QAB020N516A - Pet Grooming Industry: Market Attractiveness in London

This report provides a comprehensive analysis of the pet grooming industry in London, assessing its market attractiveness using Porter's Five Forces framework. It examines factors such as supplier power, buyer power, competitive rivalry, the threat of substitution, and the threat of new entrants. The report highlights the industry's growth, driven by increasing pet ownership and disposable income, and explores various aspects of the pet grooming market, including grooming salons, mobile groomers, and related products. It concludes that the pet grooming industry offers a promising opportunity for professionals, emphasizing the importance of understanding market dynamics and potential risks for success. Desklib offers a wealth of resources for students, including solved assignments and past papers.

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Professor’s name
University name
City, State
Date of submission

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Table of Contents
Industry..........................................................................................................................................3
Why the necessity of this industry?..............................................................................................3
Industry size and growth rate.......................................................................................................4
Growth Rate...............................................................................................................................4
Industry size................................................................................................................................4
Industry Porter’s Five Analysis....................................................................................................5
The supplier powers...................................................................................................................5
Buyer powers..............................................................................................................................6
Competition rivalry....................................................................................................................6
Substitution threat.....................................................................................................................7
New entrants threat...................................................................................................................7
Conclusion......................................................................................................................................8
References.......................................................................................................................................9

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Pet Grooming Industry Attractiveness
The Industry
The grooming industry is getting a new twist and the focus is shifting from just the
human grooming perspective to include pets kept at home. According to the IBISWorld report of
2019 (Anon, 2019), the pet grooming industry is on the rise and has nearly doubled within the
past decade. The rise recorded in this new and emerging industry is attributed to the increase of
pet owners and lovers of their pet's new look, increased per capita income which results to more
spendable income, and the change in consumer demands and preferences as far as caring for the
pest is concerned. Pet grooming encompasses quite a number of services to the pet and pet
owners. This ranges from the normal grooming or makes up, walking and training and boarding
of pets to learn new skills and techniques. Grooming salons and beauty parlors are quickly
erupting in various big cities around the world for commonly kept pets such as dogs and cats.
This report, therefore, seeks to analyze the attractiveness of this gradually growing industry,
especially within London city.
Why the industry is necessary
Pet grooming industry is of great necessity and a clarion call to the new care techniques
rendered to the pets who many a time lack proper care units. The pet owners know little of how
to care for their pets and how to make them also feel the touch of beauty. Despite the fact that
many pet owners are quite responsible with handling their pets ensuring that they receive the
most authentic such as medical attention when sick, this is not enough as these animals also need
to feel the touch of pampering care just like their human counterparts. Moyer (2017) points out
that many pet owners have the slightest idea of how best to care for their pets. This deficient
knowledge of what pet care is all about creating a relationship gap between these animals and

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their owners. This industry, therefore, seeks to bridge the gap that exists in the relationship
caregiving, pet management and to improve the relationship between the pets and their owners.
Daily commitments may also render pet owners very little time with their pets hence lack proper
knowledge of how to relate with them. The industry is the way out of this situation.
Industry size and growth rate
Growth Rate
According to the Transparency Market Research on Pet Grooming Market Global
analysis, the pet grooming industry is on the verge of steady expansion owing to the availability
of both stationary and mobile pet groomers tasked to deliver pet grooming services at the
doorsteps to the convenience of pet owners (Anon, 2019). Bhandalkar & Das (2018) note that the
pet grooming industry was valued at $ 3872 Million in 2017 and is projected to reach a high of $
5488 Million in the year 2025. Further, the growth rate is put at 4.5% Compounded Annual
Growth Rate (CAGR) in the global index.
Industry size
Pet grooming industry has evolved and does not only involve pet makeup but has
expanded into different business opportunities. Right from grooming salons and parlors, mobile
groomers, grooming products like shampoos, conditioners used during bathing, nail clipping and
trimming using clippers and scissors, brushes and combs for the hair cleaning purposes
(Bhandalkar & Das 2018). The industry size has ballooned over the decade as new ventures that
complement the grooming saloons also come up. In the United States, for example, the industry
contributed close 30% of the global pet market. The industry market is segmented by different
products as shown below;

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Figure 1: Global Pet Grooming Market
(Source: Bhandalkar & Das 2018).
Industry Porter’s Five Analysis
Porter’s Five analysis is an important tool in critically looking at the pet grooming
industry to offer an in-depth insight into the emerging industry. This analysis sums up five
factors otherwise called external factors that play a crucial role in the survival of this kind of
industry. The Porter’s five analysis critically examines the powers that suppliers have in an
industry, the buyer power, otherwise referred to as the bargaining power of buyers, the rivalry of
the market competition, availability of the product’s substitutes, and the threat posed by new
market entrants.
The supplier powers
Due to the fact that this is a new industry, pet grooming requires the introduction of pet-
friendly products that are set to flood the industry market. As earlier mentioned, there will be a
requirement of shampoos and conditioning agents fit for the animals hence new manufactures
will have to hit the market. The suppliers of these new products will have the power to determine

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the prices for offering such products to the dealers. Wilkinson, (2013) points out that in this kind
of industry, the powers of suppliers will be driven by their number in this kind of market, the
peculiarity of their products or service offered, their strengths and size and also the cost tagged to
the change of a supplier.
Buyer powers
Economically, the pet grooming industry has contributed greatly to the Gross Domestic
Product of the country due to the rapid expansion of the industry generating taxes to the
government hence ensuring an increase in GDP. According to Pet Food Manufacturers
Association (PFMA) report of 2016, there has been a significant increase in the number of pets
in the UK which has created more market for the pet grooming industry (Groomarts.com, 2019).
This, therefore, indicates that the number of buyers in this industry is significantly increasing
hence making it easy for the buyers to determine the supplier prices. Many buyers in the industry
will have bargaining powers in setting industry prices and also determine the best supply prices
of the products needed.
Competition rivalry.
The significant increase in the number of pet owners within the UK has seen the number
of pets increase also significantly. Franchise Direct (2010) puts the increase in pet owners at 45%
of total households in the UK. This growth is impactful in the industry as it brings the
opportunity for growth in the industry and the rise of other related industry. The significant
increase in the number of pet owners offers a good opportunity for other industry players
(competitors) to set foot into the market. This is seen by the introduction of mobile pet groomers
for example who offer competitive prices. In essence, competition will balance the market and

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remove autonomy but again if the industry is flooded by much similar product and service
offering, it will also contribute to industry unattractiveness (Martin, 2014).
Substitution threat
Technology plays an important role in different industries. The world is moving into
digitization and so is London which is the economic backbone of the UK. Application of
technology in the pet grooming industry in London emanates right from the application of new
technologies in the saloons and the animal beauty parlors. Automated clippers and brushes, for
instance, will offer will create a substitution effect leading to customers shifting allegiance to the
new products and processes in order to get competitive prices. Modifications such as door to
door grooming services is another way of capturing many clients at their convenience hence this
move would impact stationed businesses negatively. Therefore, the presence of substitute
products and/or services, would greatly reduce the supplier powers and also dent the industry
attractiveness.
New entrants threat
New entrants in a market are attracted by the market profitability. Pet grooming industry
is fast gaining grounds in global markets due to the nature of profits that trickle down in the
participants' pockets. This, in essence, is offering a pull effect of other players to flock the
market. The net effect of the market flooding by new entrants is the erosion of profits. If new
groomers, suppliers among other stakeholders in this industry were to enter the market and
maintain profitability, it would require that they come in with a strong force that can weather the
profit erosion challenge. This would require large companies that ensure complete economies of
scale, have patents, strong government policies to safeguard the new entrants, large sums of
capital for investment among other entry strategies.

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Conclusion
In conclusion, therefore, the pet grooming industry offers the best opportunity to many
professional pet handlers and to their clients to also give the animals a better humane feel and
treatment. It is an emerging industry with promising growth projections hence viable for a
venture.

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References
Anon, 2019. Industry Market Research, Reports, and Statistics. IBISWorld. Available at:
https://www.ibisworld.com/industry-trends/market-research-reports/other-services-except-
public-administration/personal-laundry/pet-grooming-boarding.html [Accessed March 30, 2019].
Anon, 2019. Pet Grooming Market Size, Analysis, Regional Outlook, Growth, Export Value,
Shipment, Volume & Trade. Pet Grooming Market - Competitive Insight, Trends, and Forecast
2016-24. Available at: https://www.transparencymarketresearch.com/pet-grooming-market.html
[Accessed March 30, 2019].
Bhandalkar, S. & Das, D., 2018. Pet Grooming Products Market by Type (Shampoo &
Conditioner, Comb & Brush, Clippers & Scissors, and Others) and Distribution Channel (Retail
Store, Online Platform, Supermarket/Hypermarket, and Others): Global Opportunity Analysis
and Industry Forecast, 2018 - 2025. Allied Market Research. Available at:
https://www.alliedmarketresearch.com/pet-grooming-products-market [Accessed March 30,
2019].
Franchise Direct, 2010. Home. Pet Franchise Industry Report – Overview |
FranchiseDirect.com. Available at:
https://www.franchisedirect.com/petfranchises/petfranchiseindustryoverview/18/286 [Accessed
March 30, 2019].
Groomarts.com, 2019. UK Pet Market Industry Statistics. Groomarts. Available at:
https://groomarts.com/student-advice/marketing-insights [Accessed March 30, 2019].

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Martin (2014). Competitive Rivalry | Porter's Five Forces Model. [online] Cleverism. Available
at: https://www.cleverism.com/competitive-rivalry-porters-five-forces-model/ [Accessed 8 Apr.
2019].
Moyer, L., 2017. The $5.4 billion pet services industry is growing - and attracting professionals
from other fields. CNBC. Available at: https://www.cnbc.com/2017/05/04/in-pet-grooming-a-
growing-business-and-competitive-landscape.htm [Accessed March 30, 2019].
Wilkinson, J. (2013). Supplier Power (one of Porter's Five Forces) • The Strategic CFO. [online]
The Strategic CFO. Available at: https://strategiccfo.com/supplier-power-one-of-porters-five-
forces/ [Accessed 8 Apr. 2019].