Ultra-detailed guidence: can flower shops compete with e-commerce's 99 yuan monthly packages?

[Hua11.com Original] Many students at Hua11.com, when opening a flower shop or studio, opt for the weekly flower project to tap into the market. From a certain business perspective, this is a promising venture. However, there are also several pitfalls associated with this project that require special attention to ensure successful implementation.

We've compiled insights based on our experience operating the weekly flower project throughout its lifecycle. These details serve as a reference for all students:


I. The Emergence of Weekly Flowers

1. What Are Weekly Flowers?

 

 

Weekly flowers—also known as "one flower a week" or "monthly flower subscription"—refer to fresh flower arrangements delivered to your door once a week. Typically priced affordably, these subscriptions may even include a vase with the initial purchase. They cater to individuals who love flowers but lack the time to visit physical stores.


2. Popularity and Trends

 

 

Thanks to robust promotion by internet companies, the weekly flower project has gained significant popularity, especially among young white-collar workers. Nearly everyone is familiar with this product, and many have tried purchasing it.


3. Financial Backing

 

 

Riding the wave of this trend, numerous weekly flower companies have secured substantial first-round financing.

(Image source: Internet)



II. How Internet Companies Operate Weekly Flower Projects

The weekly flower project appears promising in the market for several reasons:

1. Large Audience:

 

 

Particularly in first- and second-tier cities, there's a substantial population of white-collar workers and flower enthusiasts. These individuals represent potential customers.

 

 

Why white-collar workers? Internet companies excel at leveraging the online and mobile platforms for marketing. Given that white-collar workers often have their mobile phones handy and are open to trying new things, they naturally become the primary target customer group for these companies.


2. Developed Logistics:

 

 

Internet companies benefit from a plethora of delivery platforms and self-built delivery teams. Logistics resources pose no significant challenge.


3. Weekly Flowers as Consumables:

 

 

Fresh flowers in office environments typically wilt within 7 days—coinciding with a weekly delivery cycle. Subscribing to weekly flowers effectively replaces the longer purchase cycle (such as festival-based buying) with a once-a-week purchase. This product attribute is crucial for operators seeking a stable cash flow.


4. Initial Financing for Internet Companies:

 

 

Internet companies enjoy an advantage in securing initial financing. Investors view this as a relatively untapped vertical industry, and the limitless nature of the internet fosters explosive growth. Convenient subsequent financing and cashing out are part of their investment logic.


 

 

So far, so good.

 

 

But the critical question remains: Have these internet companies turned a profit?


 

 

Here are some publicly reported instances from major media outlets (please let us know if any of these are inappropriate):

- *"Is the 99-yuan monthly subscription a charitable act? Flower e-commerce companies incur significant losses and face criticism for their tactics!"*

- *"Gao Yuanyuan's investment in monthly flower subscriptions receives more complaints than recognition."*

- *"Aishang Flowers grapples with the 'not fresh' embarrassment. Flower e-commerce companies struggle to achieve profitability."*

- *"Financing fraud? FlowerPlus's funding amount skyrockets within 2 weeks."*

 

 

We won't delve into specific e-commerce brands, but it's evident that many internet companies encounter similar challenges: supply chain limitations, substantial losses, and roadblocks in subsequent financing.


Our investigation into the operation of weekly flower projects by internet companies reveals a common pattern. They typically follow these steps:

1. Brand Building and Seed Users:

- Establish a brand and attract initial users through various means.

- Craft a narrative of unlimited prospects to secure rapid financing.


2. Market Expansion:

- Swiftly expand into diverse regions, enticing more initial users with freshness, competitive prices, and various marketing gimmicks.


3. User Growth Data as Currency:

- Leverage user growth data as their primary bargaining chip for financing.

- Aggressively spend money to acquire data, paving the way for the next funding round.


4. Continuous Investment:

- Persistently invest funds to acquire users, aiming to eventually dominate the vertical market or go public.


This routine isn't unique to weekly flower e-commerce companies; it mirrors the practices of most mobile internet companies (think of a certain blue cup coffee chain).

However, there's a sense of impetuosity in their approach.


They overlook critical aspects:

1. Building a Solid Business Model:

- Neglecting how to create a profitable foundation.

2. Enhancing User Experience:

- Failing to make flowers more beautiful and convey the true essence of floral "beauty."


Some companies take opportunistic shortcuts:

1. Partnering with Quality Flower Shops:

- Seek out reputable flower shops or skilled florists.

2. Template-Based Assembly:

- Invest minimally to have shops design weekly flower templates, specifying flower materials.

- Assembly line workers (including part-time students) assemble materials according to the template and deliver to customers.

These companies treat flowers merely as commodities, missing their potential as vibrant artworks.


How do we know this? Our affiliated chain entities received "invitations" from these companies. (Yes, we ultimately declined because it didn't align with our philosophy.)

Unlike these speculators, we—down-to-earth entrepreneurs—are true flower lovers and artisans. Our delicate approach to flowers shapes our lifelong commitment to this craft.

And therein lies our opportunity.



III. How Should Physical Stores and Studios Approach Weekly Flower Projects

Why is this an opportunity for us?

Firstly, let's consider what internet companies prioritize:

1. Standardized Products and Replicability:

- Internet companies focus on standardized products that can be easily replicated and rapidly expanded. They avoid non-standardized products due to increased costs and slower production.

2. Low Prices and User Acquisition:

- Their strategy involves offering low prices and acquiring users aggressively.

3. Broad Market Reach:

- Internet companies aim to cater to a wide audience by conducting marketing across various online channels.


In contrast, flower stores and studios have distinct advantages:

1. Artisanal Approach:

- With skilled artisans at the helm, we can create both standardized products and personalized custom arrangements. Standardized items can be produced quickly, while customized pieces yield higher profits.

2. Quality Over Quantity:

- Rather than pursuing a large user base, we prioritize quality. Exceptional customer service builds our reputation, fostering repeat business and referrals.

3. Localized Focus:

- Our target audience consists of nearby office buildings, units, and residents. This localized approach ensures a stable cash flow. Additionally, short delivery distances guarantee the freshness of our flowers—no more wilted blooms upon opening packages.


In this comparison, internet companies operate with a "self-interest" perspective, while we emphasize "production" and benefiting our customers.

Our opportunity lies here:

- The weekly flower project allows frequent customer interaction (at least once a week), facilitating strong relationships.

- As a prepaid service, it provides a stable cash flow.

- Considering these characteristics, the weekly flower project is definitely worth exploring.



If you're considering launching a weekly flower project, here are several essential points to keep in mind:

1. Positioning:

- Understand your target customers' consumption levels. For instance, among white-collar workers, there are distinctions between ordinary employees and leaders. Ordinary employees may prefer cost-effective options, while leaders often seek more upscale flower arrangements.


2. Pricing:

- Set a reasonable price based on your positioning.

- Avoid competing solely on price with internet companies. Their low prices often come at a loss because of limited flower material choices (resulting in repetitive arrangements).

- Remember: You get what you pay for—an eternal truth.


3. Delivery Range:

- Given the prevalence of delivery services, offering flower delivery is crucial for physical stores. Customers may hesitate to order if delivery isn't available.

- For weekly flowers, profits are lower than for bouquets (Hua11.com teachers can help analyze costs). The primary goal is to maintain customer relationships.

- Be cautious with delivery range: If it's too large, delivery costs escalate (especially if the same customer needs delivery four times a month). Charging a delivery fee may deter customers.

- Focus on serving the local community effectively.


4. Delivery Frequency:

- Typically, weekly flowers are delivered once a week (four times a month). However, consider flexibility:

 

- Set a fixed delivery day (e.g., Mondays).

 

- If a customer is away or unable to receive flowers, allow postponement to the following week.

- Why postpone instead of allowing free rescheduling? Small delivery volumes and busy store hours can lead to high delivery costs. Uniform delivery times help manage expenses.


5. Differentiation from Nearby Flower Shops:

- Research other local flower shops offering weekly flower services. Understand their positioning, pricing, and product offerings.

- Launch your own unique products or services:

 

- Offer flexible delivery times.

 

- Provide color options for arrangements.

 

- Consider adding succulent elements alongside fresh flowers.

- Hua11.com advises continuous innovation to stay ahead of competitors.


Remember, thoughtful planning and differentiation will set your weekly flower project apart and create a loyal customer base.



IV. Possible Situations and Countermeasures

During the actual operation process, unexpected situations may arise. Here are some pitfalls you might encounter (based on experiences from the physical stores we're involved with):

1. Comparison with E-Commerce:

- As a physical store, you'll inevitably be compared to online flower sellers. Be prepared for this and emphasize your unique value.

2. Comparison with Previous Works:

- Customers might compare your current offerings to what you've done before. Maintain consistency and strive for improvement.

3. Comparison with Others' Works:

- When customers receive similar-grade works from different sources, they may compare them. Focus on quality and personalization.

4. Dissatisfaction and Returns:

- Some customers may express dissatisfaction or request returns. Handle these situations professionally and promptly.

5. Excessive Customization Requests:

- Balancing customization with practicality can be challenging. Set clear boundaries and communicate them effectively.

6. Weekly Flowers as Gift Bouquets:

- Customers might repurpose weekly flowers as gifts. Ensure they meet gift-worthy standards.


Our suggestion: Before launching your weekly flower business, establish detailed rules, communicate them clearly to customers, and maintain consistency. While adjusting operations is acceptable, minimize risks.

Remember, running a business isn't charity. Maintain profitability while providing thoughtful service. Customer recognition and long-term success follow this approach.



V. Conclusion

In pursuing the weekly flower project, physical flower shops and studios must differentiate themselves from internet companies. Prioritize "production" and "service" over "price wars." Strategically disregard opponents while tactically respecting them. As artisans, our focus is on loyal customers, reasonable profits, and doing what we love—regardless of external disturbances.



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/4694.html.

Reproduction of this article is permitted, provided that it is reprinted in full and all copyright information is retained. Any form of plagiarism, whether partial or complete, is strictly prohibited. Legal action will be taken against violators.

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.