Ruipeng is also one of the four giant pet hospitals, with more than 400 chain hospitals.
In addition to Gaoling and Pate, another giant among the four giants is Ruipai, which has more than 300 hospitals, slightly more than Pate.
Gaoling Capital made a strategic investment in Ruipeng last year and has some influence in this company.
Birich is a well-known pet food staple company in China. It is engaged in the research and development, production and sales of a full range of cat food and dog food. It has more than 400 products and ranks among the top in sales in first- and second-tier cities in China.
This company was established relatively early, in 2002, and is considered one of the few outstanding domestic pet food companies.
As its direct competitor, Dogford was established relatively late, but it caught up with the outbreak of the pet market and soon left this established company far behind.
There are many reasons, but the main one is one.
In the past two years, Dogford has done a lot of marketing. In addition to advertising in short videos, it also invited Beckham to be its spokesperson.
The strategy of using money to open the way is indeed very exciting, and it quickly helped Dogfud establish a brand.
It is also worth mentioning that Dogford has created many firsts in the industry.
“The first pet food company to advertise in short videos!”
“Be the first to start live broadcast to bring goods...”
"The first to run a TV commercial..."
"The first to sponsor a variety show on Mango Channel..."
"The first to place ads on video websites..."
Most of the people who keep dogs and cats are young people, especially young people who are willing to spend money on pets.
Short videos, live broadcasts, variety shows, and long videos are the best media to reach young people.
The bullets were fired in the form of advertising fees, which resulted in a steady stream of young people placing orders online.
These orders turned into abundant cash flow, which also supported Dogford to launch more forms of advertising and reach more people.
This is the inevitable result of a successful model. The more you invest, the more you earn.
When DouShi and Kuaishou first emerged, advertising had huge dividends.
Advertising costs were less than one-tenth of what they are now, but the results were even better.
This is because there are always people who are waiting and watching new things, and Kuaishou also made a lot of concessions in the early stage, hoping to give brands a taste of the sweetness, so as to drive more brands to come and place advertisements.
Dogfud enjoyed this wave of bonuses with his mouth full of oil. For a period of time, basically all users of DouShi and Kuaishou saw Dogfud’s ads.
A long-legged lady leads a dog or a cat and appears in different funny sitcoms, while also doing anthropomorphic voiceovers for the cat and dog.
In the sitcom, the young lady will feed the pets dog food, cat food, dog food, and the cat's vest is printed with Dogfud's logo...
A big internet celebrity on DouShi, the account "Talking Liu Erdou" with 40 million fans is actually a cat. It is also the spokesperson of Dogfud in the pet industry, and is also an internet celebrity signed by Daya Culture and Creation.
Of course, Cat's endorsement fee is much lower than that of Beckham, but the advertising effect is not bad at all.
Zhang Yida's Zhaoling Liujun is currently also a contracted internet celebrity of Daya Culture and Creation, as well as the ladies who film sitcoms, and they are basically all people who use Daya Culture and Creation.
This means that the wealth does not go to outsiders. A lot of the huge amount of advertising money spent by Dogford went back into the pockets of Zhang Yida or Zhao Erya.
Zhang Yida says he doesn't engage in insider trading, but in fact he is very experienced in doing this job.
But there is nothing illegal in any of these, and even the shareholders of Pate Holdings, Ruixiang, and Daya Wenchuang are happy to see the results.
In addition, Dogfud also plans to launch a pet training game with Ruixiang Game, in which Dogfud dog food and cat food advertisements will be embedded.
We have also cooperated with Daya Cultural and Creative Group, planning to launch a cute pet cartoon, intending to build Dogfud into an IP like Wangwang.
With full advertising power and good food safety and quality control, Dogfud is now the first to arrive, and has a vague reputation as the number one pet food in China.
Zhang Sanshi is quite clear about these and does not think any domestic pet food company can challenge Dogfud.
Other pet food companies just use millet and rifles, but Zhang Yida is better off and just adds nuclear bombs, which is a kind of dimensionality reduction strike.
Now the pet food industry is eager to dissect Dogford and Pate Holdings for analysis, and they all want to learn how to engage in the digital economy.
Zhang Sanshi thought for a while and said: "Rui Peng should be fine. I heard from Mr. Peng and he seems to be willing to work together to make the cake bigger.
As for Biruji, we currently hold 35% of its shares and are the largest single shareholder. But Mr. Xu is a bit stubborn.
Biruji has been seeking guidance from CICC to prepare for listing in 2016, but three years have passed and it has been unable to go public, facing many difficulties.
I may be able to persuade him, but I can’t guarantee that I will be able to convince him.”
Zhang Yida shrugged, with an indifferent look on his face, "As long as Ruipeng is willing to join in, it doesn't matter whether there is Biruigi or not."
Zhang Sanshi smiled awkwardly, "Give me some time, I will try my best to persuade you, it is better to join in."
The corner of Shen Beipeng's mouth raised slightly. If Biruji hadn't merged in, he might have been pushed to the ground and rubbed hard by Pate Holdings, which was about to form the Big Mac.
It was precisely because Zhang Sanshi saw this that he stressed so hard to convince Bi Rui Ji.
Of course Zhang Yida also saw this. It is human nature to seek advantages and avoid disadvantages, and he would not think there was anything wrong with what Zhang Sanshi did.
Anyway, joining Birugi can increase revenue and profits, and the capital market will pay for it.
So he nodded and said, "Okay, then I'll do the hard work for you, Gaoling."
…
Zhang Sanshi first approached Peng Yonghe, the boss of Ruipeng, and told the latter the lofty ideals and ambitions of Pate Holdings.
Peng Yonghe is in his fifties. He worked as a veterinarian on a Xining dairy farm when he was young. In 1998, he founded Ruipeng Pet Hospital in Pengcheng.
At the beginning of the new century, the pet market was not very prosperous. It was not until 2012 that Ruipeng opened its first branch in Yangcheng.
In 2016, Ruipeng, which already owned more than 70 pet hospitals, was listed on the New Third Board. By the time it was delisted last year, its market value had reached about 3 billion yuan.
After Peng Yonghe heard that Pate Holdings was willing to offer Ruipeng a valuation of US$1 billion and acquire Ruipeng through additional equity issuance, he readily agreed.
The boss of St. Regis has been much more stubborn for a long time. He firmly disagreed with the merger and insisted on choosing an independent listing.
This made Zhang Sanshi a little unhappy. If there is an aircraft carrier, you won't sit on it. You have to hold your little sampan. It doesn't matter if you sink yourself, but don't drag Gao Ling into the water.
So Zhang Sanshi coaxed and frightened him, and it took a lot of effort from the boss to convince Xu Jiu.
By the time he replied to Zhang Yida, it was already half a month later.
The two parties roughly took stock of their respective assets. Pate Holdings had US$5.7 billion and Bayer Animal Health had US$9 billion.
A year later, in view of the slight increase in the financial performance of Bayer Animal Health, another US$1 billion was added to Bayer Animal Health.
The pet hospital controlled by Gao Ling, as well as the acquisition of upstream and downstream pet industry chains such as Junbao, totaled US$3 billion in equity participation.
Ruipeng Pet Hospital is valued at US$1 billion, Biregi is valued at US$300 million, and the remaining 49% equity of Dogford is valued at US$1 billion.
By integrating all these industries into the Pate Holdings Group, the valuation of Pate Holdings will expand to US$20 billion.