A thorn in their side: Industry revenue is wilting as external competition blossoms

The Flower Retailing industry has faced challenging trading conditions over the past five years. Mounting competition from external players has placed significant downward pressure on industry demand. External retailers such as supermarkets, grocery stores and convenience stores have expanded their range of cut flowers, with some stores adding floral arrangements to their product offering. Intensifying competition from online-only flower retailers has also contributed to the industry’s difficult operating environment. Overall, industry revenue is expected to decline at an annualised 1.0% over the five years through 2017-18, to $725.0 million. This includes an expected drop of 2.2%...read more.

Industry Statistics & Market Size
Revenue
$725m
Annual Growth 13-18
-1.0%
Forecast Growth 18-23
Profit
Employment
5,537
Businesses
2,070
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Growing competition from supermarkets and online-only flower shops has negatively affected revenue
  • Increasing competition has placed downward pressure on profitability over the past five years
  • Operators are forecast to exit the industry due to rising competition over the next five years
  • Industry Report - Industry Locations Chapter

    The geographic spread of the industry is closely correlated with income and population distribution and economic activity. Establishments are typically concentrated in the eastern seaboard states, with New South Wales, Victoria and Queensland accounting for over 80% of florists and about 77% of the national population. Less populous states represent a smaller number of industry participants, with Tasmania, the Northern Territory and the Australian Capital Territory accounting for a combined 3.4% of flower stores and less than 5% of the population.New South Wales and Victoria account for a greater proportion of flower retailers than their population base would indicate. In the remaining states and territories, the population exceeds the number of establishments. Thi...purchase to read more.

    Additional Insights for the Flower Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Flower Retailing are:

  • Proximity to key markets
  • Ability to provide goods/services in diverse locations
  • Membership of joint marketing/distribution operations
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Real household discretionary income in the Flower Retailing industry impact industry performance..

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    What's in this report

    What is the Flower Retailing Industry?

    The industry includes stores that retail cut flowers or display foliage. Businesses purchase flowers from growers to sell directly to consumers, either as arrangements, or without developing or changing the product further. The industry excludes online-only flower retailers.

    Industry Products
  • Floral arrangements
  • Cut flowers
  • Plants
  • Delivery and on-site installation
  • Other merchandise and giftware
  • Industry Activities
  • Cut flower retailing
  • Display foliage retailing
  • Dried flower retailing
  • Florist shop operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Real household discretionary income
  • Demand from online shopping
  • Demand from supermarkets and grocery stores
  • Business confidence index

  • Current Performance
  • Trading conditions
  • Profitability
  • Competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Operating landscape
  • Growth avenues
  • Profit and competition
  • Industry structure
  • Table: Flower Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Flower Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hotels and Resorts
  • Consumers

  • Key Selling Industries
  • Floriculture Production
  • Livestock and Other Agricultural Supplies Wholesaling
  • Nursery Production

  • Products & Services
  • Floral arrangements
  • Cut flowers
  • Plants
  • Other merchandise and giftware
  • Delivery and on-site installation
  • Chart: Flower Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Wedding venues and funeral homes
  • Corporate clients
  • Chart: Major Market Segmentation for the Flower Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Flower Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Flower Retailing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Flower Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Flower Retailing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Eftpos
  • Stands for electronic funds transfer at point of sale, which is a method of electronic payment.
  • Floriculture
  • The cultivation of flowers or flowering plants, usually on a commercial scale.
  • Pure Online Players
  • Businesses that operate solely via the internet
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Flower Retailing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Flower Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Flower Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Flower Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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