Boqii Holding Ltd (NYSE: BQ)

Boqii is a leading pet-focused platform in China that operates an online retail business and provides a range of services to pet owners and industry stakeholders. The company offers a one-stop destination for pet products, content, and community engagement, serving pet parents through its e-commerce platforms and extending its reach to physical pet stores and hospitals via its offline distribution network. Boqii leverages its technology and data capabilities to enhance user experience, optimize operations, and support its network of brand partners and offline retailers.

Boqii generates revenue primarily through the sale of products on its online sales platforms, including both branded and private label items, as well as through the provision of online marketing and information services to brand owners. The company also earns revenue from its offline distribution network, where it supplies products in bulk to physical pet stores and hospitals at discounted prices. Additional revenue streams include subscription-based services and value-added offerings such as its SaaS solution for inventory and membership management, which is provided free to pet stores to foster long-term business relationships.

The company operates through the following segments:

• Online Sales Platform: This segment manages Boqii Mall, the company's self-operated e-commerce site, as well as flagship stores on third-party platforms such as Tmall, JD.com, and Pinduoduo. It sells a wide range of pet products including food, treats, toys, apparel, and over-the-counter veterinary drugs under brands like Royal Canin and Pedigree. The segment also promotes private label brands such as Yoken, Mocare, and the two D-cat label lines, which focus on cat litter, bath products, freeze-dried pet food, and pet pharmaceuticals.

• Offline Distribution Network: This segment supplies branded and private label pet products in bulk to over 15,000 physical pet stores and hospitals across China at discounted prices. It supports these partners with inventory management, marketing coordination, and access to Boqii’s SaaS solution, which helps streamline ordering and restocking processes. The segment also enables brand partners to reach customers who prefer in-person shopping through localized marketing and product placement in stores.

• Online Marketing and Information Services: This segment provides promotional and strategic support to pet product brands, including ad placement, campaign planning, and market insights derived from user behavior on Boqii’s platforms. Revenue is recognized over the service period based on contractual agreements with brand owners. The segment leverages Boqii’s large user base and content ecosystem to deliver targeted marketing that drives product awareness and sales.

Boqii holds a leading position in China’s pet e-commerce market, particularly in terms of gross merchandise volume, and distinguishes itself through its integrated content-driven model that combines shopping, community engagement, and personalized recommendations. The company competes with general e-commerce platforms, supermarkets, and other pet-focused retailers but maintains an edge through its deep understanding of pet owners, proprietary technology, and strong relationships with both brand partners and offline retailers. Its early investments in private label brands and offline partnerships have helped build a resilient and diversified business model less reliant on third-party traffic alone.

Boqii serves primarily pet owners in China, with a user base that includes cat and dog lovers across urban and rural areas, particularly in economically developed regions. The company also serves pet product brands seeking marketing and distribution support, as well as over 15,000 physical pet stores and hospitals that receive product supplies and operational support through its offline network. As of March 31, 2025, Boqii had approximately 3.7 million active buyers and collaborated with around 742 brand partners, offering access to over 21,000 SKUs across its platforms.