Pet Retail Market and Valuation Outlook

Appendix 19 92 | 19: Private Label Analysis Within the Petz ecosystem, the private label product line is a promising business area for the company, whose value proposition is to offer products with the best cost-benefit ratio in strategic categories. In this sense, the company can reduce the cost of the product by removing one of the intermediaries in the value chain, the supplier brands, buying their private label products directly from the manufacturer, with quality and customization for the Petz brand being a reference among pet lovers. With such an operation, Petz can reduce its COGS for this line and offer more competitive prices. Such dynamics are perceptible in the analysis to the right, in which we compare the competition between more than 1900 variations of 1182 unique products in 21 different categories. To do so, we used web- scraping tools on the Petz e-commerce site to scan the products, collecting price, quantity (weight, units, volume, etc.), brand, description, and other specific information. After this, we performed the segmentation by categories, following the markings of the site itself and the data treatment, eliminating statistical outliers, repeated products, and intruders in the class. Having performed these steps, we compared the average price of Petz with the general average. We concluded that Petz's private label products are priced lower than average, with a median z-score (distance from the mean normalized by standard deviation) of -0.47, i.e., they are cheaper than 68% of the products. Looking closely on snacks and toys category, we can see that on similar products, Petz charges lower prices than competition. Same Product Price Comparison Category Blankets Feed Holders Leashes Collars Shampoo Breastplate Snacks Petz -SNACKS- Snack Churrasco 500 g CRIADORES CHURRASCO PETE EMMO Keld g 190 PURINA Doguitos BIFINHO de CARNE 500g: BRL 22.99 / 60g: BRL 3.49 500g: BRL23.99/ 60g: BRL 3.89 500g: 60g: BRL 6.80 Source: Team 7 Total Private Label % PL Price Unit Avg. Price St. Dev Avg. Price Z-Score Variation Dehydrated Cookies 100g kg BRL 26.9 BRL 139.9 BRL 3.2 BRL 22.0 -18% -1.55 BRL 75.9 BRL 36.2 -74% -1.37 BRL 65.1 BRL 32.6 BRL 33.0 -49% -0.98 BRL 12.1 BRL 6.6 BRL 6.0 -50% -0.92 BRL 111.4 BRL 54.6 BRL 61.3 -45% -0.92 BRL 48.4 BRL 17.3 BRL 34.8 -28% -0.78 BRL 108.8 BRL 106.8 BRL 29.9 -72% -0.74 # BRL 92.7 BRL 52.7 BRL 56.8 -39% -0.68 kg BRL 106.7 BRL 80.5 BRL 56.2 -47% -0.63 Guinea Pig feed kg Beds BRL 136.4 BRL 119.1 BRL 69.9 -49% -0.56 # BRL 235.2 BRL 125.9 BRL 176.2 -25% -0.47 Oral Care 100g BRL 17.9 BRL 17.9 BRL 9.8 -45% -0.45 Odor Eliminator L BRL 13.9 BRL 2.7 BRL 12.9 -7% -0.35 Hamster feed kg BRL 92.9 BRL 55.7 BRL 79.3 -15% -0.25 Clay cat litter kg BRL 6.4 BRL 5.3 BRL 5.4 -16% -0.20 Litter mat BRL 85.4 BRL 13.4 BRL 86.7 1% 0.09 Feeder BRL 30.6 BRL 27.3 BRL 37.4 22% 0.25 Disinfectant Toys Litter boxes Litter scoops BRL 54.4 BRL 39.7 BRL 65.9 21% 0.29 # # # BRL 39.3 BRL 26.2 BRL 47.5 21% 0.31 BRL 67.0 BRL 66.4 BRL 89.9 34% 0.35 BRL 10.1 BRL 5.7 BRL 12.9 29% 0.51

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