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Floral State of the Industry 2021

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Becky Roberts

Becky Roberts

Director of Floral & New Initiatives

+1 (302) 607-2148

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Implications to consumers wanting to make the world a better place:
• As sustainability and environmental concerns return as priorities for consumers worldwide, it is crucial that the floral industry continuously improves sustainability initiatives that resonate with consumers. 
• Floral companies that come out of the pandemic communicating how they are rebuilding a greener and more equitable world could gain a competitive edge.  
Implications to convenience remaining critical:
•The challenge to the floral industry will be to adopt a strong customer experience while maintaining convenience. Floral companies and retailers will need to account for generational shopping differences to be perceived as convenient as they find the balance between digital channels and human interaction.  
•Channel shifting combined with new shopping behaviors create opportunities for the floral industry to support new consumer routines and lifestyles. Shoppers’ baskets will continue to be dominated by items related to health and working from home enabling the floral industry to promote the health attributes of fresh flowers. 
•To maintain consumer loyalty, the floral industry will have to seek new ways to enhance the customer experience such as monthly subscriptions which will help minimize the number of shopping trips needed by consumers.    
•The floral industry and retailers will continue to update infrastructure and technology to fulfill consumer demand for seamless omnichannel experience.
Digital implications in the physical world:
•Consumers will continue to engage in virtual interactions for convenience and entertainment. Floral companies that deliver safe and memorable experiences via multiple channels will develop loyal customers.
•In retail, virtual tools will continue to be integral to physical operations and marketing fresh flowers. 
•Virtual interactions with consumers will help the floral industry gather data on consumer preferences. 
Implications of outdoor living: 
•Teleworking rates are expected to remain higher than pre-pandemic levels even after vaccines are made widely available. A larger, remote workforce will increase demand for positive at home work environments that are enhanced by floral products.
•The supermarket floral industry should embrace the trend towards spending time outdoors by providing the fresh flowers and potted plants needed to create an oasis.
Health and well-being implications: 
•Consumers are adopting healthier habits. The floral industry will benefit from the mental and physical health benefits of fresh flowers and plants.  
•Social isolation and social distancing highlight the issue of indoor pollution, providing the floral industry an opportunity to promote the benefits of indoor plants and fresh cut flowers.
Implications of cautions and frugal consumers: 
•Floral brands should pivot towards value-for-money propositions, offering affordable options without sacrificing quality. 
•Off-price retail formats as well as flexible subscription models that offer convenience, safe product accessibility and bulk discounts will continue in popularity and will offer the floral industry channel options. 
Casual design implications: 
•Simplistic designs will remain popular with less demand for formal floral pieces.
Color of the year implications:
•Consumers quest for mental well-being is being reflected in their floral choices.
Implications of personalization:
•Social events will remain smaller in 2021 and floral trends will follow suit.  Intimate gatherings mean that individuals will continue to feel like they have the freedom to choose creative floral products that reflect them personally.
Implications of supply chain changes: 
•Companies will investigate moving production and suppliers to protect against global disruptions although the increased production costs associated with localized supply chains will likely increase consumer prices. 
•Companies will emphasize resilience and flexibility within their operations—assessing back-up plans with vendors and partners. 
Implications of new industry alliances:
•The post pandemic supply chain will be more collaborative.
•The floral industry may experience some constriction as smaller producers might not come back.
Implications of the new Turkish market:
•The Turkish floral industry is improving the structural characteristics of its industry through the expanded use of technology and product diversification in line with the market demands. This will create additional competition in the European market for traditional floral suppliers.
Implications around the world: 
•Major flower production regions are rebounding to near pre-pandemic levels of production and exports. Some regions will take longer due to a lack of diversification in the segments they serve. 
Implications of the changing workforce: 
•Although staffing levels are not expected to reach pre-pandemic levels, many companies will look to bring new skill sets into their organization to help adapt to a constantly changing market and add revenue lines. 
Implications for diverse and inclusive organizations: 
•Diversity and Inclusion has been pushed to the political forefront during the pandemic and will be demanded by consumer as a corporate goal post pandemic. 
Implications of more worker flexibility:
•Companies will consider introducing job models other than full-time employment post pandemic - such as talent sharing and 80% pay for 80% work – to provide more flexibility in workforce management and costs.
Expanded employer role implications: 
•Post pandemic, employers will be challenged to view the employee experience differently to promote physical and emotional well-being of employees. 
Transparency Implications: 
•Companies should balance decisions to resolve immediate concerns during the pandemic with the long-term impact on the employment brand.
•Companies communicate openly and frequently to show how they are supporting employees while implementing cost-saving measures demanded by the adverse effects of the pandemic.