In the rapidly evolving pet food industry in China, one question has been at the forefront of many discussions: Should pet food brands establish their own factories? This question was the central theme of a debate at the 2023 Pet Supply Chain Conference in Taian, China, co-hosted by the Taian Municipal People’s Government and the Pet Food Industry Association of Shandong Province.
Prominent figures in the Chinese pet food industry were invited to participate in the debate. The discussion, moderated by Haobo, Vice President at Xinruipeng Group, centered around two contrasting viewpoints: one advocating for brands to establish their own factories, and the other arguing against it. The debate touched on various factors including the brand’s concept, product quality, innovation, and the role of supply chains. Additionally, the challenges associated with building a factory, such as cost, efficiency, and the need for continuous innovation, were also discussed.
PetFoodie.CN found that proponents of factory ownership believe that control over production is crucial for a brand’s longevity and success. They argue that owning a factory ensures product stability and allows for in-depth research and development, creating a moat that protects the brand from competitors. Chen Ming, founder of PETAFRESH, for instance, emphasized that a brand’s survival hinges on its products, and owning a factory can guarantee product consistency and uniqueness.
Critics of factory ownership, however, argue that brands should focus on their core competencies and leave manufacturing to the experts. They believe that owning a factory can lead to resource dispersion and management difficulties. Zhu Changlin, president of KERES, for example, argued that brands should focus on serving their customers and innovating, rather than getting entangled in production management.
From PetFoodie.CN’s point of view, the debate on whether pet food brands should own their factories is far from settled. It’s a decision that depends on a brand’s resources, expertise, and long-term strategy. As the Chinese pet food industry continues to evolve, brands will need to make strategic decisions that best serve their customers and ensure their survival and growth.
