Awesome! Another big sale and financing

The pet economy has great potential.

Pets Economy is a market economy centered on pets. In recent years, pet- related food supply, supplies supply, beauty care, pet hospitals, etc. have become increasingly popular. A group of sellers have seized the market opportunities and successfully taken off. FunnyFuzzy is one of the outstanding representatives - the founder is a senior executive of a listed company, many products are on the Amazon bestseller list, the number of visits to the independent website remains high, and it received two rounds of financing in less than a year...

Many products are hot-selling overseas! Pet brand FunnyFuzzy receives financing

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.

The founder of the brand, Chen Shuo, has a great background. He was once the VP of a leading listed company and has more than ten years of experience in innovative design and R&D management. He has won the German iF and Red Dot Industrial Design Awards. With the excellent support of the founder, the FunnyFuzzy brand has also performed well. Although the company has not disclosed specific revenue information, previous news showed that the revenue growth in 2021 is expected to be five times that of 2020.

It is understood that unlike many sellers who start their business on third-party platforms, FunnyFuzzy started with an independent website. Relevant data shows that within less than a year after going overseas, the independent website has reached the top 200 in the US pet category; in March this year, the total number of visits to FunnyFuzzy's US website reached 282.2K. The independent website is mainly composed of three parts: direct visits, social media and organic searches. The proportion of direct visits is close to 50%, and the proportion of the other two parts is not high. This shows to a certain extent that FunnyFuzzy has attracted a wave of "die-hard fans" to buy products regularly. The achievements of such excellent results are inseparable from the efforts made by the independent website.

In order to better understand consumers, FunnyFuzzy will use email, online communication, home interviews and other methods to communicate with consumers in detail, understand their habits and behaviors in the process of raising pets, and then continuously improve products to increase product repurchase rates and attract customers to continue placing orders.

In terms of attracting new customers, FunnyFuzzy will also do a good job in marketing, whether it is off-site link promotion, email marketing or social media, to continuously discover new customers. It will also set up a special "Our Journal" section on the website to popularize pet encyclopedias, so that consumers can obtain practical knowledge during the shopping process.

In addition to the independent website, FunnyFuzzy is also trying other sales channels, such as opening offline brand stores and entering third-party e-commerce platforms. Search results show that many of the brand's products are selling well on the Amazon platform, and even ranked among the top five in BSR.

Another point worth noting is that FunnyFuzzy's inventory turnover rate is also excellent. Through the digital pet flexible supply chain, the inventory turnover rate is shortened to 15 days.

FunnyFuzzy has shown its prowess in the pet industry and successfully gained the favor of capital, winning two rounds of financing in less than a year: equity financing in June 2023 and February 2024 respectively, with investors including Blue Ocean Zhongli, Xiangfeng Investment, etc.

Many pet brands are expanding overseas

In addition to FunnyFuzzy, there are many pet brands that have won the favor of many overseas consumers in the niche fields, such as Pilton, Chewy, Petco, Furbulous, Catlink, Yuanfei Pet, Tianyuan Pet, etc. The editor lists several outstanding representatives below.

1

Catlink : Founded in Shanghai in 2017, its product positioning is a smart pet products brand. Its main products include smart cat litter boxes, smart feeders, smart water dispensers and smart cameras. It has completed full-scene coverage of smart pet raising.

As of 2021, Catlink has taken the first place in market share in Japan, South Korea, Thailand and Vietnam. In cross-border e-commerce channels, Catlink mainly sells products through Amazon and independent websites. Revenue on the Amazon platform has increased significantly. Taking the Prime Day promotion as an example, sales in 2023 were five times that of 2022. Currently, many products are ranked at the top of the category, among which the smart cat litter box ranks first in the category.

In July 2020 and 2021, Catlink received two rounds of financing respectively.

Petkit : Petkit is a designer and manufacturer of smart pet products. Its main products include smart antibacterial bowls, smart feeders, smart water dispensers, pet travel cups, smart leashes, smart cat and dog tags, smart pet companions, multi-functional cat claw boards, etc.

The Petkit smart feeder won the 2018 iF Design Award and has been a perennial hot seller on Amazon. When I searched for an automatic cat feeder sold for nearly $180 on Amazon US, I found over 4,000 reviews, with most consumers giving it high praise. The Petkit smart water dispenser is tailor-made for cats and dogs, has also won the Red Dot Award, and is well received by overseas consumers.

Petkit has completed multiple rounds of financing, with the latest round of Series D financing occurring in August 2021.

Yuanfei Pet : Successfully listed in August 2022, the company is mainly engaged in the research and development, production and sales of pet products and pet food. Its main products include dog chews, pet belts and pet accessories. It has long-term, stable and continuous cooperation with internationally renowned professional pet chain stores and large chain retailers such as American pet product retail giants Petco and PetSmart, international large chain retailers Walmart, Target, etc.

For its own-brand e-commerce business, Yuanfei Pet is mainly carried out by its subsidiary American BA. All the products sold are pet traction equipment, covering e-commerce platforms such as Amazon and Shopify.

The pet market has unlimited potential and the sub-segments are full of business opportunities

The booming sales of pet brands overseas is the inevitable result of the simultaneous surge in the pet market economy.

Keeping pets has become a sign of a developed society . From a global perspective, according to CommonThread data , the market size of the global pet industry in 2022 is about US$261 billion, and it is expected to reach US$350 billion in 2027, with a compound annual growth rate of 6.1% from 2022 to 2027.

The United States is the world's largest pet economy country, and its pet industry is far ahead of other countries in terms of professionalism and industry chain integrity. According to APPA (American Pet Products Association), the market size of the U.S. pet industry in 2023 is about $136.9 billion, an increase of about 10.8% from $123.6 billion in 2022, of which pet food is about $58.1 billion, accounting for 42% of the total size of the pet industry.

With the rapid development of the pet economy, the fields of pet food, pet supplies, pet grooming, and pet medical care have gradually been subdivided .

Pet food can be divided into pet staple food, pet snacks and pet health products. The pet food market is the largest market segment in the pet industry and is also the first to benefit from the development of the pet economy . Pet food is a rigid demand for pets and runs through the entire life cycle of pets. It has the characteristics of high repurchase, low price sensitivity and strong stickiness. The United States is the world's largest pet economy and the country with the largest consumption of pet food.

Pet products refer specifically to products developed, produced and used specifically for pet groups, mainly including traction equipment, cleaning and care, pet beds, food utensils, pet clothing, pet toys, etc., with many subcategories. It is expected that the market size will increase by 7.0% CAGR to US$54.83 billion from 2021 to 2025; the United States and Western Europe are the main consumption areas . According to the American Pet Products Association ( APPA), the pet market size in developed countries in Europe and the United States will grow steadily at a rate of about 5% in the future.

The market for pet grooming and pet medical care also has great potential. As the trend of online consumption in the pet economy becomes more and more obvious, more categories are bound to become hot sellers in the future.