What other products compete with flowers in your market? Focus on a specific assortment, market channel and segment to become a long-term and trusted supplier. Use the extensive network of the Dutch flower auctions and flower trading companies. 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. Do they use flowers in their offices. The specialised florist chains are at the forefront of online flower sales. The importance of the unspecialised market has increased in recent years. International Womens Day (8 March) is especially important in Central and eastern Europe. What role do flowers play in those ceremonies? The dominant feature of this channel is that flowers are a secondary product in the assortment. Wholesale traders and large retail buyers make direct agreements in advance. Other important auctions are Rhein-Maas Auction in Germany and Plantion Flower Auction in the Netherlands. Two main market segments for cut flowers and foliage in Europe are specialised flower shops and unspecialised retail. In some countries, discounters are likely to sell a bunch of roses for as little as 2 or 3. The highest-priced sub-segment includes custom-made flower bouquets and arrangements. What industry is in your community and what role do flowers play in their business? Besides the flower auction, there are many specialised wholesalers in the Netherlands. Explanations of the various market-channel actors are provided in Annex 1. 536_55 TRUST: A DETERMINANT OR THE CONSEQUENCE OF A LONG-TERM BUYER-SELLER RELATIONSHIP? The large supermarket channel is growing in many European countries. 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. Acta Hortic. The unspecialised market is highly concentrated. New developments in information technology are changing the way of doing business in the flower industry. Favourite. 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. How often do your target customers buy flowers? The Dutch flower auction of Royal FloraHolland is the central marketplace where imported cut flowers are sold and redistributed to other European destinations. Given the objective of identifying and targeting buyers that are most likely to purchase floral products, the results may be used to assist in the design of marketing programs either for individual floral organisations or industry based marketing strategies. Such purchases are increasing in eastern and Central European countries. Target customers in the unspecialised retail market channels only if your company is able to produce constant quality flowers at low costs. Enter the password that accompanies your e-mail or user number. Consumers in this channel usually buy flowers in bunches either mixed bouquets or mono-bunches. The gift market segment is nevertheless expected to remain a major market segment. 536_25 HOW BIG MUST A NURSERY FIRM BE TO PRODUCE A REASONABLE FAMILY INCOME? Roses, and to a lesser extent gerberas, freesias, hydrangeas, chrysanthemums and peonies, are popular flowers for Mothers Day (second Sunday of May in most European countries). Specialised shops offer a wide assortment and associated products, and usually create custom bouquets and decorations. Further growth in this market segment is expected as average incomes continue to increase. 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). Some drive trucks of flowers from the Netherlands via a fixed route (line) to florists in neighbouring countries (Flying Dutchmen). Identify your most important buyers and contact and visit important buyers in order to create sustainable relationships. The auction is very well connected to the specialised market channel. Import agents are intermediates that facilitate trade. 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. The unspecialised market consists of supermarkets, filling stations, and other retail outlets that are not specialised in flowers and plants. Enter your International Society for Horticultural Science e-mail or user number. Gifts, jewelry, candy, bakery items, crafts. Supermarkets also impose additional requirements regarding vase life, labelling and quantity. They are responsible for the majority of the distribution of cut flowers in Europe to both the specialised and unspecialised channels. funeral and wedding flowers, and the institutional market segment). Special days play a very important role in gift flower market. Will you compete for the same segment of the market or will you target another segment? Larger wholesalers supply directly to major retail chains in other European countries. While these channels are an effective way to market floral businesses knowing how to use Facebook, Instagram, Pinterest, is one thing, but being able to use them to bring in customers is another. The European cut flower market consists of two market channels: one focusing on specialised florists and the other on unspecialised retail (e.g. Enter search terms to find market research. The market for flowers for home decoration is to some extent subject to trends in home decoration and fashion. The assortment is limited and supplementary services (e.g. The middle-priced segment includes quality bouquets and mono-bunches, which are sold primarily by florists. Florists usually also sell a range of flower and plant-related products (e.g. The dominant feature of this segment is that flowers are a secondary product in the assortment. 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. The market segment for impulse buyers is therefore more associated with supermarkets, filling stations and market stalls. The low-end segment includes mono-bunches and small bouquets sold at supermarkets, filling stations and kiosks. Most wholesalers specialise in one of the two main sales channels, although some (particularly the larger wholesalers) have special divisions for each channel. 536_5 HIGH QUALITY, COST EFFECTIVE PRODUCTION OF DIVERSE HORTICULTURAL CROPS GROWN ORGANICALLY: AN INDIVIDUAL CASE STUDY IN NORTHWEST MISSOURI, U.S.A. 536_6 GREEN ENERGY TAXES AND DANISH GREENHOUSE HORTICULTURE, 536_7 ENVIRONMENTAL AND QUALITY MANAGEMENT ON BELGIAN GLASSHOUSE HOLDINGS, 536_8 SUSTAINABLE FARM POLICY IN THE REPUBLIC OF KOREA WITH SPECIAL REFERENCE TO RICE, VEGETABLE AND APPLE PRODUCTION, 536_9 ECONOMICS OF ORGANIC WASTE COMPOST UTILIZATION IN A COMMERCIAL TOMATO PRODUCTION SYSTEM, 536_10 DEVELOPMENT OF HACCP BASED QUALITY MANAGEMENT SYSTEMS IN ORNAMENTAL HORTICULTURAL PRODUCTION, 536_11 CRITICAL EVALUATION OF HORTICULTURAL GRADING SYSTEMS BY QUANTITATIVE IMAGING TECHNIQUES, 536_12 BUSINESS EXCELLENCE: ESTABLISHING THE COST AND BENEFITS OF QUALITY MANAGEMENT BY SOFTWARE TOOLS, 536_13 BRITISH ORNAMENTAL PLANT PRODUCERS - THE BBPA ACCREDITATION SCHEME, 536_14 MANAGING THE QUALITY CHAIN IN CITRUS FRUIT INDUSTRY: A CASE STUDY IN UKUROVA REGION OF TURKEY, 536_15 STRATEGIC DEVELOPMENT THROUGH QUALITY AND BUSINESS MANAGEMENT EXCELLENCE - A CASE STUDY FOR 21st CENTURY SYSTEM DEVELOPMENT, 536_16 BUILDING THE MISSING LINK: ASSESSING ECONOMIC BENEFIT FOR QUALITY ASSURANCE IN THE WHOLESALE MARKET, 536_17 DEVELOPMENT OF QUALITY ASSURANCE AND SAFE FOOD PRODUCTION: A PILOT PROJECT WITH WITLOOF CHICORY GROWERS, 536_18 INTEGRATED QUALITY MANAGEMENT IN FRUIT GROWING (19992000), 536_19 THE COSTS OF QUALITY PRODUCTION IN HORTICULTURE, 536_20 IDENTIFICATION OF CRITICAL SUCCESS FACTORS IN GERMAN FRUIT-GROWING FARMS, 536_21 TOKYO METROPOLITAN CENTRAL WHOLESALE MARKET [OTA MARKET] FUJI APPLE'S STANDARD AND PROBLEMS, 536_22 DEVELOPMENT OF FARMING PRACTICES FOR SOME MAJOR VEGETABLE CROPS IN EGYPT: SOCIO-ECONOMIC EVALUATION, 536_23 SOCIO-ECONOMIC EVOLUTION OF HORTICULTURAL FARMS IN ANDALUSIA SINCE 1991. However, take care to explore the options and learn about the implications first. LONGUM) GROWING TECHNOLOGIES AND PROCESSING IN HUNGARY, 536_48 AN ANALYSIS OF THE ECONOMIC DIMENSIONS OF THE GREENHOUSE INDUSTRY IN NEW YORK, UNITED STATES, 536_49 RECOMMANDATION ON BASIS OF RESEARCH, A METHOD FOR A STANDARD APPROACH, 536_50 DEVELOPMENT CONSTRAINTS ANALYSIS FOR GENDER GROWING GREENHOUSE VEGETABLES IN ANTALYA, TURKEY, 536_51 WOMEN'S ROLE IN THE VEGETABLE FARMING SYSTEMS IN ANTALYA, TURKEY: A GENDER ANALYSIS OF LABOUR PARTICIPATION AND DECISION-MAKING IN THE AGRICULTURAL SECTOR, 536_52 A CONCEPT OF MODERN ENTREPRENEURSHIP IN DUTCH HORTICULTURE, 536_53 LABOUR ORGANISATION IN DUTCH THERAPHY AGRICULTURE, 536_54 EMPLOYEES AS A STRATEGIC ASSET FOR AGRICULTURAL PRODUTION. Location, relationships with key customers, reputation, and volume. In western Europe, consumers buy flowers primarily in bunches. Flower growers from all over the world supply the auction to find suitable buyers for their products. Develop an adequate product assortment for your target market segment. Within this segment flowers (and plants) are the dominant product. In the eastern European market, a considerable share of cut flowers are sold as single stems. Bouquets are standardised, usually small (in number and length of stems) and low priced. SEGMENTATION AND TARGET MARKETING IN A FLORAL MARKET. Figure 6: Market share for cut flowers sold in the specialised market channel, per country in % (2012), selection of countries. In this paper the concept and the importance of market segmentation and target marketing in floral markets is discussed. Roses (red and pink) are traditionally popular on Valentines Day (14 February). The Netherlands is at the centre of the European flower trade. First things first. Buyer requirements for cut flowers and foliage in Europe, direct trade service offered by the flower auction. Roses, tulips and sunflowers (Helianthus) are the most popular products to buy as single flowers. In some countries (e.g. The procedure thereby permits an analysis of the demographic, attitudinal, behavioural and floral preference characteristics for each segment. Please review our market information disclaimer. Sustainability is an important issue for supermarkets and retailers. It is expected that supermarkets will further increase their sales of flowers in many European countries. Large foreign producers are able to supply larger quantities and fulfil the specific needs of major retailers in terms of planning and price. Consumers buy flowers at florists and street markets, and garden centres have increased in market share. Are they likely to buy by phone, in person, or over the Internet? The main differences between the channels are the role of the flower auction and wholesalers, and the characteristics of the products. In Italy, Spain and France, the majority of all flowers are bought at florists. 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. 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. In the unspecialised market channel, products are more standardised, offering fewer opportunities for differentiation. 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. This allows suppliers to attract consumers with additional product information and special packaging (storytelling). Check other flower shops to see what the competition is offering. Ensure that you are able to produce the quantities demanded at constant quality. Each type of flower and sub-segment of the gift flower maker has its own special features, with peak days and seasonal changes. In Spain, Switzerland and Sweden as well, people buy between 10% and 14% of all cut flowers as loose stems. Before you invest time, money and energy into opening a flower shop, first, make sure there is a market for your flowers.