CONSUMER

TRENDS
AND HOW THEYLL AFFECT
YOUR PET BUSINESS
 RETAIL IS ROCKING!

2007
Strong economy fueled by
housing
Baby Boomers not yet retiring
Millennials just leaving college
and hitting job market
Conspicuous consumption
We love strong brands
Social media rocks
Well buy the best
Retailers have enormous
power
 THE RETRAINING OF THE
AMERICAN CONSUMER
2007

RECESSION
Strong economy fueled by
housing
Baby Boomers not yet retiring
Millennials just leaving college
and hitting job market
Conspicuous consumption
We love strong brands
Social media rocks
Well buy the best
Retailers have enormous
power
 A NEW WORLD

2007 2017

RECESSION
Strong economy fueled by Fair economy, indicators good, but
housing & easy credit recovery has lagged
Baby Boomers still working Just returning to 2007 income

A Decade Later We
levels
Millennials just leaving college
and hitting job market Savings rate up
Retailers have enormous Consumers have enormous power

Dont Shop The Same

power
Were value-minded
Conspicuous consumption
Millennials now setting the trends
We love strong brands
We hate being marketing to
Social media rocks
Experience matters more than
Well buy the best brand and even product
WOM! Social media is just noise.
 A NEW WORLD

2007 2017

RECESSION
Strong economy fueled by Fair economy, indicators good, but
housing & easy credit recovery has lagged
Baby Boomers still working Just returning to 2007 income
levels
Millennials just leaving college
and hitting job market Savings rate up
Retailers have enormous Consumers have enormous power
power
Were value-minded
Conspicuous consumption
Millennials now setting the trends
We love strong brands
We hate being marketing to
Social media rocks
Experience matters more than
Well buy the best brand and even product
WOM! Social media is just noise.
 MY HOW
THINGS HAVE
CHANGED
Netflix
Uber / Lyft
Twitter
Amazon
Innovative and Confusing Category
Good to High Quality Products
Deep Assortment
Product Expertise
Tout savings, but not at all shy
about prices
Not the only retailer exclusive to
this category
Innovative and Confusing Category Good Enough / Consumer Quality
Good to High Quality Products Let shoppers learn somewhere else
Deep Assortment Select Assortment
Product Expertise Affordable Value Pricing
Tout savings, but not at all shy Where Im shopping anyway
about prices
Not the only retailer exclusive to
this category
Does this ring a bell?
 THE NEW RETAIL

Immediate, Personalized,
and Increasingly
Affordable
 NEVER EVER EVER FORGET:

THE CONSUMER IS EVERYTHING

CHANGING CONSUMER:
THE PET PARENT
Weve gone pretty high-end because of
20 years of good times.
Average pet HH spending rose 52%
between 2000 and 2010, but most of this
growth was inflationary.

White Households account for 80% of pet

spending, and Females account for 80% of
pet caretaking.
Weve been slow to reach out to anyone
else.

So Now What?
 CONSUMER SHIFTS!
THINGS GOING ON IN YOUR WORLD

Economics
Age and Youth
Diversity
Urbanization
 MILL. ENN. IALS.
At least 80 million of them Will still account for 1/3 of retail spending by
2020 due to sheer numbers
45% of 18-24 Year-Olds in the US are part of a
minority group Smart shoppers
By 2025 millennials will make up 75% of the Access, not ownership. Experience, not product.
global workforce.
Expect transparency, communication, and great
Without millennial immigrants there would be corporate citizenship
18 million fewer working age adults in U.S. by
2035. Value & Authenticity
Make less than other generations did at this Not fans of corporations
lifestage. Love disruption
Thoroughly and painfully educated in finance - Deal, not brand motivated
entered the job market during and after the
recession, in a poor job market. Order off-menu. Customize everything.
$1.4T in student loan debt - $30K-$40K on 70% believe others need to hear their opinions
average
Now own more pets that the Boomers
63% do not have credit cards
Not Pet Channel Shoppers

Do you know how to sell to this? Are you?

WHATS YOUR STRATEGY?
 QUESTIONS YOU SHOULD BE
ASKING YOURSELVES REGULARLY

Who is your
What can put you
consumer? Who
out of business
will it be
tomorrow?
tomorrow?

Who is your What are

competition?
Who does your
you doing
consumer think to change
that is? your game?
 Count on change.
Never think youre smarter than
the future.
There is no reason for any individual
to have a computer in his home.
-Ken Olsen, President, Digital Equipment, 1977

handy tip
Youd better pay attention to all
markets, and youd better be
operationally solid and
strategically focused.
Thats now price of admission.

handy tip
Identify what you can sustainably
do fastest, cheapest, and best (or
even better completely
differently), and make that your
calling card.
You can beat the Golden State Warriors, but not
at basketball.

handy tip
 Theres now too much intelligent
competition to play the field.

Time to lock-in on a specific consumer segment or

two, master them, and own them.

handy tip
 Be High-end.
Be Low-end.
Beware the Middle.

Dont be in the center of a red ocean.

handy tip
Only your customers really know
what they want.
Ask them. All the time.

handy tip
Learn to engage your customers
outside the store.

Theyre tired of coming to you.

Reach them where they are.

handy tip
Customers should be your best
salespeople and advertisers.

Over 90% of consumers say they trust

the recommendations of family and
friends more than any other kind of
advertising.

handy tip
Quit selling the product.

Sell the experience.

Starbucks isnt just selling coffee.

handy tip
 Not all pet owners dislike
Science, and they dont all fear
China
FDMCD shoppers think these are fine.

handy tip
 Not making a trip, having
something quickly delivered, and
paying less beats going
somewhere and paying more all
day long.
How will you make up for my inconvenience /
cost?

handy tip
Price is someones new innovation.

When it comes to pets, consumers will buy the

best brand they can afford up to the level of their
guilt assuagement.

handy tip
 Sharks always have to be
swimming. You too.
If you are not disrupting, prepare to be disrupted.

handy tip
 Noodle on these
Small dogs and cats will continue to increase in popularity
Small animal and aquatic struggling
More and more pets are living in small, urban apartments
Pets are spending more and more time alone
FDMCD channels aggressively pursuing affordable / value
naturals.
Hardgoods driving traffic into pet stores
Customizations from food to hardgoods will continue
to grow in popularity
Ready-to-eat and single serve / On the go

handy tip
 Free opportunity for the taking
Pet owners like Pets owners do not like
Excursions Daily Walking
Companionship Feeding
Petting Grooming
Sitting Cleaning up waste
Treating Boarding
Training

Which of these things can you solve for them?

handy tip
 STRATEGIC HINTS FOR TOMORROW MANUFACTURERS

Have a plan
Whats your niche what do you do better than
everyone else?
Know your competition
Have a complete line
Have a strong brand or be the low cost leader
Help retailers sell your product how will you drive
traffic?
Spend some money
Protect your Intellectual Property (IP)
Be data and trend smart
Get a Channel Strategy
 STRATEGIC HINTS FOR TOMORROW
RETAILERS

Have a plan
Whats your niche what do you do better
than everyone else?
Be good partners with manufacturers
Consider selling some product make some
money on volume, not just margins
Know your market / neighborhood be local!
Got theatre?
Got knowledge?
Got something unique that drives traffic?
 YOUR NEXT STEPS
Acknowledge that changes are happening
How might they affect you?
How might you capitalize?
What are three immediate things you can
start to do differently?
Rinse & Repeat
"The best time to plant a tree is 20 years ago.
The second best time is now.

-Chinese Proverb
 Delivering the best sales, brand building, and retail services everywhere pet products are sold.

Michael_Johnson@clareps.com 801 671 9844