Online Pet Products Retailing Growing

 

California Company looks to dominate online retailing for pet products

 

By Cynthia Ellis, CNNMoney.com staff writer

December 7 2006: 7:17 PM EST

 

NEW YORK (CNNMoney.com) (CNNPrime and Headline News) – Alex Tabibi and his brother Carlo are bucking the trend when it comes to online retailing. Their fledgling company Pets United, LLC. and its many related websites, including Horse.com, Dog.com, Fish.com and Bird.com, are the new kids in the pet supply space, and they are meeting with some success. The company, which is only 18 months old, has projected revenues for 2006 of $65 million. Alex Tabibi, a former oncologist and now CEO, put down his stethoscope and decided to build a company in an online space that has had its share of ups and downs. No one can forget the enormous failure of Pets.com and the estimated $100 million dollars that was spent in building that dot-com disaster.

 

According to retail analyst Jake Speer the pet supply space will continue to grow about 5-10% annually as the large store-based retailers see greater competition from online suppliers that can produce products quicker and cheaper. According to Tabibi, “This is more than a shopping site; we offer some of the most dynamic interactive services – chat rooms, classified ads, vet information, wholesale and retail pricing - all for the avid pet owner.”

 

The question remains: will they be able to succeed where so many have failed or just not made any money? The jury is still out; however, they do have some interesting new offerings that will be introduced in 2007 including an online community for pet owners similar to the hugely successful “MySpace.com.” The feature will allow pet owners to personalize their site and include cute pictures.

 

We asked Tabibi about this, and he was unusually candid. “To have a specific place for my dog where I can send friends to see the latest video of him doing something cute or funny while being able to ask for tips from other cocker spaniel owners and other breeds allows for the sharing of love for our pets while gaining from the experience of others.”

 

We checked out the Dog.com online community and it includes lots of features and dozens of discussion and news articles on the latest stories happening to dogs across the world - some seemed helpful, while others were just pictures that make your heart smile. As a pet owner, I appreciated the dog breed specific information, the articles on how to better take care of your dog, as well as the really fun area that had dog trivia, online Dog Information, Pedigree-mail, Dog Forum, and important Dog News.

 

"We hope to introduce a host of new features in 2007, and with the purchase of Garden and Farm.com, we intend to expand the reach of our offerings. Imagine not only being able to buy pet products, but also your favorite garden product or farm equipment. Many of our customers are multiple pet owners and own ranches or farms,” Tabibi said.

 

The site was also recently recognized as one of the top 50 online retailing sites by a leading internet publication. We checked out the competition, and the big player in this arena is Pet Smart Inc. (NASDAQ:PETM). Although they have many of the same offerings, the pricing seems to vary greatly. It is certainly going to be interesting.