Executive Summary

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EXECUTIVE SUMMARY

The UK market for cut flowers and floristry products was estimated to be worth £929m in 1997, up from £868m the previous year.
Specialist florists still account for the majority of sales; in 1996, they sold 44 percent of all flowers and arrangements by value. The fastest growing sector is supermarket sales, which have now moved on from plain bunches to bouquets, arrangements and flowers by order. These currently take 28 percent of value sales, although much more by volume.
Specialist florists are typically `micro-businesses'; 77 percent employ fewer than five people, 64 percent have an annual turnover of less than £100,000 and there are only a dozen chains of any size in the market, the majority being independent shops. The largest groups are the relay services, such as Interflora, which are membership organisations.
Interflora is the largest organisation in the market, turning over more than £11m. However, the largest company in the market is Flying Flowers, a mail order business based in the Channel Islands, which also has other interests, including retail nursery.
59 percent of flowers, by value, are bought as gifts or for personal use. There are also distinct markets for corporate arrangements (for example at conferences, hotels and restaurants); and for personal ceremonies, such as weddings and funerals.
Telephone and distance ordering through relay systems already accounts for 25 percent of the market. However, it is anticipated that new services being offered through major supermarket chains, which benefit from consumer perceptions of quality and value, will develop this sector further, raising its share to 30 percent by 2001. There is also a small, but developing Internet sector.
The future prospects for the industry are for overall growth, but retail florists may struggle to maintain their share of the market. Although flowers are becoming more affordable and fashionable, small individual stores will have to consistently upgrade both quality and service to match the variety or quality offered by mass-marketing organisations.
Key Note forecasts that sales of cut flowers will be worth £1.19bn by the year 2001.

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TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

PRODUCT SECTORS

MARKET POSITION

MARKET TRENDS

Table 1: Sales of Horticultural Goods in the UK (£m, index 1992=100 and percent), 1992-1997

Market Size

THE TOTAL MARKET

MARKET SECTORS

Table 2: Sales of Cut Flowers and Pot Plants (£m and percent), 1992-1997

Table 3: Sales of Cut Flowers and Pot Plants by Usage (£m and percent), 1997

Table 4: Commercial Services Offered by Retail Florists ( percent), 1995 and 1997

Industry Background

RECENT HISTORY

INDUSTRY CONCENTRATION

DISTRIBUTION

TRADE ASSOCIATIONS

Table 5: Retail Distribution of Cut Flowers by Value ( percent), 1996

Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

GROCERY SUPPLIERS

ADVERTISING AND PROMOTION

Table 6: Turnover Analysis of Retail Florists ( percent), 1995

Table 7: Specimen Prices of Waitrose Gift Arrangements (£), 1997

Table 8: Turnover Analysis of Wholesalers of Flowers and Plants (number of companies and percent), 1996

Table 9: Turnover of Leading Commercial Florists (£000), 1993-1996

Table 10: Numbers Employed by Leading Commercial Florists (number), 1995

Table 12: Retail Chains With Three or More Outlets and Over 25 Employees, 1997

Table 12: Main Media Advertising Expenditure by Florists (£000), Year Ending September 1996 and 1997

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

CONSUMER PROFILE

Table 13: International Per Capita Expenditure on Cut Flowers (£m), 1995

Outside Suppliers to the Industry

UK HORTICULTURAL SUPPLIERS

THE INTERNATIONAL CUT FLOWER INDUSTRY

SUNDRIES AND PACKAGING

Table 14: Area in Use for Cut Flower Production in the UK (hectares), 1991-1996

Table 15: UK Production of Flowering Pot Plants (million), 1991-1996

Table 16: Value of Horticultural Production in England and Wales (£000), 1991-1996

Table 17: Imports of Cut Flowers by Value (£000), 1991-1996

Table 18: Exports and Re-Exports of Cut Flowers by Value (£000), 1991-1996

Current Issues

POPULAR CULTURE

DISTRIBUTION

FASHION

ARTIFICIAL AND DRIED FLOWERS

Forecasts

SECTOR TRENDS

DISTRIBUTION

THIRD WORLD PRODUCTION

FORECASTS 1998 TO 2001

Table 19: Sales of Cut Flowers (£m), 1998-2001

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HBI UK INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

Text © 1998 Key Note

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Last updated by Jacob van Eldik 09th April 2000