Medic Pets starts distribution of international brands

Malaysian organic pet products manufacturer Medic Pets is venturing into the distribution of international brands and is looking to represent European suppliers that wish to enter the Southeast Asian country. The company, which makes organic pet care products, is looking to sell foreign-branded pet food and cat litter but also pet accessories on its home turf through its subsidiary, House of Pets Asia. A warehouse in Klang, Malaysia, has been set up for the purpose. The group is looking to be the sole distributor of 200 non-Malaysian brands in the country and has been testing products since April last year. "We are looking for brands from Europe, such as from Germany and Italy. We have been discussing with some of them via Zoom. We are also looking at Thailand," Medic Pets director Siti Sofia Ramli told PET worldwide. To date, she has spoken to 69 manufacturers and pet companies from other countries, 53 of which have sent product samples. She noted that Malaysia is a big market for pets, particularly for cats. "During [seasonal] sales, pet products are in the top 3 in Malaysia in terms of purchases in Shopee and Lazada," she said, referring to the two biggest online marketplaces in Asia. Malaysia's pet food segment alone is valued at 457 mio dollars as of 2021. Figures from German database company Statista.com show that it is expected to grow by 6.13 per cent annually, according to the company. Siti Sofia Ramli said that the moderate Muslim country can be a difficult market to enter without a local partner given its stringent requirements on halal certification and the scrutiny of ingredients, and that Medic Pets could help in this area. The distribution business will not be limited to organic products. Terms of the distribution agreement include entering into a one-year contract with chosen suppliers, during which the Malaysian firm will be testing their potential in the market. The marketing strategy of the prospective partners, as well as their commitment and production capacity, will be under consideration.  The foray into distribution is part of the overall short-term growth strategy of Medic Pets.  The company manufactures and supplies palm-oil-based organic pet care products for small animals to veterinary clinics and pet shops in Malaysia and abroad, and also produces these for other companies under an OEM arrangement. It currently has four House of Pets outlets in peninsular Malaysia, with a fifth one set to open in Johor, the Malaysian state that borders and caters to Southeast Asian powerhouse Singapore. The company plans to open more retail outlets in the country in the near future. "We see the opportunity to open up is big now. We've always been considering the retail distribution channel, but because of Covid, it was put on hold last year," Siti Sofia Ramli said. "We believe the time is now, because even if we delay further, Covid will not disappear."