Dogspot is a portal where you can buy the widest variety
of dog products in India. Also they have a community where you can discuss
anything related to dogs. I have been tracking this website for a while and
have seen it grow from stage to stage.
They started out as a community for very long and then got
into ecommerce a few years back. Initially they were selling products of
various brands. With the big horizontal ecommerce players entering this space, they
are moving towards creating a private label.
WHAT I LIKE
Speciality Store
– They are sticking to a niche and have emerged the leaders in that space.
Strong Community –
It is the biggest and strongest community for dog lovers. It serves as a great
tool for engaging users.
Very Targeted Market
– Dog Lovers & Owners. They are building tools for them and hence the
engagement is higher.
Private Label - Dogpsot has a big user base and is now
pushing it’s own private label. The good thing here is that the margins are
higher and a private label is sustainable in the longer term. They are also
selling their products on other websites like Amazon.
CONCERNS
Small Market –
The market size is quite small for dog products in India.
My Suggestions
Demerging – They
are currently running 2 businesses, a community and an ecommerce store. They
should demerge both of them as both have different growth potentials and
challenges associated with them. This will help them unlock value in the
future.
I
feel that Dogspot has created a strong place for itself in this niche and is
currently in the process of pivoting it’s business model into one which looks
more at profitability and sustainability.
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