PET PRODUCTS groups: baby boomers and millennials. Baby boomers are launching their real kids into the wild and replacing them with pets and they are pampering them. In almost all spending categories, spending declines once a person reaches 55 years of age – but pet spending is peaking between the ages of 55 and 64! Millennials – people born between 19852010 – are probably the first generation to grow up thinking of pets more like humans than animals. They are finding their independence and have disposable income – and they are buying pets and spoiling them. Economics Pet industry revenue has shown growth even during times of economic trouble, including the recent recession, so it only makes sense that the current relative economic strength bodes well for continued industry strength. Competition Competition is fierce – even with so many pets requiring so many things, there are a lot of businesses to deal with them. Large companies like Petco leverage their buying power to offer low prices, while individual people can easily offer affordable dog walking and sitting services. So what are the key opportunities? Niche or specialty offerings give the best opportunities. Among some are stores selling foods with special ingredients or health benefits, training services and grooming services. And, of course, licensing is playing an increasingly high profile within this sector. More and more licensors are working with pet product companies that generate hundreds of millions in revenues. For example, Rubie’s Pet Shop Boutique has a multitude of licensed costumes - for dogs, including Superman, Princess Leia, Batman, Wonder Woman, Minions, Scooby Doo, Tigger, Winnie the Pooh, Snow White, Captain Kirk, Donald Duck and Cinderella. On the brand side, last year Sequential Brands saw the launch of Martha Stewart’s new quality, functional and innovative products in association with partners Design Lab
PAGE 26
Those Licensing People recently confirmed that it has brokered an agreement, believed to be the first of its kind in the pet licensing category, on behalf of its client A&B TV, the IP owners of classic British TV series Roobarb & Custard. Those Licensing People has developed a direct-to-consumer product line, which will see a range of premium dry pet foods produced in the UK under a brand called Two Near The Bone. Launching in early April, there will be three different flavoured dog food SKU’s - under the product label When Roobarb Made a Dog’s Dinner. Those Licensing People have worked closely with A&B TV to bring to market the first licensed dog food brand that is ethically and sustainably produced under stringent factory conditions in the UK. Two Near The Bone’s dedicated consumer-facing website will appeal to dog owners aged 20+ familiar with Roobarb & Custard and with an interest in providing their pet with high quality, nutritious food. The dog food range will be delivered direct to customer’s homes in specially sourced, recyclable-ready bags from Law Print Packaging. The launch will be supported by a consumer marketing and PR campaign delivered from March onwards by the agent’s recently appointed agency, Grapevine Global PR, with whom it has a long-standing partnership. Adam Sharp at A&B said, “Initially we will deliver direct to consumers in line with today’s retail trends. Two Near The Bone’s dedicated website enables us to engage with our customers on our brand proposition, USP’s and other SKU’s, although we certainly haven’t ruled out bricks and mortar retail partnerships in the future. TLP were given a tough brief and we’re absolutely delighted with the direction and care they’ve taken. We’re looking forward to getting these great products to market and believe that the nation’s dogs and owners will give us their paws and thumbs up!” The global deal, which has been signed for an initial three years, is expected to expand into cat food associated with the Custard, Roobarb’s feline friend from the TV series, and is already in the early stages of development. Inc and Fetch for Pets. And Stewart sums up what many consumers think. “I consider my pets part of my family, and it is important to me that they are well taken care of. With this line, I am excited to provide pet owners quality, innovative products to ensure their pets are happy, healthy, well cared for and sensibly and very beautifully dressed.” And technology is playing an increasing part. The Wagz Smart Collar enables owners to create virtual fencing anywhere, right on their phone. And Wagz are not the only provider of technology aimed at the pet market. Regardless of the economic situation, pet products, in common with children’s products, will
continue to see growth across all sectors of the market. And, from a licensing standpoint, that can only bode well for the coming years. And it’s not just the US that is mad for their pets. The pet products market in the United Kingdom was estimated to be worth $4.5 billion in 2016 and is forecast to grow steadily for the next five years, with recent experience showing that the industry is recession-proof. Owners regard their pets as members of the family and will not neglect or deprive them any more than they would their children. As a result, they invest precious amounts of money to keep then healthy, happy, wellgroomed and very well fed. TOTAL BRAND LICENSING