Pet Industry in a Changing Economy

As an industry we have been extremely lucky with huge growth over the past decade, even during former tough economic times. But, nonetheless, it has people thinking and examining their own spending and business strategies

The changing economy on the pet industry is a mixed bag. For retailers, prices are finally reaching a point where even the most resilient in our country are starting to rethink each trip to the store. People aren't just hopping into the car to run out for a single trip. For a person to go specifically to a pet store, they need to get something they can't find anywhere else. And, if they're at a grocery store, they are more likely now to get their pet products there and save an additional trip. As a result, we see more non-traditional outlets carry pet supplies. This puts new pressure on pet stores to find compelling and creative ways to attract customers such as adding specialty services such as grooming or boarding. An added challenge to these stores is the rise in the use of the internet to shop as those purchases enable consumers to avoid the cost of gas altogether.

For more manufacturers, this economy is also a mixed bag. Because the pet industry is such a fragmented industry, in some cases the smaller companies are finding it easier to thrive than some of the larger, multi-product/multi-animal companies. Even higher end boutiques and products are feeling less of a direct impact because their consumer is less likely to feel the pinch of rising prices. But, we're seeing a migration away from middle of the pack items as those consumers are now looking for value priced products. This polarization is causing many companies to rethink where they are putting their emphasis.

Even with these changes, thankfully because we consider our pets part of the family, we will tend to cut back or stop spending in most areas before we cut back on our pets. While many are feeling pressure, the industry as a whole continues to grow. Pet specialty services, veterinary services and high end products are flourishing and driving the overall industry in an upward direction. I am confident that the pet indusry and the US economy will survive even this current bind. Things will change for sure, some of them permanently, but we will still move ahead. Today's successful business will respond quickly to these coming changes adn take advantage of their strengths to become strong competitors.

Comments

[Christine Matherson]

I hear that Crufts (The UK Kennel Club)is entering the United States show market next year and I am informed a stand alone North American version of Dogs Trust will be developed next year according to dogstrust.com. /
Dogs trust in the UK has HRH the Queen as patron and has a history going back 100 years. Will be interested to see who the U.S. patron will be "Mrs Obama" would be my choice

[Bob Vetere]

Jimmy thank you for your question.

When you try to sell an idea to a company, you almost always run into resistance to anything that was “not invented here.” Plus companies are understandably wary of looking at unsolicited proposals, since their own design departments may already be working on a similar idea. The best opportunity might be to locate a contract manufacturer who might be interested in producing their product and a manufacturer’s rep willing to market for them. We get some listings on the Referral section of the APPMA webpage, and the back pages of the industry trade publications also offer some manufacturing leads. Following up whatever leads they got at the Backer Show, and attending other regional pet industry shows might also pay off.

Bob Vetere

[Jimmy Slaughter]

Bob,
I need some help! We have been working on a project for 2 1/2 years and have gone as far as we can go. We have a patent on a design for products, that would apply to 79% of all pet owners. We even did a product design unveiling at the HH Backers Spring Pet Show in Baltimore this past May and had GREAT interest, our problem is we are not in the industry, and simple country boys, we put our efforts into everything need to patent, research, market knowledge, testing and proving. There is NO product like ours to go to this fact proven consumer market. Can you help us find some companies that may be interested in talk to us, it seems if your're not in the industry, you can't get past a secetary to talk to any one.
CAN YOU HELP !!!

[Bob Vetere]

Dear M

The current housing market is creating a number of challenges for those involved. While some have lost their homes and had to make alternate living arrangements it has not resulted in the wholesale abandonment of pets as some “news” articles have indicated. But there have been some pets that have been displaced. Many members of the industry are working with shelters around the country to help provide the supplies necessary to assist in caring for these pets as well as educating owners on handling pets in trying situations. In addition, many retailers are working with their local shelters to promote adoption of many of these animals.

Bob Vetere

[Marcy]

Hey Bob,
I've been thinking a lot about how the economy is affecting pet owners and therefore, the pets, themselves. For instance, I've heard that there has been an increase in shelter numbers because of the home foreclosure crisis. What are your thoughts on creative ways that the industry can make is easier for multiple pet owners to continue caring for multiple pets and for those who want to take on the care of more animals to help in this crisis? What can the industry do to help?
M