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          1. Florists Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/31/2020
            SIC Codes: 5992
            NAICS Codes: 4531
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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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 about 13,200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4.3 billion. The number of flower shops has declined by about 40% since 2005.

            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 ...

             
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