Why you should be incorporating pets into your China strategy
Ten years ago, one of the big trends for brands in China was to make everything kid-optimised. Many brands kowtowed to affluent parents who prioritised the health, wellbeing, fun and development of their precious only child over everything else. For most brands, it was a good business decision.
Food brands saw some of their highest margins coming from child-specific products they developed, which also had the halo effect of increasing sales for products targeting other consumer segments. Many fashion brands’ fastest growing categories were clothing and accessories made for kids. And shopping malls and retailers who doubled down on being child-friendly were among the busiest and most profitable.
Whilst child-centric strategies remain important in China, there is another pan-segment trend that has accelerated since Covid – pets. As Beijing frets over young Chinese couples’ growing aversion having babies or even partners, many of those millennials and Gen-Zers are instead opting for a furry four-legged ‘baby.’ China’s stubborn decline in fertility rates is inversely related to its booming pet category growth. Companies that aren’t traditional pet brands are taking notice.
Over the last few years, brands have increasingly tapped into Chinese consumers’ love of their pets. They’ve incorporated pets into communications, engaged pet-KOLs and launched pet-related collabs, but pet strategies are now taking hold at a more grassroots level. Chinese shopping malls and other retailers are increasingly aligning themselves with the pet craze with events and activities that appeal to pet owners, such as frisbee-catching contests for dogs, and DIY craft workshops where consumers make fun outfits and toys for their pets.
Pet store chain Marsmart is an example of how retailers are pioneering pet-friendly shopping that is likely to be emulated by more retailers inside and outside of the pet industry. One initiative is having stores with spacious isles allowing plenty of room for dogs to interact or pass each other safely, with many shelves at "sniffing height" to allow pooches to pick out items for themselves.
Cafes and other stores are differentiating themselves by allowing pets and offering dog bowls. Some are going further by providing sensory stimulation for animals.
Many of the same trends that we’ve seen evolving in the mum & baby space are happening for pets now. Chinese pet owners are doting on their furry friends in the way that Chinese parents have doted on their children. Many are checking for clean labels with food and are focused on health and efficacy of claims. Heath supplements are one of the fastest growing categories for pets as Chinese take a proactive view into their pet’s health, as they’ve done with theirs and their kids.
Brands and retailers looking to differentiate themselves and connect emotionally through a very important part of Chinese consumers’ lives, would be wise to consider how they bring our furry friends into the mix. Contact China Skinny to learn how we can help you develop some creative and effective ways of bringing pets into the plan.
