Roses, tulips and sunflowers (Helianthus) are the most popular products to buy as single flowers. If you do not have experience on the European market, consider supplying to the flower auction. In recent years, an increasing number of growers from developing countries export directly to the European market, bypassing the auction clock. Depending on the type of outlet and market segment this includes speciality flowers and higher-quality flowers. Develop an adequate product assortment for your target market segment. In many cases, there will already be businesses that are selling flowers in your community. The low-end segment includes mono-bunches and small bouquets sold at supermarkets, filling stations and kiosks. Learn about the possibilities and technical aspects of E-commerce. Besides the flower auction, there are many specialised wholesalers in the Netherlands. All Rights Reserved. Are flowers a status symbol in your community? Most wholesalers specialise in one of the two main sales channels, although some (particularly the larger wholesalers) have special divisions for each channel. Each type of flower and sub-segment of the gift flower maker has its own special features, with peak days and seasonal changes. develop a marketing strategy for your floral shop. Enter search terms to find market research. Sustainability is an important issue for supermarkets and retailers. Which social media channel does your target market prefer? What role do flowers play in those ceremonies? As wholesaling exporters have in-depth knowledge of markets, they are an important partner for exporters from developing countries that are able to meet the quality and reliability requirements to become trusted partners. Now that you have answered these questions, move on to the competition section. funeral and wedding flowers, and the institutional market segment). In Italy, Spain and France, the majority of all flowers are bought at florists. Many of them buy flowers from wholesalers through their business-to-business online shops. More than 50% of all imported flowers in Europe go through the Netherlands. Figure 1: Main market segments for cut flowers in Europe, Flowers are a traditional gift item in many European countries. supermarkets). Sales of some flowers can double before special holidays. The importance of the unspecialised market has increased in recent years. The market for cut flowers for consumer use (such as for home decoration or as a casual gift to a spouse) is especially large in the Netherlands, the UK, Germany and Belgium. Within this segment flowers (and plants) are the dominant product. Additional information about social standards is available in. Enter your International Society for Horticultural Science e-mail or user number. Poland, Hungary, the Czech Republic and Sweden). Contact and visit your buyers in order to create sustainable relationships. The flower auction is an important link in this channel. The unspecialised market consists of large supermarkets, filling stations, and other retail outlets that are not specialised in flowers and plants. Make a plan and organise your growing season accordingly! The CHAID approach reveals a segmentation profile as well as the nature of floral purchase for each segment. Two main market segments for cut flowers and foliage in Europe are specialised flower shops and unspecialised retail. Royal FloraHolland and the associated flower companies have built outstanding logistics and trade services systems and facilities, for both the physical and virtual trade of cut flowers. What other products compete with flowers in your market? Large foreign producers are able to supply larger quantities and fulfil the specific needs of major retailers in terms of planning and price. Figure 6: Market share for cut flowers sold in the specialised market channel, per country in % (2012), selection of countries. In the eastern European market, a considerable share of cut flowers are sold as single stems. For birthdays, (work) anniversaries, Mothers Day, Valentines day and many other occasions, flowers rank among the top gifts in many European countries. Larger wholesalers supply directly to major retail chains in other European countries. Southern European countries are also relatively large producers of seasonal flowers (especially summer flowers), which means that demand for imported flowers is also seasonal. Starting Supplies for a New Retail Flower Shop, Writing a Business Plan for Your New Flower Shop. Although there are wholesale traders who specialise in buying their stock at the auction clock, there are more and more wholesale traders that source directly from growers. Buyer requirements for cut flowers and foliage in Europe, direct trade service offered by the flower auction. What role do flowers play at the cemeteries? The assortment is limited and supplementary services (e.g. This trend will impact the gift flower market in the future and requires extra effort from growers, traders and florists to attract customers. Specialised market channel: the sales of flowers through florists, market/street stalls, garden centres, etc. The auction is very well connected to the specialised market channel. The highest-priced sub-segment includes custom-made flower bouquets and arrangements. Study the information that the auction provides. In many cases, supermarkets impose additional requirements related to social and sustainability issues. In general, higher average consumer income is associated with lower shares of the gift market for cut flowers as compared with the personal use (home decoration) market segment. The flower auction is a central marketplace in Europe for buying and selling cut flowers. Competition from other gifts, like gift vouchers from retail stores or cinemas, is becoming a threat to the gift flower market segment. In the United Kingdom and some countries in Scandinavia, sustainable flowers (e.g. There is very limited space for negotiations. The unspecialised market consists of supermarkets, filling stations, and other retail outlets that are not specialised in flowers and plants. The specialised market channel concerns florists, markets stalls and kiosks, garden centres, and other outlets where flowers (and plants) are the main product. Identify your most important buyers and contact and visit important buyers in order to create sustainable relationships. Do they send flowers to their employees, clients, and partners? Sales of cut flowers predominantly take place in florist shops and kiosks (specialised market channel). It even is the dominant sales channel for flowers in the United Kingdom. The Dutch (exporting) wholesalers have a prominent position in the European cut flower market. 536_56 CAUSES OF VARIATION IN THE PRICE OF ROSES, 536_57 MARKETING FEATURES OF ORNAMENTALS AS APPRECIATED BY THE MARKET, 536_58 HYPERCOMPETITION ON HORTICULTURAL MARKETS, 536_59 THE VARIABILITY OF AGRO FOOD PRODUCT CONSUMER PRICES, 536_60 DEVELOPING MARKETS FOR TURF PRODUCERS IN THE EASTERN UNITED STATES, 536_61 AN ANALYSIS OF THE IMPACT OF FOOD SAFETY CONCERNS ON FOOD CONSUMPTION, 536_62 DIRECT SELLING APPLIED TO STRAWBERRY, 536_63 CONSUMER PERCEPTIONS OF SELECTED FLOWER PLANTS, 536_64 SEGMENTATION AND TARGET MARKETING IN A FLORAL MARKET, 536_65 MANAGING A BRAND IN THE TOMATO SECTOR: AUTHORITY AND ENFORCEMENT MECHANISMS IN A COLLECTIVE ORGANIZATION, 536_66 DUTCH FLOWER BUSINESS: COMPETITIVENESS AND MARKETING STRATEGIES, 536_68 MANAGING PROBLEMS ON THE IMPROVEMENT OF THE QUALITY CHAIN IN CITRUS FRUITS INDUSTRY: A CASE STUDY IN UKUROVA REGION OF TURKEY. By really getting to know your target audience and their preference, only then can you develop a marketing strategy for your floral shop and build brand awareness. There are various import wholesale traders that are specialised in importing flowers from developing countries and that work closely with European retailers within the unspecialised market. Some drive trucks of flowers from the Netherlands via a fixed route (line) to florists in neighbouring countries (Flying Dutchmen). The middle-priced segment includes quality bouquets and mono-bunches, which are sold primarily by florists. This allows suppliers to attract consumers with additional product information and special packaging (storytelling). Direct sales that bypass the flower auction clock are increasing. The dominant feature of this channel is that flowers are a secondary product in the assortment. These temperate-climate, northwestern European countries with high average incomes form the primary market for cut flowers for consumer use (4060% of all expenditures). The. The procedure thereby permits an analysis of the demographic, attitudinal, behavioural and floral preference characteristics for each segment. Environmental and social standards do not yet play an important role in this market channel. 536_55 TRUST: A DETERMINANT OR THE CONSEQUENCE OF A LONG-TERM BUYER-SELLER RELATIONSHIP? And regardless of local market conditions, there will be a certain segment of consumers who prefer to purchase through wire services likeftd.comand other well-known online retailers. Wholesale traders and large retail buyers make direct agreements in advance. They sell to florists and importing wholesalers all over Europe. 536, 529-536, Market Segmentation, CHAID, Target Marketing, Floral Marketing, International Society for Horticultural Science, https://doi.org/10.17660/ActaHortic.2000.536.64, XIVth International Symposium on Horticultural Economics. One-stop-shopping is popular throughout Europe, and especially in the United Kingdom and other north-western European countries. Between 25% and 40% of all cut flowers and bouquets are bought on impulse. A few dominant retailers have a major influence on the market. Although the Netherlands is the main supplier in almost all Central European and eastern European countries, direct trade from developing countries is increasing. 536_25 HOW BIG MUST A NURSERY FIRM BE TO PRODUCE A REASONABLE FAMILY INCOME? Distance buying, pre-auction sales, and online shops are becoming more important. For example, in Poland, 18% of the flowers are sold as single stem. Are they likely to buy by phone, in person, or over the Internet? Some more exclusive flower shops in countries such as the Netherlands now only source flowers that adhere to minimum standards like MPS-A. Some of the major players in this market segment include Tesco (UK), Aldi (Germany), Lidl (Germany), Carrefour (France), Royal Ahold (Netherlands) and Sainsburys (UK). From there, cut flowers and bouquets are re-exported all over Europe and beyond. In Spain, Switzerland and Sweden as well, people buy between 10% and 14% of all cut flowers as loose stems. In other words, take time to think about who your potential customers will be, how much of what they will buy, and when. It has also increased in the Netherlands, Germany and the Scandinavian countries. Last modified November 28, 2021. Roses (red and pink) are traditionally popular on Valentines Day (14 February). Be sure to comply with their standards if you consider supplying this market segment. The technique, which is described in this paper, is easy to implement and provides a practical alternative to traditional statistical models. This also takes place between growers and the wholesale traders supplying supermarkets. But there is a trend towards sustainably produced flowers throughout the business. You are advised to carefully monitor which buyers are interested in your products and ask for feedback. Pay attention to specific preferences of consumers in a geographical area, specific peak days (like Valentines Day and Mothers Day) and organise your growing season accordingly. The traditional channel via the Dutch flower auction mainly targets the specialised florists. Consumers in this channel usually buy flowers in bunches either mixed bouquets or mono-bunches. However, take care to explore the options and learn about the implications first. It is expected that supermarkets will further increase their sales of flowers in many European countries. How Much Are the Costs to Start a Flower Shop? In the United Kingdom, the market share of supermarkets (including discounters) already exceeds 60%. Specialised shops offer a wide assortment and associated products, and usually create custom bouquets and decorations. Flower prices are usually higher just before peak days when demand is high, but sometimes the market can be oversupplied and especially suppliers of the most common flowers may be disappointed if prices are low. Other important auctions are Rhein-Maas Auction in Germany and Plantion Flower Auction in the Netherlands. The Netherlands is at the centre of the European flower trade. However, many still use the direct trade service offered by the flower auction. One of the mistakes I commonly see with many new florist businesses is the owners simply think social media marketing and digital marketing will bring in lots of customers and that its easy. The CHAID approach to segmentation is then applied to a study of floral buying behaviour in which floral products were chosen for own home decoration. The Dutch flower auction of Royal FloraHolland is the central marketplace where imported cut flowers are sold and redistributed to other European destinations. Gift purchases from florists tend to be associated with planned purchases for occasions that are known in advance. Favourite. Oppenheim, Peter P. (2000). Will you compete for the same segment of the market or will you target another segment? 536_1 A REVIEW OF ORGANIC HORTICULTURAL AND AGRICULTURE IN THE U.S. 536_2 POLICIES TO REDUCE ENERGY USE AND EMISSIONS IN BELGIAN GLASSHOUSE HORTICULTURE, 536_3 FINANCIAL PROSPECTS FOR SUSTAINABLE FARMING IN THE NETHERLANDS, 536_4 ECONOMICS OF APPLE PRODUCTION SYSTEMS WITH MINIMAL INPUT OF CHEMICALS. Invest in the necessary software and changes in business processes if you decide to make online trading part of your marketing strategy. In western Europe, consumers buy flowers primarily in bunches. However, supermarkets are gaining market share. In this paper the concept and the importance of market segmentation and target marketing in floral markets is discussed. Special days play a very important role in gift flower market. Make a deliberate choice for a market channel. There is a good and functional system to facilitate the trade in cut flowers. Some florists and street vendors also buy flowers directly at the auction, or are supplied through cash-and-carry outlets. To focus on a geographical market segment, you can partner with a wholesaler specialised in that region. The effectiveness of market segmentation is briefly reviewed before the author outlines the CHAID approach to market segmentation, which is based on consumer response to various behavioural variables and floral purchase incidence. The market for flowers as gifts represents between 40% and 70% of all expenditures on flowers, depending on the country. Supermarkets also impose additional requirements regarding vase life, labelling and quantity. This document explains the main differences between the market segments and the main channels for supplying to a specific segment. Italy and France are major markets for cut flowers and foliage in southern Europe. Further growth in this market segment is expected as average incomes continue to increase. Armed with answers to these and the questions in the Target Market section, Its time to write a business plan! Within these sub-segments product types, quality and price differ depending on the specific occasion, consumer group and market outlet. Please review our market information disclaimer. Florists usually also sell a range of flower and plant-related products (e.g. In terms of per capita consumption, Switzerland, Belgium, Germany, the Netherlands, Denmark and France have the biggest per capita consumption of cut flowers. Explore the potential of supplying flowers produced in socially and environmentally friendly ways, but only if your company is ready to adhere to the requirements and only if this is part of your long-term company strategy. Growth in the market share of supermarkets is expected to continue, thereby increasing demand for low-priced flowers for home decoration. Find more information about social and environmental labels in the. What advantage does the competition have? Location, relationships with key customers, reputation, and volume. Diversify your offer. Certificates of good agricultural practices, quality management and sustainable production are far more important in this channel than they are in the specialised market channel. The unspecialised channel is growing. The European market can roughly be segmented into three different geographical areas with specific patterns of consumption and buying behaviour: north-western Europe, southern Europe, and Central Europe and eastern Europe. But traditions vary by country. vases), whereas street market stalls have smaller assortments and focus more on impulse buying of bouquets and mono-bunches. Each of the main market segments consists of a consumer group and a specific purpose for which the flowers are bought. Since flowers are not the primary product of these retailers, in this channel consumers are more likely to buy flowers on impulse or when they are in a hurry. Two main market segments are the gift flower market and the segment of cut flowers and foliage for consumer use, such as home decoration (personal use). Flower growers from all over the world supply the auction to find suitable buyers for their products. 536_70 STRATEGIES OF MARKETING OF A TRADITIONAL VEGETABLE PRODUCT: THE RED ONION IN TROPEA, 536_71 PREREQUISITES FOR VALUE ADDING PARTNERSHIPS BETWEEN TRADE AND PRODUCERS IN THE VEGETABLE-GROWING SECTOR, 536_72 THE GENERAL STRUCTURE OF CUT FLOWERS MARKETING IN TURKEY AND THE ROLE OF AUCTIONS IN MARKETING FUNCTIONS, 536_73 QUALITY FUNCTION DEPLOYMENT: A MEANS OF INTEGRATING CONSUMER EXPECTATIONS THROUGHOUT CULTIVATION SYSTEMS, 536_74 KEY CHALLENGES FACING THE CHERRY SUPPLY CHAIN IN THE UK, 536_75 STAKEHOLDER PERCEPTION ANALYSIS FOR AGRI-SUPPLY CHAIN DEVELOPMENT, 536_76 LOGISTIC PLATFORMS FOR FRESH PRODUCE: THE CASE OF SAMAZAN, 536_77 CHAIN INFORMATION TO SUPPORT DUTCH SUPPLY CHAIN EFFECTIVENESS, 536_78 SOFT SYSTEMS METHODOLOGIES FOR MODELING POSTHARVEST CHAINS, 536_79 CHAIN MANAGEMENT AND MARKETING PERFORMANCE IN FRUIT INDUSTRY, 536_80 A PRACTICAL CHAIN MANAGEMENT SYSTEM IN THE DUTCH HORTICULTURE INDUSTRY, 536_81 TQM APPLIED TO THE DUTCH GLASSHOUSE INDUSTRY: STATE OF THE ART IN 2000. Enter the password that accompanies your e-mail or user number. Consumption of cut flowers is increasing in most countries in Central Europe and eastern Europe. Import agents are intermediates that facilitate trade. The large supermarket channel is growing in many European countries. The market for sustainable flowers is expected to increase. Do they use flowers in their offices. What industry is in your community and what role do flowers play in their business? They also assist in repacking flowers from cardboard export boxes to the required standard flower containers in order to supply the auction. Cost price is a major factor in these market channels. The unspecialised market is highly concentrated. What Is The Best Business Entity For A Flower Shop? Some German supermarkets sell Fairtrade flowers. custom-made bouquets) are mostly non-existent. Such purchases are increasing in eastern and Central European countries. Other market segments include special floral design and bouquets for events such as weddings, and the institutional market of business and government offices, events, hotels and restaurants, et cetera. First things first. Without prior experience and knowledge of exporting directly to the European market, the direct trade channel is a difficult channel. SEGMENTATION AND TARGET MARKETING IN A FLORAL MARKET. The European cut flower market consists of two market channels: one focusing on specialised florists and the other on unspecialised retail (e.g.