Pet industry leaders catch up after 2 challenging years

Since the start of the pandemic, the consolidation of new ways of purchasing – especially omnichannel and online retail – is making the pet market more competitive, as well as causing operational challenges.

Omnipresence in omnimarket

According to Cate Trotter (photo below) from Insider Trends, logistics are becoming more and more invisible and customer engagement is done in stores, but also through digital channels. “The best retailer for your products and services is you,” she pointed out.

Jodi Watson, board member at PetMed Express, recommended pet companies disrupt themselves before a new competitor can disrupt them. This, she remarked, is especially important now that competition between companies is fiercer than ever before. She recommended players within the pet industry expand their presence in omnichannel: “Companies that do this well will win.”

Jodi Watson also stressed the importance of ‘omnimarket’, a term coined by Packaged Facts. It refers to a new competitive era in which pet industry players aren’t simply competing across brick-and- mortar channels versus the Internet, but crossing former borders between medical versus non-medical, products versus services, food versus non-food products, as well as taking into consideration pet owner demographics. “Speed is better than perfection in the omnimarket environment,” she concluded.

The power of telling a (good) story

The pet food segment is in a process of transformation: from product customization to individual premiumization. And customers are asking pet brands to be fully transparent in their messages and actions.

“Premiumization is about who we are, it is about managing our brands,” Alison Angus, Head of Innovation at Euromonitor International pointed out. Premiumization is also leading consumers to make purchasing decisions from an emotional perspective. In fact, brand and storyteller, Cor Hospes highlighted that in order to capture consumer attention, empathy should be at the center of any sales-related activities or communications. “Emotions are so important, they are the main ingredient for all stories,” Hospes told the delegates.

Hospes also shared some valuable tips on how to prepare to create the best story. Most importantly: know your audience! If you know what their wishes and dreams are, you can create a message that effectively taps into their needs and wants. Second, make your audience the main subject of your communications.

Making the audience a brand in this way “will enable you to shape their thoughts and actions.”

“Consumers want to see real action, not just statements,” added Euromonitor’s Alison Angus during her presentation.

Constantinos Pantidos from Brand Aviators shared the importance of engagement in branding: “To outsell the competition, your brand must be automatically authenticated by the brain.”

Peter Heshof from BLOOM Agency remarked that smart well-being, storytelling, science, data and customization will be driving the pet market by 2025. According to Heshof, companies can make a product “more snackable” if they use science and technology to back up their claims.

Changing ecosystem?

As for retailers, their view on things is that the offline channel is still a critical part of their ecosystem. Johannes Steegmann, Managing Director at Fressnapf, pointed out that, despite the fact that omnichannel “is the right strategy”, he is not in favor of a strategy of “cannibalization” of e-commerce versus brick-and-mortar.

The e-commerce business of the German pet retailer grew by 54.1% in 2021, whereas offline purchases showed a smaller increase (+18%). Not surprisingly, the company recently expanded its e-commerce distribution structure, setting up B2C logistic plants in France and Poland.

The same trend can be seen at UK pet retailer Pets at Home. In 2020, the company achieved 36% of its total retail sales through online. “Consumers have the power, they want everything done quicker, faster and cheaper,” remarked COO, David Robinson.

Over the past 2 years, Pets at Home has invested $23.9 million in implementing a digital business strategy. The retailer’s response to same-day home delivery is the setting up of distribution centers and more click-and-collect systems in their brick-and-mortar stores.

At the end of the day, the “ambitious” objective of the British company is to become a pet care business offering a combination of services, products and distribution options. Robinson concluded: “We are no longer a pet shop!”

Lifelong customers in an omnimarket

As pet parents continue to set higher demands and want ever quicker, convenient solutions, the lines between the various sales channels are blurring. How can retailers and brands stand out in this environment? And how can you turn a one-time customer into a lifelong fan?

These are some of the questions that leading players in the pet industry, as well as trend watchers and a Gen-Z expert, will be answering during the next edition of the GlobalPETS Forum, which will take place in Berlin, Germany from 25 to 27 January 2023, focusing on ‘Lifelong customers in an omnimarket’. 

Founder GlobalPETS steps back

During the event, Corine van Winden, long-time CEO and founder of PETS International and GlobalPETS, announced that she’s taking a step back. After 30+ years of turning GlobalPETS into a successful publisher, she now looks forward to the next step.

“Dear Corine, enjoy your well-deserved retirement. You will be missed by us and the whole industry!”
The GlobalPETS team