宠物经济系列论坛

Summary of Conference Call on Royal Pet Food Industry Overview - The pet food industry in China is experiencing significant growth, with Royal Pet Food projected to achieve sales of over 2 billion yuan in 2024, primarily through online channels, which account for approximately 70% of sales [1][10][28]. - The growth rate from 2015 to 2019 was maintained at over 25%, but has since slowed to above 15%, with expectations of continued double-digit growth in the coming years [1][5][6]. Company Performance - Royal Pet Food's sales through hospital channels contribute approximately 400-500 million yuan, while pet store sales are about twice that amount, with 80% of pet store sales coming from online [1][10][28]. - Prescription food sold through hospitals has a profit margin of around 50%, while daily food sold through pet stores has a profit margin of 20-30% [1][14][49]. - The company has implemented price control measures, raising retail prices to 120-130% of wholesale prices, which has restored confidence in offline recommendations and driven sales growth [1][16][18]. Market Competition - The market is highly competitive, with new brands such as Mars, Pro Plan, and Wagg entering the hospital channel, particularly focusing on prescription and wet food markets [1][19][20]. - Despite the influx of new brands, Royal Pet Food maintains a dominant position in the prescription and wet food categories across the country [1][20]. Sales Channels and Strategies - The company emphasizes the importance of offline channels, utilizing a strategy of "humane business practices" and "education-driven business" to enhance nutritional awareness and increase order rates [1][45][46]. - Online sales have shown significant growth, with a 36% increase in August 2025 and a 27% increase in September 2025 [4][32]. - The company plans to focus on key sales periods and specific stores for marketing investments, maintaining a marketing expense ratio of about 10% for both online and offline channels [26]. Future Outlook - For 2025, the overall growth rate is expected to be around 15%, with hospital channels projected to grow by approximately 20% [1][29][33]. - The company anticipates that the growth rate for the hospital channel will slow to between 10% and 20% in 2026 due to market conditions and previous pricing issues [33]. Additional Insights - Royal Pet Food's market coverage has expanded significantly since 2019, with a focus on key cities and a stable team of experienced personnel [22]. - The company faces challenges related to supply chain and logistics, as products are imported from overseas, leading to longer transportation times and reduced shelf life [42]. - The company prioritizes cash flow, profit, and operational goals, avoiding short-term revenue gains at the expense of profitability [25]. This summary encapsulates the key points discussed in the conference call regarding Royal Pet Food's performance, market dynamics, and strategic outlook in the pet food industry in China.