Hundreds of billions of pet industry giants dystocia, this pet platform this year won Wu Shichun nod to

Original title: The pet industry giant with hundreds of billions of dystocia, this pet platform won Wu Shichun's investment this year Source: ${imgs

【 Beijing】Reported on September 3 (by Riemann)

In April of this year, news of the spread of the epidemic came from time to time. Zhang Xiaotian, the founder of tips (tips), who was nervous, received an exciting news: People from Alipay are coming to him to talk about cooperation.

The content is to hope that Zhang Xiaotian's team can put the information of offline pet hospitals into Alipay's applet to realize online and offline linkage of pet scenes.

"The opportunity is here." Zhang Xiaotian, who has the most comprehensive hospital data in the industry, began to realize that he had accumulated industry data for more than two years and finally began to show its value.

When talking about the pet economy, everyone feels "very hot". The media calls this market a "lonely economy" or "it economy" with a lot of room for growth.

Most people quote the data in the White Paper on China's Pet Industry in 2019. In 2019, the overall consumption scale of pets in China's cities and towns reached 202.4 billion yuan. By 2020, the scale of the pet industry will reach 250 billion yuan.

The market capacity of hundreds of billions of dollars is enough to give birth to a giant in any industry. For example, in 2012, the scale of the game industry reached 108.947 billion yuan, and the market size of the food delivery industry was 204.6 billion. Relying on the market capacity at that time, Internet giants such as Tencent and Meituan gradually emerged.

However, in the pet industry with a scale of 100 billion yuan, the practitioners are miserable. Until now, they have not run out of the giants, but appear to be particularly traditional in the era of high Internet. "Like a piece of uncultivated wasteland."

what is the reason?

On the one hand, domestic brands are weak in their own strength, and 40% of the market is occupied by foreign brands, making it difficult to merge and acquire to increase their size. On the other hand, the pet economy has the characteristics of "less agglomeration and large dispersion" of retail stores. The more fundamental reason is that domestic pet awareness is actually not high enough.

“This market is fully developed when the number of pet owners has increased significantly and their pet awareness is fully awakened.” Tian Lili, who was the editor of the pet white paper, said that Americans treat pets as family members, while China People only treat pets as animals.

The market is huge and no giants have appeared. It is very painful for existing players, but for Zhang Xiaotian, who has always had a dream of starting a business, he has a lot to do: "The industry lacks standards and pricing systems. In the current domestic market, this industry is the only one. Still very traditional."

Zhang Xiaotian's upgrade of the pet industry is not a single-module upgrade. His goal is very big, from upstream insurance to downstream scenarios and e-commerce package business. In the future, he will become a pet health steward and strive to be listed.

It is always difficult to break through the industry. "Frankly speaking, in the past two years of starting a business, no one understands how to do pet medical insurance, nor do investors understand. I have seen nearly 100 institutions, and I only got 2 million in the first round, and 500,000 of them are also good cooperations. Supported by partners."

However, as Zhang Xiaotian's logic is gradually improved, many investors feel that he will be the creative potential stock.

Wu Shichun, the founder of Meihua Angel, saw him for twenty minutes, and then ordered to vote for him because he was "smart enough."

Cambrian Ventures Miranda, who paid attention to early projects, didn't want to invest in pets anymore after learning about the pet market. However, after Zhang Xiaotian talked with her, she made an exception, "This is the last pet's shot."

"In 2015, when I first started to understand pets, the timing may have been a little earlier. After 5 years of development, I feel that now is really a better opportunity."

Why break into the pet industry

Zhang Xiaotian is a businessman, but in fact he is also a literary youth, giving the impression of humanity and restraint.

He likes history and civilization when he was young, has a feeling for music, likes to travel and is keen on photography along the way. He once traveled by car alone, exploring China's ancient Silk Road in search of historical relics, and recorded it with photos, in order to retain that feeling. After the journey, he will update his travel notes from time to time on his Mafengwo account.

Zhang Xiaotian, who pays attention to feelings, also has delicate feelings for pets, but he has never kept pets.

One is too busy starting a business, and there is no time to take care of it; the other is being particularly afraid of the moments of life and death with pets. When he was young, he also raised a small dog, which he saw when he was a guest at a relative’s house in the country. When eating, the dog got under his feet and the puppies circled him. He thought he liked to play. He begged to take it home.

This little dog, who had not been vaccinated, vomited and pulled shortly after being brought home. There was no pet hospital in the country at that time. The only veterinary station used to treat cattle, so the little dog did not. How long passed away. Zhang Xiaotian was still young, but he vaguely remembered the reluctance and pain at the time, and left a deep impression on him. "Their lives are too short, unless I have an accident, or I must send him away first."

So he has always been very cautious about raising pets. After growing up, Zhang Xiaotian went to the UK to study, where he once again paid attention to the matter of raising pets and had a different understanding of pet raising.

In Britain, which pursues humanitarianism and respects life, dogs have a high status. Stray dogs need to be adopted, and the government will also grant aid to those who adopt stray dogs, and unadopted dogs will be decisively arranged for euthanasia. Therefore, in the busy streets of Britain, there is often a homeless man and a homeless dog living on each other. This homeless man lives on the stray dog's aid.

"Pets can still be like this." Zhang Xiaotian knew that such a thing could not happen in China. The developed country, the United Kingdom, has passed the material shortage period very early. The higher material level has brought their understanding of life to a higher level. Pets also have the same amount of life. They should be treated like family members. Therefore, the pet economy is also Correspondingly mature.

Quoting a data from a 2017 paper, more than 90% of owners in the UK buy holiday gifts for their pets. The annual consumption of pet products in the United Kingdom is as high as 3 billion pounds, of which more than 100 million pounds is spent on pet toys. Although the current domestic pet market is not small, the main expenditure is still on food. "There is at least a ten-year gap in pet awareness."

But he actually entered the pet industry when he was taken home by his relatives to start his own business in 2015.

His uncle made the China Canine Industry Alliance with his own investment fund a dozen years ago. The target of this alliance is the United Nations sci of the world canine industry, which controls the eugenics and breeding of pets and the survival of the fittest in pet breeding. After ten years of observation, China has become one of the 102 United Nations member states of the world canine industry.

"If the puppy's own genes are not good, the offspring that reproduce will have various problems. After entering the family, the cost of raising will also rise. When people choose a dog, they only know whether they are cute or not, but they cannot see the genes behind it. Listen. I think this kind of thing is too socially meaningful, so I quickly gave up what I had to do and started to devote myself to it.” Zhang Xiaotian thus began to have a deep contact with the pet industry.

This is Zhang Xiaotian's second venture. When he was studying abroad, he majored in finance. After returning to China, he spent two years in the bank. He also spent time in the investment field of the secondary market. His first venture was a preliminary test of financial tools. Due to his financial background, he quickly thought of pet insurance during this venture and set up a new project "tips".

Internetization of the pet industry: starting from insurance

How to help the internetization of the pet industry?

Zhang Xiaotian has studied the upstream and downstream of the industry, and he feels that the breakthrough lies in platform thinking. In his opinion, the pet industry itself has very few opportunities. It is still difficult to standardize from the supply side, the information side, and the server side, but he still found three opportunities.

One is downstream, empowering offline pet stores and pet hospitals.

Offline pet stores are of a retail + service nature. Its operation management includes four major areas: supply-side management, information management, user management and flow management. Who can empower these four at the same time is an opportunity.

Pet hospitals are mostly mom-and-pop shops with scattered characteristics. The overall operating efficiency is low whether it is traffic operations or user follow-up services. Currently, only Ruipeng, a subsidiary of Hillhouse Capital, wants to operate under a brand name. Traffic, pet medical data, etc. can be Internet-based, and they can complement each other in insurance product customization and follow-up medical services.

The second is upstream, cat and dog trading. The background resources of Zhang Xiaotian's original reproduction standards and pricing power are mentioned above. A dog, under a set of mature standard market pricing logic, you say that it is 2000 to 2000. In addition, the online trading of cats and dogs is also very mature.

The third is pet supplies e-commerce. The biggest problem of pure e-commerce is the high cost of acquiring customers. It is impossible to attract low prices to compete with e-commerce platforms such as Taobao and Tmall. It is difficult for private brands to expand their popularity. If you spend money on advertising, the gross profit will not support the industry. Profits are too low and vicious competition is obvious.

Zhang Xiaotian has done detailed pros and cons analysis and risk analysis in all three directions. If only one direction of industrial upgrading is done, the integration efficiency will be low.

After stroking it, the entry point he found was pet health insurance.

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Insurance solves the problem of expensive pet medical treatment. Medical insurance is already available to people, and pets get sick and move tens of thousands, which is not a small amount. So he is certain that reimbursement for pets will work.

Sales scenarios are also easy to set up, such as tying an insurance when buying a dog. Because pets are non-standard, wrangling often occurs during the transaction process. Some cats and dogs become ill or die after taking them home. If customers accuse the merchants of selling bad dogs, the merchants will think that they cannot be raised home. At this time, it is very appropriate to use insurance to do risk transfer. This is ideally linked to car insurance when buying a car.

In addition, insurance is a financial product that focuses on data, which is closely aligned with the future trend of "data is a means of production". Immediately afterwards, Zhang Xiaotian led the team to plunge into the field of pet insurance.

But what he didn't expect was that "the situation of pet insurance is even more primitive."

"The actuarial model of insurance companies doesn't work." He found that most insurance companies treat pet insurance as property insurance. "How can pets be the same as standard products such as automobiles and property? The insurance for pets and humans is the same. They have physiological characteristics and require life pathology and clinical background. A cat or dog is never sterilized, and its incidence is Not the same, this determines a lot of future risk factors."

No way, Zhang Xiaotian just started from the actuarial model as soon as he hit his forehead. The partners brought back some actuarial models from Europe, and then modified them for local characteristics. The existing actuarial model took two full years, which is regarded as industry infrastructure.

Tips are the most important thing in pet insurance. After the model came out, it has successively cooperated with some platforms such as Ping An. More and more insurance companies want to purchase their back-end risk control and compensation services. The model has indeed made the products that used to lose money do not lose money. Do it slowly.

At the same time, tips are the first to break through the hospital, embed their system in the hospital, help the hospital to standardize and process, and try to accumulate hospital data and pet data.

The new opportunity for tips this year is the cooperation between Alipay and tips. When Alipay took up the banner of local life and began to dig into vertical industries, tips, as one of the few platforms with pet hospital data, entered the list of hospitals on the Alipay applet.

Pet insurance is indeed a too small branch. It is actually not much room for imagination to rely solely on the volume of insurance. Constantly groping, Zhang Xiaotian felt that it was time to take the next step.

Starting in August this year, tips launched a membership system. The user becomes a member after receiving an insurance for free, and then the user can buy a complete set of member services, such as immunization, deworming, medical consultation and other in-store services. Later, we will recommend different insurances and pet supplies based on the data. In the future, Tips is a service provider that provides solutions and an expert in pet health management.

"In the future, thousands of people will be insured, and now the underlying architecture is constantly expanding, and a lot of data is needed to clean the algorithm to make it more and more mature. Even in the future, it can adjust itself and become Smarter."

Under this mechanism, tips can continue to empower merchants with the in-depth data they have mastered, and recommend the most suitable cat food and other supplies to each cat owner with a thousand-person technology, and then further leverage the e-commerce sector to allow long-tail merchants Converged on the platform.

Zhang Xiaotian started from Taobao's platform-based thinking, from upstream cat and dog gene management, insurance data access, and the entire business logic of the upstream and downstream industrial chain formed a closed loop.

Generally speaking, this idea is actually different from the integration of most industries. Few industries do centralized traffic in the upstream, generally downstream, because there are opportunities for centralized traffic in the transaction scenario. Of course, this is from Zhang Xiaotian's perspective, and he can move upstream.

Entrepreneurial attitude: be an industry driller

Zhang Xiaotian's entrepreneurship is also a sentiment group. "Serving a car is too indifferent, and helping a small animal makes people feel warm. If what we do has social significance, it is worth our time and energy." He believes this is the value of his life. The embodiment of "there will be less fear of death".

So the founding of Tips is really on the road. Most of the founding team is learning small animal diagnosis and treatment, and the dream is to do treatment. However, after passing through some stages, I found that the value of what we did was greater than our initial understanding. many.

He also thought that if you are a pioneer, you will probably die on the beach, but his point is: "If you are afraid of being a pioneer, it means you don't really want to do this."

From the perspective of start-up companies, tips’ corporate structure and management system are worth mentioning.

"Tips are always higher than me", Zhang Xiaotian prefers company organization to personal heroism. When the company had only forty or fifty employees, he hired an hr partner with a high salary. "I looked for a headhunter and saw more than 40 people. The annual salary is from three to four million to more than 1 million, and the breadth is getting wider and wider. Some people with an annual salary of one million can't satisfy these things I have to do."

He has now begun to build the organizational framework of large companies, strict financial systems, and management systems to avoid internal corruption and individual centralization. "Now is the time to build the foundation. If the foundation is not well laid out, as the company gets bigger and bigger, problems will definitely arise."

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In terms of his values, "My pleasure is not how much money I make, how great achievements, how much fame I have, I hide behind, but the people around me are getting better and better, earning more and more. With more money, I might be happier."

Tips has the core value that foreign companies pay attention to: respect for personal wishes. Zhang Xiaotian's company culture for tips is three words, "reasonable", "fair" and "simple".

"Fairness I rank first, because only fairness can allow more and more excellent resource people and partners to come in. Because there are too many good things and good things that are buried because of unfairness, so I want The current hr’s destiny is absolute fairness, which must be fair, not human relations."

This career requires a lifetime of hard work. He is not impetuous, who is on the verge of life and death every step he takes. He hopes to be listed in the future, or have opportunities to cooperate with domestic giants. "Large platforms need this industry, but they will not do it by themselves. This determines the people who need to drill in every industry. We are the drilling platform of the pet industry. We don't mind being controlled by giants, mergers and acquisitions in the future."

At the beginning of the business, tips impressed investors.

In 2016, Zhang Xiaotian met Miranda of Cambrian Venture Capital after being introduced by a friend. After the chat, she had some changes in the way she played in the pet industry.

At the beginning, she felt that no matter from the brand, channel or hospital volume, it was impossible to produce a giant. Moreover, Hillhouse in the more promising areas has been ahead of the layout for a long time, and other platforms are mostly playing traffic, and should not be able to play any new tricks, so they will no longer shoot. "After talking with Zhang Xiaotian later, I broke my previous thoughts."

However, the most important thing for early investment is investment. "What impressed me the most about Zhang Xiaotian is that the pattern is very large. Everyone does not have that high awareness of the pet industry. Everyone is just doing business in their own field, but he wants to make the industry pie bigger."

She remembered Zhang Xiaotian's words still fresh: "Why should I grab the 100-part cake with people? Why not make 200 cakes and let everyone play together? Isn't this a very interesting thing."

Miranda appreciates this idea and thinks it is a very high pattern and idea. In her view, a good entrepreneur must not compete with others to die or die, but how to break the game. "He has a broad mind and high psychological quality. He is not a person who is staring at a piece of cake in a pond. He will Willing and knows how to play with competitors."

This ability model allowed Zhang Xiaotian not only to get investment from Miranda, but also to get a nod from Meihua Ventures Wu Shichun. In March this year, Meihua Ventures invested in tips, but the specific amount was not disclosed.

Miranda believes that in the future, tips can be made into a large and listed group, and it can also become a company that is equal to or larger than the industry's leading companies.


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