01
JD Health expands pet health services
According to the announcement disclosed by JD Health, JD Health entered into a sales and purchase agreement with JD.com, and JD.com conditionally agreed to sell or facilitate the sale of assets by its relevant affiliates for a consideration not exceeding US$355.4 million (approximately 2.38 billion yuan). ). Relevant assets include business contracts, inventories, operating rights and liabilities assumed.
The relevant person in charge of JD Health said that regarding the information disclosed in the announcement on June 29, JD Health’s acquisition of JD Group’s assets is related to pet health product categories, which mainly include pet prescription drugs/prescription food, pet nutrition, and pet repellents. Sales, distribution and other e-commerce operations of pet health-related products such as worms, pet milk powder, and pet mouth, ear, and eye cleaning.
This is not the first time JD Health has deployed pet-related businesses. In October 2021, Jingdong Health Pet Hospital was officially launched, providing 7×24 online health consultation services in seven departments including dogs, cats, and general practitioners, and launched videos based on picture and text consultations. Consultation service. The relevant person in charge of
JD Health told a Beijing Business Daily reporter that pet health is related to the health of the whole family. With the development of the pet health business, in order to form a more comprehensive ecology, it provides users with pet medical and health solutions that truly cover the entire scenario and the entire process. plans, and explore diversified services in the fields of pet breeding, disease prevention and treatment, health consultation, pet behavior training and other fields. JD Health and JD Group have reached this asset acquisition cooperation, thus building on the original JD Health pet hospital business , can connect pet health-related products to form an online pet "medicine + medicine" closed loop , and create a one-stop healthy pet raising platform covering all scenarios and the entire life cycle for users.
02
Corporate capital has poured into
In recent years, the scale of the “pet economy” has continued to expand, which is also regarded by the industry as an important reason for the entry of companies and capital. In November 2020, H&H Group announced that the company acquired Solid Gold, an American pet nutrition company, and added a third largest business segment based on the original infant nutrition and care products business and adult nutrition and care products business. Department - pet nutrition business.
Data from the "2020 China Pet Consumption Market Report" released in July 2021 show that in 2020, the per capita annual consumption of a single pet in China was 6,653 yuan, a year-on-year increase of 19.6% compared to 5,561 yuan in 2019.
Capital also took notice. In October 2021, the pet medical chain brand Meng Veterinary Clinic announced that it had received Series B financing, amounting to hundreds of millions of yuan. This was less than a year after it completed Series B financing. At present, the pet medical industry has become the second largest core industry after pet food. According to data from multiple research institutions, China's pet medical market size will reach 40 billion yuan in 2020, and the market size is expected to reach nearly 100 billion yuan in 2025.
As people spend more time at home due to the epidemic, the emotional dependence between people and pets has become more obvious. Data from the "2021 China Pet Industry White Paper" show that the number of urban pet (cat and dog) owners nationwide reached 68.44 million, an increase of 8.7% from 2020, and the annual urban pet consumption market reached 249 billion yuan, an increase of 20.6% from 2020. , 8 percentage points higher than the total retail sales of consumer goods in 2021. According to Zhang Yi, CEO of iiMedia Consulting , the entire pet market has been booming in recent years, and capital is mainly deployed through mergers and acquisitions, pet medical care, and pet food investments.
The relevant person in charge of Chongai International Animal Hospital said in an interview with a reporter from Beijing Business Daily that compared with ten or twenty years ago, the biggest change in the pet industry is that the role of pets has changed from "animals" to "animals". The transformation of “family”. At the same time, new pet-raising groups such as those born in the 1990s, 1995s, and 2000s are becoming the main force in pet-raising. Their pet-raising is more of an emotional appeal. They have a strong willingness to consume for pets and are willing to spend more on pets.
“Pets are comfort after get off work and companionship when you are working alone in other places.The unique emotional qualities of pets are emerging, and the number and consumption power of pet owners will maintain rapid growth in the next few years. " said the relevant person in charge of Chong Ai International Animal Hospital.
03
The market still has pain points
The industrial chain of the "pet economy" is divided into three categories: services, food supplies and medical care. Although the entire market is booming, it is still fragmented and has different standards. Pain points in industry development. Among them, services can only be completed offline and are extremely fragmented, making it difficult to scale and digitize.
Although the research and development of pet food and supplies is easy to brand and scale, there are gaps in supervision. At present, our country has not yet formed unified laws, regulations and industry standards specifically for the development of the pet industry. The industry is still in the spontaneous growth stage. This has resulted in Whether it is a pet owner or a pet business person, there is no code of conduct. Once you encounter a problem, you don’t know what standards you should follow.
In April 2022, the topic “nearly a hundred cats died after eating a certain brand of cat food” became a hot topic. Consumers in many places reported that cats ate “. After selling cat food under the brand name "Xinyuan Development Bao", poisoning or even death occurred. This cat food brand called "Xinyuan Development Bao" is affiliated to Shanghai Xinyuan Animal Drug Co., Ltd. . Several months after the storm fermented , consumers send cat food for inspection at their own expense. The current dispute between merchants and consumers focuses on "bacterial endotoxins". The victim cat owners jointly stated that "bacterial endotoxins are suspected to be the culprit." Co., Ltd. issued the "Instructions on Bacterial Endotoxins" on June 6 in response. Endotoxins are commonly found in nature, and there are no national or international limits for bacterial endotoxins in food and feed. At present, the above debate has not yet been resolved. As a result.
Professional investor Cheng Yu said in an interview with a Beijing Business Daily reporter that more and more people are keeping pets and the pet medical market is growing. However, there are currently no regulations in this industry and the market structure is very fragmented. Emerging markets. This requires standardized companies to provide standard services.
The person in charge of Pet International Animal Hospital said that judging from the consumption habits of the younger generation of pet owners, they pay more attention to goods and services than price. Quality, tend to be refined and healthy, and the demand for pet health and pet medical-related services is high. People who are early adopters are facing the problem of "aging" of pets, and the demand for specialized diagnosis and treatment is higher. With the emergence of these trends and phenomena, high-quality pet medical services have great potential and room for development in the future.
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Beijing Business Daily reporter | Yao Qian
Picture source | Announcement screenshot, Xinyuan flagship store, NetEase carefully selected flagship. shop
