In China the Pet Economy Brings a lot of Business Opportunities for International Brands

Pet food sales in China already reach U.S.$2.2 billion last year. How can foreign Business enter the Chinese market?

The pet economy in China

In foreign countries, the “pet economy” is a huge industry. In 2001, pets generated $27.6 billion in consumption for the US economy, and the US pet insurance industry earned only $4 billion a year. In Sweden, even 57% of dog owners purchased pet insurance for their dogs; Germany 17% of the annual national income comes from the dog industry; in Australia, the pet industry has more than 30,000 employees and creates nearly 6% of GDP… source MarketingtoChina

The international pet market has gradually matured, and pets have become a symbol of the country’s economic strength and social development. The rapid development of the world’s pet economy has driven the rapid development of related industries, and gradually standardized, standardized, and internationalized. The number of pets and the benefits of the pet economy have risen rapidly year by year. People’s love for pets has led to the growth of pet products sales and pet service industry. The emerging industries such as pet economy, pet food sales, pet supplies, pet grooming stores, and pet hospitals have grown rapidly, and the pet market is growing.

International pet products Situation in China

In this increasingly prosperous situation, many foreign pet-related products want to enter China, where the pet market is also growing, so how can they better enter the Chinese market?

According to the “2015-2020 Pet Products and Services Industry Market Research and Investment Forecast Analysis Report” released by the Prospective Industry Research Institute, the current domestic cat food dog food market is also mainly from American Mars, Nestle Purina, and Ouyu Pet Food. The three major pet food giants occupy. When Purina has not entered the country, Mars monopolizes more than 50% of the market and enjoys a very high share in professional channels in pet hospitals and pet shops. They can occupy the giants in the Chinese pet market. In addition to the three foreign pet food companies, there are also many foreign pure imported brands that satisfy high-end consumers. The American P&G’s Aimus, Youka, Colgate’s Hills, as well as snow mountains and natural forces. The reasons why foreign famous brands such as Ling Cai and others are in the pet market in China with high-speed development are as follows:

Firstly, analyzing the overall economic environment of the Chinese pet market, and analyze the structure of consumers in today’s market. In terms of the structure of pet consumption, which aspect is more, choose which aspect to develop.

Secondly, having conducted a profound study on the environment of China’s policies. Where are the policies for the pet market relatively loose? Where are the stricter policies? It is an important point for foreign pet markets to choose to develop cities.
Third, we must have a better understanding of China’s current social environment. For example, the aging of the population will bring a climax of pets, which will make the pet market and its related food industry get a better development environment.

In summary, if the foreign pet market wants to better enter the Chinese market, in addition to the above three essential understandings and research, it is necessary to have a good quality of its own brand in order to gain a foothold in the Chinese market.