Will the flower vending machine impact flower shops?
[Hua11.com Original] Since this year, three words have frequently appeared in various technology media: "Automatic," "unmanned," and "AI" (Artificial Intelligence). Influential figures and self-media across various industries have unleashed their imaginations, describing these new technological concepts as a force to be reckoned with—a trend where robots replace all jobs, leaving everyone unemployed.
In reality, there's nothing mysterious about it.
These are all pre-designed computer programs. The difference lies in the continuous advancement of technology, refining the underlying business logic.
The hype around these concepts serves the interests of tech giants. Periodically, they "invent" new ideas and package them, leveraging their brand power to attract widespread attention.
What's in it for them? Just take a look at their stock prices on Nasdaq. 😄
These emerging "trends" often entice investors to join the game. Enter the flower vending machine.
(Image source: Internet)
But will these machines, claiming to offer "unmanned sales, year-round operation, cost-effectiveness, and fresher flowers," truly impact physical flower shops?
Let's delve into the details.
I. Functions of Flower Vending Machines
First, let's examine the necessary functions of these machines from the perspectives of flower maintenance, secure transactions, and user-friendliness:
Hardware:
1. Sealing: To prevent random handling by customers (which could easily damage the flowers) and maintain security and consistent temperature and humidity.
2. Variable Volumes and Mobile Designs: Adaptability to different venues.
3. Refrigeration, Ventilation, Odor Control: Ensuring freshness.
4. Noise Control
5. Lighting Control
6. Safety Measures: Customer-friendly operation.
7. Cash Register System: Supporting both mobile and cash payments.
8. Monitoring and Video Recording: For security and dispute prevention.
9. Automated Flower Dispensing: Delivering flowers to customers or allowing them to retrieve flowers in some form.
10. Smart Locks: Ensuring doors are closed after flower retrieval.
And more.
Software:
1. Shelf Management, Inventory, Replenishment Notifications
2. Transaction System, Order Processing, Notifications
3. User-Friendly Interface
4. Back-End Management: Role assignments, permissions, function settings, reporting, and operation records.
5. Hardware Diagnostics
Essentially, these machines function as intelligent freezers, automatically facilitating trade.
The combined hardware and software designs require extensive expertise across fields like automation, informatization, and network security. And that's not even considering the intricacies of flowers themselves!
II. Challenges in Operating Flower Vending Machines
Let's explore the daily operational challenges we encounter when running these machines, even after developing them:
1. Negotiating Placement: Determining the optimal location within a venue (and potentially relocating if initial placement isn't suitable), along with addressing rental issues.
2. Power Supply and Water Management: Ensuring consistent power and convenient water changes. (For maintenance tips, refer to [Hua11.com · Essential Floral Knowledge Series 2] How to maintain floral salon works and daily flower gifts?)
3. Security Measures: Monitoring and preventing malicious damage or theft.
4. Network and Transaction System Smoothness: Ensuring seamless operation.
5. Hardware Reliability: Keeping the machines functioning normally.
6. Technical Advancements: Raising the technical bar to deter competitors from copying our designs.
And more.
These are just the operational challenges related to the machines themselves. Regarding the flowers and overall operation, we also need to consider:
1. Regular Flower Replacement and Maintenance: To maintain attractiveness.
2. Goods Transfer: Possibly moving products from one mall (e.g., Mall A) to another (e.g., Mall B) to cater to different customer groups.
3. Customer Purchase Preferences: Collecting data for later big data analysis and creating customer profiles to develop targeted products.
4. Profitability Assessment: Calculating the rent-to-profit ratio and evaluating whether it meets expectations.
5. Handling Surplus Bouquets: Deciding whether to discard them, use them internally, or collaborate with third parties. (Hua11.com has received cooperation invitations from flower vending machine operators multiple times.)
In summary, creating and operating flower vending machines is far from simple. Numerous challenges await resolution.
Hua11.com investigated and attempted to design such vending machines but ultimately abandoned the idea after analyzing the business logic (Reference: [Hua11.com · Flower Shop Startup Series 5] Need to be 100% ready to start a flower business? Use gamification to simulate before investing). The key reasons are as follows:
1. Low Domestic Flower Delivery Costs: Especially in big cities.
2. High Added Value of Flower Art:
Given the low delivery cost, setting up vending machines for flowers—products with infrequent consumption—seems unnecessary. When there's demand, customers can easily find nearby flower shops or studios online, place an order, and receive timely delivery. Alternatively, for quality assurance, they can directly contact the "Hua24.com" national alliance of high-quality physical flower shops.
Moreover, the flower art industry thrives on its ability to generate high added value. Rather than merely selling flowers and plants, it focuses on the artistry and craftsmanship of floral arrangements. This approach allows for a reasonable profit through premium artistic services. However, flower vending machines operate differently. While they enhance efficiency, they sacrifice the artistic aspect, reduce service quality, and transform the emotionally rich experience of flower art into cold, mechanical transactions. In essence, they cut off the most valuable and profitable part of the industry, somewhat putting the cart before the horse.
The sole advantage of flower vending machines lies in their potential 24-hour operation. However, this advantage depends on the machines' locations. Malls, constrained by business hours, lose this benefit. Our experience with a chain of physical flower shops reveals that, except for major festivals like Valentine's Day, very few people purchase finished flower products between 10 p.m. and 9 a.m. on weekdays. In terms of input-output ratio, it's not cost-effective. Thus, business during these hours can be considered either abandoned or addressed through reservations.
III. Conclusion
Returning to the title question: Will flower vending machines impact physical flower shops? Our assessment suggests that, at least for now, there is minimal impact.
Our observations in major business districts of Guangzhou align with this judgment. The flower vending machines initially placed in large shopping malls have gradually transformed into dry flower vending machines, preserved flower dispensers, or even disappeared altogether.
While the flower vending machine concept presents numerous challenges, Hua11.com currently refrains from entering this field due to the complexities of business logic. However, in today's ever-evolving landscape, new ideas continually emerge, and various business forms experience unprecedented creativity. We must approach these innovations with a sense of awe, rationality, and calmness, while also employing thorough analysis and defensive strategies to remain resilient.
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/4691.html.
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