突发！开业仅9个月，这一品牌12月中旬将全部关闭

Core Viewpoint - The article discusses the rapid decline of "Paiteshengsheng," a pet retail brand launched by Hema's founder, Hou Yi, which has already begun closing stores due to poor business performance and low customer traffic [3][4][5]. Group 1: Business Performance - "Paiteshengsheng" opened its first store on February 22, 2023, with plans to establish 100 stores in Shanghai, focusing on new retail and discount strategies [5][8]. - As of November 2023, out of over 10 stores, 7 have been reported as "temporarily closed" or "permanently closed," indicating significant operational challenges [3][4]. - Hou Yi announced plans to close all physical stores by mid-December 2023, while maintaining online operations [3][8]. Group 2: Market Context - The pet economy in China is projected to exceed 300 billion yuan, with a 7.5% growth in urban pet consumption expected in 2024 [11]. - The share of pet-related retail space in Shanghai shopping centers increased to 2.1% in the previous year, reflecting a growing interest in pet-friendly commercial spaces [11]. Group 3: Operational Challenges - The brand's strategy of adopting a fresh food retail model has faced criticism, as pet dietary needs differ significantly from human consumption [12]. - High rental costs, labor expenses, and competition from e-commerce are common challenges faced by physical retail stores, impacting profitability [12]. - The reliance on low-priced products requires high sales volumes to achieve profitability, which remains a challenge in the current pet market [12].