PALM SPRINGS, CA — Resilience in the face of ongoing economic pressures and weather woes were among the topics bantered about during a lively discussion among floral industry leaders Tuesday in Palm Springs, Calif.
Retailer, wholesaler and grower members of the Society of American Florists councils and committees gathered with their respective segment groups to talk about the biggest trends in their markets. The discussions were a pre-cursor to a day and a half of meetings during which SAF volunteer leaders map out SAF programs. Council chairs summarized the trends yesterday at a lunch before the start of SAF Palm Springs 2011, the association's 127th Annual Convention. In addition to the state of the economy, immigration, social media marketing and technology tools were among the highlighted trends:
Retail Council Chairman David Boulton, AAF, of Flowers by George in Arlington, Wash., said the general consensus among trend luncheon attendees is that everyday business is up for the first time since pre-recession days, as well as wedding work. Some also mentioned seeing increases in funeral business and event work though they reported mixed news about corporate sales being either up or flat. Other highlights from retailers:
- Retailers appreciate and rely on their local wholesalers who come through on last-minute or special requests.
- Standing orders have, for some, given way to multi-boxed prebooking (seven to 10 days in advance).
- QR codes, or Quick Response codes — those black and white boxes you scan with your smartphone — are “everywhere” and florists are taking notice and joining in. Several florists mentioned putting the codes on everything from stationery to business cards to delivery vans, bringing customers to various sections of their websites.
- Interest in iPads and Square credit card scanners is growing, as a way to conveniently check out customers when you’re not at a conventional register.
- Jury is out on the do-it-yourself market: a source of growth for some, but “waning” in interest for others, perhaps due to consumers returning to the full-service experience.
Wholesalers must be nimble, adaptable and redefine themselves, such as by branching out to sell to nontraditional florists including event planners, said Wholesale Council Chair Eric Levy of Hillcrest Garden Inc. in Paramus, N.J. Other trends and challenges among the wholesale segment:
- Describing the last year as a “jobless recovery,” Paul Fowle of Delaware Valley Floral Group in Sewell, N.J., said sales are up, but that many companies have not been able to rehire workers they laid off, leaving remaining staffers with more duties than they can handle. Surviving without getting some things done is part of the “new normal” conditions under which companies must operate.
- The number of flowers imported from Colombia is down by double-digit percentages each month, said Jim Daly of Floralife Inc. in Walterboro, S.C., because of tariffs and the exchange rate.
- Wholesalers want to balance the risk of offering new and novelty product with the reassurance of pre-booked orders. New offerings appeal to certain clients, they said.
- Although somewhat late to adapt to it, more wholesalers are marketing through Facebook and other social media, as a way to generate orders, not just provide a communication outlet.
Labor and weather joined forces with the economy to dampen growers’ sales, said Growers Council Chair Michelle Castellano of Mellano & Co., in San Luis Rey, Calif. Also, according to growers in the trends discussion:
- The U.S. labor market continues to tighten, largely due to Congressional inaction on immigration reform. “Nobody has access to labor,” Castellano said. “It’s kind of a desperate cry.”
- A wet, cold spring stymied more than half of the Midwest’s 60-day selling season for bedding plants. In Texas, drought and wildfires devastated landscapers. But the group acknowledged, “Blaming the weather is the easiest way to avoid changing,” Castellano said, adding that growers realize they must change.
- Growers used the terms “caution” and “just OK,” to describe business, but added they can’t sustain that for more than a year because it’s tough to build a future that way. Problems have extended even to obtaining credit, they said.
- A fairly strong Mexican economy increased demand for plants there.
Source: Society of American Florists