Gen Z and the "Cat Slave" Phenomenon: PETKIT's Innovation-Commercialization Dilemma

Yunlu Yin

Product #:FDC-25043-2X-CE_P

Supplier:School of Management at Fudan University

Discipline:Marketing

Setting:China, 2025

Details:Case (PDF) • 15 pages • 2025-10-30 (Rev: 2025-10-30)

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As Gen Z becomes the main cohort of pet owners, pets have shifted from “animal tools” to family members, driving the pet economy toward greater intelligence and sophistication. Against intensifying competition, PETKIT—one of China’s and the world’s best‑known smart pet‑product brands—faces multiple challenges: how to balance cutting‑edge R&D (e.g., AI health diagnostics) with commercialization efficiency under constrained resources; how to avoid commoditization and withstand price pressure from industry giants; how to move brand perception from functional utility to emotional resonance; and, in overseas expansion, whether to favor direct‑store operations or

Learning Objectives

As a vertical category enterprise specializing in smart pet products, PETKIT has established a massive user base in markets including China, the United States, Southeast Asia, and Europe. From its founding in 2013 to 2025, PETKIT has continuously explored market demand for smart pet products, planned its product system based on a ten-year cycle, and formed a smart pet product system covering pets’ basic living needs. With limited corporate resources and an insufficient marketing budget, PETKIT utilized various channels such as communities, e-commerce, and crowdfunding to expand its market from China to the globe. PETKIT’s product positioning and marketing experience can provide insights and directional references for other technology-based startup enterprises. The purpose of this case is to enable students to deeply understand the role and significance of marketing management, customer insights, product positioning, and channel layout, and to master the methods and theoretical foundations of marketing stry and management strategy. Since the pet industry is closely related to students’ daily lives, this case can stimulate students’ active participation and lively discussion. This case is suitable for teaching relevant courses such as “Marketing Management” or “Consumer Behavior” for undergraduates, MBA, and EMBA students. Specific teaching objectives are as follows: 1. Marketing Strategy Analysis Ability: Master the STP model and design differentiated market positioning strategies for different customer groups (such as domestic high-end users versus Southeast Asian cost-performance demands). 2. Product Management and Innovative Thinking: Apply User-Centered Design methods to design product functions starting from user pain points; balance technology investment with market demand through agile development. 3. Brand and Marketing Strategy Construction: Apply brand equity models to design strategies for enhancing user loyalty, and utilize social media matrices to achieve localized marketing conversialization and Localization Strategy: Apply Blue Ocean Strategy thinking to analyze the pros and cons of agency models versus direct sales models, and formulate channel strategies adapted to emerging markets; study the impact of channel and cultural differences on product promotion.

Gen Z and the "Cat Slave" Phenomenon: PETKIT's Innovation-Commercialization Dilemma

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Learning Objectives