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        Florists Industry Profile

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        Excerpt from Florists Industry Profile

        Companies in this industry sell cut flowers, floral arrangements, potted plants, and other gifts from physical retail establishments. No major companies dominate the industry. Floral order-taking services such as 1-800-FLOWERS.COM, FTD, and Teleflora (all in the US), Euroflorist (the Netherlands), and Tokyoflora.com (Japan) provide orders to independent florists but are also competitors.

        Global trade volume of cut flowers is estimated at more than $100 billion per year. Major importers of cut flowers include the US, Germany, the Netherlands, the UK, France, Russia, and Japan. The Netherlands is also a leading cut flower exporter, along with Colombia, Kenya, Ecuador, and Ethiopia.

        The US florists industry includes around 12,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4.7 billion.

        COMPETITIVE LANDSCAPE

        Demand for flowers depends on discretionary consumer spending. The profitability of individual shops depends on effective marketing. Companies focus on a local or regional market and compete based on location, price, and customer service. The US industry is highly fragmented: the 50 largest companies account for less than 10% of revenue.

        Florists compete with supermarkets and mass merchandisers. When selling to business customers, they may also compete with wholesalers and sellers of artificial flowers. In addition, online sales of cut flowers are increasing. A growing segment of online sales includes non-store, direct-to-consumer businesses that aim to disrupt the traditional grower-wholesaler-florist model. These new companies may use locally sourced ...

         
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