(PRWEB) September 14, 2012
World stock markets are tumbling amid the signs of global economy facing a downturn. The dreadful monster of recession is hovering over the global economy. The world economy was previously jolted by recession in 2007, and before it could recover from the hiccups caused by the miasma, it finds itself in the face of another downturn. Unemployment rate all over the globe has gone past the all other previously achieved milestones. According to U.S Bureau of Labor statistics the unemployment rate stood at 8.3%. The iniquitous global downturn or recession has embraced almost every business in its ambit. People are forced to tighten their belts. Cost cutting is the new trend be it any industry, pet meds being one of them.
Pet industry and especially online purchases is another industry that finds itself affected by the global slip. Although the love affair of Americans with their four legged friends is very much full of life, but it does have limits. Brad Tuttle of Time Moneyland believes that recent signs indicate that there are limits to how much people will spend on their pets. In his article ”May be pet industry isn’t recession proof after all” on February 28, 2012 he states that pet owners are apt to shop around for hard bargains and they are willing to cut back on their purchases for pet stuff. He believes that owners are likely to switch brands to save a few dollars. According to Bloomberg more and more owners have reached a breaking point and are seeking ways to save on spending on pets. In the same report, Bloomberg cited data indicating the cost cutting on pet expenditures. According to Bloomberg in a survey in February 2008 nearly 27% of America’s pet owners admitted that they are cutting the expenditures on pet stuff and this figure soared to nearly 40% according to a survey conducted last fall. This trend is very much valid today as the industry is gearing up for similar a downturn.
This clearly indicates that pet owners are looking for better deals during recession to save a few bucks. Keeping this view in mind http://www.cottonisin.com was launched on 1st September 2012.An article “Dog owners seeking discount as pet smart confronts bite” on February 26, 2012 by Matthew Boyle of Bloomberg, further strengthens the fact that pet owners are looking for better deals in the miasma of recession. In the same article Lee Linthicum, head of Food research at Euromonitor International, believed that the pet owners still want to spend a commensurate amount of their earnings on their pets, but they are reevaluating their priorities. According to the article Leo Sanders, the owner grooming and boarding business in New York, believes that industry is not recession proof, but recession flexible. Sanders further adds that owners will still spend on the pets, but frivolous spending has made way for more sensible one. People are now reading labels and making sure that it is a quality product and with this and increase in chorus for discounts is heard. John Volpe, Managing Coordinator at the center for professional studies at New York’s Fashion Institute of Technology, believes that there is turn to the practicality. The ostensible frivolous items of past (just few years ago) have become extinct and are no longer in demand. According to packaged facts nearly 74% of owners look for lower prices, sales and discounts on pet meds online.
But many hold the view that rising pet ownership will sustain this industry through harried global economy. The consumers’ ability and soaring pet ownership is good enough to sustain this industry. The trends post 2007 recession testifies this tenet. Millions all over the U.S lost their jobs during that downturn and the period witnessed the decline in disposable income by 2.7%. But surprisingly pet ownership increased by 3.2%. There are few areas such as pet healthcare and premium pet foods that seem unaffected by the monster of cost cutting as pet owners are very much concerned about their pet’s diet. There is also a belief that pet serves as an alternative to parenthood. According to National center for health statistics the number of births fell from 2008 to 2010. Many pundits link economy issues to these trends.
The downturn has led to more thrifty and pragmatic approach towards the pet expenditures. Frivolous spending has slowly made way for sensible ones. Pet owners have started looking for better deals and discounted products such as swarovski collars for dogs. They are finding ways to reduce their spending and have started to look for better deals online. More and more sensible approach has crept in. Amidst economy scare the pet industry has showcased a resilient attitude. There is a firm belief that this Industry would grow against all odds.