Recommendation of U.S. Pet-related Stocks
Today, I'm going to find out about pet stocks. There are two main reasons why the pet market has become hot recently. First, the number of people getting married decreased, and there are more people living alone. This is because more and more Dink people are saying that they will not have children even if they get married. Pet-related stocks are drawing attention as the demand for raising pets such as dogs and cats instead of spouses instead of children increases. In particular, in the face of the COVID-19 crisis, people began to refuse face-to-face activities, and as the time spent at home increases, the demand for pets is increasing even more. There are stocks that get attention accordingly. In order to be listed only on the pet's own business, companies targeting the global market will be better than the domestic market, so I'm going to focus on U.S. stocks. There are many sectors such as companies selling pet products, pet insurance, and pet-specialized restrictions, so let's look into them one by one.
TRUP shares
First, TRUP shares. Sales growth is huge. The resulting increase in TRUP stock prices is also tremendous. It is a pet-related stock and is deeply related to the subscription economy. As a company that sells pet-related insurance, the global pet care market has grown endlessly and is receiving demand. For those who raise pets, pets are said to be like children, so they never spare money in the pet care field, but they are receiving demand. The reason why this stock received attention is because it is a recommended stock by director Yeom Seung-hwan, who is very famous in Korea. Yeom Seung-hwan's recommendation is not just a level mentioned on YouTube, but because it is a sports device directly mentioned in a program aired on SBS called Dolsing Forman. Among Yeom Seung-hwan's recommended stocks, N companies, H companies, and T companies (U.S.), U.S. stocks, T companies, are True Panion stocks. The reason why TRUP, a U.S. stock related to pets, is that the U.S. pet market has an overwhelmingly high percentage of 7 out of 10 households. Looking at the share of the pet insurance market, the top three companies are Nationwide, Truffany, and ASPCA. Truffany is second with a 29% share. But what's important here is that Nationwide and ASPCA are comprehensive insurance companies, and Truffany is a pure pet insurance company. It is attracting attention as it is the No. 1 pet insurance company and can absorb all the growth of the pet care market. Annual sales and growth rates remain at 30% YOY, and the number of insurance subscribers is increasing, and what's more surprising is that it's not easy to raise % as the absolute value increases, but the growth rate itself increases every year. In addition, the average monthly sales trend per pet has exceeded $60 and has maintained growth of more than 50% of YOY. The average cost of pet insurance is $60 a month, which is a little surprising. Most pets have more insurance than I do. TruePanyon's strength is that it provides basic coverage such as surgery and hospital treatment drugs, as well as additional items such as acupuncture behavior modification, acupressure, and homeopathy. After paying 10% of the self-burden, all the rest can be compensated without limit. It has its own settlement system and its strength is its 24/7 consultation. There is a recommendation system between veterinarians, so the market share is rapidly expanding, and counseling through social media is also supported. Especially the Truffanion is expanding its territory with aggressive partnerships. Collaboration with insurance companies in the same line as well as collaboration with pet operators are noticeable. In particular, TRUP shares rose by about 40% by announcing a collaboration with a company called Chu, nicknamed Amazon in the pet industry. Let's see what kind of company Chu is.
CHWY Stock
It's CHWY's stock. Like True Panion, it is a pet-related stock, and its sales growth is accelerating along with the growth of the pet market, and the stock price of CHWY is rising significantly. He's been getting a lot of adjustments recently. Chewie is a company that sells pet products online. I own my own brand and sell other brands through the Chewie website. They launched more than 2,000 brands and are selling them The reason why Chewie is called Amazon in the pet world is that it sells such a variety of products and is carrying out fast delivery in the United States, which is difficult to show through aggressive logistics investments. It is possible to deliver to 80% of the U.S. on a daily basis. Chewie offers most of the services in the form of regular delivery, and offers discounts for regular delivery of the same item to induce repeat purchases. In this form, there are more than 20 million members who use Chewie. The reason why the stock price soared after Trufannian announced a collaboration with Chewie is that there are more than 20 million loyal customers. It's only one area, but I wonder why the stock price of CHEW, which beat Amazon, keeps falling. Chewie is currently experiencing labor and supply chain problems due to inflation. In particular, products that were popular in Chewie continue to be sold out, leading to accidents such as not being able to order or not receiving regular delivery. As there are no items I wanted to buy, the departure of loyal customers is intensifying and sales are falling accordingly. Once you don't receive the product or if you don't find the item you're looking for, the reliability of the shopping mall itself often drops significantly. Chewie is currently in that state. The positive thing is that even though the current sales and supply chain situation is not very good, CEO Chewie is trying to provide better service with a very positive view of the market outlook in the future. In particular, to turn the crisis into an opportunity, Chewie is preparing to collaborate with various companies, strengthening services within Chewie, and increasing brand value.
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