Fifi and Fido Have the Gift World on a Leash

f you think the gift industry is going to the dogs, you may be on to something. The sale of pet products is now a $31 billion industry, far outpacing the sale of candy and toys for humans. In fact, in a study by the American Pet Products Manufacturers Association, 60 percent of pet owners say they buy gifts for their pets, and 98 percent include their pets on holiday gift lists. In addition, items once considered rare luxuries for pets, such as handmade leashes and collars, or food bowls made in a potter’s studio, are now becoming “must-haves” for discerning pet owners.

“ Our annual sales growth in the wholesale market, which includes both pet and gift boutiques, has been over 100 percent,” says Rachelle Rees McCarthy, owner of Elmo’s Closet. McCarthy exhibits her handmade leashes and collars at the Buyers Market of American Craft in Philadelphia and at several retail shows.

For crafts retailers and artists, this new and growing market of consumerism has led to increased opportunities for sales of handmade pet items and luxury pet gifts. The amount of money that pet owners are spending on “extras,” such as gifts, furniture and dining bowls, has more than doubled since 2001, says Pam Danziger, president of Unity Marketing, a market research and consulting firm.

Dog-themed Christmas ornaments are popular sellers for D.W. Possum Designs.

“ At the [George Little Management gift fairs], we’ve seen an increase in the number of applicants with pet products,” says Mary Strope, manager of craft marketing for George Little Management, “such as dog clothing, pet carrying bags, leashes, collars, boots, beds and even dog biscuits.”

New York International Gift Fair exhibitors Vivienne and Sponge Washburn, owners of D.W. Possum Designs in New Jersey, say that they are known affectionately as “the dog people” for their hand-painted pet-inspired furniture and accessories. “[During the holidays], it’s all about our Christmas ornaments,” says Vivienne Washburn. “[In 2003], we introduced a new line of ornaments in puppy designs. The reaction has been wonderful. People love their dogs and they love things that remind them of their dogs.”

Lori Dotterweich, owner of Tails by the Lake, a pet accessories retail store in California, says that 80 percent of her inventory is from handmade pet luxuries and that she has annual growth of at least 30 percent. “We’ve been in business for over four years and when we started, we were one of the only stores offering this unique merchandise,” says Dotterweich. “But it’s a growing industry due to the fact that more people treat their pets like family members.”

Findings from Unity Marketing’s study, “Why People Buy Things for Their Pets,” support Dotterweich’s observation about pet owners and what fuels this buying trend. The study revealed three distinct groups of pet owners, each with different purchasing behavior. The “parents” segment, which comprises one-third of all pet owners, represents the prime market for gift retailers and artists catering to the luxury pet accessories market. “These consumers have given their pets a central position in the family,” says Danziger. “Demographically, they have the lowest incidence of children at home … so the pet becomes the ‘baby’ of the family.”

This growing trend is also seen in companies not traditionally linked with pet products. Sandy Maine, owner of SunFeather Natural Soap Company, says that she added a line of products for pets, including all-natural soaps and flea repellent, to meet the demands of pet-owning consumers. “Our pet-care line is the only SunFeather line that has shown consistent yearly growth for the past 11 years,” says Maine, who is planning to expand the popular line in 2004.

Elaine Seamans, who makes imaginative gifts and adornments in a variety of media for her California company, At-Choo, added a line of pet-inspired items five years ago after her own family dog passed away. “For me, it was a risk, since I didn’t know if people would relate to my thoughts,” says Seamans. “That’s actually when At-Choo made a turning point in terms of sales.” Seamans’ sterling silver pet memorial charms and necklaces are her fastest-growing lines.

Carol Perkins, founder and owner of Georgia-based Harry Barker, one of the major players in the pet-products arena, says that this trend has become so huge that her line of handmade bowls, sweaters, towels, treats and more, are not only sold in her own retail location, but also in stores where you’d never expect to find pet products. “Harry Barker products are in up-scale pet boutiques, but also in airport gift stores, home furnishing stores and even home-and-garden gift stores,” says Perkins. “Retailers are smart to add these products to their mix.”

Harry Barker produces a catalog full of handmade items for dogs.

Perkins also sees a growing number of consumers buying pet products, not only for their pets, but also as gifts for pet owners such as hostesses and employers. “If you don’t know someone that well, but know they adore their pet, homemade dog biscuits or a handmade dog toy make a great gift,” she says.

Perkins adds that her sales have grown “dramatically” in the three years since she started Harry Barker. Moreover, she believes there’s still room for growth in this market. “Part of why consumers are willing to spend more on a handmade luxury for their dog is purely emotional,” says Perkins. “But consumers can also get a pet product that looks good in their home as well; one that pleases both them and their pet.”

The good news for retailers who wish to jump into the luxury pet products arena is that the recovering economy may mean even bigger purchases from pet owners. “When consumers were less confident with the economy, they were less likely to buy a high-priced luxury good,” says Dotterweich. “With the economy recovering, we’ve noticed more pet owners buying custom-built dog houses and other high-priced items.”

Heather Skelly is associate editor of The Crafts Report.