AI Spotlighted for Analyzing and Recommending Pet Products Amid '6 Trillion Won Pet Economy' Growth Trend

AI Marketing Automation Solution Targeting Petfam Jocks Draws Attention

On the afternoon of September 28, a pet dog is seen taking a swimming lesson at Cocosquare, a high-end pet total shop located in Space One at Hyundai Premium Outlet in Namyangju, Gyeonggi Province. Photo by Yonhap News Agency

[Asia Economy Reporter Kim Heeyoon] In an era where the number of pet owners has reached 10 million and the pet economy industry has grown to an annual scale of 6 trillion won, pet families who consider their pets as family members are emerging as major players in the market.

According to the 'E-commerce Trend Report' by BigInsight, an AI-based marketing automation company, the purchase conversion rate (3.21%) in the pet supplies sector ranked second highest among all industries. Purchase amounts are also continuously increasing. The ‘2021 Korea Pet Report’ published by KB Financial Group’s Management Research Institute showed that the average monthly fixed care cost for pet households in 2021 was 140,000 won, about 20,000 won higher than in 2018.

Along with market expansion, pet supplies commerce companies are also showing remarkable growth. More companies are launching private brand (PB) products or operating D2C-exclusive shopping malls. Recently, cases of adopting deep learning-based marketing automation solutions to simultaneously improve customer satisfaction and increase sales are rapidly spreading.

Personalized Messages Recommend the Perfect Products to Customers

BiteMe is a pet lifestyle platform that plans and sells various private brand products (PB) such as pet food, clothing, toys, and hygiene products. It has formed a unique brand awareness and a loyal customer base through campaigns like ‘Buy2 Give1,’ which donates one item to abandoned animals for every two snacks purchased, and the ‘Don’t Buy, Adopt’ campaign. It is also expanding its presence in overseas markets such as Taiwan and China, and at the end of last year, it secured an investment of 1.5 billion won in recognition of its growth potential.

In addition to about 600 PB products, BiteMe also offers a variety of pet-related items. With so many products available, personalized messages tailored to each customer are an important CRM marketing point for BiteMe. Using BigIn’s solution, BiteMe manages this more efficiently. Through AI-based customer behavior pattern analysis and ‘smart classification,’ it provides personalized product recommendations and coupons, and conducts automated SMS marketing with precise targeting, driving sales growth.

Building Trust and Assisting Customer Decisions with Recommendation Pop-ups

Blank Corporation’s pet lifestyle brand ▲Areureu has gained attention with pet snacks and innovative products, becoming one of Korea’s leading pet brands. Areureu offers various products for pets’ comfortable living, such as non-slip stairs and heated padding. The ‘UFO Neck Collar,’ which improves the discomfort of plastic neck collars, sold over 250,000 units and received great response. Thanks to this high popularity, cumulative sales surpassed 10 billion won three years after its launch in October last year.

Areureu also uses BigIn to conduct aggressive e-commerce marketing. In particular, social proof recommendation pop-up campaigns that show other customers’ product views and purchase counts have shown good results. Additionally, marketing automation functions are used at each purchase stage to reduce customer dropout rates and help customers proceed to final purchase, assisting their buying decisions.

Marketing Automation Solution Recommends ‘Pet Hygiene Products’ at the Right Time

Launched at the end of 2020, ▲She’s Gone is a brand with the concept of ‘Pet Cleanliness Hero.’ Aiming to create a more comfortable and healthy living environment with pets, She’s Gone offers a variety of products ranging from dog pee pads, cat litter, walking poop bags, and biodegradable waste bags for cleaner waste management to deodorants, shampoos, face water, and dedicated moisturizers. Its popular premium pee pad ‘3-Second Pad’ surpassed 1 million units sold within a year of launch, securing a loyal customer base.

She’s Gone cites automating daily repetitive routine campaigns using BigIn’s solution as its greatest advantage. According to company officials, automating campaign execution based on each customer’s behavior patterns?such as secret coupons issued upon membership registration or product views, and toast push notifications reminding recently viewed products?has enabled more efficient overall marketing operations.

A BigInsight official stated, “AI is deeply understanding the preferences of pet owners who want to give generously to their pets, who are like family, capturing their hearts,” adding, “By adopting CRM marketing automation solutions, more efficient marketing tasks such as understanding and managing customer needs become possible, and it facilitates smoother purchase induction of incoming customers, increasing related demand.”

This content was produced with the assistance of AI translation services.