Estimated Market Size of 472.3 Billion Yuan in 2023
The Growing Presence of China's Pet Economy
[Asia Economy Beijing=Special Correspondent Jo Young-shin] The delivery industry in China is booming due to the global pandemic of the novel coronavirus infection (COVID-19).
It is analyzed that the non-face-to-face (untact) delivery industry through online shopping, phone orders, and applications (apps) is becoming a stepping stone for China's domestic market.
Delivery services in China have expanded to the extent that even pet dogs can have necessary items such as food delivered.
According to the '2020 Pet Delivery Report' recently surveyed by the famous Chinese delivery app 'Ele.me,' orders for pet-related items surged by 135% compared to a year ago.
Another characteristic of pet product delivery is the high order price. The average price per pet product delivered through the Ele.me app is 125 yuan (approximately 21,500 KRW), which is much higher than the price of food orders for people. This means that delivering pet dog food is a more profitable business than delivering human food.
The main customer base is those born after 1990. The report explained that subscribers in their 30s are the main consumers and target group for pet product delivery.
The report analyzed that the pet-related product delivery market is creating new business opportunities by integrating with different industries beyond simple delivery.
Xiong Bin (熊斌), Vice President of Alibaba's Life Services Retail Division, said, "An industry is emerging where pet stores (breeding and sales), pet food and related product manufacturing brands, and delivery apps can cooperate."
As the pet dog delivery market grows, competition has also intensified. Another major Chinese delivery app, Meituan, recently participated in the '23rd Asia Pet Exhibition' held in Shanghai, promoting the slogan "Deliver pet products to your home 30 minutes faster."
As of last year, it is estimated that 99.15 million Chinese people keep pets such as dogs.
Last year's pet-related market size was 202.5 billion yuan (approximately 35 trillion KRW). The related industry expects the market size to grow to 472.3 billion yuan by 2023. The dominant view is that demand for China's pet-related industries such as pet parks, pet schools, pet houses, pet hotels, and pet beauty will further increase.
China, as the world's production factory and largest consumer market, is expected to show an undeniable presence and influence in the pet market as well.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
