By WU Rong
Gambol Pet Group is planning to apply for a listing on the Shenzhen Stock Exchange.
Established in 2006 in Shandong province, Gambol is located close to numerous pet food manufacturers. Initially focusing on pet food for international retailers and household names like Walmart, the company saw much promise in the Chinese pet market.
Gambol was not wrong in this analysis. Pet ownership has become a very big deal among Chinese citizens.
In 2013, Gambol launched its own pet food, Myfoodie, exclusively for the domestic market. The acquisition of the US brand, Waggin' Train, in 2021 stuffed Gambol's portfolio further.
The Chinese pet market is dominated by multinational corporations. It's a big challenge for startups like Gambol to make a name for themselves, which in this case has meant heavily on marketing, celebrity endorsements and sponsoring TV shows.
Sales expenses are high, resulting in relatively low-profit margins. Although revenue has grown steadily, putting Gambol second in the Chinese pet industry, its net profit margins have only recently crept over 7 percent.
Gambol's strategy is to target the high-end of the market, focused on premium pet food. To compete against the likes of Mars and Purina, Gambol recognizes the need to improve its technology and product quality.
