Dressing Up a Pet Dog Costs Over 10 Million Won... 'Petpi' Wears Prada

Many Sold Out, Waiting After Reservation
Global Petconomy Rapidly Growing

[Asia Economy Reporter Lim Hye-seon] The luxury industry is paying attention to pets. As the COVID-19 pandemic prolonged, people spent more time at home with their pets, leading to an increase in those who want to raise their "children" in the best way possible. Beyond simply feeding and dressing pets, consumers are opening their wallets to buy clothing and accessories worth millions of won for their pets.

Decorating a Pet Dog Costs 10 Million Won

According to the luxury industry on the 20th, Prada launched a raincoat for pets this month. Prices range from 590,000 to 680,000 won depending on the design. The design features nylon material with the Prada triangle logo attached on the back. Last month, Fendi released a pet dog accessory line, including pet dog carriers (3.1 million won), collars (480,000 won), coats (590,000 won), and necklaces (350,000 won). Herm?s sells various items such as food bowls (800,000 won), baskets (2.25 million won), and beds (800,000 won). Moncler, famous for its high-end padding, has been offering pet dog padding priced between 500,000 and 700,000 won for the past three years. Dressing a pet dog with clothing and accessories from luxury brands can cost nearly 10 million won. Although the quantity is limited, many products are already sold out. Just as people line up at department stores to buy luxury bags, more are making reservations and waiting to purchase luxury pet products.

Luxury brands, having recognized the potential of the pet market, are expanding their product offerings. While they previously released one or two products, recently they have launched entire pet product lines to expand their business.

Fashion Market to Reach 30 Billion USD by 2022

Market research firm Euromonitor International forecasts that the global pet dog fashion market will grow from 25 billion USD (about 28 trillion KRW) in 2019 to 30 billion USD (about 34 trillion KRW) in 2022. In South Korea, the population living with pets reaches 15 million. One in every three households is a pet owner, and expectations for the pet market, currently at around 2 trillion KRW, are high.

Specialized luxury pet companies are also gaining popularity. The pet boutique "Pet Boutique," located in the luxury section of Galleria Department Store in Cheongdam-dong, Seoul, has recorded an average growth rate of over 10% in sales over the past three years. Products sold here include famous overseas pet specialty brands such as the Dutch brand Rodru and the British brand Mungo & Mud. Although beds are sold at 900,000 to 1.1 million won, car seats at 200,000 to 300,000 won, and carpets at 200,000 won, popular products sell out instantly.

The largest segment in the pet market is the pet food market. Last year, the pet food market was about 88 trillion KRW and is expected to exceed 100 trillion KRW by 2023. In South Korea, it is expected to approach 944.1 billion won. Premiumization of pet food is also accelerating. According to Euromonitor, the domestic market share of low-priced dog food products under 4,000 to 5,000 won dropped from 24% in 2018 to the 10% range last year. Meanwhile, premium dog food priced over 10,000 won accounted for about 66% of the market share last year.

Luxury Hotels Also Welcoming Pets

Luxury hotels are also taking action. Earlier this year, Grand Josun Busan launched the "Mungcance Package," setting up pet-dedicated rooms furnished with pet dog beds, stairs, dishes, amenities, and seasonal toys. They provide pet dog dishes, snacks like chews, waste pads, waste bags, towels, and shampoo as dedicated amenities. The cost is about 360,000 to 470,000 won per night. The lobby concierge desk offers pet strollers, cage bags, waste bags, harnesses, and leashes?all necessary items for walking with pets?available free of charge during the stay. The boutique brand Lescape Hotel of Shilla Stay has an entire 9th floor dedicated to pet rooms and is the first in the hotel industry to have a pet zone in its restaurant where guests can dine with their dogs. Paradise Hotel Busan attracted attention last year by operating a pet dog buffet in its outdoor garden overlooking Haeundae.