international flower industry Essay

747 WordsFeb 24, 20143 Pages
The Flower Industry 1. Is flower an emotional product? Why or why not? Flower is a very emotional product because the customer’s purchase flower’s for special occasions. They are so attached to the color of the flower because it represents a valuable treasure to them. For example, during the period of valentine’s roses are in high demand. Spouse’s, Girlfriend/boyfriend usually purchase roses to celebrate this special holiday with their love one. The rose will serve as the symbol of love, care, appreciation, and integrity to one another. Another example that demonstrates the idea of flower been an emotional product is the mother’s day/father’s day holiday. During these holidays family members show appreciation for their…show more content…
The flower demand will depend severely on holidays and seasonal changes; whereas, the computer demand is all year round. 3. What is the size for flower market? Who are the main supplier countries? And who are the main buyer’s countries? The main suppliers are the Equator, Netherlands, France, Italy, Mexico, Germany, etc. the main buyers are the U.S., Russia, etc. the market is pretty big but the risk are high as well. In order for the company to survive it must maintain a very efficient supply chain from the producer to the consumer. Equator who is big supplier of flower in the world enjoys quite a competitive advantage in relation to its main competitors. Equator has cheap labor cost, 12 hour a day sun, and the fact that farms are very close to the airport. But in recent years these competitive advantages have been matched by other producer in North Africa, Asia, Colombia, India and more recently China. China, India, and Colombia focus on producing great quantity of flower at a lower cost whereas Equator focuses in producing its flower in high quality rather than quantity. The pick of the market is around the month of February. During this time the price of flower tends to rise due to the heavy demand allowing companies to generate 1/3 of their revenue around this time. Equator supplies 25% of the rose in the world. For every 1 flower sold in France there are 19 sold in
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