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Behind every cute pet there is a selfless "shovel officer", who makes the pet economic demand side expand rapidly and promotes the rapid growth of the domestic pet industry. At present, a number of pet product companies have been listed on the New Third Board, and Petty (300673-CN) successfully "transferred" the A-share market in July, and this week, Zhongpet shares will launch a prospectus on the small and medium-sized board. From food to supplies, the industrial chain driven by cats and Wang Xingren continues to extend. Now, with the opportunity of the rapid growth of the domestic pet market, another market segment - pet medical care is riding the wind and waves.
The scale of the domestic market is expanding rapidly, and the pet economy has ushered in new opportunities
When it comes to pets, many people naturally think of "pet countries" such as Europe and the United States, and rarely mention domestic. But now the situation is different, as the number of pet owners in the country climbs, and the scale of the pet economy expands. Overseas demand is strong, the domestic market is growing, and the pet industry is making a lot of money.
For a long time, overseas has been the main battlefield of the domestic pet industry. The American Pet Products Association APPA predicts that the consumption amount of the US pet industry will maintain a growth of more than 4% for five consecutive years, and the consumption amount will reach 62.75 billion US dollars in 2016. The huge market has attracted domestic enterprises to focus on overseas, mainly through OEM, ODM and other export methods to achieve revenue.
However, in recent years, the domestic pet market has gradually changed. Although China's pet ownership rate is far less than that of developed regions in Europe and the United States, the number is huge, and the number of pets will grow to 360 million in 2019. As for the "2016 China Pet Industry White Paper" released by Asian Pet Exhibition, it is also speculated that the compound annual growth of China's pet market in 2020 is expected to exceed 30%, which shows that the domestic pet economy is pregnant with a huge market.
Since 2015, nearly 8 pet industry companies have been listed, in addition to the Petty shares mentioned above, there are Yiyi shares (870245-CN), Huaheng shares (837995-CN), Ruipeng shares (838885-CN), etc., the rapid growth of pet products enterprises is one of the strong evidence of pet economic development.
While the pet industry is growing rapidly and seeking to go public, the pet economy is also "favored" by capital. E-pet Mall, an e-commerce platform focusing on pet products, has already received Series A financing from DT Capital in 2015, and in mid-July 2017, it announced the completion of Series B financing of 50 million US dollars (about 330 million yuan). In addition, small-scale capital is entering the pet industry segments, such as Qi Yi Capital and Bangshi Capital jointly investing in "Wang Zaihan" brand dog food. With the rapid growth of domestic demand and the influx of capital, the pet economy has ushered in new opportunities for development.
The three major market segments are now in the embryonic pet medical development, slow half a beat?
Market demand has driven the rapid growth of pet enterprises, and the influx of capital has further extended the pet industry chain. From the perspective of pet market enterprises and capital selection projects listed this year, the pet market has formed three major market segments, including pet food, pet supplies and pet medical treatment.
In order to let readers have a more intuitive understanding of the three major market segments of the pet market, the author has sorted out the main businesses of 8 listed companies in the pet industry, as shown below:
Chart: Business breakdown of major pet industry enterprises
The author can summarize the two characteristics of enterprises in the pet industry in the mainland: first, in terms of quantity, pet supplies and food enterprises develop one step faster, and pet medical care is half a beat slower; Second, in terms of content, pet supplies and food companies have a more systematic product system, and overseas markets are mature.
In fact, the development of pet medical care is slow and half a beat, mainly affected by its own industry nature. Pet medical care is affected by factors such as infrastructure and staffing, and its market scope is difficult to break geographical restrictions, so it is difficult to develop overseas markets. Therefore, if the main market of the pet industry is only abroad as before, and the domestic pet economy fails to grow, the prospects for the development of the pet medical segment market are not optimistic. However, now, the great prospects of the domestic market make up for the inherent shortcomings of pet medical care in expanding overseas markets. In addition, compared with the development of pet supplies and food segments with the help of overseas demand, pet medical care, which focuses on domestic market demand, has less competitive pressure and more room for development.
The human resource "dilemma" is to be solved, and the prospects for pet medical treatment are promising
With the accelerated expansion of the domestic pet economy, Ruipeng, Ruipai, Barbie Tang and other pet medical institutions and enterprises have grown rapidly, and the joint investment of the National Small and Medium-sized Enterprise Development Fund and Qingkong Ginkgo Fund has also recently invested 100 million yuan to layout the pet medical market. However, following the trajectory of human medical development, if pet medical care is to achieve scale, it must solve problems such as diagnosis and treatment costs and human resources.
Let's start with the cost of medical treatment. At present, the population of pet owners in the mainland is mainly concentrated in first-tier cities, and more than half of the post-80s and post-90s groups under the age of 35 are strong, and their economic ability and willingness to pay are strong. Therefore, the problem of diagnosis and treatment costs in the process of pet medical development is not difficult to solve, as long as the coordination between corporate profits and market demand is done under the premise of controlling costs.
Let's talk about human resources. Pet medical care is a labor- and technology-intensive service industry, which has dual requirements for the quantity and quality of human resources, but due to conditions such as expansion of enrollment, the shortage of veterinary medical talents is still very large. In response to this problem, some pet medical enterprises in the mainland have taken action to identify two major ideas to break the "dilemma" of human resources.
1. Cooperation between enterprises and universities. College veterinary medicine focuses on basic general knowledge and veterinary general medicine, pet medical enterprises have higher requirements for clinical practice, and this difference can be gradually eliminated through cooperation, such as Ruipeng Co., Ltd. and a number of agricultural and veterinary hospitals to build an off-campus internship training base to accelerate the entry of professionals into the application end.
Second, enterprises improve the employment environment and encourage talents to enter the field of pet medicine. For example, by providing competitive remuneration and working environment, etc., more talents are encouraged to choose to enter the field of veterinary medicine independently, and the tight supply of talents is improved.
The domestic market has brought important opportunities for the development of pet medical care, and the prosperity of the industry will eventually completely unfreeze the "dilemma" of human resources, and the future of pet medical enterprises is limitless.