Hema Founder Hou Yi’s Pet Venture “Pet Fresh Life” Enters Major Restructuring Less Than a Year After First Store Launch

Blue Whale News reported on November 15 that Pet Fresh Life, the fresh-pet-food brand founded by Hema creator Hou Yi, is undergoing a wave of large-scale store closures. Data from Dianping shows that out of the brand’s 18 locations, 7 are now marked as “temporarily closed” or “shut down,” with some stores having operated for just over three months.

The brand’s very first store opened in February 2025, immediately sparking discussion across the industry. Within just two months, Pet Fresh Life had expanded to 10 stores, spanning pet-friendly formats, mall locations, and neighborhood shops. On May 7 this year, the company announced a USD 25 million (approximately RMB 177 million) angel round — one of the largest angel investments in China’s pet industry in recent years.

Pet Fresh Life initially captured attention with its “pet malatang” model, where owners could select fresh ingredients and have meals prepared on-site. Its signature line, the “Daily Fresh Bento,” emphasized freshly made, same-day sales, with prices ranging from RMB 9.9 to 39.9.

Beyond fresh meals and pet bakery products, Pet Fresh Life also offered staple foods, snacks, medicines, supplements, toys, and more. Hou Yi previously revealed that more than 50% of the assortment came from the brand’s own private-label lines. These private-label items were positioned with clear price advantages — for example, its self-branded cat treats typically sold for RMB 0.6–1.5 per stick, with most products priced under RMB 10.

The company had originally planned to deepen its presence in the Shanghai market, targeting 100 stores in 2025 to achieve full coverage of major districts. Based on current developments, that goal appears increasingly out of reach.

A Blue Whale reporter visiting several remaining open stores found them conducting clearance sales marked at “50% off everything.” Many customers were stocking up, and some shelves had already been emptied. Staff at the stores gave mixed explanations — some said the sale was due to upcoming relocations, while others suggested the brand may shut all offline stores and shift fully online.

According to Linkshop, Hou Yi responded to the closures by saying, “Business adjustments are normal.” Sources also indicated that all stores will eventually be closed, and Hou Yi may shift his personal focus toward livestreaming in the fresh-food sector.

Fresh-made pet food has been one of Pet Fresh Life’s core selling points and a rapidly rising trend in the pet industry this year. With pet owners placing greater emphasis on health-focused feeding, major brands and manufacturers — including Royal Canin, Hill’s, Blue Buffalo, Pure Natural, and Fubei Pet Food — have been accelerating their entry into this segment.

Euromonitor data forecasts that the global fresh-pet-food market will surpass USD 4.5 billion in 2025, with a compound annual growth rate of 21.3%, far outpacing the 5.2% growth rate of traditional dry food. Yet in China, fresh food accounts for less than 5% of the market, sharply lower than the U.S. penetration rate of 36%. Hou Yi himself has publicly acknowledged that one of the core challenges for the category is the lack of dominant, recognizable brands.

Industry experts note that fresh food is not an easy business model. Ingredients are not the most expensive component — rent, labor, equipment, and cold-chain logistics drive the majority of operating costs. For brands using HPP (high-pressure processing) technology, production lines can cost tens of millions of RMB. Additionally, formulation for fresh pet diets must account for species, size, and functional needs, and industry-wide standards are still far from unified.

Pet Fresh Life has not yet issued an official public statement regarding the large-scale store adjustments. However, its experimentation and next steps carry significance for the broader sector. Industry insiders report a clear rise in fresh-food entrants this year, along with strong growth in consulting requests and OEM orders. Market education is underway, new group standards are set to be released, and the fresh pet food market continues to show substantial room for growth.