The world has come a long way since the economic meltdown in 2008. As economies have stumbled back to a path of growth and markets have risen, so has the amount of disposable income available with people. This has given rise to a new set of pet owners- those who are willing to go to any lengths to get the best for their pooch.
Just like us, pets have specific nutritional needs. No two pet foods are the same and neither should they be offered to your pet that way. Pets can also not adapt very well to a human-focused diet, as that gives rise to diseases, health issues and affects the general well-being of pets.
Several online startups have taken it upon themselves to disrupt the existing pet meal industry. By offering innovative services, they are ready to take the pet nutrition industry by storm.
Of the many business models available today, the subscription-based business model is the most popular. The subscription-based model allows pet parents to order what they can comfortably afford, along with a greater capability of customization and specification according to the pet’s needs.
These plans also offer variety, ensuring that the pet is not given the same thing to eat daily. The pet does not get bored with the food on offer and the pet parents do not have to worry about whipping up something new every now and then.
How does this work?
Here’s a description of how these services work:
1. The pet parent visits the website/downloads the app and registers online
2. An option to choose a recurring subscription or a one-time single incidence charge is offered to the pet parent
3. The details of the pet are added to the app
4. A ready-made diet or a customized diet is chosen as per need.
5. Food for the pet is delivered on a regular or a one-time basis until the user chooses to discontinue the service.
Although the online pet nutrition service is not a new industry per se with many existing pet food companies offering products online, there are innovators and startups that are taking this industry by storm because of the services and the level of customization they offer.
Top service providers in this fray include:
Most of the pet nutrition startups gather their revenue from subscription services. Some offer extra tailor-made services that can cost extra, but their goal is to ensure that the customer stays with their service for long-term, ensuring a steady source of income for these businesses.
Primary Revenue Model:
As with every subscription service, pet nutrition subscription services gain their revenue by ensuring that the customer gets their meal delivered at fixed intervals and the business earns consistent revenue.
Secondary Revenue Model:
The secondary revenue model for most pet nutrition providers are associative services that include:
Merchandise: offering company-theme branded merchandise can help boost revenue for these companies.
Associated products: Selling pet-focused products can help boost revenue as most buying nutritional products might also want to buy other similar products from the same provider.
Referral: offering discounted pricing, referral programs and special benefits to long-term customers can help boost revenue by enhancing sales and getting additional customers on board.
1. Reviews and recommendations: As services get popular, reviews and recommendations help them get further customers.
2. Interest groups: Social media helps companies create interest groups. These groups can help others in making purchase decisions and provide guidance from experience.
3. USP: A USP is important to stand out from the crowd. Specials, unique offerings, customization and a level of nutrition unmatched by others is what most pet parents strive for.
The pet nutrition market has shown no signs of slowing down. With the new breed of innovators on this bandwagon, there are few who wish to miss this opportunity in this ever-expanding market that has infinite options to stand out from the crowd.
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