How Should We View Pet Supply Companies That Rely on OEM Exports for 95% of Their Revenue?
This question highlights four important aspects of the pet industry: 1. Labor Cost Advantages Labor costs are significantly higher in many foreign countries, making it difficult for overseas companies to maintain competitive manufacturing. Chinese companies, by offering OEM (original equipment manufacturing) services, can effectively tap into these international markets. The global pet industry continues to show strong growth potential, offering Chinese manufacturers a great opportunity to scale quickly. As one of the world’s leading manufacturing hubs, China still faces challenges in building strong, independent brands—such as limited brand recognition or management capabilities. OEM exports allow Chinese companies to maximize their strength in manufacturing without needing to overcome those brand-building hurdles. 2. Uncertainty in Consumer Markets The pet product industry is highly competitive and sensitive to various external factors such as economic shifts and changing ...