The annual data of "China Pet Industry White Paper - China Pet Consumption Report 2022" shows that in 2022, the urban pet (dog and cat) consumer market will be 270.6 billion yuan, an increase of 8.7% compared with 2021, and dogs and cats will still be The most popular type of pet among pet owners, the number of dogs and cats in urban areas is 116.55 million, an increase of 3.7% compared with 2021, and the number has reached a new high.

The overall iterative and rapid development of the pet industry has also driven the evolution of the pet food market. The market size of the pet food market has also maintained rapid growth in recent years, and category upgrades have accelerated significantly. It can be said that today’s pet food has undergone earth-shaking changes from the past, no matter in terms of material, shape or functional positioning. As a veritable "rigorous demand" market, these changes are not only reflected in the pet food itself, but also reflect the changes in the concept of pet keeping to a certain extent. They are the epitome of the "shuffle and reconstruction" stage in which China's pet food has entered the stage of requiring technology and research and development. . It is against this background that after the high-end wet food brand Zhenzhi released its new series of nutritional staple food cans, on May 20, Nestlé Purina's ultra-high-end pet food flagship brand - Guanneng officially announced a brand upgrade , and released a new brand concept "Scientific Nutrition, Lifelong Immunity". The upgrade from "Scientific Nutrition, Extraordinary Achievements" to "Scientific Nutrition, Lifelong Immunity" means that based on Nestlé Purina's comprehensive hard upgrades and soft improvements, Crown Energy will respond to market demand and develop the field of pet precision nutrition with higher requirements. to further consolidate its leading position in China's pet food industry. The sword refers to precise nutrition in stages and launches a new product matrix. "In different stages of life, there are needs for immunity, and GN can meet them." This is what Chen Xiaodong, head of Nestlé Purina pet food business in Nestlé Greater China, said to GN at the press conference. An explanation of the new brand concept. He also emphasized that pet food should provide targeted daily nutritional care based on the immune characteristics and nutritional needs of pets at different life stages, and lay a solid foundation for the health of Chinese dogs and cats with high-quality nutrition. In order to meet the stage-by-stage precise nutrition of pets, Nestlé Purina has made full use of its century-old accumulated research and development experience to subdivide the life stages of dogs and cats-the life stages of dogs are subdivided into infancy, adulthood and middle age. In the old age period, the life stages of cats are subdivided into the weaning period, infancy, adulthood and middle-aged and old age. It reminds dogs and cats of the specific immunity care focus of each life stage, and satisfies the needs of dogs and cats with its "life stage series" products. Nutritional needs of cats at various stages. Take Crown Energy's life stage series of senior dog food as an example. Based on the physiological characteristics of senior dogs, MCTs (medium chain triglycerides) are specially added to enhance brain alertness and bring energy to the brain cognitive health of dogs over 7 years old. In order to achieve the purpose of preventing canine Alzheimer's disease. In view of the characteristics of osteoporosis in elderly dogs, this staple food is also specially added with 3-dimensional bone nutrition to support the bone health of elderly dogs. At the same time, GN also focuses on several major functions such as "gastrointestinal health, weight management, urinary system health, indoor breeding environment, picky eaters and grooming care" for pets, forming a "professional care series" of products. In response to the allergy phenomenon in pet raising, GN has also introduced the world's first GUAN Neng Changfu series of adult cat food (PRO PLAN LiveClear) to the Chinese market that can solve the problem of cat allergies, which can gently and effectively neutralize the allergies caused by cats. Specific allergens that humans are allergic to, thereby reducing humans’ allergic reactions to cats. In addition, GN has also extended its product tentacles to the prescription food field, which is more niche but requires higher production and research capabilities, in response to the special health and nutritional needs of pets. It has been jointly developed with veterinary scientists and nutritionists. After extensive clinical verification, the "Guanneng Prescription Food Series" products were launched. From age groups, immune needs, and special nutritional care, GN has achieved comprehensive coverage of pet nutritional needs, and provided scientific and accurate nutritional solutions for dogs and cats at different life stages and the different immune nutritional needs of each individual. It is not difficult to see that behind the category extension is actually GN's continuous efforts in the high-end market, which has brought the iterative upgrading of pet food to a high point, further raising the competitive threshold of the pet staple food industry, and further enhancing GN's high-end position. The influence of the pet food market. The three cornerstones are co-created, and Nestlé Purina comprehensively promotes the construction of omni-channel in the Chinese market. When talking about the subsequent layout of Guan Neng in the Chinese market, Chen Xiaodong also described for us from three aspects the development of Guan Neng under the comprehensive empowerment of Nestlé Purina. Development blueprint. On the research and development side, as a pioneer in the global pet food industry and one of the leaders in pet care, Purina has created an industry history of more than 120 years and was the first in the world to devote itself to animal nutrition research and establish an R&D center. From Purina's establishment of the world's first pet care research center in 1926, it has now established eight R&D centers around the world. To date, Nestlé Purina has more than 1,700 scientific and technological patents (including those that have been approved or are under review). In order to better meet the needs of the Chinese pet market, in the third quarter of 2023, Nestlé Purina will set up a global basic R&D team in Beijing in the third quarter of this year to devote itself to basic R&D work in the pet food field and comprehensively promote the R&D localization strategy. . On the production side, Nestlé Purina has brought the world's leading dry food research and development technology and production standards to China, and continues to promote Chinese production and Chinese innovation to meet the consumption upgrade needs of Chinese pet owners. At the same time, Nestlé’s factory in Tianjin has achieved advanced layout for all mainstream categories of pet food. The newly expanded dry food production line using higher production standards and production technology has been fully put into operation, allowing Purina to have dry staple food, wet staple food, The production capacity of all product formats in the pet industry, including snacks, prescription food, cat litter, etc. After the brand upgrade, the product adopts the revolutionary OMN raw meat micro-particle nutritional freshness locking process and the original 10? LIVE intestinal flora fixation formula. It uses raw meat and is matured at low temperature through the "raw meat low-temperature aging" of Nestlé Purina's Tianjin factory. "Technology" and "Mimic Vacuum Freshness Technology" production processes are distinguished from the processing technology commonly used in the market by adding meat powder, further improving the freshness and nutritional retention rate of GN products. In terms of channel construction, in order to improve service timeliness and quality and more accurately meet the increasingly diversified and personalized consumer needs of pet owners, Nestlé Purina has also achieved full online and offline coverage from stores to homes on the channel side. Among them, online can be subdivided into traditional e-commerce, JD.com, Pinduoduo, and Tmall, as well as interest e-commerce, Douyin, Xiaohongshu, Kuaishou, etc. Offline, we have a comprehensive layout of dedicated and general distribution channels, including breeding farms, pet shops, pet hospitals, supermarkets, etc. Previously, in December 2022, Nestlé Purina announced a strategic investment in Xinruipeng Pet Medical Group, which is China's largest pet hospital chain brand with nearly 1,900 pet hospitals nationwide. This cooperation also enables the rapid promotion of GN products in pet hospital channels.

In response to the current good development momentum in second- and third-tier cities, Nestlé Purina’s channel construction is expanding from first-tier cities to second-tier, third-tier and fourth-tier cities, promoting the construction of sinking channels, and further Improve the coverage of GN products in low-tier markets.

The pet industry emerged in China less than 30 years ago, but in just a few decades, China's pet consumer market has developed vigorously and has now exceeded 200 billion. As the entire industry enters a stage of high-quality and high-standard development, GN will also rely on Nestlé Purina's internationally leading production and research system and comprehensive and solid industrial chain resources to continue to leverage its own brand and product advantages and delve into pet science. nutrition, enriching its own product matrix, starting from the needs of Chinese pets, and bringing more high-quality products to Chinese pet owners and pets. As Chen Xiaodong said in an interview with the white paper team: "No matter what the category concept is, it must ultimately return to the product itself, because the food chosen by pet owners is an important factor that ultimately determines whether dogs and cats are healthy and live longer in their lives. So Guanneng We have always maintained a reverence for pet food, insisted on spending time on product quality and product research and development, and adhered to long-termism. Even if it is slower, we must move steadily. We believe that in the marathon track of industry development, consumers will do the same. So vote for us, this is what we believe very clearly."