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October 14, 2008 |
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GROWING YOUR BUSINESS TOGETHER |
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contents
Flowers Canada Retail Conference 2008
October 17-19 Ottawa, ON
SAF CEO Shares Thoughts on Industry's Future
Although things could get difficult, resiliency is what keeps it all going
Florists Targeted for Online Identity Theft
Who are your customers really calling?
Duty-Free Flowers Receive One Year Extension
For the four main Andean countries, two more receive six-month eligibility
International Flower Industry Unites
To set the record straight about ethical worker and environmental practices
Supplier Advertising
PrintBloom
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saf ceo shares thoughts on floral industry's future
Just days after the announcement of the government's bailout of the financial system, SAF CEO Peter Moran shared his thoughts about the floral industry's future and its fight to remain competitive with about 300 wholesalers, growers and retailers.
Despite the bursting of the housing bubble and the ensuing credit crisis, Moran told the business session audience that the current fiasco in the financial sector is, ultimately, not an economic crisis, citing an absence of "runaway inflation and exorbitant interest rates" as evidence.
"There may be some dark days before the clouds part, but the economy is still very strong and resilient," says Moran, whose economic insights are largely driven by his involvement in the U.S. Chamber and the Small Business Legislative Council and immersion in the national trade association community.
Moran says resiliency is an ingrained floral industry trait, "because good entrepreneurial people find a way to step up and meet challenges by exploiting new opportunities," which are plentiful.
"The good news is that people are buying flowers every day, all over the globe. People like flowers and plants, and most negative references (to our industry) have little merit," Moran says. "There is great market potential."
One macro-trend for retail florists is marketplace consolidation, which Moran predicts will leave between 15,000 and 16,000 retail florists, compared to about 25,000 less than a decade ago.
Moran says surviving florists will encounter the stiffest competition from non-traditional outlets, non-floral gift outlets and competition from independent wedding designers and event planners. While the increase in competition may translate into fewer sales, Moran says he sees floral businesses "running more lean and learning new strategies and tactics for the changing business model."
He points to florists who are seeking out relationships with local funeral directors, as a response to the funeral industry's shift from funerals to shorter services, cremations and charity-centric efforts.
As the retail contraction continues, Moran says survivors will be those owners who "look for best practices, exchange information with peers, look for collaboration opportunities and stay positive."
Moran points to several consumer trends that can work to the industry's advantage, for enterprising businesses that capitalize on them. As part of a "backlash to big malls and mega store shopping," Moran says consumers crave "more customized offerings" and "smaller, more personalized places" to shop. The ever-tightening squeeze on consumers' time will reward retailers that solve problems, save time and ease hassles. And while a good Web site is one way to cater to that cry for convenience, it's the only way to reach Millennials as their incomes grow. "These consumers will expect to shop location-free via broadband wireless," he says.
Retailers who want an edge should invest in "a dynamic e-commerce site that entertains and generates sales from a customer who is either not accustomed to or not willing to conduct storefront buying," Moran says. While technology is driving the Web mandate, it is also leveling the playing field with bigger competitors. Providing targeted services, such as e-mail delivery confirmations and photos of purchases, will help separate retailers from the competition," Moran says.
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florists targeted for online identity theft
Tony Ferdinand of Haentze Florist in Fond du Lac, Wis., discovered he had been targeted after a customer called July 21 to complain about an order. Turns out Haentze hadn't filled the order. Ferdinand went online to check his business listing on various search engines and found that his orders were being rerouted to a specific phone number.
Ferdinand and his staff took the investigation one step further. "We called the number and placed an order," he says. The jig was up, when the order-taker questioned why the caller wanted flowers delivered to a florist.
Both sides have hired lawyers and although police have labeled it a "civil matter," Ferdinand's attorney is pursuing it as a federal case because the scammer filled orders in several states.
Ferdinand has recouped some online listings, but undoing the damage can take time. "It takes about four to six weeks to complete the process," he says. Haentze Florist estimates it lost 12 orders from July through August because of the scamming. The estimate is based on how many orders were filled through a separate shop — Ferdinand made sure to inquire how many orders "Haentze Florist" had filled through them.
While it may take six weeks to officially reclaim a business listing, scammers are persistent and often reappear on the scene.
Just ask Loppnow. In 2000, Loppnow got a call from a loyal customer who wanted to know when the florist had opened a second location across town. He hadn't. Loppnow drove past his so-called satellite shop only to find a sign outside that read "Waukesha Floral & Greenhouses."
Loppnow spent the next 15 to 18 months waiting on trademark approval for the business name. The pending trademark and a cease and desist order did little to deter the scammer, who kept siphoning off orders, Loppnow says.
To warn customers, Loppnow staged an extensive counter-attack, affixing "Don't be duped" notices to statements, deliveries and gift bags.
Loppnow keeps a vigilant eye on his business. "We still have stuff that pops up occasionally [on certain search engines]," he says.
Given the persistence of scammers, Loppnow wasn't surprised when Ferdinand called to tell him his shop had been hit. Ferdinand had discovered customers' credit card statements showing a charge to a florist in Waukesha — almost 70 miles from the real Haentze Florist.
Getting the word out that you've been hijacked is definitely your logical bet, agrees Renato Sogueco, SAF's chief information officer.
"Acknowledgement is power," he says. "Blog about your shop being hijacked or put up a post on your Web site. That way, consumers will be alerted to the situation."
Although community edits go live instantaneously, a Google spokesperson tells E-Brief editors that the company does monitor changes made to business listings. The search engine has just established business-listing quality guidelines for all content contributors to follow to supplement the Terms of Service.
If Google spots a user hijacking listings or spamming, it can block that account from being able to make edits. "In this specific case, we're continuing to learn from [it] and determine what we can do to prevent this sort of inappropriate use of what is otherwise a very useful feature," the spokesperson says.
Florists should recognize that hijacking is a growing problem and take the necessary prevention steps. "They need to consistently monitor listings on the Internet — whether it's Google, MSN or Yahoo," Ferdinand says.
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duty-free flowers receive one-year extension
Flowers coming into the U.S. from Colombia, Ecuador, Bolivia and Peru will remain duty-free, under an extension of the Andean Trade Preference and Drug Eradication Act (ATPDEA).
Late last week, the Senate approved an amended version of H.R. 7222 that extends provisions of the ATPDEA, originally set to expire on Dec. 31. The House, which earlier in the week had voted for an extension, quickly approved the amended version.
President Bush is expected to sign the bill.
The refashioned bill provides a one-year extension of ATPDEA, through Dec. 31, 2009, for Colombia and Peru. It also grants six-month extensions of ATPDEA benefits for Ecuador and Bolivia. An additional six-month extension is possible for both countries, if the U.S. president certifies Ecuador and Bolivia have met designated eligibility criteria.
The original bill granted a one-year extension to all four countries, but some lawmakers opposed that measure because of political and economic disputes with Ecuador and Bolivia. Sen. Charles Grassley (R-Iowa), ranking member of the Senate Finance Committee, says the amended legislation addresses those concerns by rewarding "U.S. allies while giving other countries with some questionable policies a chance to mend their ways."
The Andean Trade Preference Act (ATPA) was first enacted in 1991 and amended as the Andean Trade Preference and Drug Eradication Act. The trade policy was created to reduce illegal crop production in the Andean region by removing the import tax on most products from Colombia, Ecuador, Bolivia and Peru.
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international flower industry joins forces
International flower industry joins forces to the promote truth about ethical worker and environmental practices.
Flower industry object to Goldsmiths inaccurate reporting. New websites and greater co-operation designed to put record straight.
Just hours before the doors open to Hortifair - the world’s largest flower exhibition held in Holland this week – the UK flower industry announces two new initiatives aimed at showcasing the major improvements the sector has made over the last few years.
The initiatives comes as a result of an article written by Sheherazade Goldsmith in the Mail on Sunday ‘You’ magazine in August ‘08 and which quoted from The Ecologist website, a magazine owned by her husband Zac. As a result Sheherazade gave the impression that all flowers grown outside the UK were bad unless grown under the Fairtrade label.
However by independently researching the facts quoted it became clear that the article was based on information that was not only woefully out of date but unproven. As a result the article was potentially very damaging to the very people Sheherazade and other eco-focussed journalists aim to help.
Which is why new websites like www.colombianflowers.co.uk and www.fandwb.com will now focus on telling the real story about what’s happening in the global flower industry and how buying flowers actually helps people and cares deeply for our planet.
As Caroline Marshall–Foster, Managing Editor of Florist & Wholesale Buyer, the only independent trade magazine for the flower sector in the UK explained. “The flower industry doesn’t mind criticism … it does however object to inaccurate criticism and people, like Zac and Sheherazade Goldsmith should check their facts before passing judgement. If they can be so wrong about this issue, we would have to question their accuracy in other areas.”
Which is why Caroline, the magazine and companies from throughout the world are working together to present the true facts about the global flower industry.
“It may not make as good a headline but the truth is that flowers have done far more good than harm. Without flower production hundreds and thousands of workers in countries like Colombia and Kenya would have a far poorer lifestyle. With flowers they have a chance to help themselves and make a better life for their children, something we want to continue to develop and which cannot be harmed though inaccurate reports.
Caroline continued: "The flower industry has changed dramatically in the last 20 years and is now one of the most progressive sectors when it comes to both worker and environmental issues. It’s time to make sure everyone knows just how successful and responsible it has been and why buying flowers is a good thing.”
Submitted by: Wordhouse Publishing Group
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Flowers Canada Retail represents all segments of the Canadian Retail Floral Industry.
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