Question 1
During the pandemic, Singapore saw a significant jump in pet ownerships, many of whom were first-time pet owners. According to Animal Veterinary Service’s group director Jessica Kwok, the number of dog licences increased from about 70,000 in 2019 to about 87,000 in 2022.
Based on a Euromonitor International report, the pet dog population in Singapore (including unlicensed dogs) is around 114,000 in 2023, up by almost 3 per cent from 2019. On the other hand, pet cat population hovers around 94,000 in 2023, a jump of almost 10 per cent compared with 2019.
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According to Mr. Kam Kok Yen, head of animal health at Boehringer Ingelheim, pet owners are spending more on their beloved ‘furkids’, fuelled by the humanisation of pets. He remarked that more pet owners are looking into the animals’ health and wellbeing as they treat the animals more like family rather than just a pet.
Meanwhile, as Singapore and other countries exit from the pandemic phase and embrace COVID-19 as endemic, countries have opened up their borders and international travels are on the rise again. Mr. Steven Ler, president of the National Association of Travel Agents Singapore (NATAS) reckoned that the travel industry is in the midst of a “huge comeback”. He further commented, “The appetite for overseas travel is high as many desire to explore the world again and go ‘revenge travelling’, in hopes of making up for lost time.”
As pet owners plan for their overseas trips, they are faced with the problem of arranging for the care of their ‘furkids’ in their absence. While this is an issue for pet owners, you see this as an opportunity. You believe there is an attractive business proposition to start a pet hotel to meet the growing demand for pet boarding services, particularly in the mid-to-high tier segment as “pawrents” are now more willing to splurge on pampering their ‘furkids’, ensuring that their pets will be well-taken care of whilst they are away.
Starting and operating a pet hotel requires significant investment and good planning before commencing on this venture. You shared this idea at a recent networking event and an interested potential investor has requested for a preliminary proposal prior to further discussion. [Sources: Adapted from Lee (2023)].
Required:
You are to construct a business model canvas to analyse the opportunity for launching a pet boarding business.
In your report, you should appraise in detail each component of the business model canvas.
The report should also include a detailed financial analysis to demonstrate the financial viability of the venture.
