How do Petty and Zhongchong break through the domestic pet food market?

Micro signal: investor sixpence

As I said in three articles on pets, pet food enterprises that occupy the domestic market in the future will become the hegemon.

So, how do local enterprises break through?

In fact, the core style of play is nothing more than category innovation, channel strength and precision marketing.

One.

Category innovation

In the future, the vast majority of consumer goods in China will be buyers' markets. In the buyer's market, because the initiative is in the hands of consumers, if enterprises want to develop, they must first find the pain points of consumers in products, and then make the logic of product positioning in research and development according to the pain points.

Therefore, the core of the product is to continuously tap the demand around the new pain points of consumers and carry out category innovation.

So, where is a core pain point for pet food consumers?

Before digging the pain point, we must first understand who the consumers are.

Domestic pet owners are mostly women with middle and high education, with the post-80s, post-90s and post-00s as the core, but when it comes to buying food, the proportion of women is higher, accounting for about 70%.

Knowing this, combined with some changes that have taken place in all walks of life in recent years, we can probably understand where the pain points are.

For pet food, the pain point in the future is not just to be satisfied with "eating well", but to "eat well", so the demand must be more and more diversified.

This is a general direction. In the future, people will pay more attention to the nutrition, health (obesity) and coat color of pets. Therefore, the product formula that meets these needs will become the core direction of category innovation in the future.

According to these needs, the product positioning and core selling points will also develop towards natural grain, prescription grain and low-sensitivity grain.

Such enterprises will stand out in the future. The United States has a good case to prove this point, such as blue rider.

As we know, the pet industry in the United States is already a very mature market, and under the situation that big brands such as Mars and Nestle have dominated the market, brands such as Lanjue have been stifled.

What is the reason for it

The core lies in Lanjue's differentiated product positioning, focusing on natural healthy food and taking the high-end route. Unique product positioning, coupled with the company's strong marketing team, ultimately shaped its image of high-end healthy food.

From 2006 to 20 17, the compound annual revenue growth rate of Lanjue reached more than 15%. In 20 17, the operating income was as high as 8.328 billion dollars, and CAGR was as high as 20.43% in recent five years.

Relying on the killer of category innovation, Lanjue became one of the fastest growing pet food companies in the United States during this period.

At present, domestic funded shares and Zhongchong shares can also see continuous category innovation. Judging from the current situation, Zhong Chong has made faster progress than Patty.

For example, in 20 12, Zhongchong introduced the high-end formula food brand "Dr. Hao" to solve the problems of pet's heart, intestine, skin and urinary tract, highlighting the positioning of "formula food" and emphasizing that the product has the characteristics of high digestible protein, probiotics, adjustable intestinal flora, dietary fiber and so on, which is helpful for clearing intestine and strengthening stomach.

On 20 18, Zhongchong introduced a naughty cereal-free and low-sensitivity food called 0 cereal supplement, which can reduce the risk of pet allergy, at the same time, it has higher digestible protein content, promotes pet intestinal digestion, and emphasizes the concept of making pets eat healthier, and the sales volume is good.

Comparatively speaking, Patty mainly makes innovations in chewing gum (such as plant chewing gum now emphasized), and the risk of product category simplification is higher.

However, Patty is also stepping up the layout. The new Zealand brand BOP Industries Limited acquired by Patty is expected to enter China by the end of this year to meet the domestic demand for high-end pet food.

In addition, in addition to the innovation based on product positioning, formula and technology, there is another key reason for pet food enterprises to win in products, that is: face value.

Female buyers of pet food account for about 70%, which determines that the product should have high value. Including the design of internal and external packaging of products, the channel display of product sales should be high (official flagship store, website, activity page design, etc. ), that is, the visual presentation you show, to impress these female users.

Crazy Puppy, a domestic pet food brand that has quickly become popular in recent years, has exposed this kind of light.

Many people may question, is Yan value that important? I think this is very important. And its importance will only grow in the future, especially in the face of female consumer brands.

The above is the viewpoint about category innovation.

Two.

Channel force

The products are good enough, but the gimmicks are not enough. As the saying goes, good wine is afraid of deep alleys, and it is no use selling products no matter how good they are.

At this time, the role of channels is highlighted.

Students who have studied enterprise development in china dairy will know how Yili and Mengniu let their former boss Bright Dairy look for teeth everywhere.

Take room temperature yogurt as an example. At that time, Bright Dairy took the lead in launching a new product "Morris Ann" after years of silence, and it was immediately popular in the market. Guangming also hopes to reproduce yesterday's glory with this product.

However, eggs are combined.

Yili and Mengniu immediately developed similar products after discovering the opportunity of normal-temperature yogurt, and then quickly seized the market and squeezed out the light by relying on a strong channel network.

For example, Jiang, who is very popular in recent years, people think that its success is mainly due to its good marketing concept and various trend quotations, but forget the power of Jiang's channel.

Channels are very important.

Having said that, what about pet food enterprises? How do they win in the channel?

On the whole, I think the core is one sentence: people who occupy e-commerce platforms and professional pet shops will win.

According to the data of White Paper on Pets 20 17, the main purchase channel of pet owners is online, accounting for 73.6%, followed by professional pet shops (including chain stores and community stores) and pet hospitals.

As for Shangchao and other channels, the current purchase demand is relatively small, and it is not the core channel for the time being.

In terms of domestic channel layout, Zhongchong has been relatively perfect.

In terms of e-commerce channels, Tmall, JD.COM, Amazon and Boqi have all stepped in; Offline professional channels, according to the company official website, a sales network has been established in the city of 1 10, and the distribution rate in China pet hospital and professional pet shops has reached 80%; Shang Chao has set foot in Wal-Mart, Qian Qian Currency and other large supermarket chains.

From the data point of view, at 20 14-20 16, the online growth rate of Zhongchong is obvious, and the revenue has increased from 1035250 to 3666.55 yuan, with a compound growth rate of 88.9 1%, but the base is small. Petty has no layout at present.

Judging from the current domestic market share, the concentration of pet food is very low. Insert the sales data and market competition of domestic brands here, which is clear at a glance.

According to the data of Chirui Media, in 20 17 years, the market share of CR 10 (the top ten brands) was only 23.48%, among which Royal, a subsidiary of Mars, firmly occupied the first place, with a market share of 4.42% (although it was the first, it was also very low), and the second place was crazy puppies of domestic brands, with a market share of 3.94.

Different from the dog staple food, the cat staple food is mainly imported brands, and the royal family is dominant, with a market share of 12. 17% in 20/7 years. Compared with dog staple food, imported brands of cat staple food have obvious advantages. Among the top 10 brands, there are only two domestic brands, namely "Meiziyuan" and "Youqu" and 1 joint venture brands. This is mainly because cats generally eat less than dogs, so cat owners are not as sensitive to the price of staple food as dog owners.

Compared with staple food brands, the market concentration of pet snacks is lower, and the overlord is McFoday.

According to the statistics of cat/Taobao channel sales in 20 17 days, the domestic brand "McFudi" has sprung up suddenly and won the double champion in the market of dog food snacks and cat food snacks.

Judging from the growth rate of the former 10 brand, it is generally faster than the overall growth rate of the pet snack industry, which means that the industry concentration is on the rise. This is mainly because of the high entry threshold for pet snacks, high requirements for enterprise technology and financial strength, and relatively peaceful competition.

In terms of pet snacks, Zhongchong became the fifth brand market share of 20 17-day cat/Taobao dog snacks, with a share of 2.23%, and the market share of cat snacks was the fourth, with a share of 3.22%, which made rapid progress.

In short, from the perspective of domestic channel sales, domestic brands McFudy and Crazy Puppy performed very well and were in the forefront. Zhong Chong has made rapid progress, but the base is still very small. As for Patty, she has not yet entered the domestic market. Patty in China is no match for Zhong Chong. At present, we can't see who is better, and we need to continue to follow up.

Three.

precision marketing

Compared with other consumer goods, there are relatively few people who buy pet food, so compared with all-round advertisements and activities of other consumer goods brands, the precision marketing effect is better and the cost performance is higher.

In precision marketing, there are actually many imaginable ideas. For example, cats and dogs naturally bring their own traffic, which is suitable for IP. Derivatives such as pet comics, videos and emoticons can be spread accurately in various pet communities, interest circles and pet bloggers, reaching consumers quickly and improving marketing efficiency.

Pet food marketing has a natural advantage, that is, pet owners love socializing. For example, pet owners with dogs are very active under the main line, and pet owners tend to gather in circles. Once the product is recognized by the opinion leaders in this circle, it will be natural to promote it in this circle.

Similarly, pet owners who own cats prefer to socialize online, and group chat, community and Tik Tok all have corresponding marketing points.

Of course, popular forms of publicity are not impossible. For example, head programs such as "Life I yearn for 2" sponsored by McFudy.

? Summary:

If local pet food enterprises want to break through in the domestic market, the core tactics are category innovation, channel strength and precision marketing. Judging from the current results, McFudy and Crazy Dog are outstanding, but they are both unlisted enterprises. Zhong Chong and Patty, listed, the former performed well, while the latter also proved their ability.

For Patty and Zhongchong, although they are both listed companies, domestic pet food brands such as Puppy and Medford, which are relatively crazy in capital, research and development, technology and channels, still have advantages in recent years, but it is hard to say whether they can finally come out.

From the investment point of view, it is no problem for people with strong winds to choose petty bourgeoisie with better performance at this time, but for people with weak winds, it may be a better choice after being killed by fierce market.

Of course, some people with reverse thinking may choose Patty, who has poor financial performance at present, and wait for the performance to reverse.

How to do it is up to my friends.

chant

Pet industry series articles:

1. Industry space: Now the pet industry with a scale of 1000 billion will soon have no long bull stocks?

2. Industry potential: look for investment targets from the biggest cakes: pet food and pet medical care.

3. Enterprise analysis: Who is more worthy of investment in matching shares PK Zhongchong shares?