Description of the Company
Established since 1981, Alliance Pet Business International has developed a reputation for quality, dependability and the ability to cope with change in this fast moving industry. At closing of Business in 2009, we operated in 17 countries with a payroll a little over 200 employees and a turn over flirting with the $48 Millions.
With head office in Macau, today, APBI operates 2 manufacturing plants in China and 6 offices around the world. In order to cope with growth, APBI has purchased a larger manufacturing facility in Huzhou with a warehouse to resolve logistic issues and improve customer service and production capacity. This plant opened in 2008 and is now in full operation.
The Company’s Mission Statement
The mission of APBI is to be a premiere Private Labeling (OEM and ODM) manufacturer in the worldwide pet supplies industry through continuous innovations, strategic alliances and world class service at an affordable price to maximize our customers return on investment as well as ours.
OEM and ODM pet supply market is a strong niche market that only a handful of manufacturer can afford to engage in. The requirements are high and time is always of essence to meet and beat deadline to make it for the next promotion. To keep up with market trends, you need to be one of the player to set that trend. By taking a continuous pulse of the industry and by working closely with our customers, we represent today enough of a conglomerate to influence some of the trends and therefore, insure ourselves the proper distribution and sales channels. We do so by consistently presenting our customers with novelty items which are likely to hit the market within the next 6 month to a year. This team work, our extreme production flexibility, and our affordable prices provide an assurance to our clients that their return on investment is our number one priority. We do what it takes to make it all come together.
Products and Services
With the release of our latest catalog, APBI is proud to be the only manufacturer in China able to provide a selection of over 12,000 SKUs covering almost all categories in the Pet Supplies Industry to our private label partners.
With manufacturing of over 50% of our range, we have strategic alliances with other manufacturers to enable us to provide such a large selection to our customer and enhance their buying experience by providing a cost effective turnkey solution to their direct import needs. We make it as easy as ordering locally and as cost effective as importing containers from China.
This unique approach is not only our strength, it is our business model and our mission as a company. We have identify this business model as a long term sustainable competitive advantage as in today’s shrinking margins global business environment and increase pressure on China, it is hardly economical and even less feasible to be reproduce successfully.
Business Strategy
By offering the largest selection in the industry, providing superior customer service, and continuously demonstrating our flexibility, Alliance Pet Business International can distinguish itself from its competitors and keep its competitive edge.
Competitive Environment and Advantage
The quality of service and the number of manufacturers in the pet industry constantly fluctuate. Our competitive edge lies in our experience and our ability to actually deliver a turn key solution specifically catered to each individual customer needs and requirements whether it is for a product range of 50 items or of 900 items, as well as our dedication and commitment to work closely with our clients on a continuous basis so that they feel they are the only one we are working for and they have confidence we will get the job done in an ethical and efficient way without scarifying their margins.
Long-Term Opportunities
With the aging of the baby boomers and the expected regulation to control population growth in the majority of the world countries, there is an ever increasing place created for pets who very often are the closest substitute to a child. A study conducted by PIJAC (Pet Industry Joint Advisory Council), a non-profit organization in charge of the respect of animal rights, shows that while in the past animals were considered a disposable luxury, they are now becoming a necessity for many. Some of the number to support that idea were that today (2006) 78% of pet owner said they would reduce their own consumption first before reducing their pet’s. The same number was only 17% in 1986.
This trend is not limited to western countries, it is now propagating to Asia with Stanley Ho’s grand daughter scheduled to open the largest Pet Hotel and Resort in Asia. 2 facilities are scheduled to open, 1 in Hong Kong and 1 in Macau. The Macau facility will be the largest in Macau while the Hong Kong facility will be the largest in Asia with a pet shopping paradise spreading over 4,000 m2, excluding Hotel and spa facilities, in Kowloon Bay.
Geographic Area
APBI is a global company that currently operates in 17 countries. While our strong focus is Europe and North America, we consistently look for fresh opportunity and new business venture to expend our operation and global presence.
Target Customers and Market Opportunities
While our customer base has typically been OEM and ODM private label customers, we are now expending our own brand to accommodate for smaller customers who understand the benefits of a direct program and who have the financial scale to make it happen for their specific operation but not on a private label scale. The addition of warehouse space and of an extended packing workshop will enable us to develop that market segment and capitalize on it at its early stage.
Customer Incentives
With today’s shrinking margins, companies try to cut down on cost and better control their spending. The sourcing process is an important part of that analysis as the hotel expenses as well as airfare and transportation with-in China have almost doubled from 5 years ago. By providing a one stop shop and doing a full line sourcing, we considerably reduce that expense for our customers and offer them a cost effective turn key program that enables them to focus more on growing their business and less on the logistics of a successful direct import program.
Advertising and Promotion
Aside from trade shows, APBI does not really engage in advertising and promotion. This is so because of the nature of our position and the fact that our customers are the one advertising the products and marketing them in their own individual way.
Our best promotional item is by far the ability to point to our customer’s successful direct import and/or private label program and let potential customer know we are behind it. As a matter of facts, lately, customers find us as opposed to us finding them. This is so because they identified from their sources that we were behind the program of their competitors and they want in on the action.
Guarantees and Warranties
Our OEM and ODM clients are protected by a USD $2 millions product liability insurance covering each individual client up to that limit. This insurance is provided by the Hartford Casualty Group in the USA and is valid both for our USA customers as well as our European customers.
Our company as a reputation for excellence and we do warranty all our products to be free from manufacturing defects and in full compliance with the original requirements of each individual customer. We also provide an extended product warranty of up to 2 years that is applicable to the purchasing public.