Previous articles in this series discussed the market, the supply chain, and the choices a upstream business faces. This final article is direct about us: why Petkin chose a non-retail distribution model, what specific commitments are involved, and what practical benefits each commitment brings to a point of sale considering a long-term sourcing strategy.
Market conditions led to a non-retail distribution model.
A business’s choices must begin with market conditions, not slogans. According to the Ministry of Agriculture and Rural Development, only about 5% of dogs and cats in Vietnam are eating specialized pet food, out of an estimated 27 million pet animals. This means the biggest challenge for the industry today isn’t competing for customers, but convincing a huge group of people who have never bought this product before. The data already answers where this task takes place: according to Mordor Intelligence, specialized stores, including pet shops and veterinary clinics, account for approximately 72.44% of the industry’s revenue. Putting these two figures side-by-side, the conclusion becomes clear. A successful importer’s success or failure lies in the number of outlets actively promoting their products daily, not in the sales of a single store they operate. For distributors, this means you hold the most crucial link in the chain and should choose a partner who knows how to properly value that role.
What does a non-retail distribution model mean in daily operations?
It’s easy to say we don’t sell retail, so we need to define it with verifiable actions. For Petkin, that means we don’t open physical stores for walk-in customers, we don’t operate e-commerce stores selling directly to end consumers under any name, and we don’t accept individual orders via our fan page and deliver them directly to pet owners’ homes. All goods leaving our warehouse go through a contracted partner. But it’s also important to clarify what “non-retail” distribution model means, to avoid misunderstandings. It doesn’t mean Petkin is outside the consumer market: we still create content, build brand awareness, and survey pet owners. The difference is that all needs arising from those activities are routed to the nearest point of sale instead of being kept to ourselves. Dealers should measure a supplier by these four actions, as they are verifiable, not subjective.
First commitment: legitimate source of goods and accompanying documentation for each shipment.
The first commitment lies in the input. Petkin imports through official channels, registers ownership of the entire shipment, and is responsible to the regulatory authorities for the products it brings to market. Pet food in Vietnam is regulated like animal feed under the 2018 Livestock Law and Decree 13/2020/ND-CP, so each product must be legally declared before circulation, and each batch must undergo quarantine and quality control. Therefore, officially sourced goods are not just an advertising slogan but a complete set of documents: a certificate of free circulation, a factory certificate, a list of ingredients, an analysis report, a properly affixed Vietnamese label, and a batch code traceable to the production date. This commitment benefits distributors in very specific ways. When customers inquire about the origin, you have the documentation to present. When authorities inspect your point of sale, you don’t have to explain on behalf of anyone else. And if a bag of food has a problem, having the batch code means there’s a way to handle it.
Second commitment: tiered wholesale pricing and handling of price dumping.
The second commitment lies in pricing, and it has two parts. The first is a tiered wholesale price list based on volume, published in writing, clearly stating the conditions for advancement to the next tier and the review schedule. Dealers know their current tier, how much more they need to sell to reach the next, and that their neighbors are subject to the same rules. The second is a unified suggested retail price nationwide, along with a mechanism for dealing with price undercutting: warnings, discount reductions, and supply suspension if the offense is repeated. Price protection is only truly effective when it’s enforced against dealers, not just suppliers. The benefit of this commitment for a point of sale is a predictable profit margin. When prices are stable, you can confidently import more, invest in displays and sales staff, instead of maintaining minimum inventory to guard against future price drops.
Third commitment: delivery does not mean the job is done.
The biggest risk for a pet shop with limited capital isn’t slow sales, but rather tied-up capital tied up in uncollectible inventory. Therefore, Petkin’s commitments to its distributors extend beyond the delivery date. Defective goods due to manufacturing errors or damage during shipping are exchanged and not counted towards sales targets. Near-expired goods are handled according to an early detection principle: we monitor the age of goods in the distributor’s warehouse throughout the ordering cycle, proactively suggesting rotation to faster-selling areas or supporting programs to push inventory before the deadline becomes an issue. For batches with questionable quality, a batch code allows for localized recalls instead of shifting blame. The practical implications are clear for those opening a retail outlet: inventory risk is shifted to the source, where there are larger warehouses and more distribution channels. This is also why distributors should inquire about this mechanism in writing before placing their first order.
Fourth commitment: training and sales tools for each counter.
In this industry, what often determines a sale is ten minutes of consultation at the counter, not the discount. Customers ask about breed, age, weight, digestive status, and how to switch from old to new feed. If the staff can answer, they sell high-value products and retain repeat customers; if they can’t, the customer will pull out their phone, look it up, and buy elsewhere. Petkin takes on that training because we do it once for the entire system, whereas individual stores doing it themselves is costly and lacks sufficient data. Specifically, this includes product documentation written in sales language, not just a translation of the packaging; scripts for handling frequently asked questions; training sessions for new staff; high-quality images for posting; and suggestions for shelf layout based on actual space. For dealers, the value lies in their consulting ability, which is the hardest barrier for e-commerce platforms to overcome and also the hardest to replicate.
Fifth commitment: the portfolio tracks the true movement of demand.
A distributor can easily make mistakes by selecting products based on intuition or negotiated terms with the factory, then passing the consequences down to dealers in the form of import quotas. We try to avoid that by focusing on measurable trends. According to Mordor Intelligence, the cat product segment is growing at approximately 8.27% annually until 2031, while the nutritional supplements and functional products segment is the fastest-growing at around 11.62% annually. These two figures guide Petkin’s new product line: increasing the proportion of cat products and deepening the functional nutrition segment, rather than spreading the product range too broadly. The benefit for dealers is that they don’t have to guess market trends and avoid paying the price of unsold products. The product range is pre-screened, each new product has a commercial rationale, and this helps a store with limited capital invest wisely from the very first import round.
What does Petkin expect from the dealer in this two-way relationship?
It would be dishonest to list only one party’s commitments. A distribution relationship is only sustainable when both sides are responsible, and these are what we expect. Firstly, maintaining the suggested retail price, because a single point of sale undercuts the very system that is being protected. Secondly, selling through consultation rather than promotions, meaning sending personnel to training sessions and applying the knowledge in practice at the counter. Thirdly, placing orders according to plan rather than waiting until everything is sold out, because import cycles are measured in months, and inaccurate forecasts at the lower end will lead to shortages at the upper end. Fourthly, providing honest feedback on products, including negative feedback, as this is data we have no other way to obtain. Petkin, the distributor of Pet Food, considers these four points as the dealer’s contribution to the common asset, not as burdensome conditions.
How does a pet shop start a pet distribution partnership?
Our Pet Food distributor recruitment process is intentionally kept simple but rigorous. The first step involves discussing the area, store size, product range, and existing customer base, allowing both parties to assess the brand’s potential in that store. The second step is surveying the density of sales outlets in the area, as opening too many outlets at once can lead to price wars among partners. The third step involves finalizing pricing tiers, initial orders, and terms and conditions in writing. The fourth step involves handing over documentation, training staff, and setting up a showroom before opening for business. Things a pet shop should prepare before starting a pet distribution partnership include a dry, sun-protected warehouse, sufficient working capital for several turnovers, at least one staff member willing to learn about nutrition, and a system for recording returning customers, even if only through a notebook. If the first three are missing, it’s best to postpone signing the agreement.
Why is the non-retail distribution model suitable for this period?
This model is slow, and we don’t hide that. Each new market requires waiting to find the right partner, each order requires profit sharing, each untapped area requires patience instead of opening a sales booth immediately within a week. But speed is only a priority in a saturated market, where growth must be seized from competitors. The Vietnamese market is the opposite: 95% of livestock are not yet using specialized feed, and most of those conversion decisions are made after a conversation at a sales booth. Whoever builds the most such booths in the next ten years will hold market share, and no importer can replace thousands of those conversations with advertising alone. That’s the whole reason Petkin chose a non-retail distribution model and placed commitments to dealers at the heart of it. If you’re building a long-term supply chain, require all suppliers to provide written responses, including us.