with broad development prospects.
Drawing on successful development experience and combining internal and external forces for development. Through studying the development trajectory of internationally renowned pet food companies, we have found that their success is the result of the combined forces of endogenous and external factors, which cannot be separated from the three keywords of product, marketing, and brand. Enterprises maintain the vitality of their products and respond to constantly changing market demands by ensuring food safety and continuously researching and innovating; Both online and offline channels are emphasized, while traditional innovative marketing is emphasized. Through communication with consumers, influence, market share, and customer stickiness are increased. The combination of products and marketing, utilizing brand strategies and merger and acquisition methods, ultimately achieving the establishment of a private brand. Extension mergers and acquisitions serve as a booster to accelerate this process.
Chinese pet food enterprises have the potential to break through, and high-quality products have great growth potential. Due to the entry of new pet owners into the market, low brand loyalty of pet owners in China, and new opportunities brought by the booming e-commerce, we believe that Chinese pet companies have ample opportunities to break the existing monopoly pattern of foreign enterprises. Enterprises can focus on establishing their own brands by engaging in differentiated product competition while ensuring product quality, and by focusing on innovative marketing models in e-commerce channels. In the future, there will definitely be local enterprises in the pet industry that can compete with foreign enterprises. We are fully optimistic about the development potential of companies that already have brands, channels, and products. Investment strategy: Focus on recommending enterprises with product strength advantages that have already achieved remarkable results in domestic channel laying, product marketing, and brand building.
