I decided to write a series of articles on what it takes to get into the pet business. Why? I find that most of my clients, by the time we meet, have made so many mistakes that it is almost too costly and difficult to recover. If you can get some things right from the beginning, it will save you time and money. What’s in it for me? Hopefully you will have more money to build your business with Bulldog Marketing & Sales by generating awareness via advertising, SEO, SEM, PR, Promotions, Social Media, etc. rather than fixing your mistakes! Yes, pet is projected to be a $51 BILLION business this year. People tend to get really excited about that number, but before you jump in with both feet you need to do your homework. Most businesses start with a passion, which is great. I certainly don’t want you not to be passionate, but don’t be blindly passionate – know what you are getting yourself into.
Let’s begin…
The American Pet Products Association tells us that the pet products business is estimated to be $51 Billion in retail sales in 2011. But before you go running off and created the next dog food, let’s look at how that number breaks down.
Food, $19.53 billion, 38%
So this is a pretty big market. But be careful, it is extremely competitive and very difficult to break into. Food is one of the most loyal products a pet owners buys for their dog. It is VERY difficult to switch someone from one food to another. Usually the vet or breeder makes a recommendation and that is what the dog eats for the rest of its life. The business is dominated by a few major players (Nestle/Purina, Hills, etc. and several smart and nible players like Wellness and Blue Buffalo – what I feed my dog).
Supplies/OTC Medicine, $11.4 billion, 22%
Another big number, but considering this includes Flea & Tick products like Frontline
and Advantagemade Bayer Healthcare. APPA doesn’t break the number down further, but it also includes toys, beds, collars and leashes, etc. These are also fairly big markets and highly competitive. Some more than others. So enter with caution.
Vet Care, $14.11 billion, 28%
Unless you are a Vet, you can just lop $14 billion off of the $51 billion. This number includes the money you shell out each time you bring your pet to the vet. You could stop right here, get a medical degree and become a vet, but if that isn’t in the cards, read on.
Live animal purchases, $2.15 billion, 4%
I wouldn’t go into the live animal business. It’s difficult and controversial. So unless you are opening a store that sells puppies, I would stay way. Even if you are opening a store, you might want to consider not offering live animals. You don’t want to perpetuate puppy mills, etc.
Pet Services: grooming & boarding, $3.65 billion, 7%
It is believed that shampoos are included here as well as when you take your dog in to your local groomer. In my opinion, shampoo is the next most competitive item from dog food, so enter with caution.
Ok, so there is a broad look at the pet business by the numbers. What category do you want to get into and why? In my next article, we’ll cover how to decide what do do once you decide what category you want to get into and reveal which categories have the easiest path to entry.
