Supply continues to grow, and flower auctions are at their first peak

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China Research Network

Supply continues to grow: The supply of cut flowers at the Dounan Flower Auction Center has continued to grow recently, with more than 9.3 million pieces on May 10, indicating the strong demand for cut flowers.

Mother's Day stocking peak: With the arrival of Mother's Day stocking peak, the flower auction market has also ushered in the first round of peaks. Mother's Day is an important holiday, and consumers usually choose to buy flowers to express their love for their mothers, so the demand for flowers during this period will increase significantly.

Price Action: Judging from the recent price action, flower auction prices have started to rise slightly. This may be due to increased demand and a relatively tight supply of some flower varieties.

Overall supply increases: According to Li Zhijun, auctioneer at the Kunming Flower Auction Center in Yunnan Province, the overall supply has increased by about 20% this year. This may be due to a combination of factors such as improved flower cultivation techniques, the expansion of planting areas, and the suitability of climatic conditions.

Market:

Mother's Day flower sales are hot: From the perspective of buyers' stock and terminal markets, the sales of Mother's Day flowers this year are relatively hot. This is further validation of the boom in the flower market during Mother's Day.

No Significant Rise in Prices: Despite the increase in demand, the overall supply is also expected to rise sharply this year, as the overall supply has also risen accordingly.

Wedding days overlap with "520" stocking periods: Most of the wedding dates in May this year are at the beginning of the month and mid-month, overlapping with Mother's Day and "520" stocking periods. This could lead to more demand in the market in a short period of time, further boosting the boom in the flower market.

Sunflower and other grass and flower products rise prediction: after the peak period, it will usher in nodes such as the high school entrance examination. It is expected that sunflowers and other grass and flower products will usher in a new rally at the end of May and early June. This is because during the high school entrance examination, candidates and parents may choose to buy flowers with positive meanings such as sunflowers to encourage candidates.

In general, the Dounan Flower Auction Center in Kunming, Yunnan Province has recently ushered in a small peak of stocking, which is mainly due to the promotion of festivals such as Mother's Day and the increase in overall market demand. At the same time, the market is not expected to experience significant price fluctuations due to the corresponding increase in supply. This is a time of great opportunity for flower growers and sellers, who need to keep a close eye on the market dynamics and adjust accordingly.

According to the display released by the China Research Institute of Puhua Industry Research Institute:

The competition in the flower e-commerce industry is becoming increasingly fierce, and major e-commerce platforms have entered the field to compete for market share by launching flower zones, optimizing services, and building brand image. At the same time, some traditional flower shops have also begun to set up stores on e-commerce platforms, intensifying market competition.

In terms of price competition, major e-commerce platforms attract consumers by lowering prices, but this also makes flower e-commerce companies need to bear greater cost pressure. In order to cope with this competition, some companies have begun to focus on improving product quality and service levels to meet the needs of consumers.

In terms of service competition, e-commerce platforms attract consumers by providing better services, including optimizing delivery times, increasing after-sales services, and providing quality assurance. This competitive approach enables consumers to have a better shopping experience, and at the same time, it also prompts flower e-commerce companies to continuously improve their service levels.

In terms of brand competition, e-commerce platforms attract consumers by building their own brand image. This requires flower e-commerce companies to pay attention to brand building, improve brand awareness and reputation, in order to stand out in the fierce market competition.

Despite the fierce competition, there are still huge market opportunities in the flower e-commerce industry. With the improvement of people's living standards and the change of consumption concepts, the demand for flowers as gifts and decorations continues to grow. At the same time, the popularity of mobile Internet also provides more development opportunities for flower e-commerce O2O platforms.

In general, the competition pattern of the flower e-commerce industry is diversified and intense. Enterprises need to compete comprehensively in price, service, brand and other aspects in order to be invincible in the market. At the same time, seizing market opportunities and improving product quality and service levels is also the key to the sustainable development of flower e-commerce enterprises.

One of the reasons for the rapid rise in online flower consumption is the increased awareness of self-pleasing consumption, and consumers are more willing to spend money on projects that make them happy. According to the data, 24% of flower e-commerce users buy flowers for themselves, and nearly 40% buy flowers for their partners; The proportion of daily household flowers has reached 69%.

As the earliest player to enter the game, vertical flower e-commerce has taken advantage of the east wind of capital and has soared all the way. However, in recent years, e-commerce giants such as Taobao, JD.com, and Pinduoduo have joined the battle, and fresh e-commerce platforms such as Meituan, Freshippo, and Dingdong are also handy in doing flower business.

At the same time, there is still a lot of room for growth in the 100 billion flower market. If you want to continue on the flower track, you need to find a way to lose the price advantage, the operation and maintenance costs are high, and the vertical flower e-commerce companies that are also lagging behind in traffic.

For the flower e-commerce platform, from the B-end to the C-end, it is not only necessary to solve the transportation problem and control the logistics cost within a certain range, but also to reduce the loss of flowers. For example, in order to better build the flower market, Hema Fresh has carried out a series of transportation route reforms, and then reduced the previous 20%-30% line loss to 5%; Dingdong Grocery adopts a more deterministic automobile cold chain transportation method than air transportation, and the whole cold chain ensures the quality of flowers, so that customers can receive high-quality flowers at a lower price, so as to better meet the needs of consumers. Similarly, the consumption feedback data of C-end consumers will also reverse empower the upstream flower industry base through flower e-commerce.

Tianyancha data shows that as of 2022, there are more than 400,000 flower e-commerce related enterprises in the mainland, and from 2016 to 2020, the average growth rate of newly registered enterprises in 5 years reached 29.2%, 69.4% of enterprises were established within 5 years, and 10.9% of enterprises were established for more than 10 years. The hot consumption of flowers has also attracted the attention of many investors. According to incomplete statistics from Tianyancha data, there are currently 73 flower e-commerce-related enterprises in mainland China that have generated financing events, with a financing amount of more than 3.4 billion yuan.

The market size of the flower e-commerce industry has shown a rapid growth trend in recent years. According to public data, the scale of the mainland flower retail market has reached 220.5 billion yuan in 2021, an increase of 17.5% over 2020. Among them, the proportion of the flower e-commerce market in the total scale is increasing year by year, becoming an important force to promote the growth of the flower market.

With the increase in consumer demand for flower products and the rapid development of e-commerce platforms, the market size of the flower e-commerce industry is expected to continue to expand. It is estimated that by 2024, the scale of the mainland flower retail market is expected to further expand, reaching 221.5 billion yuan, of which the scale of the flower e-commerce market is also expected to achieve significant growth.

Behind this growing trend is the widespread adoption of digital technologies and the escalating needs of consumers. A variety of e-commerce models such as instant retail model and live streaming model provide more development opportunities for flower e-commerce. At the same time, the power of the "stay-at-home" economy and the "self-pleasing" economy has also become a key factor in promoting the continuous improvement of the flower e-commerce market.

However, while the flower e-commerce industry is developing rapidly, it is also facing some challenges, such as product quality, logistics and distribution, after-sales service and other issues. Therefore, flower e-commerce companies need to continuously improve product quality and service levels to meet the needs of consumers and win market share.

In short, the market size of the flower e-commerce industry is constantly expanding, with huge market potential and development prospects. With the further development of the industry and the intensification of competition, it is believed that there will be more innovations and breakthroughs in the future.

With the increasing scale of e-commerce, the circulation of flowers in mainland China is characterized by diversified channels, convenient consumption, continuous improvement of the supply chain, enhancement of data-based application scenarios, and rapid development of logistics facilities. In 2016, the scale of the flower e-commerce market was only 16.88 billion yuan, and by 2021, the total sales have reached 89.69 billion yuan. With the continuous development of e-commerce and express delivery industry, the market size of flower e-commerce will also continue to expand, and it is expected to reach 150 billion yuan in 2025.

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