Analyzing flower shop locations: Have you considered these potential pitfalls?
[Hua11.com Original] When it comes to appreciating flowers, nothing quite compares to experiencing them in person. Their beauty, fragrance, and texture engage our senses, creating a sense of relaxation and indulgence. Even with all the high-tech options available—virtual reality (VR), motion sensing, artificial intelligence (AI), and the Internet—there's no substitute for the real thing.
This is precisely why flower shops hold a special place in our hearts. We believe they can't be replaced by online platforms. Recently, more students from Hua11.com have been opening their own flower shops. But one common question arises during the preparation phase: "How do we choose the right location for a flower shop?"
Selecting the perfect location is critical for business success, especially when your product offerings align with local customer preferences. When you find that sweet spot, starting and running the business becomes much smoother. For insights on product-market fit, check out our article: "[Hua11.com · Product Analysis Series 2] Step-by-step guide to creating beloved floral works using PMF"
Choosing a physical store location is like finding a compatible partner—it involves strategy, intuition, and sometimes a bit of luck. In this article, we'll focus on practical considerations based on our experience operating multiple flower shops. We'll also share observations from students' location choices to provide valuable insights for newcomers.
Keep in mind that the viewpoints expressed here are subjective. Some locations may serve multiple purposes (e.g., being both a residential community and close to a school, with a nearby hospital). Readers should critically evaluate the information and extract relevant points based on their specific area. If this article inspires you, it has fulfilled its purpose.
Let's dive in!
I. Residential Communities
The first physical flower shop that Hua11.com participated in operating was located in an upscale residential community. Let's explore the characteristics of the community's foot traffic and how they impact our business:
1. Stability:
- Stable Flow of People:
Because it's a community primarily composed of permanent residents, the total population remains relatively stable. This stability allows us to calculate the size of our target customer groups and estimate the potential profit from specific floral products (examples provided below).
- Stable Consumption Level:
Consistency characterizes the community's overall consumption level and habits due to the consistent population. This stability is advantageous for pricing our products.
Given this stability, a "monthly flower subscription" project can provide a reliable cash flow. For specific operational guidance, refer to this article: [[Hua11.com · Product Analysis Series 1] Ultra-detailed guidence: can flower shops compete with e-commerce's 99 yuan monthly packages?]
2. Strong Community Atmosphere:
Since most customers are neighbors within the community, fostering positive relationships is essential. Friendly and approachable service is a common trait among successful florists. However, balance friendliness with profitability—don't compromise on business goals while appealing to emotions.
3. Diverse Age Groups:
With many permanent residents, our customer base likely spans three generations: the elderly, middle-aged, and young. The stable population allows us to diversify our product offerings. In addition to floral products for young customers, consider launching specialized series:
- For Children: Introduce "floral education series" products.
- For the Elderly: Develop flower packages focused on health and refreshment (avoiding overly fragrant or stimulating flowers).
Be attentive, and you'll discover even more product series ideas.
4. Pet-Friendly Environment:
As living standards improve, pet ownership rates soar. Our community store often hosts small dogs and cats. If statistics reveal a significant pet presence, consider:
- Designing "Pet Birthday Flower Gifts" for furry companions.
- Launching a "Safe Flower Package" for kittens (some flowers, like those from the lily family, can be toxic to cats, and owners may not be aware).
Your creativity will undoubtedly yield additional ideas!
II. Near Office Buildings and Inside Industrial Parks
The flow of people in these areas exhibits stability and precision. Office buildings and parks predominantly house young white-collar workers with ample spending capacity and a strong appreciation for life's rituals. Based on our experience, conducting a flower business in these locations is relatively straightforward. This demographic is open to novel experiences, providing florists with ample creative opportunities and making the work more enjoyable.
If the rent aligns with your budget, opening a store near office buildings or inside industrial parks is a favorable choice. However, keep in mind that white-collar workers typically adhere to regular working hours and rest on weekends. Consequently, business activity on Saturdays and Sundays may be somewhat affected.
To maximize these two days, consider implementing ground promotions for nearby businesses (as discussed in [Hua11.com · Marketing First Step Series 8] Why prioritize ground promotion for flower shops and studios? Isn't online marketing easier?). Alternatively, organize floral salons and other engaging activities.
III. Street Shops in Business Districts
Street shops within bustling business districts, especially those on commercial pedestrian streets, exhibit the following characteristics:
1. High Foot Traffic, but Lack of Precision:
The passing customer flow represents general traffic, and the crowd's attributes and spending abilities remain uncertain. Estimating product demand and pricing becomes challenging, necessitating iterative testing and adjustments to find the most effective product series and price points. However, once you discover the right combination, the substantial foot traffic translates to higher sales volume.
2. Expensive Rent:
While flower profits are relatively high, China's flower market penetration remains low, leaving room for growth. Unless your sales volume is exceptionally high or you've established a strong brand effect (resulting in premium pricing and increased profits), supporting expensive rent can be difficult.
In bustling commercial centers, clothing and catering businesses dominate, with fewer flower shops. When selecting a location for your flower shop in these areas, exercise careful consideration.
IV. Inner Shops in Shopping Malls and Supermarkets
As domestic commercial real estate continues to develop, an increasing number of shopping malls and supermarkets are cropping up across the country, boasting comfortable and aesthetically pleasing environments. The shops within these large shopping centers and supermarkets are garnering attention, including our own experience operating a flower business at Taste—a high-end supermarket brand under Watsons.
However, opening a flower shop in such locations requires careful consideration due to specific factors:
1. Unified Management:
- The flower shop operates under the unified management of the shopping mall.
- Adherence to the mall's rules is essential.
- Business hours are fixed (e.g., 9:30 am to 9:30 pm). If you receive a large order requiring overnight work, you'll need an alternative venue.
- Ensure clerks are available during business hours; consider hiring additional florists.
- Collaborate with the mall for activities (e.g., festival promotions), often at your own expense.
- Participate in mall decorations (e.g., Christmas decor) also at your cost.
2. Suitability of Mall Environment:
- Investigate whether the mall's temperature and humidity are suitable for flower storage.
- Understand ventilation and whether air conditioning operates after mall closing.
- Check if the mall permits a flower freezer and provides electricity after hours.
- Evaluate the flower shop's location—avoid direct sunlight exposure.
- Consider water availability and garbage disposal convenience.
3. Lease Terms:
- Recognize that your shop is subject to external factors.
- If the mall lease expires, faces bankruptcy, or undergoes transformation, your flower shop will be directly affected.
- Read relevant guarantee clauses carefully when signing contracts.
If you overcome these challenges, you gain an advantage: priority consideration when new stores open in these malls and supermarkets.
Customer Sources:
- Commercial Customers: Unlike retail customers, commercial clients use flowers in bulk and repeatedly.
- Study their typical budget range.
- Some brand merchants may offer low prices due to frequent large-scale flower use.
- Others prioritize quality and finished products to align with their market positioning.
Maintain strong customer relations to ensure long-term business success. Additionally, the areas near shopping malls often house high-end hotels and guesthouses, expanding your potential customer base.
V. Around Hospitals
The vicinity of hospitals remains a traditional and popular location for flower shops. Particularly around large hospitals, you'll find numerous flower and fruit shops. While competition can be fierce, the demand remains robust, and the average transaction value per customer is respectable.
Consider launching a "Healthy Bouquet Series" that emphasizes well-being without adversely affecting patients' recovery. If you diligently study at Hua11.com and create visually pleasing works, they may positively impact patients' healing process.
Flowers sent to patients typically feature materials like sunflowers, symbolizing health and optimism. Patients readily accept these heartfelt blessings. However, be mindful that hospital bed spaces are often limited, so consider offering smaller-sized arrangements like flower boxes and handheld baskets for convenient placement.
VI. Around Schools
Another traditional hotspot for flower shops is around schools. However, note that students generally have limited spending capacity (unless it's a private elite school). Even in first-tier cities like Guangzhou, where schools abound, flower shops near educational institutions primarily focus on affordability and high-volume sales.
Additionally, schools have winter and summer vacations. If you exclusively cater to schools, expect fewer orders during these vacation periods.
VII. Next to Markets
Flower shops often gravitate toward locations adjacent to vegetable markets. If you're a student at Hua11.com, I recommend avoiding these spots, as they don't align with our product positioning.
VIII. Around Government Agencies and Public Institutions
Currently, domestic government agencies and public institutions have significantly reduced their demand for flowers due to national policies. Rather than adhering to old conventions, broaden your perspective and seek better opportunities elsewhere.
While this article provides an overview of these areas, it will be periodically updated based on feedback from various channels.
Lastly, remember to operate legally and avoid opening a shop in an unauthorized location. This ensures your hard work won't vanish overnight.
Copyright Statement:
This article is an original creation by Hua11.com and is included in the “How to Run a Flower Shop and Floral Studio” Ebook. The content of this article may be periodically updated and is initially published on the Hua11.com official website blog. You can find the article at this link: https://hua11.com/blog/4684.html.
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The work titled “How to Run a Flower Shop and Floral Studio” is copyrighted by Hua11.com. Additionally, the “Practical Floral Training” model and the concept of “Light Decoration” are original creations by Hua11.com. The trademark “花艺意” is registered and protected by relevant national laws.