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Launching your Pet Food Brand in China
Strategies and Tips for Success
Jerel Kwek, CEO Addiction Pet Foods
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• CEO & Co-Founder of Addiction Pet Foods
• Started company because of my Golden Retriever who
was stricken with allergies
• Operate New Zealand’s largest dry pet food plant.
• Produce premium high meat kibble, air-dried food and
treats
• We have our own brands but also contract manufacture
for many pet food brands internationally
• Export to China, Canada, Japan, Taiwan, Korea, EU, South
America
• Unique in that we can export Beef, Lamb, Venison,
Kangaroo, Fish, Poultry to China
A bit about myself
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Our China Journey started in 2012
What do we want to achieve?
What do we need to do?
Making it Work
Winning Together
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Share experiences & tips relating to
manufacturing and exporting products to
China
To help pet food brands Win in China
Vision
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• China is a completely different Market from any other
• Size, growth, speed, digitalization, customers, trends,
channels
• Too many companies apply the same business model in
other markets to China and realise that it doesn’t work
• Fresh Thinking about Customers, Channels, Product,
Resources, Compliance
Launch Pad
6Do we know what we don’t
Know? What we know and what
we know we don’t know
25%
75%
What we don’t know that
we don’t know
7Fresh Thinking Needed
Do we have the right products to meet market needs?
Products
Which markets do we need to target first?
Sales Channels
How do we build a successful sales & marketing organization?
Marketing
Do we have relevant formulations and Product licenses
Regulatory Compliance
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• Research like nobody else; trust/fake foods
• Many perceive imported products as higher quality e.g NZ is
clean, green and safe
• Highly Tech Savvy; e-commerce a large channel for pet food
• Cross border e-commerce appealing as trusted source
• Apartment dwelling/small dogs; Live in very close quarters with
their pets
• Subject to misinformation about products and nutrition similar
to that of other markets
Understanding the Chinese Consumer
Grain-free
The No. of consumersfor Grain-free food Sales Growth
In order to avoid the allergy caused by gluten, pet owners start paying attention to the food ingredients and formulation.
Customisation
Consumers tend to select the most appropriate products according to their pets’ size and breed.
% of size customized (size & breed)
% of general
2018 Sales value
DOGCAT
The growth of different life stages product2018 vs 2016
FunctionalMarket segment in functional pet food gains acceptance from customers.
Special care after Sterilization
Special care during Pregnancy
The growth of sales amount
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• Nutritional and Safety Standards
• MARA Registration– complex and drawn out
process
Regulatory
16Nutritional Standards- Dog
Nutrient Based on Dry Matter (%) Testing Method
Growth &
Reproduction Dog
Adult Dog
MaintenanceCrude Protein ≥22.0 ≥18.0 GB/T 6432
Crude Fat ≥8.0 ≥5.0 GB/T 6433
Crude Ash ≤10.0 ≤10.0 GB/T 6438
Crude Fibre ≤9.0 ≤9.0 GB/T 6434
Calcium ≥1.0 ≥0.6 GB/T 6436
Total Phosphorus ≥0.8 ≥0.5 GB/T 6437
Water-soluble
Chloride
≥0.45 ≥0.09 GB/T 6439
Lysine ≥0.77 ≥0.63 GB/T 18246
17Nutritional Standards- Cat
Nutrient Based on Dry Matter (%) Testing Method
Growth &
Reproduction Cat
Adult Cat Maintenance
Crude Protein ≥28.0 ≥25.0 GB/T 6432
Crude Fat ≥9.0 ≥9.0 GB/T 6433
Crude Ash ≤10.0 ≤10.0 GB/T 6438
Crude Fibre ≤9.0 ≤9.0 GB/T 6434
Calcium ≥1.0 ≥0.6 GB/T 6436
Total Phosphorus ≥0.8 ≥0.5 GB/T 6437
Water-soluble Chloride ≥0.3 ≥0.3 GB/T 6439
Taurine ≥0.1
≥0.2 (Wet Food)
≥0.1
≥0.2 (Wet Food)
GB/T 18246
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• Animal Nutritionists must pay special attention to the
differences between AAFCO, MARA and FEDIAF
standards
• Differences in many nutrients including Protein, Ash,
Calcium, Phosphorous
• Large breed puppy requirements do not apply in
China
• Ash levels are especially challenging given customer
requirements for high protein diets
Nutritional Standards & Formulation
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• Product Registration-- selecting the right
Agent is key; conflicting advice is common
• Variance in lab results results– Appropriate
formulation is critical
• Process is long-takes approx 6-8 months
• Notarization/ legalization
• Testing
• Documentation
• Submission to Agent
• Tests in China
Key Learnings– MARA Product Registration
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• Offline– requires MARA product
registration
• Online-
• Cross Border E-commerce– no
MARA registration required
• Domestic– MARA registration
required
Channels
E- commerce
• Alibaba & JD still Dominate
• Social E-commerce is on the rise
Offline
Modern Trade• Hyper/supermarket
• Imported store
Specialty• Pet food store
• Pet care store
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• Ecommerce
• Trade Partner ( TP)
• Customer service, Logistics, Coordination with EC
platform, marketing, promotions
• Distributor
• Look after your marketing, sales, merchandising,
• Unlike USA distributors, they more active with
marketing;
• Exclusivity?
Getting your products in market – Finding a partner
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Retail Price
Wholesale
Sub-Distributor
Distributor
Importer/Duty
Ex works
Strategic Pricing– Multiple Channels add Complexity
Top-DownApproach
LinkBuilding
Note: NZ-CHINA FTA– 0% import tax for Pet Food
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• Different marketing channels/mix
• Chinese name– develop one before
someone does this for you
• Translation
• Marketing and Brand story-localization
Marketing
▪ Social Media
Self-own
• Weibo & Wechat
• Brand Website
Cooperation
• Word of Mouth
• Vertical platform
• Entertainment
▪ EC platform
Paid Media
• Bring in traffic
Content Marketing
• Soft selling
Promotion
• Seize sales-11.11
▪ Digital Marketing
SEO / SEM
• Build brand awareness• Enhance authority
Digital Campaign
• Enhance brand communication• Build consumer loyalty
▪ Offline Activation
Tradeshow Sampling Other activities
seminar
Dog run
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Breaking down the
steps
What opportunities can this market offer, what are its limitations?
Market Analysis
Meet with potential customers, identify
issues, pre-selling
Market Visit
Allow for 6-8 mths; launch cross-border EC
Product Registration
Business model, Product
Development, Logistics
Strategy Development
01
02
03
04
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Test Shipment with supportive customer
Pilot Launch
Fine tune marketing, pricing, order
processing
Implement Improvements
Fine-tuning model, increasing profit and efficiencies
Continuous ImprovementMarket Launch, more customers
Scaling Up
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07
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Breaking down the
steps
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Compare nutritional standards between AAFCO and china
Visit our Booth at Pet Fair AsiaVisit us at PFA booth E5H51
