Nipped in the bud: A bloom of new entrants has caused major players' market share to wither

The Online Flower Shops industry has performed well over the past five years, despite a subdued retail environment. Industry revenue is expected to grow at an annualised 6.4% over the five years through 2018-19, to reach $90.4 million. This includes anticipated growth of 3.7% in the current year, supported by positive consumer sentiment and rising discretionary incomes. The industry's strong performance is primarily due to consumers increasingly accepting the internet as a shopping medium, which has allowed industry operators to take market share from bricks-and-mortar flower retailers.Over the past five years, consumers have increasingly grown accustomed to purchasing products from online flower shops, particularly for gift baskets and flower arrangements...read more.

Industry Statistics & Market Size
Revenue
$90m
Annual Growth 14-19
6.4%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
452
Businesses
88
Market Share of Companies

Industry Threats & Opportunities

  • Consumers have increasingly opted to purchase flowers online over the past five years
  • Industry participation has risen due to the increased popularity of online shopping
  • Discretionary income is projected to rise, supporting revenue growth over the next five years

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    Industry Report - Industry Locations Chapter

    As online flower shops can be accessed anywhere, the geographic spread of the industry is not linked to operators' locations, but rather, the location of consumers purchasing flowers online. The distribution of online flower sales between states largely follows the distribution of the population. States that are overrepresented tend to have higher discretionary incomes on average and lower age profiles. As flowers are non-essential items, consumers with greater discretionary income can purchase flowers online to a greater extent than those with lower incomes.Victoria and New South Wales are overrepresented as their age profiles have not increased as much as the other larger states, but discretionary income remains relatively high. The...purchase to read more.

    Additional Insights for the Online Flower Shops Industry

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

  • Membership of joint marketing/distribution operations
  • Ability to control stock on hand
  • Having a loyal customer base

    • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Real household discretionary income in the Online Flower Shops industry impact industry performance..

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    Industry Products

    What is the Online Flower Shops Industry?

    Industry operators retail flowers online. Industry operators receive orders and payments through their websites, and use their network of local florists or growers to fulfil and deliver orders. The industry primarily includes revenue from fresh-cut flowers, internet florist network membership dues and gift baskets sold online. Businesses that manage their entire supply chain (i.e. grow their own flowers and retail them online) are also included in the industry.

    Industry Products
  • Flower sales
  • Gift basket sales
  • Floral network services
  • Plant sales
    • Industry Activities
  • Selling flowers
  • Selling gift baskets
  • Selling flower arrangements
  • Selling plants
  • Providing floral network services
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Real household discretionary income
  • Internet subscribers
  • Availability of water
  • Domestic price of fertiliser

    • Current Performance
  • Consumer spending habits
  • Flower retailing
  • Profitability
  • Online players
  • Chart: Revenue Growth

    • Industry Outlook
  • Consumer spending and profitability
  • Flower retailing
  • Changing business models
  • Table: Online Flower Shops Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Flower Retailing
  • Consumers

    • Key Selling Industries
  • Courier Pick-up and Delivery Services
  • Data Processing and Web Hosting Services
  • Floriculture Production
  • Livestock and Other Agricultural Supplies Wholesaling
  • Nursery Production

    • Products & Services
  • Flower sales
  • Floral network services
  • Gift basket sales
  • Plant sales
  • Chart: Online Flower Shops Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Online Flower Shops Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Online Flower Shops

    • Basis of Competition
  • Internal
  • External

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Flower Shops Industry

    • Industry Globalization

    Major Companies

    Teleflora, Interflora Australian Unit Limited,
  • Table: Teleflora - financial performance
  • Table: Interflora Australian Unit Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Online Flower Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Online Flower Shops Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Order-Aggregators
  • Companies that collect online orders and redistribute them to a network of affiliated florists.
    • Search Engine Marketing
  • A process of improving the visibility of a website when searching for it through a search engine.
    • Web Hosting
  • The activity or business of providing server space and access for websites to the internet.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Online Flower Shops market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Online Flower Shops:
    • 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 Online Flower Shops 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 Online Flower Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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