ProActive Pet Products, Inc. (OTCPK: PPPI) – Taking A Proactive Approach To Pet Health
ProActive Pet Products is a Nevada-based company specializing in producing pet healthcare products such as their specialized pet first aid kids, emergency go kits, and other related products. By preparing for difficult and unexpected situations, pet owners can potentially save their furry loved one’s life in the event of a disaster. The company is innovating the pet healthcare industry’s technological environment as well by designing a storage portal for easy access to a pet’s documentation, medical records, and photos—all of which is stored with high security protocols, much like HIPAA. This portal, Registered Pet™, is currently accepting pre-registrations.
A Growing Total Attainable Market (TAM)
The pet products industry is no stranger to growth, with IBISWorld forecasts showing expectations of profit margin increases, pet ownership increases, and a shift to premium pet product purchasing. Additionally, pet product sales have proven to be resistant to recessions and other market volatility according to a recent study done by WSL, a market research company, which indicated that 81% of polled pet owners spent the same as much on their pets during economic hardship as they did prior. Also worth noting is that the American Pet Product Association (APPA) found that 22.7% of pets owned are cats and 18.9% of pets owned are dogs. With cats and dogs being the primary types of pets ProActive Pet Products serves, this existing market size and rapid growth could very directly contribute to the growth of the company’s bottom line.
Increasing Direct Sales by Offering High Margins
While ProActive Pet Products has seen some success with its prior model of leveraging a growing distribution network to increase sales, the company is now exploring a ‘Go-To-Market’ strategy, which is designed to incentivize more retailers to step up and sign on for direct supply. This effectively sets the stage to cut out the middlemen and increase total profit margins. Because the products will carry higher margins (around 50% or more), retailers will have more incentive to prominently display and advertise ProActive Pet Products. This strategy, the company hopes, will increase sales and allow them to reach into new markets as word spreads.