Growing the Pet Market in China

Key Takeaways

The Role of Pets in Chinese Households

Zhang highlighted the role pets play in China versus Western nations. In China, pets are viewed as a type of substitution for children and are raised as companions. “You see a huge increase of cats compared to dogs [in China],” Zhang said, because cats are relatively easier to raise in urban environments which appeals to both the country’s busy young professionals and elderly populations alike. Fosun’s pet business, Zhang continues, is “very important in this perspective because we really consider pets part of the family.”

Consumers Turn to Professional Sources Before Online

Chinese consumers often treat clinics and pet stores as the first – but not the only – stop in their pet food research journey. Zhang continued to elaborate saying, “I think most people, they get their first choice recommended where they get the pets, either from a breeder or from a pet store...Then they will start to compare.” Once consumers choose a brand, Zhang notes that they then tend to switch their subsequent purchases to an online channel.

Demand for International Brands

There is robust demand for international pet brands within the Chinese market, but they must meet two key criteria for success – strong brand equity and functionality. “The brand has to be a real established brand because…these pet parents, they're really treating their pets as their children,” said Zhang. Additionally, brands must “either make the pets healthier or…make it easier for parents to take care of their pets.” Zhang also notes the importance of an educational dimension to brands looking to succeed in the Chinese market to help consumers understand both the brand equity and functionality.