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Wellness products key to thriving in Hong Kong's pet economy

In SHOPLINE, probiotics and crocodile meat supplements emerged as top pet products.

Within Hong Kong’s lucrative pet economy, experts advise merchants to focus on wellness products and services as owners prioritise holistic care.

The increasing demand for pet health products and services in the city is indicative of the popularity of health supplements, such as crocodile meat powder for asthma, which is amongst the top sellers in SHOPLINE’s pet supplies category.

Based on Gross Merchandise Value (GMV), grooming services and pet-friendly swimming pool packages are listed as most sought-after products or top-sellers in the e-commerce platform.

“This indicates that pet owners are increasingly mindful of the holistic well-being of their pets. They prioritise ensuring their pets are hygienic and well-groomed, as well as incorporating fitness activities like swimming into their pets’ routines,” Nick Gao, regional general manager at SHOPLINE, told Hong Kong Business.

To capitalise on this trend, Gao advised merchants to divert their marketing efforts towards products and services that aid with pet well-being, like probiotics and eye health supplements.

As animal welfare awareness grows amongst owners, Gao also suggested that merchants offer high-quality pet food, healthcare, grooming services, and premium products to cater to pets’ specific needs.

Merchants may also consider offering pet services such as dog walking and pet sitting, given Hong Kongers’ preference for services that “ensure their pets receive proper care and attention despite their busy schedules.”

O-PAWr-tunities

Gao emphasised that understanding and catering to customers’ preferences is crucial for merchants to stand out in the growing pet economy, adding that AI tools can aid in making informed marketing decisions and improving operational efficiency.

In SHOPLINE, pet merchants will soon be able to use the platform’s “AI Chat Insight” which can “analyse conversations with consumers providing a more robust understanding of consumer preferences.”

The platform also has a “Smart RFIM Grouping” feature that enables merchants to orchestrate tailored marketing strategies for segments such as new, loyal, and long-time customers who haven’t visited for quite some time.

To encourage customer loyalty and streamline repeat purchase processes, Gao advised merchants, especially those specialising in pet food and health products, to utilise customer membership functionalities.

Data from SHOPLINE’s Hong Kong e-Commerce Whitepaper 2024 revealed that in 2023, store members had an average repurchase rate 1.3 times higher than non-members.

Lastly, utilising an OMO omnichannel strategy can help pet product merchants offer seamless and flexible purchasing options.

SHOPLINE underscored that the average gross merchandise value or GMV of merchants utilising such a strategy is three times bigger than merchants operating digitally only.

Key selling point

For those planning to enter the market, Gao said dog products generate the highest sales, followed by cat products.

“Both the GMV and customer count for shops selling dog products are experiencing a steady, consistent increase,” Gao added.

Gao underscored that pets have become a key selling point for many businesses in Hong Kong and will continue to do so, especially since the global pet-related trade is projected to reach HKD$2.7t (US$345b) by 2027.

Further proof of the sector’s potential is Hong Kong’s Pet Festival, which saw a record-high of over 650 booths and 200 exhibitors. SHOPLINE also saw its number of merchants specialising in pet products grow by nearly 30% in 2023.

In addition to retailers, landlords like Link REIT and MTR Corporation are also harnessing the potential of Hong Kong’s pet economy.

“Pet-friendly facilities and amenities have been on the rise in Hong Kong lately, with the opening and conversion of pet-friendly malls or restaurants,” Gao said.

MTR Corporation’s mall in Tai Wai called The Wai, for example, has green areas that serve as “a perfect oasis for pets to unwind with their owners and create memorable moments,” according to global real estate services firm JLL.

In May 2023, Link REIT launched the “Play Eat Tai Yuen Pawty” campaign at Tai Yuen Commercial Centre in Tai Po.

With the global pet trade projections soaring in the next three years, Gao experts a surge of new opportunities in Hong Kong, including greater demand for luxury or niche pet products.

“From pet-friendly cafes and boutiques to specialised grooming salons and pet-tech start-ups, the pet-friendly retail environment in Hong Kong is flourishing. Pet owners' willingness to spend more on their pets has boosted the demand for premium pet food, healthcare services, and related products,” JLL said.

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