IN THE dog-eat-dog world of recession and falling consumer spending, pets seem to be holding their own.
The World of Dogs & Cats pet exhibition in Johannesburg last weekend pulled in about 22000 visitors, a fifth more than the 18000 it drew last year. Organiser Brian Blades is delighted. He suggests that spending on pets is recession-proof, or at least recession-resistant.
“People spend money. For people who are in love with their pet, money is no object. They will go to the vet and spend a fortune, rather than go to the doctor themselves.”
SA has 6,9-million dogs and 1,7- million cats, the pet-food industry estimates, and a look around the expo last weekend suggested that pets and the many industries catering to them are rolling in it. Angie Kemp started her fashion outfitter Doggie Hillfigher two years ago and says sales have been growing ever since, despite the economic downturn that has seen disposable household income fall for the past three quarters.
“We don’t feel it at all,” Kemp says. “(Our product is) mostly for people who have smaller doggies. The whole Paris Hilton designer dog — it’s a spin-off.”
Kemp says her monthly turnover is regularly between R200000 and R300000. She holds out a skull-patterned piece of clothing, which she says is her best-selling item.
“People love this. You can use it for a girl or a little boy. It costs R120 for a small dog and R160 for a bigger one. Look at the quality. It’s not something the dog will wear once, you wash it and it falls apart.”
The pet industry has been going through some wobbles, however.
Richard Neville, an owner and director of Tokai, Cape Town-based Medipet, which offers medical insurance for pets, says the company went through a period six months ago when the number of bouncing debit orders jumped from the usual five a month to 40. That has since normalised, he says.
Nonetheless, tails are wagging in the R3bn annual pet food market in SA. Barry Hundley, executive director of the Pet Food Institute of Southern Africa, an industry group whose members account for 80% of all pet food sold in the country, says sales in the first three months of the year were higher than the first quarter of last year. Indications are that sales slowed in April, May and June, but Hundley says it does not necessarily mean a worse year overall. While people may be cutting back on spending generally, they are not tightening the financial leash when it comes to their pets, he says.
“People aren’t just throwing money around any more. They’re focusing more internally on homes, gardens, and that includes their pets,” Hundley says. “Pets are becoming important companions . I don’t see people dumping pets because of the economy.”
Pet spending does seem to be holding up.
“It’s not just price in the end,” says Samantha Horn, who lives in Centurion and owns a boxer, a pug and a dachshund puppy. “It’s what’s best for the animal. Price is second.”
Other evidence suggests otherwise. Christine Kuch, a spokeswoman for the Alberton-based National Council of SPCAs, says, in contrast to Hundley, that since November an increasing number of people have been handing their dogs and cats in.
“There’s a marked increase in animals being surrendered for economic reasons,” Kuch says.
She says she is unable to quantify the trend, as people often disguise the fact that they can’t afford to keep their pet any longer.
“People tend to be embarrassed,” Kuch says. “The parent will say to us ‘I found this dog running around and I think it’s better off with you’ and then their kid says ‘Bye-bye Spot’.”
There are changes afoot, even within the pet food industry, which Hundley estimates accounts for about 80% of all spending on domestic animals.
Despite what an owner like Horn says, dog owners are increasingly looking for lower-cost options, says Quinton van Oudtshoorn, a retailer of co-operative Afgri-branded pet food. While people generally stick to their preferred product — buyers of top-level dog food sold only by a veterinarian will only buy that type — they are looking at cheaper varieties in that category.
“People are now looking at price,” Van Oudtshoorn says.
That suits , which sells cheaper alternatives to the better- known Royal Canin and Eukanuba brands. At the bottom end of the scale, in the bulk “supermarket” range of dry dog foods, he is also flogging the none-too-classy Lek-a- Lik in competition to the more expensive Pedigree brand.
The move to cheaper pet foods is also benefiting local competitors to the top-level foreign brands, such as Graaff-Reinet-based Montego, which says it has a 12%-13% share of the Pet Food Institute market.
“Due to the current economic climate we are gaining a lot of clients from higher categories,” says Johan van Jaarsveld, Montego’s marketing manager. Van Jaarsveld says sales grew 40% last month. The company is renovating its factory to expand production 25% and may expand it a further 25%.
Spending on pets may be inelastic — people who have pets will generally not stop forking out for them — and the main changes in the pet market so far show people looking for cheaper options. But if the economy worsens, the trend Kuch identifies — people handing in their pets to the SPCA — will grow. How much things must worsen, though, is unclear.
For now, times remain good. Doggie Hillfigher owner Kemp winds up the conversation pointing out that while she specialises in smaller dogs, she can custom-make clothing and accessories for larger ones.
“We do weddings — tuxedos and wedding dresses. People get married and their dogs are often the ring- bearers.”
blebym@bdfm.co.za