The China Pet Consumption Trend Report 2019: Which "shovelers" are busy "jerking off"?
On November 19, Fan Tianyang, General Manager of the Pet Procurement Department of Jingdong Retail Consumer Products Division, released the 2019 China Pet Consumption Trend Report (the “Report”) at the China International Pet & Aquarium Show (CIPS) Gala Dinner. According to the Report, China’s pet market has continued to expand in recent years, and the pet industry will continue to maintain a growth rate of over 14% in the next 3-5 years. Many people also know for the first time through this report: young people more than the elderly idle at home like to keep pets, unmarried groups prefer to smoke cats and dogs, married people prefer aquariums and exotic pets consumption ……
**The domestic pet market is exploding, are you paying for the “it economy”? ***
According to The History of Pets, “The more urban we become and the further we move away from nature, the more important pets become in our lives.
In today’s urban life, “smoking cats and jerking dogs” has become a daily routine for many people, which has directly led to an “it economy” of production, sales and service activities around pets.
In February this year, Starbucks online sale of cat’s claw cups, 1000 cat’s claw cups were snatched up within 5 seconds, many consumers who could not snatch the goods to spend a high price to buy from scalper parties, the original price of 199 yuan a cat’s claw cup finally flipped to 999 yuan: “cat’s claw cup” is crazy chase behind, but also from a side witnessed The Rise of the “It Economy”.
The report also gives the logic behind the rapid rise of the “it economy” over the years.
First of all, with the help of good wind, the prosperity of the domestic pet market in recent years, is a combination of economic, policy, spiritual and technological dimensions of the drive.
At the economic level, the disposable income of families has increased significantly in recent years, and keeping pets is no longer the privilege of the aristocracy, so it can be said that the universality of pet ownership is the root cause of the rapid growth of the domestic pet market; at the same time, the economy is affluent, and people’s ideas about pets have also changed, and the spiritual needs of pet ownership have been further amplified; plus, the state has promulgated a series of regulations to strengthen and regulate the production of pet feed in recent years. In addition, e-commerce platforms such as Jingdong provide more and more complete products and services for pet owners, which have contributed to the increasing maturity of the domestic pet market.
Source: Internet Open Data Collection
Secondly, in the era of e-commerce, where everyone can raise pets, the pet food business is secretive and huge.
The report shows that the domestic pet industry market is composed of five parts: pet food, pet medical, pet supplies, pet sales, and other services, although the growth rate of the pet food market has dropped significantly after reaching its peak in 2017, but the absolute growth rate is still maintained at 19%, the pet food plate business “money” unlimited.
The most important thing to do is to make sure that you have the right tools and the right people to do what you need to do. Pet product companies have also been online e-commerce channels to cut into the market: since 2014, the contribution of domestic pet food online sales to the overall growth rate significantly increased and eventually exceeded offline, in recent years, most of the pet food consumption sales are from e-commerce channels.
Source: Business Industry Research Institute, Euromonitor, Prospective Industry Research Institute
In general, the development of the pet industry in China with adequate soil and conditions, a series of favorable factors driving and industrial form and the improvement of the e-commerce environment also provides a fast-channel pet industry, the domestic pet industry market prospects full of imagination.
**Shovel commonality: **
90s “Singles” bring big business about loneliness.
The question then arises: which “shovelers” are busy “masturbating”?
According to the report, the main users of online pet consumption in China are women, post-85/90s, unmarried and college educated pet owners.
In the distribution of users in each age group, the share of pet consumption of 85/90s young people is as high as 40.3%, far ahead of other age groups: for these young people, working alone, they suddenly lost the love and care of their parents, and they have to solve all kinds of difficulties and problems in life and work by themselves. With the stresses of life and work, it makes sense to have a pet.
Source: Jingdong Big Data Research
The report also reveals an interesting phenomenon: the unmarried group contributes most of the online consumption of cat and dog sucking, while the married consumers' pet focus is on home-based aquarium and exotic pet products. This also shows that the pet owners' petted objects are clearly stratified with the change of pet owners' status.
Source: Jingdong Big Data Research
In general, the above online pet consumers have one thing in common: they are either single dogs, young people or have a higher education background, and pet ownership is more of an emotional need for them.
According to statistics from the Ministry of Civil Affairs, China’s single adult population is currently more than 200 million, and is facing its fourth wave of singles - a huge number of people behind the spiritual and emotional loneliness, and pets can be pampered to play a comforting role, and in this regard, the pet economy is actually a business about loneliness. The online pet market will also see a rapid growth in popularity.
**The “big brother” of cats and dogs, the pattern of stability, the momentum of the exotic small pet is gratifying **.
What is remarkable is that the report also provides an insightful summary of the key features of the growing online pet consumer market in the following areas.
First of all, there is a strong desire to consume pets in Tier 1 and “new Tier 1” cities.
In terms of region, North China, East China and South China are the key regions for online pet consumption; in terms of spending, Tier 1 and “New Tier 1” cities such as Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Tianjin, Suzhou, Chongqing, Xi’an and Shenyang are the most willing to spend money on pets.
Secondly, the “cat and dog wars” in the cat food industry are stable, and the “cat economy” is now stronger.
In the past, the dog is the pet king of every family, but in the past few years, the number of pet cats seems to be increasing, which also reflects the basic pattern of the “cat and dog war” in the pet market consumption, the two sides basically have each other’s strengths and weaknesses; and in the current rapid changes in the pace of life, in recent years, more and more people have cats, many high-end brands Cat litter has become the fastest-growing consumer product category for dogs and cats. In addition, the consumption of cat litter is also a standout, occupying almost half of the online cat and dog daily consumption; cat litter box has become the fastest growing consumer goods online cat and dog daily products category.
Source: Jingdong Big Data Research
At the same time, with the growth of online pet consumption, the market potential of related ancillary services such as medical and health care products is beginning to emerge, in which pet deworming products have become the main medical and health care products purchased by consumers, and their growth rate is also ahead of other medical and health care products.
Third, the consumption of exotic and aquatic pets is rising strongly.
With the increase in disposable income, many families' spending on aquarium products has broken through the normal consumption of fish and turtles, and the rise in spending on climbing pets is also very strong. In addition, the consumption of exotic pets has also been on the rise in recent years, with a variety of players' needs, which may break the traditional pattern of the pet market dominated by cats and dogs. The market for small pets, such as birds and mice, is also developing at the same time, and the prospects for rodent supplies, bird supplies, reptile supplies and rabbit supplies are promising.
In short, the brand, only a deep understanding of the basic characteristics of the online pet market, can be targeted to complete their product layout, to create a competitive pet consumer brand, to share the huge dividends of the online pet market.
**The “rich shovelers” are the same, **.
**Funny pets galore! ***
Through this report, Jingdong also gives us an insight into the basic trends of future pet consumption.
First, healthier pet food: higher quality and more balanced nutrition.
The healthier side of pet food is the quality requirement. Since pets are the emotional sustenance of pet owners, of course, pet owners want to provide their pets with the best things, which is the main reason why pet owners are pursuing higher and higher quality of dry pet food in recent years. Especially since 2019, dry dog food and cat snacks have achieved leaps and bounds in both sales and growth rate.
Source: Jingdong big data research
The other side of the healthier pet food is the health requirement. For many pet owners, their pets are like their children, and it is their psychological demand to provide their children with more balanced nutrition and healthier food; as the health concept of pet food has become more popular, the pet food in the future will be subdivided by age, so that the pet food market will be richer, more diversified and functional.
Source: Jingdong Big Data Research
Second, pet food is interesting: more variety and more innovative packaging.
On the one hand, the fun of pet food is reflected in the increasing variety of interactive, interesting and functional snack products. At the same time, the number of functional snacks such as catnip, which can stimulate the cat’s mood and hair, is also increasing rapidly because it can play a unique role.
On the other hand, the rise of innovative, niche snacks with both high color value and functionality has made pet food more interesting. The “human-worthy” lollipops, ice creams, milkshakes and other innovative products often catch users' attention quickly. In addition, niche snacks with both high color value and functionality also have a breakthrough development after catering to the specific consumer demands of pet owners.
Source: Internet public data compilation
Third, the pet refinement: more excellent quality, more refined categories.
First of all, it is reflected in the washing of pet tools (solution, beauty tools, beauty appliances) more high-end brand, category segmentation. Secondly, it is also reflected in the pursuit of safer and more effective consumers, health products function more refined way of raising pets.
Source: Jingdong Big Data Research
For example, as the pet owners' demands for pet health upgrade, it also pushes pet medical health products to the formal, professional stage of transition, safer, more effective, and more detailed health product functions will become the mainstream way to raise pets.
Fourth, intelligent pet raising: feeding is more scientific and technological, and having fun is more intelligent.
On the one hand, it will reduce the work of pet owners in feeding, shoveling, washing and cleaning. For example, the emergence of automatic water feeder, intelligent litter box, etc., saves a lot of energy for the pet owners. On the other hand, it is possible to realize interactive communication and play together in pet raising. For example, the advent of intelligent inductive cat teasing, dog teasing toys, electric massager should save a lot of effort for the pet owners.
Fifth, diversification of pets: aquariums are more scenic and exotic pets are more diverse.
On the one hand, aquariums and aquarium supplies have shifted away from the single decorative supplies “mannequin” and towards the environmental integration of consumer demands, ordinary aquariums, shaped water tanks, customized water tanks are becoming the darling of the consumer market; on the other hand, personalized exotic pets, supplies and themed consumer scenes are becoming more and more popular.
In recent years, Jingdong insists on releasing annual pet industry consumption trend reports, because over the years, it has constantly summarized the characteristics of the domestic pet consumption market, and on the basis of insight into the pet market development trend, it has continuously improved the layout of online pet consumption.
In the recently concluded 11.11 shopping spree, the pet category of the Jingdong Supermarket has shown remarkable performance. The turnover of pet insect repellent increased by 243%, the turnover of cat litter box increased by 232%, and the turnover of cat staple food cans and dry food increased by more than 150%, which also indicates that many pet brands have taken Jingdong as an important breakthrough in their pet consumption business.
In the next 20 years, China is expected to become the world’s largest pet consumer market, according to the development trend of the domestic pet market disclosed in the report, and Jingdong will seize the domestic pet consumption, further improve management, operations and logistics, and work with more pet consumer brands to provide pet owners with richer, more nutritionally balanced and quality-assured products and services.
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