Diamond dogs: fashion hounds look a million dollars

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This was published 6 years ago

Diamond dogs: fashion hounds look a million dollars

By Cara Waters

For the dog that has everything, clothing is becoming the way to stand out from the pack.

Melbourne-based online and wholesale business Pethaus turns over $200,000 a year selling denim jackets for dogs.

Starting a business was "a happy accident" for founders Mel Westwood and Matt Johnstone.

"In 2013 we got our puppy Willy and he was a very shaky little guy, and we needed to get him a jacket and we couldn't find anything we liked," says Westwood.

Pethaus co-founder Matt Johnstone has built a business selling denim jackets for dogs.

Pethaus co-founder Matt Johnstone has built a business selling denim jackets for dogs.Credit: Kristoffer Paulsen

The pair made him a denim jacket, complete with patches of some of their favourite bands, and realised they were onto something.

"We couldn't walk down the street without getting stopped and asked for them," says Westwood. "We then started a little Etsy store and we just loved doing it, so it has burgeoned into this business overnight. It was so niche at the time, for us it is lifestyle, but that denim trend came about slightly after we started."

Pet parents

Pethaus is now a full-time job for Westwood, and she's one of many small business owners cashing in on the demand for doggy couture.

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Australia has one of the highest rates of pet ownership in the world, with more than 60 per cent of households owning a pet. A 2017 Ibisworld report values the pets and pet supply retail industry at $4.4 billion.

Pethaus started off as a "happy accident".

Pethaus started off as a "happy accident".

"Despite little growth in the total number of pets over the past five years, owners are spending more on each pet and increasing their expenditure on premium products and services," the report says.

While retail conditions are tough, pets are an integral part of owners' lives.

Australia has one of the highest rates of pet ownership in the world.

Australia has one of the highest rates of pet ownership in the world.

"The industry's saving grace has been the rise of the pet parent phenomenon, as doting pet owners increasingly grant their four-legged friends family member status," the report says.

Over the past five years Ibisworld found a trend towards humanisation has encouraged households to increase expenditure on their pets, purchasing goods such as human-grade pet food and designer outfits. Dog and cat clothing has grown more popular, including designer lines and seasonal costumes for Halloween and Christmas.

Margaret Hennessy is the owner of dog boutique and grooming franchise Dogue.

Margaret Hennessy is the owner of dog boutique and grooming franchise Dogue.

Our business wouldn't exist if it wasn't for people wanting to reflect their own personalities through their pets.

Mel Westwood

Westwood says the pet parent phenomenon has been a factor in the growing demand for Pethaus.

"Our business is about people humanising their pets," she says. "We make stuff that we would wear. I think we never thought we'd be the type of people to humanise our pet ... until you have one and realise what an extension of your life they become. Our business wouldn't exist if it wasn't for people wanting to reflect their own personalities through their pets. They are our babies."

Dogue also sells dog accessories.

Dogue also sells dog accessories.

Dogs of Instagram

Social media, and in particular Instagram-famous dogs, is also a driver of doggie clothing sales.

Margaret Hennessy, the owner of dog clothing boutique and grooming franchise Dogue, says social media is very influential.

Social media has helped drive business to Dogue.

Social media has helped drive business to Dogue.Credit: Danny Osomanski

"We see a lot of Instagram-famous dogs and we provide them with products to promote," Hennessy says. "We also use Facebook and Twitter and we really see that come into the online store."

Dogue was started in 1998 by Simone Kingston. It was Australia's first dog boutique, in Woollahra, Sydney.

Kingston still owns Dogue's wholesale business, while Hennessy bought the retail arm in 2005.

After fighting a trademark battle with US Vogue, Dogue now has nine stores in its network and turns over more than $5 million across the business.

Dogue franchisees pay a franchise fee of $40,000, marketing launch fee of $5000 and induction training fee of $7500, and Dogue then takes 9.5 per cent of revenue on an ongoing basis.

"There is definitely a big market for unique, stylish, affordable products," says Hennessy.

She says pets are viewed much differently than they were five or 10 years ago.

"There is certainly a different attitude to the role that pets play," she says. "For our customers, the dog is very much part of the family all the time. They are kept inside and sleep on beds."

Dogue's main problem with clothing sales is that Sydney's weather is too warm for dogs to need jackets, so Hennessy is looking at opening up to five stores in cooler states.

"It's fun, it's part of the pampering for dogs and a lot of dogs do enjoy a jacket and feel quite special," she says.

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