How a Viral Dog Costume Became a $2M Brand

Issue #177

April 16th, 2025

Quick Hits:

🇹🇭 Thailand’s pet industry is booming

🏠 Luxury Pet Hotel Investments acquires its 45th pet boarding location

📈 Trending: Twirling your dog in a circle while holding your phone in your mouth to record your POV

🥹 This owner shares a before & after of how much their Golden has grown in the last year

🎓 This recent Oxford grad is pet sitting in strangers’ homes to save money while job searching

Meet Huxley – the Pomeranian whose panda costume kicked off a viral sensation.

Eugenia Chen, a college math instructor and devoted panda-lover, initially ran a small online store selling panda-themed gifts and apparel around 2015, bringing in around $100k annually.

One day, she playfully crafted a panda bear costume for Huxley, her pup, and shared a video of him waddling around the house.

The clip blew up with over 400,000 views almost overnight, crashing her website with demand from amused pet owners.

Realizing she’d struck gold, Chen pivoted from panda plushies to pet costumes full-time, with Huxley as her adorable “furry business partner.”

What began as a quirky homemade outfit for giggles quickly grew into Pandaloon, a brand built on cuteness, community, and panda-monium.

Shark Tank Appearance

Eugenia and Huxley entered the tank in Season 9 of Shark Tank (January 2018) with a show-stopping pitch. (She even joked that her business partner was running late – right on cue, Huxley trotted in wearing his panda suit, melting the Sharks into laughter!)

Chen asked for $60,000 for 20% of Pandaloon. The sight of a tiny dog turned “walking teddy bear” had Daymond John and guest shark Sara Blakely vying for a deal.

In the end, Daymond’s offer of $60,000 for 35% equity won out – sweetened by his pledge to donate 10% of profits to animal charities.

The Shark Tank effect was immediate and immense.

After the episode aired, Pandaloon’s sales spiked 2300% practically overnight, and the website saw a flood of traffic from pet parents desperate to turn their own Fidos and Fluffys into mini pandas.

Chen leveraged Amazon’s fulfillment network to keep up with the post-Shark Tank surge, preventing backorders and keeping excited customers happy.

The national TV spotlight turned Pandaloon into a bona fide internet sensation (again!), proving that an irresistible product plus viral exposure is a recipe for e-com success.

Business Growth and Current Status

From pandas to lions to unicorns, Pandaloon has expanded into a whole zoo of costumes.

There’s even a matching pet knife accessory, so your pup can add a murderous vibe to their get up.

@huxleythepandapuppy

Sorry if this is too terrifying… #pandapuppy #puppy #dog #dogcomedy

This niche brand went from a one-costume wonder to a bustling pet apparel business offering multiple sizes and styles for pets of all shapes.

By 2024, Pandaloon was generating around $2 million in annual sales, an impressive leap from its humble beginnings.

The products are available through Pandaloon’s website and on Amazon, and Chen continues to innovate new designs (all while giving back – a portion of every sale benefits panda conservation).

From a quirky side hustle to a multi-million dollar enterprise, Pandaloon’s journey shows how passion and a viral moment can create opportunity for a timely pivot and snowball into sustained success.

Market Analysis

Pandaloon’s rise isn’t an isolated case of puppy luck – it rides on the robust growth of the pet fashion industry.

The global pet clothing market (which includes costumes, sweaters, and other apparel) was valued at $5.56 billion in 2023, and it’s projected to reach $8.97 billion by 2032 – growing about 5.6% annually.

In other words, pet apparel is big business, not just a cute niche.

North America leads the pack, accounting for roughly 33.6% of the market in 2023, thanks to consumers who love spoiling their pets.

Pet owners are spending more than ever to dress up their fur kids, driving a steady increase in pet clothing sales year over year.

This boom is part of a broader trend of higher spending on pets (from organic treats to designer leashes) and the normalization of pets sporting outfits for practical use and Instagram-worthy moments alike.

Competitors & Industry Trends

Pandaloon is frolicking in a growing field of pet fashion players.

Established pet apparel brands like Canada Pooch, Little Beast, and Milk & Pepper offer everything from stylish dog parkas to chic pet streetwear, competing for a slice of this booming market.

Even big retailers and luxury designers have jumped in – Petco sells pet clothing, and high-end labels like Gucci have launched pet lines, proving pet fashion has gone fully mainstream.

The industry’s growth is fueled by the (you guessed it) pet humanization trend, so of course we want to dress them in comfy, stylish outfits that match their personalities.

Reports consistently highlight that this “fur baby” culture is a major driver of demand for pet clothing. And let’s not forget the power of social media: platforms like Instagram and TikTok are awash with pets in adorable costumes, further boosting pet fashion as owners seek those double-tap worthy photos.

In short, dressing up pets has evolved from a novelty to a normal (and still utterly delightful) aspect of pet ownership, with a host of brands racing alongside Pandaloon to capitalize on our love of decked-out dogs.

Consumer Behavior & Seasonal Spending

If you’ve ever bought your dog a Halloween costume, you’re far from alone.

Americans are expected to spend about $700 million on Halloween costumes for their pets in a single year – a staggering figure that shows just how enthusiastic we are about including pets in our holiday fun.

In fact, dressing up our four-legged friends has become a Halloween tradition: the most popular pet getups include pumpkins, hot dogs, bumblebees, bats, and spiders.

It’s not just Halloween – from ugly Christmas sweaters to birthday party outfits, pet parents are shelling out for apparel year-round.

This seasonal surge in pet costume sales underscores a key point: people don’t just love their pets; they love doing something a little silly and special for them, especially during holidays.

Woof Insights

Pandaloon’s story offers some solid insight into one of many recipes for success:

• Viral Marketing Magic: One viral video turned Huxley into a worldwide sensation and created a market out of thin air. A dose of cute, shareable content can be more effective than any ad budget – so think about how your product can capture hearts on social media. Cute sells, and if your product can spark joy (or laughs), it has a shot at spreading like wildfire.

• Niche Passion, Big Opportunity: Chen built her brand around what she loved – pandas and pets – carving out a unique niche. By leaning into a specific theme and audience (panda fans and small-dog owners), she stood out in a crowded pet market. The lesson: don’t be afraid to serve a niche; today’s niche can become tomorrow’s mass market if you tap into an emotional need. Pandaloon’s niche was delight and whimsy, which proved to have universal appeal.

• Leverage Platforms for Scale: When Pandaloon’s big moment came (thanks to Shark Tank), Chen was ready to scale up, using Amazon’s infrastructure to handle the 2300% spike in orders. Small businesses can punch above their weight by leveraging third-party platforms and partnerships – whether that’s using Fulfillment by Amazon, appearing on a TV show, or partnering with influencers. Plan for success so you’re not caught off guard by a sudden influx of customers (especially in the e-com space).

• Ride the Trend (But Stay Authentic): The pet humanization trend isn’t slowing down – people will continue spending on quality products that make their pets happy and stylish. Pandaloon succeeded by riding this wave while staying true to its playful brand identity. For anyone entering the pet fashion space, the takeaway is clear: embrace the fact that pet owners see pets as family, cater to their desire for safe and comfortable (and yes, cute!) pet products, and you can tap into a growing market. Combine that with a memorable brand story or mission (like Pandaloon’s charity tie-ins and community of pet lovers) to build loyalty beyond the initial novelty.

At the end of the day, Pandaloon’s journey from a single panda puppy video to a $2 million-a-year business is a testament to the power of “joyful innovation”.

Eugenia Chen took an Internet joke and turned it into a thriving brand by understanding one simple truth: people love their pets and pandas…and costumes (like, a lot)

By blending those passions, she created something genuinely original.

WINNER 🏆️ : BITCOIN

 Proudly introducing the DoggyDex™, an index comprised of 10 publicly traded companies whose primary focus is the dog/pet industry.

List of tickers used can be found below.

The yellow line-plot in the chart represents these companies above (DoggyDex™) and their combined performance against both the S&P 500 and Bitcoin on a weekly basis.

Pawformance is measured by % gains & losses.

• $CHWY - Chewy: E-commerce platform for pet supplies

• $IDXX - Idexx Labs: Vet point of care instruments and vet software

• $FRPT - Fresh Pet: Pet food company

• $ELAN - Elanco: Manufactures pet disease prevention products

• $PETS - PetMeds: Online pet pharmacy

• $ZTS - Zoetis: World's largest producer of meds and vaccines for pets and livestock

• $TRUP - Trupanion: Pet insurance company

• $WOOF - Petco Health & Wellness co.: Pet health & wellness company

• $BARK - BarkBox: Subscription service providing dog products, services, and experiences

• $PET - Wag! Group Co.: Tech platform that allows pet owners to connect with industry professionals for services such as walking, training, etc.

If you’re looking to zero in on the country’s most pet-obsessed zip codes, this new U.S. Pet Lovers Index by Mastercard is pure gold. Ranked by a composite of pet spending per household, pet spending as a percentage of overall spend, and the percentage of cards used for pet-related purchases, it reveals some surprising standouts.

Pittsburgh (15237) claims the top spot, followed closely by three zip codes in upstate New York—Hamburg, Saratoga Springs, and Depew—highlighting a clear regional cluster of heavy pet investment. Notably, California has multiple entries as well, including Ventura, Oakland, and Pasadena, proving the West Coast’s strong presence in the pet economy.

These are communities where pet spending is not only high in dollar terms but deeply embedded in lifestyle choices. If you're launching a new product, testing local ad campaigns, or expanding retail presence, this list offers a solid starting point. Think of it as a GPS for where pet passion runs hot, and potentially where your next best customers live.

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