THE STATE OF THE FLOWER INDUSTRY
Comments that florists don’t get it and don’t understand the business made me sit down and compose this.
First, many florists do get it and do understand this industry. What is the state of this industry today? Well, it’s about the same as the horse industry in 1910. Horses were big business back then because they were the main source of transportation. Along with horses were the buggy whip makers. As automobiles began to take over, the horse and buggy whip industry didn’t die overnight. Many did well, in spite of the changes occurring. They weren’t growing the industry, they were just capturing market share that was being lost by weaker players. That is until the horse went by the wayside forever as a mode of major transportation.
That’s a little like the flower industry today. Flowers are not going away. What is changing is that flowers are losing their place as a gift and florists are losing their share of the business. Florists add value to flowers by creating designs, but as the overall perceived value of flowers declines, the value of designed flowers is dropping. And in the United States, the biggest reason for buying flowers is for gift giving. I am in Michigan and our economy sucks. That doesn’t mean that everyone in the flower business here is doing badly. Some are in fact growing, but their growth is not because the industry as a whole is growing but because they are capturing market share from those closing their doors. What bodes poorly for those left is the fact that their expenses are rising at the same time their ability to raise prices to cover these increases is diminishing. Their only solution is to capture more volume, by any means.
A few days ago, the Wall Street Journal had an article stating that WalMart was removing the fabric departments from many of it’s stores. Did people quit wearing clothes? No. But what people are really doing is saying that they place very little value on handmade, homemade clothing even if the quality is higher than store bought. To add to that, in the past, there were hundreds of independent fabric shops along with a large number of chains selling fabric. And there were a large number of sewing machine makers. Today very few exist. See any parallel between the fabric industry and flowers.
Flowers are not going to go away completely. What is changing is the fact that the consumer is placing less and less value on the labor florists do to create those beautiful floral arrangements. This is being hastened by the fact that sales of flowers are being driven today more and more by price alone. This is due to the fact that many deep pocket players have come into the industry, plan on making a killing and leaving. Look at the amount of money Perry and Company made by buying and selling FTD. Look at the huge amount of money the founders of Proflowers made. Over time, the majority of florists will fold. Along with them will be the supporting industry of transportation, wholesalers, etc. Flowers will still be sold. And just like fabric today is still being sold. It will just be a small niche. The industry that will be left standing will look nothing like the flower industry of today.
Comments that florists don’t get it and don’t understand the business made me sit down and compose this.
First, many florists do get it and do understand this industry. What is the state of this industry today? Well, it’s about the same as the horse industry in 1910. Horses were big business back then because they were the main source of transportation. Along with horses were the buggy whip makers. As automobiles began to take over, the horse and buggy whip industry didn’t die overnight. Many did well, in spite of the changes occurring. They weren’t growing the industry, they were just capturing market share that was being lost by weaker players. That is until the horse went by the wayside forever as a mode of major transportation.
That’s a little like the flower industry today. Flowers are not going away. What is changing is that flowers are losing their place as a gift and florists are losing their share of the business. Florists add value to flowers by creating designs, but as the overall perceived value of flowers declines, the value of designed flowers is dropping. And in the United States, the biggest reason for buying flowers is for gift giving. I am in Michigan and our economy sucks. That doesn’t mean that everyone in the flower business here is doing badly. Some are in fact growing, but their growth is not because the industry as a whole is growing but because they are capturing market share from those closing their doors. What bodes poorly for those left is the fact that their expenses are rising at the same time their ability to raise prices to cover these increases is diminishing. Their only solution is to capture more volume, by any means.
A few days ago, the Wall Street Journal had an article stating that WalMart was removing the fabric departments from many of it’s stores. Did people quit wearing clothes? No. But what people are really doing is saying that they place very little value on handmade, homemade clothing even if the quality is higher than store bought. To add to that, in the past, there were hundreds of independent fabric shops along with a large number of chains selling fabric. And there were a large number of sewing machine makers. Today very few exist. See any parallel between the fabric industry and flowers.
Flowers are not going to go away completely. What is changing is the fact that the consumer is placing less and less value on the labor florists do to create those beautiful floral arrangements. This is being hastened by the fact that sales of flowers are being driven today more and more by price alone. This is due to the fact that many deep pocket players have come into the industry, plan on making a killing and leaving. Look at the amount of money Perry and Company made by buying and selling FTD. Look at the huge amount of money the founders of Proflowers made. Over time, the majority of florists will fold. Along with them will be the supporting industry of transportation, wholesalers, etc. Flowers will still be sold. And just like fabric today is still being sold. It will just be a small niche. The industry that will be left standing will look nothing like the flower industry of today.
