New figures released today by Euromonitor International the global market intelligence publisher shows that internet retailing has been the fastest growing channel for the pet care market over the last five years, growing by an amazing 90 per cent. According to the study, factors that have led to the growth include:
- Online shopping is available 24/7, 365 days per year
- Convenient and easy product comparisons
- Competitive pricing
- Growth of smartphone usage for online shopping
Paula Flores, head of pet care at Euromonitor International, said:
“If we dive into the differences among regions we can see that over 17% of total pet care sales are online in Asia Pacific. This is really quite relevant and indeed quite a high percentage share and it is related with the fact that Asian pet owners are young and very technological with a very strong penetration of mobile phones and where the digital space is quite developed.…
“In China, leading manufacturers have adjusted their distribution strategies to pay more attention to this growing channel, by opening official online flagship stores on the leading B2C platforms in China, such as Tmall.com and JD.com.
“In Western Europe it accounts for 8% but the pace has been picking up with such strong markets as the UK where retailing is quite developed and consumers are very used to online shopping.”
The figures from Euromonitor International are no surprise as the pet market has been one of the areas of retail that has been slow to take up ecommerce. Whilst areas such as fashion, tech and beauty have been quick on the uptake with ecommerce, pet retail has been much more resistant to the move online….until now.
PetSmart’s Acquisition Of Chewy
Perhaps the biggest sign of this was recently when PetSmart, the US based pet supplies and accessories retailer acquired fellow online pet store Chewy for $3.35 billion in what is thought to be the biggest ecommerce deal of all time, overtaking the $3 bullion price tag that Walmart paid for Jet.com.
Talking about the deal and the rise of ecommerce in the pet industry, Henrik Werdelin, co-founder of Bark & Co., the company behind the dog toy subscription delivery service Barkbox said:
“Maybe it’s because the dogs are so amazing and so cute that people expect the industry to be the same…. People are willing to spend the extra buck because they increasingly see their dogs as more of a household peer in their own right. Hence the rise of terms like fur baby and dog mom. The industry is expanding not necessarily because people are getting more dogs but because they see them more as family members, and therefore, they spend more money on them.”