Core Insights - The fifth TOPS Dealer Empowerment Summit was held in Shanghai, gathering over 200 frontline pet dealers to explore ways to enhance operational efficiency [3] - A presentation titled "Annual Research and Analysis of the Current Situation of Pet Dealers in China" was delivered by the founder of Pet Industry Home and the Expo [5] Financial Performance - The average annual revenue for pet dealers in 2024 is projected to be 17 million, with a median revenue of 14 million [6] - The average revenue per employee for dealers is 1.54 million [8] - Dealers can be categorized into three profit margin tiers: - Tier 1 (over 25% margin): 8.5% of dealers - Tier 2 (15%-24% margin): 83% of dealers - Tier 3 (below 15% margin): 8.5% of dealers [8] - Tier 2 dealers contribute 82% of total revenue, while Tier 3 contributes 16.6%, and Tier 1 contributes only 3% [8] Business Strategies - High-margin dealers focus on premium products and exceptional service but are smaller in scale and need to expand their product categories and channels [10] - Mid-margin dealers aim to expand their scale and product categories based on user profiles [10] - Low-margin dealers face challenges from declining old brands and rising cost pressures [10] Market Trends - The profitability of pet dealers has shifted from relying on information asymmetry to efficiency-based models [11] - The fastest-growing dealers now depend on operational efficiency and quick turnover, with warehouse turnover times reduced from 60 days to 30 days [11] - Future competition among dealers will center on operational efficiency rather than brand relationships or customer maintenance [13] - The industry is moving towards extreme efficiency competition, similar to fast-moving consumer goods (FMCG) sectors, necessitating early optimization of operations [13]