Retail Blog

Americans will spend $40.8 billion on their pets in 2007 according to the American Pet Products Manufacturers Association. Taken as a whole the pet industry is old and established. Some would say staid. But within the pet industry the luxury segment is smoking hot. Upper-middle income Americans love to spoil their companions and high-end items are must-haves for their furry, feathered and finned best friends. Faux mink coats, feathered French day beds, designer bird cages, botanical fragrances and even rhinestone tiaras are just some of the luxuries that are being lavished on our furry American friends.

These days it is better to be selling to the four-legged customers.

1. No dominant brands.

Not an authorized Chanel dealer? No problem. The pet fashion industry is wide open with hundreds of companies providing innovative designs.

2. What looks best wins the sale.

Without dominant brands the retailer is able to choose their line of fashion based on what looks best, instead of which brand is the hottest. Creativity and an eye for the new and exciting is all you need to build a winning line of pet fashion.

3. No dominant retailer.

Is Petco a player in doggy fashion? Please. Amazon? Not a chance. This market is wide open and just waiting for a winning retail brand to take the day.

4. Cross-licensing opportunities abound.

Hanes may have already locked down domestic rights to Spiderman 3 underwear, but that is probably for humans only.

5. More opportunity for innovation.

Human fashion is stuck in a rut. Milan? New York? The same labels every year. Where is the innovation? Pet fashion is booming and no one has an exclusive on the next big name in canine couture.

6. Faster growth rates.

Sales of pet services are growing at 20% per quarter at Petco. Pets are part of people’s families now and when momma needs a new frock you know that her best friend won’t be left out.

7. There is no last season.

Dogs don’t do seasons so there is less need for arbitrary markdowns.

8. Pet Fashion Week

August 18th, 2007 will mark the beginning of the second Pet Fashion Week in New York.

9. Doggy fashion has its own rag.

Pampered Puppy is the new Vogue.

10. Better margins.

All of the above helps to keep margins on doggy fashions healthier than their human equivalents.

Empty-nesters with fat 401ks, young couples delaying having children and pampering their pets — any way you look at it the apparel industry is going to the dogs. Smart independent retailers won’t get left behind.