Chewy is a U.S.-based online retailer specializing in pet products, from food and treats to toys, grooming essentials, and healthcare items. Founded in 2011, Chewy is known for its extensive product selection, customer-centric approach, and dedicated services tailored for pet owners.

Chewy’s Mission: "Be the most trusted and convenient destination for pet parents (and partners) everywhere."

Geography: Chewy operates primarily in the United States, where it has established a strong presence in the pet e-commerce market.

The company has started to expand its operations internationally, with plans to enter markets like Canada

The Indian pet food market is experiencing significant growth, projected to increase from approximately USD 0.53 billion in 2023 to USD 1.87 billion by 2029, with a compound annual growth rate (CAGR) of 17.08% during this period. 1 , 2

Key drivers of this growth include:

Rising Pet Ownership: Increasing urbanization and disposable incomes have led to higher rates of pet ownership, particularly among dogs and cats.

Humanization of Pets: Pet owners are increasingly treating their pets as family members, resulting in higher spending on premium and specialized pet food products. 3 

E-commerce Growth: The shift towards online shopping has accelerated, providing an opportunity for e-commerce platforms like Chewy to capture market share.

Competitive Landscape: 4

Domestic Competitors: The Indian pet food market is dominated by established players such as Mars Petcare, Nestlé Purina, Royal Canin and IB Group (Drools Pet Food Pvt. Ltd.)

Global Competitors: International players like Amazon and Flipkart also have dedicated pet sections, though they lack the pet-focused specialization and customer loyalty programs that Chewy offers in the U.S. market.

Product Demand: There is a growing demand for premium pet food, grooming products, and health supplements. Indian consumers are also increasingly looking for natural, organic, and sustainable pet products.

Service Demand: Services like pet grooming, training, and veterinary consultations are increasingly popular, especially in urban centers.

Strong brand reputation and expertise in pet e-commerce

Robust digital and customer service experience

Loyal Customer Base. 5 6

Wide product selection and customer loyalty programs

Limited brand recognition in India

Higher price points compared to local brands

No Physical Stores

Dependence on efficient supply chain and logistics

Growing pet ownership and premiumization trends in India

Expansion into Veterinary Services

Rising Demand for Premium Products

The ongoing shift towards online shopping provides an advantageous environment for Chewy to establish itself

Competition from established local and global e-commerce players

Local regulatory challenges and high import duties

Misalignment with cultural expectations could lead to marketing missteps or product mismatches

Economic fluctuations and varying consumer spending habits may impact sales

Supply Chain and Logistics: Setting up an efficient supply chain is critical, especially given India’s diverse geography and logistical challenges. Chewy would need to establish reliable warehousing and distribution centers to ensure timely delivery.

Customer Acquisition and Brand Recognition: Chewy’s brand is currently unknown in India. Competing with established local players will require an aggressive marketing strategy to build awareness and trust.

Price Sensitivity: Although India’s middle class is expanding, pricing remains a significant factor for Indian consumers. Chewy may need to adjust its pricing or introduce locally sourced products to make its offerings more affordable.

Regulatory and Compliance Issues: Importing pet food and supplies into India may require navigating import duties, product regulations, and food safety standards. Localization and collaboration with domestic suppliers could mitigate some regulatory hurdles.

Primary Target: Urban pet owners, especially in metros like Mumbai, Delhi, Bengaluru, and Chennai, who seek premium pet care products and services.

Secondary Target: Pet breeders and veterinarians who can be key stakeholders in promoting high-quality pet products.

Wide Product Range: Offer a curated selection of premium pet food, toys, grooming essentials, and health products. Focus on high-quality, natural, and organic options to cater to health-conscious pet owners.

Specialized Services: Introduce services such as virtual veterinary consultations, Pet trainers, Animal Daycares and pet grooming appointments, which are still emerging in the Indian market.

Convenience and Customer Loyalty: Launch a subscription-based model similar to Chewy’s Autoship in the U.S., allowing customers to receive regular deliveries of pet essentials.

Partner with local pet product manufacturers and suppliers to reduce import costs and adhere to local preferences.

Collaborate with veterinary clinics and pet service providers to offer bundled services and increase visibility among pet owners.

Influencer Marketing: Collaborate with local pet influencers and veterinarians to build brand awareness and trust among Indian pet owners.

Localized Content: Create content on pet care tips, product benefits, and customer testimonials tailored for the Indian audience. Utilize platforms such as Instagram, YouTube, and Facebook, which are popular for pet-related content in India.

Introduce a mix of imported premium products and locally sourced items to offer diverse price points.

Offer discounts on first purchases and introduce loyalty programs to drive customer retention.

Provide dedicated customer service with 24/7 support, including a toll-free helpline and live chat. Quality customer support can help Chewy establish trust, especially as it enters a new market

Given the rapid growth of online shopping in India, Chewy should prioritize establishing a robust e-commerce platform tailored to local consumer behavior. This includes optimizing the website for mobile use, given the high smartphone penetration in India.

Conduct deeper market research on product demand, customer pain points, and preferred brands.

Establish partnerships with local suppliers, veterinarians, and influencers.

Launch a pilot program in selected metro cities like Mumbai, Delhi, and Bengaluru, offering a curated selection of products and services.

Gather customer feedback to refine product offerings and service quality.

Expand to other urban areas based on the success of the pilot launch.

Introduce loyalty programs, subscription services, and build a robust logistics network.

6. KPIs to Measure Success

Customer Acquisition Cost (CAC): Monitor the cost-effectiveness of marketing and promotional activities.

Customer Retention Rate: Track loyalty and repeat purchase behavior to gauge satisfaction.

Order Fulfillment Time: Measure the efficiency of supply chain and logistics operations.

Monthly Active Users (MAU): Track engagement levels and platform usage over time.

Customer Satisfaction Score (CSAT): Regularly collect feedback to understand customer experience and areas for improvement.

Chewy's entry into the Indian market presents significant opportunities due to the growing demand for premium pet products driven by rising disposable incomes and changing consumer attitudes towards pets. However, success will depend on careful localization, efficient supply chain management, and establishing a trusted brand presence. Through a targeted market entry strategy and commitment to customer satisfaction, Chewy can tap into India’s evolving pet care market and replicate its success in a new, promising market.