Zigly's Drive from Disarray To Organised Pet Care

With a substantial investment of Rs 50 crore already allocated, with Rs 25 crore designated for assets and operational expenses, Zigly is poised for significant growth. The brand's ambitious plans include injecting an additional Rs 100 crore this year, with a determined goal of achieving break-even by 2025, emphasising its steadfast commitment to expansion and long-term sustainability. In an exclusive interview, Pankaj Poddar, Group CEO of Cosmo First – Zigly’s parent company, divulges the brand’s strategic approach to targeting Tier-II markets, its proactive measures in organising the sector, and provides insights into investor sentiments regarding the industry's prospects. 

Excerpts:

Zigly's expansive strategy focuses on Tier-II markets. What drives pet care brand expansion, and how is Zigly building a nationwide experiential pet care ecosystem?

The pet care industry is evolving into an emotional business, emphasising experiences over products. With rising pet adoption rates, brands must guide pet parents, offering comprehensive solutions to ensure pet comfort and safety. In India, where word-of-mouth is key, creating memorable experiences is crucial. Zigly addresses the unorganised market by offering a comprehensive pet care ecosystem, including veterinary services, grooming, training, and products. Unique house brands like Zigly Lifestyle and Furpro enhance the 360-degree experience. Zigly plans to expand nationwide, providing both online and offline access to its ecosystem.

How does Zigly measure success in Lucknow, Indore, and Noida markets? What strategies ensure heightened brand visibility and customer engagement in these new areas?

Before entering new markets, our teams conduct thorough market research to gauge demand and service opportunities. Our expansion strategy aligns with growing our retail presence nationwide. Cities like Lucknow, Indore, and Noida exhibit high pet adoption rates and demand for pet care, making them prime targets. As we expand our footprint, our monthly Gross Merchandise Value (GMV) has been consistently increasing, currently reaching Rs 4 crore. Insights from these locations inform our expansion plans, ensuring effective growth both in existing and new markets. We utilise a robust marketing and advertising strategy, driven by a digital-savvy team. Offline events at our experience centres, including themed occasions like Valentine’s Day and Halloween, enhance brand recall. We offer enticing promotions, memberships, and customised packages. Additionally, influencer outreach and community initiatives expand our reach. Tailored solutions are adapted for different markets, ensuring effective results.

How does technology enhance Zigly's 360-degree pet care ecosystem and improve the experience for pet parents and their pets?

Since 2021, Zigly has heavily invested in platforms like experience centres, the website, Zigly app, and marketplaces. Recent IT infrastructure upgrades ensure readiness for India's growing pet care industry. Investments in data analysis aid in understanding customer demand and feedback, supported by regression analysis for sales forecasting. Automated chatbots handle user queries, while reminders for vet check-ups and product purchases enhance customer engagement. The Zigly app, an integrated pet care app, offers grooming, vet care, and product solutions. Marketing attribution improvements boost RoAS and key performance parameters. These tech investments facilitate seamless customer experiences, drive innovation, and enable customised offerings for pets.

Any words on the current state of India's pet care industry?

India's pet care market is on a rapid growth trajectory, with a projected CAGR of 25 per cent, set to reach Rs 12,500 crore by FY27. Increased awareness and demand for specialised services are key drivers. International brands entering the market elevate quality standards. Despite its mostly unorganised nature, pet parents are embracing pet-specific food over traditional options. Global trends like urbanisation, nuclear families, and pet humanisation contribute to the surge in pet ownership, with India boasting a thriving pet population of 32 million. This growth fuels a robust pet care ecosystem, including retail chains, nutrition, services, and healthcare, with e-commerce facilitating product distribution. The rising importance of pet healthcare is evident, with increasing demand for veterinary services and specialised treatments. Initiatives like Ratan Tata's proposed pet care hospital highlight the growing need for such facilities.

How has the investment landscape evolved with the pet care industry's growth, and what role do investors play in driving innovation and expansion within the sector?

Five years ago, the Indian pet care industry was not widely discussed, but the pandemic sparked a surge in pet adoptions and service demand. Now, it's a highly valued sector with large companies and FMCG giants organising it. Traditional firms are entering with significant investment plans, attracting marquee investors and driving expansion. Pet care companies, regardless of size, receive high valuations, indicating future growth potential. Increased investment will fuel R&D, domestic manufacturing, and expansion into untapped markets. Though it's still early, investor confidence is crucial for sustained growth. We at Zigly are aligned with this vision, focused on creating a happy space for pets.