It’s a dog’s life: how affluent Chinese are falling in love with pampering their pets
Spending on pet care on the mainland is likely to grow by more than half in the next four years, according to analysts
Shanghai bank employee Frances Chen spends about a fifth of her monthly salary on her poodle Cookie, one of the millions of pet owners turning China’s pet care industry into one of the fastest growing in the world.
Chen takes Cookie to a groomer for a weekly shower and feeds it imported food, costing her some 2,000 yuan (HK$ 2,500) a month. “I want to give him the best,” said the single, 26-year-old who lives with her parents. “He’s our kid. The only difference is that he can’t speak human languages.”
Once banned by Communist leader Mao Zedong as a bourgeois pastime, having a pet has now become a symbol of financial success in China, where consultants Euromonitor forecast the pet care sector will grow by more than half to 15.8 billion yuan by 2019, outpacing the world’s biggest market the United States, which is expected to grow just over 4 per cent this year to US$60.6 billion.
The prospects have multinationals such as Mars, Nestle, Procter & Gamble and Colgate-Palmolive licking their lips, especially as growth in the overall retail market slows along with the world’s second largest economy.
Dogs are by far the most popular pets and dog food sales alone are expected to almost treble to over US$760 million by 2019, Euromonitor data shows, as higher disposable incomes make keeping a pet an affordable luxury for more Chinese, particularly in more developed cities.
Matthias Berninger, Mars global head of public affairs, said there was plenty of room for growth in China’s pet food market, which was already expanding beyond most industry expectations.
“Pet food penetration in China is very, very low,” he said. “People didn’t believe chocolate would ever be something Chinese consumers would like, let alone that Chinese consumers would become passionate pet owners.”
The US firm renowned for its confectionery owns pet food brands including Pedigree and Whiskas.
Mars was the market leader in China two years ago with a two-thirds share, according to the latest Euromonitor data. Nestle-owned brands were second with just over 16 per cent followed by local firm Nory Pet (Shanghai) Co with an almost 7 per cent share.
“There is huge demand for pet food as owners give up feeding their dog rice and meat and switch to proper pet food,” said Chen Xiuqiang, sales manager at pet food importer and distributor Guangzhou Mudi Trading.
In addition to branded food, more Chinese are paying top yuan for pedigree dog breeds such as Tibetan mastiffs and the services and accessories they think these prized pets deserve.
“In big cities like Shanghai, many people feel lonely and treat pets like family,” said pet groomer Zhao Huanhuan. “People are now willing to spend on their pets as much as they are willing to spend on their parents.”
Luxury retailers are also benefiting. US firm Chrome Bones, which opened its first China franchise in Shanghai in September, said sales have risen by up to 40 per cent a month.
The brand specialises in Swarovski-crystal encrusted pet collars that cost some US$260, snakeskin carriers that start at US$3,800 and patent leather beds and bowls.
“The prospects are very good,” said shop owner Chen Yinfeng.
Pet pampering has also become big business. Cole Zhang, who owns Blue Bone near Shanghai’s Bund, offers to chauffeur canine clients in a Ferrari or a Maserati, a service he said costs up to 500 yuan a kilometre and is often booked out.
“On average, we have more than 100 clients a week. We usually work overtime on weekends,” he said. “Most of my customers treat their dogs very well and they are willing to spend a lot on their dogs.”
