Hong Kong is a blooming market for cut flowers

AgExporter, August, 1991 by Lai Yee Yeung

Hong Kong Is a Blooming Market For Cut Flowers

Rising incomes and shifting lifestyles have brought about colorful changes in Hong Kong in the past decade. Flowers, which were once the luxury of the small expatriate community, are now part of the street scene of the Territory. They grace the opening of every store, brighten offices and beautify more and more Chinese homes.

Since the Territory grows only a small quantity of flowers, it depends on imported roses, carnations, chrysanthemums, tulips, lilies and orchids from all over the world to supply its growing needs.

Cut flowers have overcome many boundaries - cultural and economic - over the years to reach a much larger market. Hong Kong trade statistics show that imports of cut flowers blossomed dramatically during 1978-90, increasing 19-fold to US$17.7 million. The cut flower trade shows no sign of having its growth stunted.

Where Have All the Flowers Gone?

Hong Kong's cut flower market can be divided roughly into two major sectors - the institutional market and the consumer market. The institutional market, which accounts for half of sales, consists of hotels, restaurants and offices. They provide a stable, regular market for the trade. Hotels are the major upscale customer of cut flowers. Flower bouquets decorate hotel lobbies, suites, reception areas and restaurants. Demand from new five-star, international-class hotels has fueled Hong Kong's hot flower market.

Flowers also are the most popular gifts sent with congratulations on openings, anniversaries and other special official events. They are fast replacing wall mirrors and paintings as traditional business gifts.

The individual consumer market is made up of the 6 million people who live in Hong Kong. Traditionally, flowers are bought for two major occasions - Chinese New Year and funerals. Chinese New Year favorites are local and South China flowers such as gladiolus, chrysanthemums, peach blossoms and potted plants. Funeral flowers are solely white and yellow chrysanthemums.

Westernization over the past decade has made sending flowers a part of life for the young for acknowledging birthdays, promotions, anniversaries, births and illness. Valentine's Day and Mother's Day now are as much occasions for sending flowers as is Chinese New Year.

Budding Potential for Growth

Cut flowers have overcome some important cultural boundaries over the past decade. While flowers have been enjoyed by the Chinese for centuries, the Chinese are very cautious about sending flowers as gifts because of their short-lived beauty. People are supertitious about drooping buds and consider it bad luck, particularly for New Year's flowers sent to businesspeople. This explains the skyrocketing prices of some flowers at New Year's.

However, the younger generation growing up under Westernized education systems is more receptive to flowers. The improved service of air transportation also has helped to improve the quality and availability of cut flowers.

Less than 10 percent of Chinese families regularly get flowers for their homes, but people have been willing to spend more on furnishing their homes in recent years. If flowers can find a place in the homes of the Territory's 6 million residents, the market will certainly blossom.

Opportunity for the United States

Although the United States has made considerable advances in the Hong Kong cut flower market, it is far behind the top suppliers, such as the Netherlands, China, Malaysia and New Zealand, and newcomers such as Australia, Colombia and South Africa. The Netherlands took over the top position from Taiwan in 1983 and its sales have continued to surge. Dutch sales were US$6.7million in 1990, more than 400 times the level of only 10 years ago.

South Africa entered the Hong Kong market in 1978, Australia in 1979. Colombia started selling flowers in Hong Kong in 1986 and quickly rose to third place behind the Netherlands and Malaysia.

Imports from the United States are mainly anthuriums, gypsophila (baby's breath) and foliage, and totaled US$253,300 in 1990. U.S. roses are always sought after by Hong Kong's floral trade. Traders acknowledge that there is opportunity for price-competitive flowers of all types, high-quality flowers for the upscale market and rare exotic species. Uniqueness, quality and dependable supply are much more important than price in Hong Kong's growing market. A U.S. exporter with any of these categories stands a good chance of succeeding in Hong Kong's cut flower market.

Hong Kong's flower market started decades ago in Kowloon, where local flower growers and traders importing from China arrived with truckloads of flowers to sell to wholesalers and retailers. A nearby football field was turned into a temporary marketplace in the early morning and for a few full days before Chinese New Year to accommodate the busy trading time before holidays.

With the influx of imported flowers arriving by air in the early 1980s, the flower market became an all-day market. Eventually the market was driven indoors to shops on the same street, named Flower Market Street.