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Online Flower Shops US INDUSTRY (SPECIALIZED) REPORT OD5069 Online Flower Shops Still budding: The prevalence of online services is expected to continue, benefiting online flower shops Brigette Thomas | November 2020 IBISWorld.com +1-800-330-3772 [email protected] Online Flower Shops OD5069 November 2020 Contents About This Industry...........................................5 Competitive Landscape...................................26 Industry Definition..........................................................5 Market Share Concentration....................................... 26 Major Players................................................................. 5 Key Success Factors................................................... 26 Main Activities................................................................5 Cost Structure Benchmarks........................................26 Supply Chain...................................................................6 Basis of Competition...................................................30 Similar Industries........................................................... 6 Barriers to Entry........................................................... 31 Related International Industries....................................6 Industry Globalization..................................................32 Industry at a Glance.......................................... 7 Major Companies............................................33 Executive Summary....................................................... 9 Major Players............................................................... 33 Other Players................................................................35 Industry Performance..................................... 10 Operating Conditions...................................... 37 Key External Drivers.....................................................10 Current Performance...................................................11 Capital Intensity........................................................... 37 Revenue Volatility........................................................ 39 Industry Outlook............................................. 15 Regulation & Policy......................................................40 Industry Assistance..................................................... 40 Outlook......................................................................... 15 Performance Outlook Data......................................... 17 Key Statistics..................................................42 Industry Life Cycle....................................................... 17 Industry Data................................................................42 Products and Markets..................................... 19 Annual Change.............................................................42 Key Ratios.................................................................... 42 Supply Chain................................................................ 19 Products and Services.................................................19 Additional Resources...................................... 43 Demand Determinants................................................ 21 Major Markets..............................................................22 Additional Resources.................................................. 43 International Trade.......................................................23 Industry Jargon............................................................43 Business Locations..................................................... 23 Glossary Terms............................................................43 2 IBISWorld.com Online Flower Shops OD5069 November 2020 About IBISWorld IBISWorld specializes in industry research with coverage on thousands of global industries. Our comprehensive data and in-depth analysis help businesses of all types gain quick and actionable insights on industries around the world. Busy professionals can spend less time researching and preparing for meetings, and more time focused on making strategic business decisions that benefit you,your company and your clients. We offer research on industries in the US, Canada, Australia, New Zealand, Germany, the UK, Ireland, China and Mexico, as well as industries that are truly global in nature. 3 IBISWorld.com Online Flower Shops OD5069 November 2020 Covid-19 Coronavirus IBISWorld's analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result Impact Update of the global COVID-19 pandemic: • The Online Flower Shops industry is expected to experience a decline in demand as consumer spending decreases, thus causing a decline in consumer discretionary spending, which include industry products. For more detail, please see the Curent Performance chapter. • The industry is expected to be negatively affected due to social distancing restrictions as large events and weddings are postponed or cancelled. For more detail, please see the Products and Services chapter. • The industry is expected to experience growth over the five years to 2025 as the economy begins to recover from the COVID-19 (coronavirus) pandemic. For more detail, please see the Industry Outlook chapter. Note: The content in this report is currently being updated to reflect the trends outlined above. 4 IBISWorld.com Online Flower Shops OD5069 November 2020 About This Industry Industry Definition This industry retails flowers online, with industry operators receiving orders and payments through respective websites and then using either a network of local florists or growers to fulfill and deliver the order. This industry primarily includes revenue from fresh-cut flowers, floral arrangements and potted plants; internet florist network membership dues; and gift baskets sold online. Revenue from in- person orders is excluded from this report. Major Players 1-800-Flowers.Com Inc. FTD Companies Inc. Main Activities The primary activities of this industry: Retailing cut flowers via online platforms Retailing floral arrangements via online platforms Retailing plants via online platforms Retailing gift ware via online platforms Managing networks of florists Delivering fresh flowers to consumers The major products and services in this industry: Arranged cut flowers Unarranged cut flowers Potted plants Gift baskets and other Floral network services 5 IBISWorld.com Online Flower Shops OD5069 November 2020 Supply Chain SIMILAR INDUSTRIES Plant & Flower Growing in Flower & Nursery Stock Nursery & Garden Stores in Florists in the US the US Wholesaling in the US the US E-Commerce & Online Auctions in the US RELATED INTERNATIONAL INDUSTRIES Flower Retailing in Australia Garden Centres & Pet Shops Florists in the UK Florists in Canada in the UK 6 IBISWorld.com Online Flower Shops OD5069 November 2020 Industry at a Glance Key Statistics Key External Drivers % = 2015-2020 Annual Growth -6.3% 2.8% $5.2bn Demand from florists Per capita disposable income Revenue 1.3% 8.2% Annual Growth Annual Growth Annual Growth Consumer spending Percentage of business conducted online 2015-2020 2020-2025 2015-2025 Industry Structure 8.5% 2.0% POSITIVE IMPACT $196.1m Life Cycle Regulation Profit Growth Light Annual Growth Annual Growth Globalization 2015-2020 2015-2025 Low 7.4% MIXED IMPACT Revenue Volatility Concentration 3.8% Medium Medium Profit Margin Technology Change Annual Growth Annual Growth Medium 2015-2020 2015-2025 -0.2% NEGATIVE IMPACT Capital Intensity Industry Assistance 1,037 High Low Businesses Barriers to Entry Competition Low High Annual Growth Annual Growth Annual Growth 2015-2020 2020-2025 2015-2025 Key Trends 2.7% 2.3% The industry has benefited from increases in the number of services conducted online 3,432 The industry is highly competitive Employment The industry has been able to quickly adapt to changing opportunities Annual Growth Annual Growth Annual Growth External competition will stem from Amazon adding flowers 2015-2020 2020-2025 2015-2025 to its product portfolio 3.4% 2.2% Both internal and external competition will remain high for the industry As per capita disposable income increases, demand for $138.2m flowers will likely increase also Wages Over the past five years, an increase in the number of industry operators has increased internal competition Annual Growth Annual Growth Annual Growth 2015-2020 2020-2025 2015-2025 1.6% 2.1% 7 IBISWorld.com Online Flower Shops OD5069 November 2020 Products & Services Segmentation 22.9% 18.3% 36.4% 15.4% 7.0% Arranged cut flowers Unarranged cut flowers Potted plants Gift baskets and other Floral network services Online Flower Shops Source: IBISWorld Major Players % = share of industry revenue SWOT STRENGTHS Growth Life Cycle Stage Low Imports High Profit vs. Sector Average Low Customer Class Concentration Low Product/Service Concentration WEAKNESSES Low & Steady Barriers to Entry Low & Steady Level of Assistance High Competition High Capital Requirements OPPORTUNITIES Very High Revenue Growth (2005-2020) High Revenue Growth (2015-2020) High Revenue Growth (2020-2025) High Performance Drivers Demand from florists THREATS Low Outlier Growth Consumer spending Percentage of business conducted online 8 IBISWorld.com Online Flower Shops OD5069 November 2020 Executive The Online Flower Shops industry retails flowers online using local Summary florists to fulfill orders. For the majority of the period, the industry experienced steady revenue, aided by a growing e-commerce
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