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March 3, 2008

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GROWING YOUR BUSINESS TOGETHER





contents

Research Shows Women Are All About the Web
Women make up more than 50% of online users and can generate almost 70 million hits

Who's the Competition at Easter?
The shift in competition for sales continues away from other florists

Florists Get Valentine's Day Press Coverage
Want to win people over, use your own product to sell itself

Violence in Kenya Moves Into Flower Towns
Cut-flower production has been affected with
as many as 3,000 workers fleeing

Member Alerts
BC - New Carbon/Gas Tax
BC - PST changes

Upcoming Events
August 8 - 9     Floral Paradise

 




RESEARCH SHOWS WOMEN ARE ALL ABOUT THE WEB

Although the 2000 romantic comedy starring Helen Hunt and Mel Gibson claimed to know “What Women Want” — apparently they just want a good man who understands them — Advertising Age says in a recent issue that they just want to surf the Internet.

“Most peg 2007 as the year women tipped the scale to compose more than 50 percent of online users,” the article states. “The number of unique visits to women’s community sites jumped 35 percent to almost 70 million from 52 million.”

According to recent research by ComScore, “more than 43 million moms go online daily and spend an average of 85 minutes there.” What are women doing online? Browsing, shopping, viewing and making major life decisions. A recap of some of the data:

They’re shopping. According to Burst Media, “more than 54 percent of women shopped online in the first half of 2007.” Online female shoppers are well-to-do: “68 percent of women in households with incomes of $100,000 or more,” are leading the way in Internet purchases. Chief among their purchases were travel, adult clothing, health/beauty products, children’s clothing, financial products and food/groceries.

They’re single, educated and heavily reliant on the Internet. A recent Jupiter Research study finds that single females, compared to married women, spend a lot of time online. These singles are between the ages of 25 and 34, and 48 percent have a college degree. "They’re more likely to watch full-length TV shows and video clips online than other women and will more often search for local dining and entertainment information, use instant messaging, visit social-networking sites, read blogs, and download music.”

They’re into YouTube. Women overall, single or otherwise, are watching more of YouTube.com, suggests research from a Pew Internet and American Life study, with “11 percent of the women surveyed saying they had visited ‘yesterday’ vs. just 5 percent saying so at the end of 2006 (and still quite far behind men’s reported 20 percent daily use).”

They also play interactive games online, do medical research and get parental advice online.

 

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who's the competition at Easter?

Perceived competition at Easter among florists was lower than in the previous year, according to the results of last year's post-holiday survey of retail florists. Only 7 percent of florists reported most of their competition came from their peers in 2007, compared to 17 percent in 2006. So where did the competition appear to shift? Competition from mass marketers, according to respondents, was up 8 percentage points and for supermarkets it increased 7 percentage points. Survey participants indicated competition from miscellaneous outlets was down by 6 points.

Source: Zoomerang Survey of retail florists with e-mail addresses. Based on 217 responses

 

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FLORISTS GET VALENTINE'S DAY PRESS COVERAGE

You don't have to tell David Calcaterra that flowers win people over. He knows — and he uses that dynamic to his shop's advantage when it comes to scoring good media coverage.

His shop, Thrifty Florist, which has 16 locations in metro Detroit and surrounding areas, was covered in an in-depth story in the business section of the Detroit Free Press on Feb. 13, as well as the local FOX affiliate, WJBK.

"My trick to all of this is sending people flowers," Calcaterra, vice president, told E-Brief editors. "When we have something new, I'll send a bouquet of flowers." 

Those flowers kept the company on the local media's radar and Calcaterra was recently contacted by the local paper about how technology has played a role in the shop's increased sales. The Detroit Free Press article, which included a color photo and was more than 600 words long, focused on how florists are using the Internet to boost their sales.

"The flower industry is going high-tech," Calcaterra told the paper. "I would say we're going to start gearing more and more of our business practices on the Internet and our Web site. We'll spend more on advertising to get more clicks on our site."

Thrifty Florist also got coverage on WJBK prior to Valentine's Day by sending the station a unique arrangement of roses in a square vase with a note that read, "It's hip to be square." After getting featured in a 5-minute segment on Feb. 10, Thrifty Florist got several special orders from viewers who'd seen the arrangement. 

No need to wait for a holiday like Valentine's Day to get media coverage. Calcaterra suggests sending out arrangements to the local media for Memorial Day to promote using centerpieces for barbecues. He swears that as long as you're consistent, you'll hear back from the media.

"98 percent of the time we get a call back," Calcaterra said.

Potomac Floral Wholesale also made news on Valentine's Day by giving WUSA-TV in Washington, D.C., a firsthand look at its operation. The station showed up at Potomac Floral Wholesale (with no notice) in Silver Spring, Md., at 5 a.m. on Valentine's Day. Owner Tsur Reiss gave reporter Howard Bernstein a guided tour of the operation, which was part of a segment that aired on Valentine's Day. Potomac has been serving the Washington, D.C., area for 10 years, during which it has built up a relationship with local media, says a company representative.

 

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VIOLENCE IN KENYA MOVES INTO FLOWER TOWNS

Violence continues to affect cut-flower production in Kenya, where as many as 3,000 workers have fled towns out of fear, according to Reuters.

Some wholesalers, including David Gaul, AAF, vice president of DWF, say fewer flowers from Kenya won’t have much, if any, of an effect on the U.S. market, but it could cause some challenges in the European market.

Kenya is the biggest exporter of cut flowers to the European Union, with a market share of about 32 percent, according to the Fresh Produce Exporters Association of Kenya (FPEAK). The U.S. imports a much smaller amount from Kenya, bringing in about $1.1 million in 2006, which only contributed 0.2 percent to the U.S.’s total market share, according to the U.S. Department of Agriculture.

“It’s not going to affect our market at all,” Gaul says.

Some speculate, however, that it will open up more opportunity for South American growers to export product to Europe.

Diego Chiriboga, general manager of Aribaflor, a flower broker and marketing company in Quito, Ecuador, says the effects were evident around Valentine’s Day.

“Some U.S. customers were complaining that there wasn’t enough product for them,” Chiriboga says. “It’s because Europe bought 10 times more than they usually do. Europe is already buying more product from South America because of the strong Euro, but even more this Valentine’s Day because of the short supply from Kenya.”

Chiriboga says he expects this trend to continue until things in Kenya settle.

Gonzalo Aristizabal of Cultivos Miramonte, a grower in Colombia, says Europe’s growing interest in South American product pre-dates the Kenya situation.

“More and more we’ve been seeing business interest in South America, in addition to what is happing in Kenya,” Aristizabal says.

Ethnic violence began back in December following the election of President Mwai Kibaki Kikuyu. When the aggressive breakouts first reported in previous Newsbuds, , Kenyan officials said they were seeing some small effects but nothing serious. However, by the end of January the fighting had moved its way into the town of Naivahsa — home to a number of flower farms.

Reuters reported in February that nearly 3,000 people had left the farms due to the violence and many of those that remained behind were in a refugee camp and working longer hours than usual prior to Valentine’s Day.

“The workload for the remaining workers is too much,” Peter Otieno, branch secretary of Kenya’s Plantation and Agricultural Workers Union, told Reuters. “Some farms are more affected than others. Those that have workers living on company premises are better off.”

Keeping safety in mind, Hortec Kenya 2008, an international floriculture exhibition and conference, which was supposed to be held in March in Nairobi, Kenya, has been rescheduled to take place Nov. 5-8.

 

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MEMBER ALERTS

BRITISH COLUMBIA
Advocacy: Finance — Budget
Member Alert: B.C. Provincial Budget Includes New Carbon/Gas Tax

The B.C. Provincial Budget, released February 19, 2008, introduced a number of new measures designed to meet the Province's climate change goals. The Budget includes a new tax on carbon that will increase the price of gasoline by approximately 2.4 cents/litre, the price of diesel by approximately 2.75 cents/litre and the price of natural gas by approximately 50 cents per gigajoule.

Advocacy: Tax - PST
Member Alert: New PST Changes Included in B.C.'s Provincial Budget
Majority of Changes Focused on Environmentally Friendly Products

As part of the B.C. Provincial Budget, released February 19, 2008, the government introduced a number of new PST reductions and exemptions designed to encourage British Columbians to make environmentally friendly purchases.

 

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upcoming events

 

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