The Pets, Gifts, and Hobby Industry

With Amazon knocking on the door, the Pets, Gifts, and Hobby industry must invest in omnichannel solutions, digital solutions and new store concepts to meet customers’ desire for a seamless buying experience.

Struggling with omnichannel

Since Danske Bank’s financial report relies on publicly available accounts, it has not been possible to gather enough data on this industry to make a financial analysis. Therefore, the analysis is based on the industry’s omnichannel score and external reports.

The pets, gifts and hobby industry is one of the lowest performing omnichannel industries.

40

Average score of the Pets, Gifts, and Hobby industry

vs.
53

Average score of the best performing industry

THE RESULTS ACROSS NATIONS

Awareness

DK: 53
SE: 63
NO: 56

evaluation

DK: 31
SE: 58
NO: 45

purchase

DK: 43
SE: 52
NO: 38

Service

DK: 24
SE: 20
NO: 24

Purchase

DK: 34
SE: 44
NO: 49

The industry has great potential and a necessary need to improve their omnichannel efforts due to the enormous pressure from pure players and other digital native companies.

The past couple of years, we have seen an increase in subscription model companies who disrupt the competitive environment and the customers’ expectations. This changes the terms for the industry and makes omnichannel even more crucial.

Kasper HolstCEO of IMPACT

Amazon IS coming

Something else that will affect the industry is Amazon. Amazon is almost the synonym for an online bookstore, and in both the UK and the US ‘toys and games’ is among Amazon’s best-selling categories.

To beat Amazon, or at least compete against the mastodon, the industry must offer something that Amazon does not. And this little something is omnichannel.

*Spending data is based on transactions made with cards or MobilePay in stores in Denmark or abroad by around 1m Danske Bank Danish private customers with active accounts. The data is not traceable to individuals. Consumption does not include cash spending or account transfers. Charts are not corrected for price changes.

 

But it requires for the industry to start connecting online and in-store at a higher level than today. For example, just 42% of the companies offer to check if a product is in stock at the customers’  local store.

During the Covid-19 pandemic, gift and hobby related products went like hot cakes, and the Danish retailer Bog & idé reached index 400+. This shows the industry’s huge potential.

If companies make an effort, a stronger omnichannel effort is the key to improving financial numbers.

 

Annual accounts analysed on 434 retail companies across the Nordics with turner above EUR 5m. The result can thus be a little skewed towards larger companies.