On a scent to success

Michael Welten’s five-year quest to formulate a pure plant-based pet fragrance for his beloved French bulldog Benson is paying dividends.

It was a shopping expedition more than five years ago that fanned the spark of a business idea in Michael Welten’s mind. The idea to create a luxury dog perfume made entirely from natural materials came to him while out shopping for a pet fragrance for Benson, his French bulldog.

Pet fragrances are nothing new, they’ve been around for more than 20 years. But what Michael was horrified to discover on product labels was that they all contain a number of rather nasty chemicals.

That simply wasn’t good enough for his Benson, who also turned his nose up at the thought of being exposed to chemicals (if only dogs could talk!).

That experience triggered a product development journey for the Hamilton-based Michael – who had previously clocked up a 15 year career in sales management working for both national and multinational FMCG companies.

His goal was to create a 100 percent plant-based pet fragrance that is alcohol-free and doesn’t contain parabens or harmful chemicals. The result is Mipuchi.

To this very day Mipuchi’s guiding principle has remained the same, says Michael. “We offer a luxury pet fragrance made with sustainable, naturally-derived ingredients.

“We also incorporate signature New Zealand ingredients to provide a complex and uniquely refreshing scent of pure New Zealand.”

In the past year, he’s brought a new partner into the business – Tony Aubrey, a 20-year veteran of the advertising agency industry.

“Tony’s worked alongside me to help develop our branding, packaging and marketing; to bring Mipuchi to market,” says Michael. “He adds another dimension to the business.”

Raising capital has been one of the biggest challenges in getting the business up and running, and Michael admits he hadn’t realised the amount of time and commitment required for this aspect of the business.

“Taking our time to find the right partners is of equal importance to the investment itself,” he explains. “From the outset we knew it was crucial to find smart money – investors with the right knowledge to support our international expansion and who had access to capital. 

“We want willing investors who are passionate about our product and the global opportunity, and are the right fit for our team.”

He says they’ve had solid interest from potential investors both inside the pet sector and from other sectors, and have been surprised by some of the heavyweight investors they’ve been in discussions with.

As for the impact of Covid-19, Michael says they’ve been affected by cancelled trade shows both locally and internationally. 

“We were scheduled to be in Shanghai at Asia’s largest pet expo [in August], however due to Covid-19 we had to cancel. This means we had to change our market entry plan to minimise the effect that this had on our business.”

Lessons and growth

Michael says the biggest learnings he’s had from the business is that you can’t do everything yourself, and you need to reach out for help. 

“We have an amazing and highly-experienced board of advisors whose expertise helps fill-in the development gaps and guide us in the right direction.”

So is there anything he would have done differently over the past five years, with the benefit of hindsight? 

Michael believes he should have actively brought on advisors at the start of his journey. “This would have saved a lot of time and capital in the long run.”

Of course, nothing could have prepared him for Covid-19, but Michael’s advice on navigating the pandemic is to have a solid business plan and then sticking to it 100 percent, without being side-tracked.

2020 has seen plenty of success too, despite the pandemic. Mipuchi has just secured a position in New Zealand’s largest national pet chain with an opportunity to expand into an additional 300 outlets in Australia through the parent company. 

“Our dog grooming channel is also growing successfully and we are working alongside a renowned international master groomer and judge who loves our product,” says Michael. 

“We’ve had amazing feedback from him on our world-first 100 percent oil-based formulation which lasts ten to 12 hours and provides a clean, rich, true scent, and is less likely to cause allergic reactions due to its natural ingredients.  

“We are also presenting to medium/high-end department stores with the strategy to introduce luxury pet fragrances into the ‘home fragrance’ category alongside candles, diffusers and personal fragrances.”

Export potential

An ageing population, falling birth-rate and growing trend in ‘single-hood’ is providing momentum for the world’s pet industry. The global pet grooming products market is expected to reach USD$10.92 billion in 2020, with a compound annual growth rate (CAGR) of 5.7 percent between 2019 and 2025, reports Michael.

“All this has unleashed an enormous demand for the pampering of pets, who ease loneliness and bring joy and fun to pet owners’ lives,” he says. “Mipuchi’s strategy is to provide all dog owners who treat their companion as an important part of the family – the humanisation of pets – with a luxury pet fragrance offering as a part of their pet pampering.”

He says Asia will be their main export focus. China’s pet industry in particular has demonstrated extraordinary growth, encouraged by associated services such as foster-care, training, beauty products, photography and funerals – in addition to the standard pet requirements of grooming and medical care.

Michael says the next six to 12 months will be spent finalising a strategy for Mipuchi’s China market entry.

Meanwhile, is there inspiration for other entrepreneurs from Michael’s Mipuchi journey?

Absolutely, says Michael. “If you believe in your product and vision for your business, then take action! I spent just over a year procrastinating about starting my own business, but once I took the first step of my journey I’ve loved every minute of it – even when the going got tough. 

“But I believe overcoming those challenges makes the whole journey much more rewarding.”