Core Insights - The Chinese pet market is experiencing steady growth, driven by a large pet ownership base and consumption upgrades, providing a solid foundation for the pet hospital industry [1][2] - The domestic pet diagnosis market is highly fragmented and competitive, with a clear trend towards chain development, indicating significant potential for improvement in chain rates [1][2] Market Dynamics - The pet diagnosis market is expected to maintain over 20% growth in the coming years, transitioning from simple diagnosis to comprehensive health management due to increasing pet health awareness and aging trends [2] - There is a notable disparity in chain rates between domestic and international pet hospitals, with the domestic market having substantial room for growth [1][2] Competitive Advantages - Supply chain integration is crucial for cost reduction, as chain hospitals can enhance bargaining power through centralized purchasing, leading to lower procurement costs and improved profit margins [3] - Brand loyalty and repeat purchases are strengthened by large chain hospitals leveraging financial strength to create effective medical networks, addressing customer pain points and fostering trust [3] - Standardized management systems can address the industry's talent training and service standardization issues, enhancing service replicability and industry norms [3]