Market research indicates that the pet industry could reach $66.8 billion in China by 2023.
Other research from datamintelligence.com expects the pet industry to grow at a CAGR of 6-7% between 2020-2027.
The Chinese pet health market is growing, and this growth brings new opportunities for Western brands.
But what’s driving China’s pet market growth?
THE SHOCKING GROWTH OF PET INDUSTRY IN CHINA- WHAT’S DRIVING IT?
Multiple factors are contributing to the pet industry growth in China, one of which is the decision to delay marriage or to stay single. IN fact, some 43% of Chinese pet owners are single. While pet ownership is still rather low in China in comparison to Western countries, only 4-5 Chinese families own a pet. It is on the rise. But the ratio of investments in pets is slowly catchingup with the US, and there is exceptional room for growth.
So, What is the demographic of those driving this trend? Chinese millenials.
Pet owners in China are mostly women graduates born after 1985. They usually live in Tier-1 and Tier-2 cities and decide to have a domestic animal in order to enrich their emotional life. Even though households with pets are usually made up by Millennial parents with children under 12, single and elderly people looking for four-legged companions are increasing.
CHINESE MILLENNIALS ARE REVOLUTIONIZING PET COMPANIONSHIP
Specifically, millennials under the age of 30 made up some 45.2% of all pet owners in China in 2019. Conversely, millennials in the 30 to 40 year range made up less than 30% of pet owners.
Not surprisingly, this same demographic has increased the demand for a digital method to buy pet products. They also have a greater desire to care for their furry companions. They loo at animal welfare as a top priority and are more than willing to spend money on their pets to keep happy and healthy, even if those pets are unusual.
Consumers are more concerned on the wellbeing of their pets and are willing to invest on vaccines, health supplements, medical check-ups…They will actively look into ways to improve the wellbeing of their pets.
For western pet brands, the most pressing question is, how do pet lovers in China buy their products and how can we capitalize on this growth?
HOW E-COMMERCE INFLUENCES THE MARKET AND PARTICIPATE TO THE SHOCKING GROWTH OF PET INDUSTRY IN CHINA
E-commerce is the number one force in the pet health market in China. It has remained the leading distribution channel for pet products in China, with over 90% of pet owners purchasing at least one pet product on-line. The convenience of buying products on-line mobilizes pet owners to browse and buy with a few simple clicks.
Another reason that pet owners buy their products via e-commerce is an abundance of premium luxury pet imports that are not yet widely available in China. This presents a rich opportunity for international luxury pet brands in China’s market.
While existing international pet health brands are currently dominating the landscape, there is still plenty of space for new foreign brands to enter the market and establish their trustworthiness.
Yet, jumping into the Chinese pet health and product industry remains risky, especially for up-in-coming brands inexperienced with the dynamics of this industry. That’s why Emotion Digital exists.
PET MARKETING SOLUTIONS FOR WESTERN BRANDS
Brands that want to enter the China market should be aware that Chinese consumers don’t buy products they don’t know. Branding in China is essential to reach consumers and sell your products. Chinese people rely on people who have already tried that product, friends, reviews on social networks, and especially the reviews of influencers. An effective digital marketing campaign is essential to allow your brand to enter the Chinese market. Generally speaking, WeChat, Weibo and Douyin are the essential apps for pet owners. E-commerce platforms also play a key role in assisting conversions and further moves users down the funnel.
Therefore, you should localize your content and promote your products on Chinese social media like Wechat and Weibo, XiaoHongShu, Douyin and Zhihu.
Word of mouth is at the heart of developing a brand awareness in China. Also, the majority of social media in China are social eCommerce, it means that they use UGC and their communities to sell. A brand can promote and sell products directly in the same social app, using one of these platforms can be an alternative to traditionnal e-commerce platforms and it is more cost effective at the beginning., asing
Using WeChat, you will develop the brand awareness, nurture your leads, and create a community.
To be present on Zhihu will allow you to educate your target audience about your products. It is an powerfull tool to increase your conversion rate and to increase brand awareness.
Emotion Digital fully understands the potential and challenges of the pet product industry in China. Our goal is to help new and existing brands to establish themselves in China’s booming economy.
Access one of the largest population in the world, and be successful, when you partner with our agency.
Emotion Digital has a strong understanding of the Chinese market― we want to help you unleash your business’s potential to one of the largest populations in the world. Schedule your free consultation today.