The pet food industry, particularly the staple food segment, has long been dominated by international giants like Mars and Nestlé Purina. However, the rise of China's pet economy has sparked a wave of domestic alternatives, with local companies like GuiBao Pet and Petty Group making significant strides in the market.
Yuanfei Pet, a manufacturer with years of experience in the pet industry, is preparing to transform this competitive landscape by introducing personalized pet nutrition solutions. The company, which began as an OEM business, has recognized the risks of relying solely on contract manufacturing and has been actively diversifying its operations.
From OEM to Brand Building
Yuanfei has established distribution partnerships with over fifty prominent brands, including Zeedog and Royal Canin. Notably, it is one of only five authorized online distributors for Royal Canin's prescription diet products and ranks among the top ten online sellers of Royal Canin's regular pet food. The company has also developed deep collaborations with several brands under Nestlé Purina PetCare.
Despite these achievements in distribution, Yuanfei has faced challenges in building its own brand identity, lagging behind publicly traded pet companies like Petty, GuiBao, and Zhongpet that have successfully developed proprietary brands.
Strategic Expansion into Brand Ownership
In 2018, Yuanfei established a wholly-owned subsidiary in Shanghai focused on product design and development. This move led to the creation of several proprietary brands including Pika Poo, Kumfi comfy, and Dirty Bones, marking the company's initial attempt to build a domestic marketing network. Some brands also ventured into overseas markets, though with limited success.
The company renewed its focus on brand development in 2023 with the acquisition of Hangzhou Feiyuan, an e-commerce business specializing in pet prescription food. This was followed by the establishment of two new e-commerce companies in Hangzhou - Hangzhou Pikapu and Hangzhou Halevi - dedicated to operating and promoting Yuanfei's proprietary brands.
Current Market Position and Future Plans
Yuanfei now operates across major Chinese e-commerce platforms including Tmall, Taobao, Douyin, JD.com, Pinduoduo, and Xiaohongshu. Its Pikapu brand has gained popularity for pet snacks, while Halevi's natural sodium bentonite litter, featuring innovative odor-control technology, reached the top three in its category on Douyin within two months of launch.
The company is preparing to launch a new staple food brand by the end of December, marking a significant move into the core pet food market. With its accumulated industry expertise, strong R&D capabilities, and established sales channels, Yuanfei is positioned to become a notable competitor in the competitive pet staple food segment.
This brand launch represents a critical step in Yuanfei's strategy to transition from contract manufacturing to brand ownership. The company's dual approach of developing both proprietary and distributed brands may enhance its market competitiveness and enable it to evolve from a behind-the-scenes manufacturer to a prominent industry player.