Unparalleled dynamics in technology are driving the floral distribution industry as we enter 2016. Titanic growth in information technology is dictating that survivors must either engage in the opportunities this presents, or perish.

KENNICOTT“Wholesale florist” is an obsolete term because of the historical baggage it carries and the image it suggests of a middleman taking an unjustified cut of the profits in an archaic distribution system. The old days are gone forever, and those floral distributors who endure in 2016 deserve a new name that better describes their role, and the value they provide to floral retailers of all kinds. So what should it be?

A big plus for our industry as a whole is the increased consumer value of our product. Availability of new flower varieties has expanded exponentially from sources all over the globe and consumers are increasingly aware of the vast selection because of its presence on the Internet and their mutual sharing through social media.

This knowledge and awareness creates further interest and drives very precise requests for specific flowers. Retailers who can deliver on these requests become the florist of choice for these new-age consumers, and the distributors who can most effectively support these retailers will be the survivors in an environment of rapid consolidation.

Whether they are supermarkets, traditional brick-and-mortar florists, or studio florists who specialize in decoration and events, our best customers tell us they have three essential needs from their suppliers:

• Specific product of high quality.

• Delivery when they need it.

• Fix problems that will inevitably occur.

Meeting these conditions requires a high level of expertise in sourcing and floral logistics, along with problem-solving capability at the local level 24/7. Plus, pricing must be consistent with the value provided.

Distributors and importers who serve the large supermarket chains and big box stores are experiencing significant concerns. This segment of the flower industry appears to have reached maturity, and the growth of retail supermarket floral sales has become stagnant in some areas. Corporate management of most of the large supermarket companies has generally paid little attention to the specific needs of floral departments, because flowers produce only a small percentage of total sales distribution. Their position is usually that the floral department costs should fit into the overall corporate business model. This viewpoint results in limiting payroll available for the flower department and hence sales growth, even though flower sales can return a higher gross margin contribution than other supermarket sales categories. This corporate philosophy presents particular challenges for those who operate the floral departments, and subsequently also to those distributors who sell to them.

There are many encouraging aspects as we look forward to the future for our flower industry. Genuine consumer interest in our product is growing, as witnessed and documented on social media. Millennials and the upcoming Generation Z show enthusiasm for flowers, as evidenced by the growth in prom flower sales.

The greatest opportunity for all in the flower industry is to dramatically increase consumer demand through major national promotion. American consumers love flowers —they just need to be reminded to purchase them. A Federal Promotion Order could raise funds to accomplish this in a way that is broad-based and fair to all — what we need to initiate this is the enthusiastic support of the largest importers and growers of flowers — and 2016 could be the year in which this happens.

Red Kennicott is chief executive officer at Kennicott Bros. Co. in Chicago. He can be contacted at [email protected].