What if your invention was in a “hot” industry – one where consumers were clamoring for the ‘latest thing'?
Wouldn't that be great?
There are many good industry segments for innovative, new products, but one that is particularly hot is pet products generally, and particularly pet toys. Do you have ideas for new, interesting pet toys? Maybe you should consider inventing into that segment.
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Pets: A Great Business Segment for Inventors
Are you wondering, what is so great about the pets segment? Here are some interesting statistics and info from the July/August issue of (i3) it is Innovation magazine.
According to a 2016 survey by American Pet Products Association (APPA) – 68% of U.S. households own at least one pet. These households altogether spent nearly $67 billion in 2016 on their pets. Pet tech gadgets are rapidly growing in popularity, as are interactive toys (like my flashy disco light cat toy).
Annual pet tech sales are expected to grow from $150 million currently to as much as $350 million by 2021. Interestingly, interactive pet toys account for 50% of purchases.
So pets and interactive toys are a great segment for invention.
But wait, there's more.
Recessions and Returns? No Problem!
Of course, people buy all sorts of discretionary items – including pet toys – during a strong economy.
But, when the economy turns down during a recession and you are worried about losing your job, what are the odds you'll buy Fido that bright, shiny toy? It turns out, you may be even more inclined to buy that toy for your pet – according to a 2010 article from the Chicago Tribune.
In 2009, when retail sales were down across the board (from the financial meltdown of 2007), pet spending actually increased 5.4% to $45.5 billion, according to APPA. What could be better than a nearly recession-proof industry?
How about an industry where returns rates are lower?
When you license your invention – as I have done with my product, the Wonder Wallet – you are paid royalties on sales minus returns.
Product returns definitely will affect your royalties.
As the owner of Dickens, my 16 year old cat, I have purchased many toys for him over the years. How many have I returned for a refund? Zero. Why?
Dickens likes some toys and ignores others – but, I don't feel there is anything wrong with the spurned toys, so I don't return them. Anecdotally, several other cat owners have verified that they, too, rarely return toys, even when their cats don't use them. I'm not sure that very many chewed up dog toys get returned either.
Guess what? Low return rates means better royalties for you!
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