Hot sales changed fate! Entered the popular track and won the first place in the category

In recent years, with the development of the economic level and the increase in the number of pet owners, the "pet economy" has ushered in rapid development. Pet-related food supply, supplies supply, beauty care, pet medical care, etc. have become increasingly popular, and the pet industry has gradually developed into a huge track with a scale of hundreds of billions.

According to the research data of the " 2024 Pet Products Market Insight Report", the global pet market size in 2023 is approximately US$239.3 billion, and the market size is expected to soar to US$350 billion in 2027. The growth in the e-commerce field is particularly prominent, with a compound annual growth rate of approximately 8.92% from 2023 to 2030.

Many companies have successfully counterattacked with pet supplies and made a lot of money overseas.

1. Jihai Technology made a comeback with pet products and ranked first in the Amazon category

Jihai Technology was established in Shenzhen in 2017. The company's representative products include sweeping robots, smart floor scrubbers, smart cat litter boxes, pet groomers and other pet care products. The business scope covers more than 60 countries and regions around the world, including the United States, Japan, South Korea, China and other countries. Currently, Jihai Technology has established warehousing, sales and after-sales service systems in dozens of countries around the world , including North America, Europe, Southeast Asia, the Middle East, South America, Australia, Japan and South Korea .

At first, Jihai Technology's business focus was not pet products. In the early stages of the company's development, it tried multiple categories such as smart WIFI sockets, recording headphones, auto accessories, mobile phone cases, etc., and successively created several popular products, but these products failed to withstand the test of the market for a long time.

In 2019, Jihai Technology began to specialize in the field of sweeping robots.

In 2020, Jihai Technology officially launched the sweeping robot Neabot NoMo in overseas markets, with sales exceeding 10 million.

In order to reshape its brand image, Jihai Technology launched a new brand Neabot (later renamed Neakasa), and also cut off from Genhigh, which previously operated multiple categories but had relatively weak brand influence.

In 2021, Jihai Technology's Q11 sweeping robot was launched on Makuake, Japan's largest crowdfunding platform. In just 48 days, the product completed a crowdfunding amount of more than 180 million yen, breaking the record for the highest crowdfunding amount for home appliances in Japan.

Although it achieved short-term success, the competition in the smart cleaning sector was too fierce, and Jihai Technology fell into confusion again, so it began to look for new business growth points.

In 2021, Jihai Technology launched a pet groomer for the domestic market. The market response was good after the product was launched, and it raised 4 million yuan on Xiaomi Youpin. Jihai Technology took advantage of the victory and launched its first pet groomer, Neabot P1 Pro, overseas under the Neabot brand.

If you look at this product separately, it is actually a main vacuum cleaner with 6 different accessories to suit different usage scenarios, and it can meet consumers' needs for pet combing, shaving, and removing loose hair. From this point of view, this product does not have a very high technical content, but it is precisely because of its innovative design that it has effectively met the needs of many pet owners and won the market's enthusiastic pursuit.

After Neabot P1 Pro was launched in overseas markets, its sales continued to soar, becoming a hit product overseas and ranking first in its category on Amazon. It can be said that this product has changed the destiny of Jihai Technology.

The popularity of Neabot P1 Pro products gave Jihai Technology an opportunity to enter the pet products market. As a result, Jihai Technology began to focus on the pet products market, changing the brand name Neabot to Neakasa, and then launching a variety of pet products such as fully automatic cat toilets and silent pet hair dryers based on user needs.

In addition to the popular pet groomer Neabot P1 Pro, the self-cleaning cat litter box Neakasa M1 is also one of Jihai Technology's popular products.

(Image source: Neakasa official website)

It is understood that Neakasa M1 is an open self-cleaning cat litter box. The product adopts an open design and has an 11.23-liter trash box, allowing pet owners to go two weeks without having to clean up the litter.

M1 is equipped with 4 weight sensors that can accurately detect the cat's activities. When the cat enters the litter box, the machine will automatically stop moving and resume the cycle 15 seconds after the cat leaves. It can also monitor the cat's toilet habits, track the level of cat litter, and whether cat litter needs to be added. Pet owners can also remotely control the litter box through the app.

The M1's smart design ensures a seamless, odor-free litter box experience, and the "pull and wrap" waste disposal solution ensures worry-free waste disposal in 3 seconds for more efficient cleaning.

In 2023, Jihai Technology's pet grooming product Neakasa P1 Pro swept major overseas e-commerce platforms, selling 15,000 units during Amazon's Prime Day promotion , with a GMV of more than 16 million yuan. It also won the Best Seller in the Dog Grooming Clippers category in the United States .

During this year's Amazon Prime Day , Jihai Technology's Neakasa M1 cat litter box product once again achieved great success, with a total of 6,000 units sold and GMV exceeding 24 million yuan.

In addition to Amazon, Jihai Technology has also set up its own independent website. The brand introduction on its official website reads: The brand's mission is to improve people's quality of life by providing smart cleaning solutions.

Jihai Technology displays information such as new product offers and discounts on its independent website. In addition to products, it also provides popular science knowledge on pet grooming, defecation and other related knowledge in the blog area, answers questions from novice pet owners, and also provides online and offline news and latest activities of the brand.

On the official website, there are many real reviews from consumers who have purchased JiHai Technology’s pet products, and they have also released many product review videos.

While its business is expanding rapidly, Jihai Technology also has its own vision. Its future goal is to have 10 million households worldwide using Jihai's smart small appliances by 2025, and to have 100 million households worldwide using Jihai's smart small appliances by 2030.

2. After only half a year of going global, Horman Technology ranked first in the category on Amazon Japan

Another cross-border company, Horman Technology, also has outstanding market performance in the pet sector, having taken first place in its category on Amazon Japan just half a year after going overseas.

Founded in 2015, Horman Technology is a technology company focusing on smart pet products. The company mainly promotes smart pet ecological products and focuses on the boutique SKU route. It only develops 1-2 products in each category and continuously iterates and upgrades single products. At present, Horman Technology's main products include smart pet feeders, pet water dispensers, smart pet toy donuts, first-class smart cat toilets and smart pet drying boxes.

After 9 years of development, Horman's products are sold well in more than 30 countries and regions around the world, including China, the United States, Japan, Canada, the United Kingdom, Germany, etc.

Many of Horman Technology's products have become popular products in the market. Among them, the cumulative sales of smart water dispensers have exceeded 500,000 units, and have topped the Tmall pet high-end water dispenser sales list many times. Horman's smart pet drying box quickly became popular after its launch, with cumulative sales of nearly one million units. Horman's smart feeder is also widely recognized by consumers and has been ranked top 1 in sales on major e-commerce platforms for many years.

In 2021, Horman Technology began to focus on overseas markets, and successively entered more than a dozen Amazon sites including Japan, Europe and the United States. At the same time, it also expanded its user base in Japan, the United States, Taiwan, China and other places through crowdfunding.

Horman Technology has achieved outstanding market performance on Amazon Japan, and has taken first place in the pet drying box category on the Japanese site only half a year after its entry.

(Image source: Horman Technology official website)

The reason why Horman Technology's pet drying box has become a hit in the Japanese market is that the product itself meets the needs of local users. Japanese consumers generally live in small areas, so products that can be used for multiple purposes are very attractive to them. When the drying function is not in use, the small windows on both sides of Horman Technology's pet drying box can be removed to become a cat house. It can also be used to disinfect cat toys, truly realizing multiple uses of one product, so it has been widely welcomed by Japanese consumers.

While operating multiple Amazon sites, Horman Technology is also working on its independent site. For the Japanese market, Horman Technology has built its independent site into a product display page, filtering off-site traffic and ultimately directing it to Japanese platforms such as Amazon and Rakuten; for the U.S. market, Horman Technology uses it as a platform independent of Amazon.

Relying on the pet drying box category, Horman Technology successfully increased its revenue from more than 20 million to 100 million yuan, achieving overtaking on the curve.

As of 2022, Horman Technology's total online sales have exceeded 200 million yuan, and Horman has become a major pet brand on e-commerce platforms such as Tmall, JD.com, and Douyin.

Despite the sluggish market environment in the past few years, Horman Technology's performance has continued to grow rapidly and remains at the leading level in the industry.

Horman Technology's recognition by consumers in the global market is inseparable from its strong product strength and technological advantages.

Hörman Technology can independently complete the research and development of the entire process of structure, software and hardware, process, components, etc. of all its products. So far, Hörman has obtained 179 domestic and foreign patents and 15 invention patents, and has leading R&D capabilities.

It is worth mentioning that Liu Kun, the founder and CEO of Horman Technology, holds a master's degree in automatic control from Harbin Institute of Technology. He first worked in R&D and project management at Toshiba, Mindray Medical, and the century-old German company IKA. In addition, the core members of Horman Technology come from Mindray, a leading company in precision medical instruments, and have R&D experience and advantages. Currently, there are 125 R&D engineers, and the annual R&D investment ratio exceeds 50%.

3. Starting from an independent website, the new brand FunnyFuzzy is accelerating in the pet market

As the pet supplies market is experiencing rapid growth, more and more companies are entering the market, and the new brand "FunnyFuzzy" is one of them.

The company behind FunnyFuzzy is Shenzhen Quzi Technology Co., Ltd., which was established in 2019 and mainly deals in pet textile products such as dog beds, dog blankets, hand carrier bags, leashes, etc.

Unlike other companies, "FunnyFuzzy" started out as an independent company.

Less than a year after the brand went overseas, its independent website entered the top 200 list of pet brands in the United States.

Before the launch of the independent website of "FunnyFuzzy", a lot of preliminary preparation work was carried out, including integrating global resources, exploring relevant business models and conducting industry research, which laid a good foundation for the subsequent operation of the independent website.

FunnyFuzzy has set up a pet column on its independent website to publish pet encyclopedia-related content to attract users' attention. At the same time, it will also donate to animal charities to establish a good brand image.

At present, the traffic sources of FunnyFuzzy's independent website are mainly direct visits, paid searches and social media, among which direct traffic accounts for the largest proportion, reaching 52.62%.

Although FunnyFuzzy focuses on operating its independent website, it has not given up on promoting its products through other channels. It has deployed products on Amazon, offline pet community stores, brand stores, and social platforms such as TikTok. Many of its products are hot sellers on Amazon, and even rank among the top five in BSR.

FunnyFuzzy pays great attention to the needs of consumers and will communicate with them in detail through email, online communication, home visits, etc. to understand their habits and behaviors in the process of raising pets. Then, it will continuously improve its products to increase the repurchase rate of its products and attract consumers to continue to place orders.

In terms of customer development, FunnyFuzzy will actively carry out marketing, whether it is off-site link promotion, email marketing or social media.

As the pet industry accelerates its development, FunnyFuzzy has also gained favor from the capital market.

In June 2023, FunnyFuzzy completed its first round of Series A financing and received investments from capitals such as Unbounded Innovation and Blue Ocean Zhongli.

In February 2024, FunnyFuzzy once again received the favor of capitals such as Xiangfeng and Shunwei, and completed its A+ round of financing. The interval between the two financings was less than one year.

Thanks to its unique product positioning, excellent operational management and innovative marketing strategies, FunnyFuzzy's performance has also seen rapid growth, with revenue reaching hundreds of millions of yuan last year.

4. New opportunities in the new trend of pet industry

With the increase in pet-owning families, market demand will continue to expand, and the pet economy will flourish, attracting many sellers to join the market. However, for novice sellers, if they want to quickly gain a foothold in the market, they must understand the latest trends in the pet industry.

Recently, overseas research institutions released the latest research report on the pet industry.

The size of the global pet market will continue to expand, and the pet industry will show seven important trends in 2024 and beyond.

1. New business opportunities emerge in pet supplements

According to research data, the global pet supplement market is expected to reach $1.05 billion by 2027. Currently, pet supplements with high demand in the pet market include dog vitamins, cat fish oil and dog probiotics. The more popular pet supplement is pet probiotics, which can relieve pets' digestive problems and food allergies.

In the past five years, searches for dog probiotic products have increased by 91%. On the TikTok platform, videos related to pet probiotics have also been played a lot, exceeding 386 million times. In 2023, about 7% of pet owners will purchase probiotics that are beneficial to their pets' intestines.

2. The pet industry expands new product categories

The traditional pet industry is generally composed of the following categories: pet food, pet toys, pet beds, dog leashes, pet cleaning products, and pet grooming products.

In the future, the categories of the pet industry will continue to expand, and many companies are also working hard to develop innovative products, such as new categories in the pet industry - pet care products, such as pet wipes. In the past five years, the search volume for pet wipes has increased by 103%. Many companies have discovered this business opportunity, and there are currently more than 300 brands of pet wipes on sale on the Amazon platform. Another relatively new product is cat toothpaste, and the search volume for cat toothpaste has increased by 71% in the past five years.

3. High-end pet products are gaining popularity

As pets gain more status in the family, pet owners are more willing to spend money on high-end products for their pets, such as expensive cat enclosures. It is understood that some cat enclosures cost thousands of dollars. Cat enclosures can provide a safe space for cats to move around, giving pet owners more peace of mind. In the past 10 years, the search volume for "cat enclosure" has increased by 195%.

4. Pet food is still a high-demand category, and niche pet food is popular among consumers

As a traditional popular category, the market size of pet food is growing rapidly, and the demand for freeze-dried dog food and raw dog food in the pet food subcategory continues to rise. According to research data, pet food sales currently account for about three-quarters of the total sales of the pet industry, among which the niche pet food with the fastest sales growth is freeze-dried dog food. In the past five years, the search volume for freeze-dried dog food has increased by 79%. In addition to freeze-dried dog food, the sales growth rate of raw dog food is also quite fast. In the past 10 years, the search volume for raw dog food has increased by 216%.

5. Pet owners prefer pet e-commerce brands

More and more pet owners are starting to choose pet e-commerce brands, and prefer platforms with rich categories and reasonable prices. Chewy has become a new choice for many pet owners.

Chewy is the largest pet product e-commerce platform in the United States. Currently, there are more than 2,000 pet partner brands and 70,000 SKUs on the Chewy platform. It is also constantly developing its own brands to provide customers with diversified and high-quality services.

In 2023, Chewy's net sales reached US$11.15 billion, an increase of 10.2% over the previous year; gross profit margin increased to 28.4%, an increase of 40 basis points over the previous year; net profit was US$39.6 million.

6. The pet insurance market continues to expand

In recent years, driven by pet owners' growing concern for their pets' health, the market size of pet insurance has been expanding, and the demand for insurance types has been increasing. In the past 10 years, the search volume for pet insurance has maintained a steady growth trend at a rate of 100%. It is expected that by 2030, the compound annual growth rate of pet insurance will reach 17.04%. Many artificial intelligence insurance companies are actively expanding their business, and more and more pet owners are insuring their pets.

According to NAPHIA's research report, the total number of insured pets in the United States and Canada has achieved double-digit year-on-year growth for five consecutive years. In 2023, the North American pet insurance market premium scale will be US$4.27 billion, compared with US$3.505 billion in 2022, a year-on-year increase of 21.9%.

7. Natural food brands are popular

According to research data, 43.6% of pet owners believe that the health of pet food is very important, and more and more pet owners are willing to buy natural and healthy pet food. This high demand has driven the rise of healthy pet food brands. For example, the search volume for the natural pet food and supplement brand "Because Animals" has increased by 500% in 10 years.

With the development of the market and the continuous increase in consumer demand, pet products are also moving towards a more intelligent and professional direction.

For sellers who are planning to enter the pet supplies market, if they want to achieve long-term development in overseas markets, they must focus on their own products, build their own market competitiveness in multiple aspects such as brand and channels, and seize current development opportunities.

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