The success in the household market has not yet been replicated in other segments, such as wedding venues and funeral homes.
Melbourne, Australia (PRWEB) February 28, 2014
The Online Flower Shops industry in Australia has well and truly come to life, having flourished over the past five years. Industry revenue is forecast to grow at annualised 7.3% over the five years through 2013-14 to reach $73.2 million. This includes revenue from existing retailers branching out into the online segment, purely online flower shops and order-aggregators. According to IBISWorld industry analyst Andrei Ivanov, “the strong growth is attributable to a wide acceptance of the internet as a shopping medium, combined with improvements in consumer sentiment and discretionary income.” In 2013-14, industry revenue is forecast to grow by 3.1%.
Consumers have been relatively quick to accept online flower purchases over the past five years. This was particularly true for gift baskets and flower arrangements. “Online flower shops have a significant advantage over traditional bricks-and-mortar retailers because they can display a wide range of products online and execute orders as they come, minimising stock costs,” says Ivanov. However, the success of penetrating the household market has not yet been replicated in other market segments, such as wedding venues and funeral homes, with only a handful of enterprises servicing such clients. These markets contribute a large portion of revenue to the Flower Retailing industry, and are an area of potential growth for online flower shops. The industry exhibits a moderate level of market concentration, with Interflora Australian Unit Limited and Teleflora currently dominating the landscape.
Companies in the Online Flower Shops industry spend an abnormally large amount of resources on marketing – even more than other online shopping industries. Strong brand recognition and customer awareness are paramount to success in this industry, especially for enterprises operating on an order-aggregating business model. Online flower shops are expected to continue growing over the next five years. However, expected declines in consumer sentiment could curb discretionary spending, which remains a threat for the industry. Furthermore, it is anticipated that future growth will be less dependent on the uptake of internet as a shopping medium. Instead, industry participants will have to invent ways of capturing those market segments that are currently serviced almost entirely by retail flower shops and professional florists.
For more information, visit IBISWorld’s Online Flower Shops report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry retails flowers online. Industry operators receive orders and payments through their websites and then use their network of local florists or growers to fulfil and deliver the order. This industry primarily includes revenue from fresh-cut flowers, internet florist network membership dues and gift baskets sold online. Revenue from in-person orders is excluded.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.