The challenge of the Internet

E-commerce is gaining in importance in the pet supplies sector. The extent to which this is the case varies considerably at present from country to country: while online pet product retailers have already achieved a significant market presence in the UK and Germany, for example, the impact of e-commerce companies in the US pet supplies trade has tended to be modest to date.In eastern Europe and Asia, the Internet still plays no role whatsoever as a distribution channel for pet products, or only a very marginal one. Let’s not kid ourselves, however. In spite of all the regional differences that exist, it is only a matter of time in many countries around the globe before e-commerce becomes established in the pet sector too. Zooplus is already showing how it’s done in Europe. The online pet supplies retailer is now operating across virtually the entire continent and could increase the level of awareness of its brand substantially in most countries in the next few years. Fressnapf, Europe’s leading bricks and mortar pet store chain, is also embracing the Internet and plans to expand rapidly in other countries after Germany – Switzerland, then Austria and Denmark. Pet’s Place in the Netherlands likewise took the step of setting up its own online shop alongside its high street counterparts a few weeks ago. Things are moving in the retail landscape! But how can high street retailing and e-commerce come to a sensible arrangement? This could pose a key question for the international pet supplies trade in the next few years. Cross-channel retailing is a huge challenge for all retail companies. Fressnapf boss Torsten Toeller made it clear when announcing the annual returns for 2011 that cross-channel retailing will be “at the absolute heart” of Fressnapf’s activities this year. A similar train of thought exists at Pet’s Place in the Netherlands. Company boss Ard Malenstein has left PET worldwide in no doubt that his company is planning close integration of its high street stores and e-commerce. The pet supplies trade will have to change its way of thinking. It would do well to take up the challenge of the Internet as soon as possible and change its approach; otherwise the Internet will change it, and that might have a less positive outcome for existing pet supplies companies. Ralf Majer-AbeleDownload: The challenge of the Internet (PDF file)