Core Viewpoint - The pet fresh food brand "Paiteshengsheng," founded by Huo Yi, is closing all its stores less than nine months after its launch, indicating significant challenges in the pet food retail market [1][13]. Company Overview - Paiteshengsheng was launched in February 2025, with a focus on fresh pet food and a high cost-performance ratio, featuring a "Pet&Kitchen" area for freshly made meals [5][17]. - The brand aimed to open 100 stores in Shanghai by the end of 2025 but has faced rapid closures, with at least 8 out of 20 stores already shut down [8][13]. Business Model and Challenges - The business model relied on a combination of retail, supply chain management, and membership systems, emphasizing cost-effectiveness [19]. - However, the fresh food segment has high operational risks due to short shelf life and cold chain requirements, leading to significant product loss [19][20]. - The market for pet fresh food in China is still developing, with limited consumer acceptance and low repurchase rates, complicating profitability [19][20]. Market Context - The pet economy has seen rapid growth, but the industry faces foundational issues such as immature supply chains and regulatory gaps [28][29]. - Paiteshengsheng's failure highlights the challenges of scaling in a market that requires deep consumer understanding and long-term investment [29][30]. Future Prospects - Despite the closures, Huo Yi has not abandoned the pet food sector, as indicated by the launch of a new brand "Chong Tiantian," which focuses on fresh food products [13][28]. - The pet retail market is expected to shift towards community-based models, emphasizing trust and customer relationships rather than rapid expansion [32].

Core Insights - The pet fresh food brand "Pet Fresh" founded by Hou Yi, the former CEO of Hema, is experiencing a large-scale closure of its stores, with 7 out of 18 locations reported as "suspended" or "closed" [1][1][1] - In response to the closures, "Pet Fresh" is set to launch a new online brand called "Pet Tian Tian," which will operate through mini-programs and e-commerce platforms, expected to launch by the end of the month [1][1][1] Company Developments - "Pet Fresh" has confirmed the closure of several stores but has not provided details on whether all locations will close or if online operations will continue [1][1] - The new brand "Pet Tian Tian" is confirmed to be under the "Pet Fresh" umbrella, although specific plans and details have not been disclosed [1][1][1] Corporate Structure - Shanghai Pet Tian Tian Network Technology Co., Ltd. was established in 2025 and is wholly owned by Pet Fresh (Hong Kong) Holdings Limited, with Hou Yi as the legal representative [1][1][1]

Group 1: Overall Trends in New Store Openings - The "first store economy" is experiencing significant growth, with over 2,200 new first stores expected to open in 16 cities by mid-2025, representing increases of 68.71% and 29.37% compared to the same periods in 2023 and 2024 respectively [2] - The peak period for new first store openings coincides with the "May Day" holiday, with over 300 new stores launched during the holiday, accounting for more than 10% of the total for the first half of the year [3] - The absolute number of first stores nationwide has rebounded in the first half of this year, increasing by 19.28% year-on-year to 198 stores [4] Group 2: Sector-Specific Insights - The "cultural and exhibition" sector and the bag and leather goods sector have seen a surge in new players, with significant increases in the proportion of first stores in these categories [5] - The beverage sector's share has decreased, but it remains among the top three alongside baked goods and women's clothing. Japanese cuisine and sportswear have seen notable increases in attention over the past three years [5] - The first half of the year has seen a significant rise in the number of first stores for Chinese cuisine and wellness services, while the proportion of cultural and artistic first stores has dropped by over 50% [5] Group 3: Regional Performance - The East China region continues to lead in first store openings, while North China and Northeast China are on the rise. Nanjing and Tianjin have shown remarkable growth, with first store proportions increasing by over 70% [6] - High-end shopping malls are increasingly attracting first stores, with Nanjing's Deji Plaza recognized as a "first store harvesting machine" with nine new first stores [6] Group 4: Women's Fashion Trends - The women's clothing sector is undergoing a transformation, with a significant increase in the number of first stores, particularly from light luxury and e-commerce brands, which now account for over 20% of new openings [15] - New players in the women's fashion market are focusing on high-quality, light luxury designs, with brands like AW PROJECT and MEIYANG making notable entries [15][16] - The trend is shifting towards brands that emphasize quality and affordability, appealing to consumers' demand for value [19] Group 5: Pet Industry Growth - The pet industry is maturing, with a significant increase in the number of pet stores, which have become a leading category in new store openings, surpassing traditional services like foot massage [20] - The market is evolving from basic pet supply stores to comprehensive lifestyle destinations for pet owners, with new concepts emerging that focus on pet health and wellness [21] - The perception of pets is shifting towards viewing them as family members, leading to increased demand for high-quality pet products and services [23]