Business Strategy - the Pet Economy

The Pet Economy

Superstar

University

540: Business Strategy

January 26th, 2015

Animals and humans have been living together for millions of years, but the past 50-100 years have been an amazing change in their relationship. With the change in time people have changed their perception, their attitude, their relationship towards animals. In the past animals were treated very badly and today most of the people consider them as part of their family. The quality gap between two-legged and four-legged mammals is rapidly disappearing in such industries as food, clothing, health care, and services.

Today pet owners’ attitude has changed towards their pets. Unlike in the past where animals were treated only for their products, herding, pulling power, hunting, protection and were never allowed in the house to enter, almost never in the bedroom. But time has changed today, pets are not only used for their products and work, but kept in the house for companionship. Current studies show that 50-70% of the dogs and cats sleep with their owners in their bedroom. As per current statics Americans alone spend $41 billion a year on food, medicines, and services of, their pets and is expected to grow to $52 billion in the next two years. This clearly indicates the closeness of a relationship and a major change in attitude towards treating pets. Today, most people consider pets as part of their own family.

Pet owners are becoming exceedingly demanding consumers who don’t want poor products, inferior services for their animals. After electronics, pet care is the fastest-growing market and attracting eyeballs of an entrepreneur. For example, they want hotels instead of kennels, braces crooked teeth, professional grooming, branded outfits, toys, spas, organic meat, vegan snacks, birthday gifts, vacations, plastic surgery, etc. This all rising the volume and cost of services According to IBIS world, most of the money spend on pet food that is 52% of the totals pet’s market, then pet supplies, services and others.

The Food has become one of the most important issues for pet owners. They are more inclined and concerned about the nutrition, taste and ethical standards of what’s going into their pet’s stomach. They are willing to spend anything to get the best food for their pets, including organic meat, vegan snack, flavored chicken. Also other attracting part is animal medicine where drugmakers have less risk of liability, competition and less pressure as compared to human drugs. The way this market is growing have forced different companies to focus and invest