Katja Schell with Eric and Dolly
Coleman Media Ltd
People may be feeling the squeeze on their finances, but when it comes to their pets, they’re willing to spend, with the luxury pet market proving incredibly buoyant. Data from MoneySuperMarket revealed that UK pet owners spend almost £500 ($620) a year on luxury items for their pets, from designer clothes and luxury bedding to toys and gourmet treats, with seven in 10 willing to spend more on luxuries for their pet than for themselves.
One of the drivers of this trend is the increase in pet ownership, particularly dogs, during the lockdown. In total, 3.2 million UK households have acquired a pet since the start of the pandemic, according to numbers from UK Pet Food, formerly the Pet Food Manufacturers’ Association, which has created opportunities for entrepreneurs wanting to enter this lucrative market.
Katja Schell opened her luxury doggie boutique, Eric & Dolly’s, three years ago. Named after her dogs, Boston terrier Eric and English bull terrier Dolly, it stocks a range of stylish dog accessories from leading global brands.
“People enjoy spoiling their dogs because it makes them feel better, and they’ll treat their pets before they treat themselves,” Schell says. “A customer, a girl, came in to spend her birthday money on something nice for her dog. People love high-end accessories, coats, harnesses and toys, but for for many customers, just buying a small gift for their dog brings them a lot of pleasure.
Location has been key. The store is located in the village of Burnham Market in Norfolk. Often referred to as Chelsea-on-Sea, for its vibrant social life, upmarket businesses and wealthy residents, it has an exclusive reputation. It is also a tourist hotspot, very popular with dog owners.
Schell gave up a successful career in recruitment to start her business, an experience she describes as challenging. He said: “I’ve never worked in retail, so getting the stock right, even learning how to use a till, was a steep learning curve, but within six months, I know what my customers want. I have a lot of confidence in people and their dogs and like to interact with them in the store. Personal service, for example fitting harnesses and coats and making a big dog excitement, is a big part of our success.”
He also faced a difficult start due to the pandemic. The shop was ready to launch in April 2020, just as the lockdown happened. It finally opened in June, but it wasn’t until the following year that things returned to normal.
Recently, the biggest threat to retailers is the cost of living crisis; but not, apparently, for those in the luxury pet industry. “The cost of living crisis has not affected the business,” Schell said. “People still want stylish things that are also practical, and buying them for their pets is a great feel-good factor. I’m not surprised that this market is so competitive.”
Entering the market requires thorough research, as more and more businesses targeting the luxury end of the pet care industry are springing up. Being a pet owner presents its challenges, so brands need to understand and address them, as Kimberley Howard, a cultural analyst at insight market research agency Verve, explains.
“Exploring the pet ownership journey, with its pains and pleasures, can reveal transformative opportunities,” she says. “For example, CocoPup is a luxury pet bag brand. Recognizes dog walkers need to multitask, carry treat pouches, water bottles, leads, etc. all in one trip, they’ve created stylish pet bags with clever storage compartments for ease.”
It is also worth studying the trends in human products and even babies. “Pets are more important to people today than pre-pandemic; in fact, people increasingly view their pets in the same light as children, or even choose pets over kids,” Howard said. “Businesses can look to emerging trends in baby products to predict what may be next for our pets. Trends often follow. From natural and organic foods to sensory play and conversation, looking at these parallel spaces can help inspire change.”
Another factor in the emerging sector is the impact of social media influencers. Jenny Tsai, founder and CEO of influencer effectiveness solution WeArisma, said: “The UK pet market is worth £5.9 billion and with 37% of Brits saying they would buy products for their dog based on recommendations on platforms like TikTok and Instagram, we have seen an increase in the number of ‘petfluencers’.
“It has become an important marketing channel for luxury brands with pet lines such as Gucci, Celine and Moncler. According to our influencer analytics, since the beginning of 2022, these luxury brands have generated media value of $4.8 million and over 3.1 million interactions across major social channels on their luxury pet collections.”
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