Core Viewpoint - The domestic pet food industry is experiencing a "self-built factory trend," with leading brands actively acquiring factories and expanding production capacity to establish long-term competitive advantages in a rapidly evolving market [1][2]. Group 1: Acquisition and Capacity Expansion - The capital operations in the domestic pet food sector have significantly accelerated, exemplified by Jichong Holdings' acquisition of 60% of Liaoning Xianchong and a planned investment of 180 million yuan to upgrade its production line [2]. - Other leading brands, such as Chengshi Yikou and Guobao, are also investing in new factories and expanding existing ones, indicating a shift from a light-asset model to a more capital-intensive approach [3][4]. - The market is transitioning from price and channel competition to brand competition, with domestic brands increasing their market share through enhanced R&D and brand building [2][4]. Group 2: Industry Dynamics and Competition - The shift towards self-built factories is driven by a fundamental change in industry competition logic, moving from a "traffic era" to a "supply chain competition" era, as brands face rising customer acquisition costs [4][5]. - The price advantage of domestic brands is significant, with domestic cat food priced much lower than imported options, enhancing their competitiveness [4][5]. - The focus is shifting from low-cost products to high-quality offerings, as younger pet owners demand better quality, leading to a competitive landscape centered around supply chain and technology [5][6]. Group 3: Globalization and Market Trends - The self-built factory trend is reshaping the domestic pet food landscape, with larger companies able to invest heavily while smaller brands struggle to keep up [6][7]. - The Chinese pet food market has surpassed a trillion yuan, becoming one of the fastest-growing segments globally, with potential for international competition through overseas factories and acquisitions [7][8]. - The industry is moving towards a model where companies are concentrated while brands may remain dispersed, driven by precise positioning and differentiated demands [7][8].