Pinching pennies? Not necessarily when it comes to pet owners

Emilie Wilson's menagerie includes 15 ferrets, two dogs and four cats, including a hefty grey feline named Tonie Stewart who rides in style inside a pet stroller during family outings.

Wilson spent US$300 on Christmas gifts for her brood last year and figures she'll exceed that sum this year. And despite the recession-like economy, the suburban Chicago woman has no plans to scale back pet presents anytime soon.

"I couldn't care less if there's anything under the tree for us, as long as there's something for Tonie," she said.

Retailers may be worrying about the possibility of the worst fourth quarter in generations, but those in the pet products industry are finding themselves in a veritable oasis among much of the gloom of American business. Companies that sell everything from organic dog treats to couture-inspired pet toys say business is up even as economic indicators show shoppers are pinching pennies during one of the worst downturns in decades.

"I think they're buying nice dog collars instead of remodelling their kitchen," said Fiona Tavernier, whose Lollypadoodle business near San Francisco sells wool stuffed dog toys and is going strong.

It may sound counterintuitive - even to some in the pet industry who say they're surprised business is robust - but experts say many pet owners are as dedicated to their animals as parents are to children. And that means they're willing to sacrifice on themselves before trimming back on their four-legged friends.

"You know, for some families, the pet comes first," said Carol Perkins, president and co-founder of Harry Barker, a Charleston, S.C.-based pet toy company whose sales are up 40 per cent this year. "The dog goes to the vet first and the dog gets organic food. Maybe some people will cut back on a dog bed, but they'll still buy dog treats, toys and collars and leashes."

The American Pet Products Association estimates Americans will spend US$43.4 billion this year on their pets - a figure that includes everything from treats to training - despite the dramatic slowdown in discretionary spending. That's 26 per cent higher than what U.S. consumers spent in 2004, the group said.

Market researcher Euromonitor International, which tracks sales of pet food and accessories but excludes the cost of animals, grooming, training and other expenses, puts this year's animal expenditures at US$23.9 billion.

But the group forecasts the segment's sales are still on pace to grow more than 13 per cent by 2013.

"It's definitely more resilient than most categories tied to discretionary spending," said Morningstar analyst R.J. Hottovy. "It's one of the last categories (people) cut out of their budget."

Backing that up is a poll earlier this year in ShopSmart, a publication from Consumer Reports, which says female shoppers are more likely to buy cheaper brands of everything from medication to milk, but are digging in their heels when it comes to switching to less-expensive pet food and personal care items.

Some parts of the pet food industry, particularly gourmet and organic pet food, will likely be even more insulated than the sellers of pet carriers, clothing and outdoor gear.

That's because many pet owners, who upgraded their kibble after contaminated pet food killed or sickened thousands of animals last year are leery of switching back, a move that could cause digestive problems.

"Once people have their pets on a certain pet food, there's health risks to switching over to another," Hottovy said. "As soon as they've moved up to the premium brands, they're kind of locked in, so it's hard to trade down."

Still, there are signs that the most extravagant expenses - such crystal bowls and custom-made pet beds - may be sidelined amid growing economic uncertainty.

"Gone are the days when people would buy $100 collars and fake fur," said Claire Chew, of Venice, Calif., who founded Luxepets, a line of pet keepsakes.

American Pet Products Association spokeswoman Leah Nelson said the group doesn't release industry sales projections, but that it is "eyeing the future" with caution.

That's why Paige Ormand, the owner of the Doggy Style Pet Shop in Chicago's Wicker Park neighbourhood, is ordering more products that are less expensive - for example, $5 toys instead of $20 models.

But she's not removing expensive gifts from her store shelves, either.

"This industry is way more insulated than other businesses," she said. "But I wouldn't say it's recession proof."

Pet Accessories

We all know how big of a presence fashion has in this society. How you look has a lot to do with how you are accepted in certain circles, especially in the American culture. Believe it or not, pets have become a sort of fashion statement in and of themselves.

This is a fad that is going on all across the United States and truly catching on in ritzy, fashionable, high end areas of New York, San Francisco, Miami, and New York. Just as a fashionable handbag can set off a person's style, it seems so can a four legged creature that lives, breathes, and eats. There is nothing wrong with that, just so long as the pet's needs are met.



Toy Pets Are More Than a Fashion Statement

Of course, along with the fact that these tiny little pooches are completely adorable, they provide companionship to many people who lead otherwise lonely lifestyles at times. In addition, they give people the opportunity to have something to love, cater to, and spoil to no end—and that is exactly what they do.

These little dogs are small and portable, and are allowed in many salons, sidewalk cafes, restaurants, grocery stores, and other places in which a larger pet may not be allowed otherwise. They can be picked up and carried, and their tiny size certainly limits the amount of damage that they may cause to property or people.

Giving Your Pet the Luxury Lifestyle

Chic pet carriers, luxury dog beds, expensive salon appointments, couture clothing and other items like this are in high demand today. This is all due to the fashionable pet craze out there, and it is giving people in the pet business another niche to explore—luxury pet items. Needless to say, this niche is proving to be a rather profitable one for those who invest in the right items and price them accordingly. Even just a designer travel carrier for a dog can go for a few hundred to a thousand dollars or more.

Thinking of Getting One for Yourself?

For those out there who are thinking about investing in a fashionably undersized pet, why not? They are allowed in many homes and apartments where pets are not allowed and usually incur smaller deposits as they are bound to cause less damage and carry little to no liability at all. In most cases they are friendly dogs, but you do want to meet and socialize with your dog if possible before choosing him or her just to be sure.

Pets are a fashion statement, but they are also a responsibility. If you can take the responsibility and would love to have a furry friend to take everywhere with you, a pampered little pet may be just the thing you need. They provide companionship and certainly don't hurt anyone's reputation as a fashion forward individual. They can go almost anywhere you can go, and even some places that you never thought you'd ever be able to take a pet. Why not?