The online effects of the feline economy

A fat cat with the body of a Pop-Tart, flying through space leaving a rainbow trail, with insanely annoying music on an endless loop. It should be enough to get most people diving for cover, but instead, it’s one of the most popular Internet videos, and the most-watched cat video. Ever. The Nyan Cat (if you haven’t seen it yet, do so and add your mite to the 136 million-plus views) debuted in 2011, and its mildly manic music and happy rainbows are still going strong.

Cat videos are fast becoming an industry; viral cat videos these days are often made by professionals. There’s even an Internet Cat Video Festival in several parts of the world.

Cat videos need real cats, and real cats need cat products. Even as Nyan Cat and its fellow felines were taking over the Internet, a pet supplies distributor in north Delhi saw an increase in the number of enquiries for cat products. “When I started in 2005, nobody asked for cat products. This changed in early 2012 and since then demand has been going up by almost 30% every year,” says Rajesh Chauhan, owner of Rakul Pet Care. Today, almost 30% of Rakul’s sales come from cat products.

A well-groomed cat is quickly becoming a status symbol and along with an increase in adoption of strays, demand for exotic breeds is on the rise. Persian cats are the most popular. Ashwani Munjal of Paws and Claws, a pet shop in Delhi says: “About three to four years ago, the minimum price of a Persian cat was around Rs 14,000. Today they go for between Rs 18,000 and Rs 22,000.”

Munjal, who owns Persian cat Kitty (who deigned to pose for Fortune India), says the rise in popularity of cats as pets has meant they’re now bred in India. “Earlier, they were brought in from Russia and neighbouring countries, but now only the more exotic ones such as the Scottish Fold and the Savannah are imported. And they are a lot more expensive,” he says.

Expensive cats demand expensive care. A grooming session costs up to Rs 1,000 and Munjal gets at least three requests every weekend, because “long-haired Persian cats need a regular grooming schedule”.

Mayank Satija, who started his pet products business, Pets Empire, in 1997, says social media has been a key influencer in the rising awareness of cat care. “Social media itself has grown tremendously over the past five or six years, so it has played a definite role in increasing awareness about cats as pets,” he says. As a result, cat lovers spend at least Rs 60,000 to Rs 70,000 a year on a their pet. “This figure can rise to as much as you’re willing to spend,” he adds.

Cat food accounts for the bulk of expense. A 3 kg packet of imported cat food can cost up to Rs 700. “Every brand involved in the animal business has seen the potential in India and has started distribution here,” says Satija, comparing this to a few years ago, when only one brand was available. Today, on Amazon alone, there are more than 10 brands, including special food brands for show cats. Flavours range from shrimp to ice-cream. And then, there are the toys, scratching posts, and other accessories.

“The interesting part of this business is that there isn’t a grey channel. People who want to care for their cats insist on buying authentic products,” says Munjal. Chauhan says that the market for mid-range products is growing the fastest, with Bengaluru, Chennai, and Mumbai topping the list. In North India, it’s just Delhi. “But this is going to change dramatically because almost 40% of the retail business has recently moved to e-commerce that has a wider reach.”