"Mr. Lan, Pate.com's GMV in 2015 was 4.8 billion yuan, and the total GMV in the first five months of this year was 3.5 billion yuan, an increase of 258% over the same period last year.
It is expected that the total GMV this year will reach 9 billion to 11 billion."
Lu Fenghai received Zhang Yida's instructions and started reporting various operating data without looking at the financial report on the table.
He is very familiar with these data, because these are all his work achievements, can he not remember them?
"Mr. Lu, your Petnet is developing very fast! This year's GMV will exceed the 10 billion mark."
After hearing this, Lan Lan praised a few words, then turned to look at Lu Fenghai and joked: "How much is the actual transaction volume of the platform?
What I mean is the figure after deducting returns, order cancellations, and rejections of these bills.
Is there 50% of GMV?”
Lu Fenghai glanced at Zhang Yida, who nodded to him. Lu Fenghai then said: "About 50% to 60%! This result is relatively good in the e-commerce industry."
Lan Lan nodded in agreement. The score of 50% to 60% was not bad.
The results that the e-commerce industry likes to announce are all GMV, because the numbers are large and look more intimidating.
But in fact, this number is used to compare with the actual transaction volume of the platform, as well as order cancellations, returns, and rejected orders.
Through comparison, we can see the stickiness of platform users and their satisfaction with platform shopping.
Lan Lan smiled again and said: "10 billion GMV, 50% of the real transaction volume is 5 billion yuan.
The annual consumption of the pet market is 134 billion yuan, and Pet.com has a market share of 3.73%.
If we work harder, we are expected to become the Tmall and Taobao of the pet industry!"
"Ahem," Lu Fenghai interrupted, "We are taking the B2C self-operated route. Goudong is a more appropriate metaphor."
Lan Lan patted her head and said with a smile: "Hey, look at my memory. The pet market is relatively niche and is really not suitable for C2C."
"Well, in C2C, we have no advantage over Taobao!"
Lu Fenghai continued: “In fact, the pet stores on Taobao and Tmall have become our biggest competitors.
Secondly, offline pet hospitals and pet stores have also taken away a lot of market.
As for the several vertically segmented pet e-commerce websites in the industry, even we can’t compare, let alone Taobao.”
Lan Lan nodded and asked again: "I see that Pate.com's business growth has slowed down compared to the previous two years. Is there any way to break the situation?"
"Yes, it has indeed slowed down. After all, the base used to be small.
Now that the base is large, it is impossible to maintain the previous business growth rate of doubling every month.”
Speaking of this, Lu Fenghai paused, frowned and said: "The biggest problem is still traffic."
Lan Lan nodded. Pet e-commerce is all online transactions, so it must have a large demand for traffic.
“The development of the Internet has led to the dissemination of videos, texts and pictures on major platforms.
The sharing of pet entertainment through original content promotes people’s love for pets.
Moreover, these platforms are also convenient for advertising. Young people used to follow the advice of professionals such as doctors or pet shop owners.
Nowadays, people are more inclined to obtain information from all parties online. In the process of active understanding, consumption is also promoted.
This also gives us the opportunity for pet e-commerce to subvert offline."
"This is difficult!" Lan Lan frowned, "This requires the help of video websites and various picture and text social networking sites."
"Yes, Mr. Lan, you are right! We really need their help." Lu Fenghai nodded and admitted.
Then he got up and turned on the projector in the conference room and started playing the prepared PPT.
"According to Jiguang big data analysis, the video platform with the largest pet traffic is followed by Penguin's QQ and Space, WeChat and Moments, followed by the news information platform and WeChat public account, and then pet forums, Tieba, Douban, and Zhihu
, and finally Weibo.
Comprehensive e-commerce companies such as E-Pet Mall and Boqi.com follow the same route as Pet.com, building their own APP malls that mainly sell pet food, supplemented by supplies. The main pet targets are dogs and cats.
It also provides UGC assessment, medical guidance, feeding guide, etc.
However, their user after-sales reputation has been mixed, and they also encountered the same problem as us, the problem of traffic depletion.
If this problem is not solved, the scale and volume of pet e-commerce will not increase.
The crazy puppy of independent brand e-commerce is worth learning from.
They follow the route of self-production and self-sales, and only deal in the dog pet market. They have an online + offline store direct operation model. They have suddenly emerged in the past two years. They are highly cost-effective and focus on the low-end market. They are regarded as the "rice" in dog food.
brand.
Especially for Dogford, I think we can copy their operating ideas."
Speaking of this, Lu Fenghai looked at Zhang Yida. After all, this involved Mr. Zhang's "family industry" and he had to seek Mr. Zhang's opinion.
Zhang Yida is no stranger to the brand "Crazy Puppy" and was one of his biggest competitors in his previous life.
Because the dog food I produce is also cost-effective, consumers often compare it with crazy puppies.
Then before I had time to deal with it, it collapsed on its own, fell into controversy, and was questioned by consumers as "poisonous dog food."
Those who make food, whether it is for humans or dogs, may find it difficult to climb out once they fall into this vortex.
Putting aside product quality, its operational ideas do have something worth learning from.
"Okay, I will discuss it with my father."
Zhang Yida was thinking in his mind that he was merging Dogfud into Petnet and opening an offline experience store. He wondered if his father could accept it all at once.
Lu Fenghai continued: “There is also a kind of community-based e-commerce, headed by Youpet, Whale Pet, Bell Pet, etc., which is similar to “Little Red Book”.
Focus on content, supplemented by the mall.
It seems to meet the market segment needs in the pet field, but the content traffic is still far less than that of other mainstream platforms, such as: Xiaohongshu, DouShi, Bilibili, Weibo, etc.
In addition, there are many retail merchants or pet shop owners who will expand their customer base through offline transactions and then sell products directly through WeChat Moments.
The sales volume of a single person or store is not high, and it cannot sell hundreds of thousands or millions a year.
However, it could not support the large base and took away a large part of the market share.
At present, the main food for cats and dogs is mainly grain-free and natural, but the real good food is expensive.
Therefore, many pet owners make their own handmade pet food, and even buy ready-made food processed from fresh ingredients directly online instead of commercial food."
Turning off the PPT, Lu Fenghai said: "The above is the current pattern and current situation of the domestic pet market.
If we want to break the situation, I think of two ways.
First, Dogfud began to build offline experience stores, and at the same time, Pet.com continued to acquire and integrate pet hospitals.
When it comes to selecting locations for pet stores and pet hospitals, I think Pet.com and Dogford can collaborate. For example, by placing the stores next to each other, or upstairs and downstairs, they can drive each other's business volume.
Secondly, Patenet also needs to make efforts online, which requires Mr. Zhang to coordinate its industrial resources."
Zhang Yida looked at Lu Fenghai and asked, "How do you need me to coordinate?"
“As for the video platform, Mr. Zhang currently owns Bilibili and DouYu, and we need them to help us promote and divert traffic.
In addition...the Penguin series products also have huge traffic."
Lu Fenghai winked at Zhang Yida, "Mr. Zhang, don't you have a good relationship with Penguin? Ruixiang, Huimin Travel, and Pinduoduo all have Penguin as shareholders.
We at Pet.com can also hug the penguin’s lap! We don’t need WeChat’s nine-square or twelve-square grid, as long as they don’t block us.”
"Banned? Isn't it?" Lan Lan frowned, is it so serious?
Lu Fenghai shook his head and said with a smile: "Pinduoduo's WeChat fission model is very successful, and we at Pate.com are also going to learn from it..."
Zhang Yida looked at Lu Fenghai and thought to himself: Why don't you learn well? If you don't learn from good people, you must learn Duoduo's propaganda and promotion method of "the anger of heaven and the resentment of people".
Objectively speaking, Lu Fenghai’s suggestion is very good.
Before users buy dog food, asking friends to help them cut a knife, or buying in a group can have the effect of promoting Pate.com and increasing registered users and GMV.
Lu Fenghai continued: "We will build a public account on Pate.com and open up the WeChat mall. Users can directly share the link to join a group or link to the group or circle of friends...
In addition, according to customer portraits, the main groups of pet owners are urban white-collar workers and corporate employees in first- and second-tier cities, and most of them do not have cars or houses.
As a travel tool, many people choose bike sharing and taxi-hailing, which are highly overlapping users of Huimin Travel.
Therefore, it is best for Huimin Travel to provide a traffic entrance for Petnet.
Ruixiang's TouRongHui APP has more than 400 million users, and there are definitely not a few who keep cats and dogs. It can also provide us with a traffic entrance.
If you want to fight Duoduo, you can help sell Dogfud brand dog food..."
Zhang Yida laughed when he heard this, "So many of my companies have been clearly arranged by you.
Okay, whichever company you want to cooperate with can be accepted. If it’s Penguin... I’ll contact them!”
…
A few days later, Ren Yu came to Beijing Pate Network Company.
“Just a pet e-commerce website with a valuation of US$1 billion?”
Ren Yu sighed after seeing various operating data of Pate.com.
"Yes, that's $1 billion!"
Zhang Yida explained: “Our country’s pet market started late, but its growth potential is huge.
In the United States, tens of billions of dollars of companies have already emerged in the pet market.
Moreover, the pet industry is an industry that can "go through the bull and bear" cycles, and the U.S. financial crisis has not hindered its market growth."
Ren Yu was very hesitant, which really refreshed his outlook. A unicorn company has emerged from such an inconspicuous market as pets.
"It is very reasonable. This year, Pate.com expects a GMV of 11 billion, multiplied by the industry standard of 0.6, which is exactly a valuation of 6.6 billion yuan.
The recent exchange rate of RMB to US dollar is exactly 6.6. Isn’t this equivalent to 1 billion US dollars?
By the way, we also have 20 offline physical pet hospitals, which cost "hundreds of millions" to build.
This pet hospital hasn't even been valued yet, so it's just an addition.
Who makes us happy to cooperate with Penguin? It’s okay for us to suffer a little loss.”
Zhang Yida behaved very generously and didn't care whether he suffered a loss or not.
Ren Yu couldn't laugh or cry when he saw this scene, and said: "Yida, this 11 billion GMV is for your "dynamic" calculation of Pate.com. In terms of static calculation, Pate.com only had a GMV of 7.3 billion in the last year.
This difference is huge, with a valuation disparity of more than 2 billion."