China Pet Industry Committee of China Entry & Exit Inspection and Quarantine Association，China International Pet Show (CIPS) and National Pet Industry Technology Innovation Alliance jointly called out for an online conference for the whole industry to get united and help each other to overcome the novel coronavirus epidemic.
The online conference was held on Feb. 24 and gathered almost 500 leading enterprises’ representatives from manufactures, distributors, healthcare, education, training and partnered associations. Thirty two speakers shared their opinions.
From the conference, we know most manufacturing enterprises have restored to production while most clinics and shops remain closed. Distributors tried their best to deliver by third-party express services, private vehicles or e-commerce platform channels. Either big corporation or small shops, online and social media has become a popular sales style and continue to mature even after the epidemic. According to Mr. Zhenbiao Chen, chairman for Petty Group, said that most of the factories have been started. The operating rate of their factories in China is 90% and 70% respectively. Vietnamese and Cambodian factories shared some production during the outbreak. Their New Zealand factory is running well. Petty Group benefited both from their globalization strategy and their close relationship with their international customers.
According to Mr. Zhongli Hao, chairman of Yantai China Pet Foods Co. Ltd. (“Wanpy”), the 14 factories of around the world and is not affected by the epidemic. For domestic market, their online sales keep increasing. Though third party express delivery to distributors increase overall cost, they put customers need as the priority. For exporting business, they also honor the same principle though shipping cost also increase.
Spectrum Brands pointed out offline channels have been severely impacted by the epidemic, and the growth of the O2O platform has spawned new opportunities. Spectrum Brands will keep offline channel focus unchanged, and strive to achieve a rapid breakthrough after the epidemic. With 20 million US dollars new investment to China, Spectrum has great confidence in the Chinese market.
The conference has invited two distributors from Wuhan City. With every 5 household owns a pet in Wuhan, this outbreak is definitely a disaster to pet and their owners. Leading distributors are working with couriers to keep the basic supplies delivered to the customers regardless of the cost. Some pet storeowners get organized to feed pets left behind by their owners who cannot return home. During the conference, manufacturers offered their help when they knew distributors in Wuhan needs cat litter supply.
Experts from healthcare, education, training and partner associations have also expressed their ideas on the following topics, such as:
1) Challenges brought by the epidemic;
2) Reflections on traditional patterns and inspirations for future development;
3) Difficulties, risks and the corresponding countermeasures in international trade;
4) Supports needed for production resumption, transformation and upgrading;
5) Mutual help and services between enterprises in the industry; etc.
China, as the largest plant for OEM, has great effect to the global pet industry. International professionals have also addressed their concern for the epidemic. Mr. Hans-J. Buengener, CEO of Industry Consultants and honorable chairman of Interzoo, has pointed out the products ship from China is safe as the virus is infect via air. He approved the methods of Chinese manufacturers done to ensure safety production. Ms. Corine van Winden, CEO of PETS International has suggested the enterprises to maintain necessary international certificates to gain more trust from global clients. Mr. Takashi Harada, editor in Chief of Yaseisha magazine, Mr. Suh Jung Ho, sectary general of Association of Korean Pet Product Export, and Ms. Sutthiya Sirichaiwat from Thailand International Dog Show sent their regards to their counterparts in China.
For China International Pet Show (CIPS), they use their database and marketing channels to help exhibitors reaching out to more potential clients. With the slowdown in the first quarter of 2020, exhibitors have more expectations for CIPS 2020, which will be held on Nov. 12 to 15 in Guangzhou.
Everyone in the industry are supporting each other and need support from others. We believe the epidemic will pass, and China pet industry will be stronger than ever.