Yantai China Pet Foods
The Chinese pet market is changing rapidly. Sourcing practices have changed and the Chinese middle class has become an influential target group.
PETS International (PI):
In view of how companies are sourcing in China, what is the most important change from Yantai’s perspective?
Mr Zhongli Hao (ZH): The most important change is the break up of the traditional marketing model (manufacturer–distributor/wholesaler–retailer). More and more retailers have started to contact manufacturers directly and have cut out the middleman.
PI: How has Yantai responded to these changes?
ZH: In 1998, we established Wanpy, the first Chinese brand to research, manufacture and sell pet food. With Wanpy, we have witnessed the developments of the Chinese pet industry in the past seventeen years. These changes have provided us with opportunities and challenges.
Wanpy exploits business opportunities by exploring the market and devoting much time and effort to the creation of new products. The brand has successfully adapted to market changes because it is involved in all steps of product development, from concept to shelf product.
PI: The pet market is growing fast due to the emerging Chinese middle class. What does this mean for Yantai?
ZH: We have noticed an increase in sales. The growing Chinese middleclass have become a force to be reckoned with. They are very conscious consumers, looking to keep their pets healthy by providing them with the best possible quality. As the Chinese market leader in pet food, Wanpy is benefitting from this although more could be done to increase our market share in the growing pet food industry.
PI: In light of all these changes, what does this mean for your marketing instruments?
ZH: Last year, we drew up a development plan for the next five years (2014 – 2019). Our goal is to shift from manufacturer to brand operator, this means that we will be building own brands whilst being the agent of international brands.
Also in 2014, Wanpy received the ‘China Famous Brand’ award. Besides the Wanpy brand, Yantai developed the first prescription wet pet food, which was created in cooperation with the R&D centre of the American Jerky Company LLC.
In the near future, Yantai will import more international brands to China, whilst providing high-quality products for the world to achieve global sharing and uniform quality.