Fresh Flowers & Plants In China: A Market Analysis

Contents

CHINA CONTACT II

CONTENTS III

INTRODUCTION 1

• Executive Summary 1
• Definitions & Report Coverage 2
• Other Relevant Reports from Access Asia 3
• Free Monthly Online Newsletters 4

1 THE FRESH FLOWERS & PLANTS MARKET IN CHINA 5

• 1.1 Total Market 5
  • 1.1.1 Total Market: Retail Market Size for Fresh Flowers 5
    • Table 1.1 TOTAL RETAIL MARKET FOR FRESH FLOWERS IN CHINA 1990-2003 6
  • 1.1.2 Total Market: Domestic Trade Volume for Fresh Flowers & Plants 6
    • Table 1.2 TOTAL MARKET FOR FRESH FLOWERS & PLANTS IN CHINA 1996-2003 7
  • 1.1.3 Total Market: Fresh Flower Sales by Type 8
    • Table 1.3 PERCENTAGE BREAKDOWN OF MAJOR FRESH FLOWER SALES IN CHINA BY TYPE 2002 8
  • 1.1.4 Total Market: Retail Pricing of Fresh Flowers 8
• 1.2 Outlook for China's Flowers & Plants Market 9
  • 1.2.1 Outlook: Forecast Trends 9
  • 1.2.2 Outlook: Total Market Size for Fresh Flowers 10
    • Table 2.4 FORECAST TOTAL MARKET FRESH FLOWERS IN CHINA 2003-2008 10

2 CURRENT ISSUES IN CHINA'S FLOWERS & PLANTS MARKET 11

• 2.1 Current Issues: Flower Markets 11
• 2.2 Current Issues: Consumers & Giving Flowers 11
• 2.3 Current Issues: The Emergence of St. Valentine's Day 12
• 2.4 Current Issues: Funeral Flowers 12
• 2.5 Current Issues: The Growth of Interest in Flower Arranging 13
• 2.6 Current Issues: E-commerce Sales of Flowers in China 13
  • Table 3.1 LEADING CATEGORIES OF E-COMMERCE SALES 2003 13
• 2.7 Current Issues: The Renaissance in Traditional Chinese Garden Styles 14
• 2.8 Current Issues: Flower Rental and Leasing 14

3 DISTRIBUTION OF FLOWERS & PLANTS IN CHINA 15

• 3.1 Distribution: Wholesale Distribution 15
• 3.2 Distribution: Retail Sales of Flowers & Plants by Outlet Type 15
  • Table 4.1 PERCENTAGE BREAKDOWN OF FRESH FLOWER SALES BY OUTLET TYPE 2002 16

4 SOURCES OF SUPPLY 17

• 4.1 Agricultural Policy 17
  • 4.1.1 Agricultural Policy: Background 17
  • 4.1.2 Agricultural Policy: Problems in Commercialisation 18
  • 4.1.3 Agricultural Policy: Institutional and Production Policies 19
    • Household Production Responsibility System 19
    • Development of Rural Industry 20
    • Governor's Grain-Bag Responsibility System 21
    • Mayors' Responsibility System 21
  • 4.1.4 Agricultural Policy: Domestic and Market Price Policy 21
    • Procurement Price Policies 22
    • Procurement Contract System 23
    • Reduction in Government Procurement Quotas 23
    • Elimination of Fixed Procurement Prices 24
    • Elimination of Urban Grain-rationing System 24
    • Price Support Programme 24
    • Grain Distribution Reform 25
  • 4.1.5 Agricultural Policy: Agricultural Trade Policy Instruments 26
    • State Trading 26
    • Tariffs and value-added tax 26
    • Import and Export Licensing 27
    • Foreign Grain Trade Management 27
  • 4.1.6 Agricultural Policy: Input Policy 28
    • Chemical Fertilisers 28
    • Water 28
  • 4.1.7 Agricultural Policy: Outlook 29
    • Macroeconomy 30
    • Trends in Food Demand 30
    • Agricultural Resources and Technology 30
    • World Trade Organisation (WTO) 31
• 4.2 Output 32
  • Table 4.1 PRODUCTION SHARES OF FLOWERS IN CHINA BY PROVINCE, 2002 32
• 4.3 China's Agricultural International Trade 33
  • Agricultural and Trade Policy 33
  • Tariff Reductions 36
• 4.4 Imports 37
  • 4.4.1 Imports: Value 37
    • Table 4.2 IMPORT VALUE OF FRESH CUT FLOWERS BY BROAD SECTOR, 1995-1998 37
  • 4.4.2 Imports: Volume 37
    • Table 4.3 IMPORT VOLUME OF SELECTED FRESH CUT FLOWERS BY BROAD SECTOR 1995-1999 38
• 4.5 Exports 39
  • 4.5.1 Exports: Value 39
    • Table 4.4 EXPORT VALUE OF FRESH CUT FLOWERS BY BROAD SECTOR 1995-1999 39
  • 4.5.2 Exports: Volume 39
    • Table 4.5 EXPORT VOLUME OF RHODODENRON, AZALEAS & ROSES S 1995-1999 40

5 SWOT ANALYSIS 41

• 5.1 Strengths 41
• 5.2 Weaknesses 41
• 5.3 Opportunities 42
• 5.4 Threats 42

6 COMPANY PROFILES 43

• 6.1 Alice Florists 43
• 6.2 Beijing Green Field Flowers 43
• 6.3 Beijing Fengtai Huaxiang Baipenyao United Company 43
• 6.4 Bojie Local Products Company Ltd 44
• 6.5 China TRD Company Ltd 44
• 6.6 Euro-Asia Agricultural (Holdings) Company Ltd 45
• 6.7 Huaxiang Flower Market 47
• 6.8 Jiaoda Agricultural Science (Xinqiao) Horticultural Garden 47
• 6.9 Kunming Yunlan Flower Company 47
• 6.10 Mainland Mart.com 48
• 6.11 Olive Modern Agriculture Development Company Ltd 48
• 6.12 Postal Etiquette Service/China Courier Service Corporation/ Guangzhou Courier Company 49
• 6.13 Shanghai Meilong Yu's Flower Nursery Company Ltd 49
• 6.14 Shanghai Metropolis Flowers' Harbor Company Ltd 50
• 6.15 Willem van Herreweghe 50
• 6.16 Ye Fan Flower Store 50
• 6.17 Yunnan Hekou Green Earth Company Ltd. 51
• 6.18 Yunnan Jingzheng Agriculture Synthesis Development Company Ltd. 51
• 6.19 Yunnan Sanduo Flower Company 51

7 GOVERNMENT DEPARTMENTS 52

• 7.1 Ministry of Agriculture 52
• 7.2 All-China Federation of Industry & Commerce 52

8 TRADE ASSOCIATIONS 53

• 8.1 China Flower Association 53
• 8.2 China Flowers & Plants Industry Association 53
• 8.3 The China Association of Floral Art 54
• 8.4 Flowers & Plants Industry Management Office 54
• 8.5 Flower Research Centre of Yunnan Academy of Agricultural Sciences Horticultural Institute 54
• 8.6 Yunnan Provincial Flower Industry Association 54

9 TRADE SHOWS & EXHIBITIONS 55

• 9.1 Horticulture 55
  • 91.1 China International Green House Engineering Show 55
  • 9.1.2 China International Flower & Garden Expo 55
  • 9.1.3 Tianjin International Flower Exhibition 55
  • 9.1.4 China International Turf, Landscape & Equipment Expo (China International Turf) 55
  • 9.1.5 FLOREXPO 55
  • 9.1.6 AGRIFLOR Kunming China (China Kunming International Floral Festival) 55
  • 9.1.7 Jiangsu Horticulture Exposition/Nanjing Flower Show 56
  • 9.1.8 International Garden & Flower Exposition 56
  • 9.1.9 China Flower Exposition (China Floricultural Exposition) 56
  • 9.1.10 China Flower Fair 56
  • 9.1.11 National Flower Technologies & Information Exchange Fair (Horticulture Facilities Exhibition) 56
  • 9.1.12 Hunan Agricultural Products Exposition & TradeFair 56
  • 9.1.13 China Orchid Fair 57
  • 9.1.14 Spring Orchids Exhibition Fair 57
  • 9.1.15 Fuzhou Flower Show 57
  • 9.1.16 China International Plum Blossom Festival 57
  • 9.1.17 The Hong Kong Flower Show 57
• 9.2 Agriculture 58
  • 9.2.1 Zhengzhou Agriculture EXPO 58
  • 9.2.2 North East China Seed & Pesticide Trade Fair 58
  • 9.2.3 AGRO-FOODTECH 58
  • 9.2.4 Northeast China International Fair on Agriculture 58

10 APPENDIX: MARKET BACKGROUND 59

• A.1 Fast Facts 59
• A.2 Regions of China 60
  • Map A.1 CHINA: PROVINCES AND MUNICIPALITIES 60
• A.3 Demographics 62
  • A.3.1 Demographics: Total Population 62
    • Table A.1 TOTAL POPULATION, 1996-2003 62
  • A.3.2 Demographics: Population by Location 63
    • Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 1997-2003 64
  • A.3.3 Demographics: Population Breakdown by Location 64
    • Table A.3 POPULATION BREAKDOWN BY URBAN-RURAL DIVIDE, 1997-2003 64
  • A.3.4 Demographics: Population by Province 64
    • Table A.4 POPULATION BY PROVINCE, 2000-2003 65
  • A.3.5 Demographics: Population Density by Province 66
    • Table A.5 POPULATION DENSITY BY PROVINCE, 2000-2003 66
  • A.3.6 Demographics: Population Concentration 67
    • Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2003 68
  • A.3.7 Demographics: Population by Gender 68
    • Table A.6 TOTAL POPULATION BREAKDOWN BY GENDER, 1997-2003 69
  • A.3.8 Demographics: Population by Age Group 69
    • Table A.7 POPULATION BY AGE GROUP, 1997-2003 69
    • Table A.8 POPULATION BY AGE GROUP (PERCENTAGE), 1997-2003 70
• A.4 Consumer Attitudes 71
  • A.4.1 Consumer Attitudes: Overview 71
  • A.4.2 Consumer Attitudes: Response to Political Change 71
  • A.4.2 Consumer Attitudes: Response to Economic Change 72
  • A.4.3 Consumer Attitudes: Changes in Lifestyle 73
    • Livelihood 73
    • Individual loans 73
    • Housing 74
    • Possessions 74
    • Travel 75
    • Entertainment 75
    • Health and Fitness 76
    • Purchasing Influences 77
    • Taboos 78
• A.5 Consumer Wealth 79
  • A.5.1 Consumer Wealth: GDP and Cost of Living 79
    • Dealing with WTO 79
    • Confident Shoppers 80
    • Table A.9 GDP AND COST OF LIVING INDEX, 1997-2003 80
  • A.5.2 Consumer Wealth: Provincial Differences in GDP 81
    • Table A.10 GDP RANKED BY PROVINCE, 1997-2003 82
  • A.5.3 Consumer Wealth: GDP Growth by Province 82
    • Table A.11 GDP GROWTH RANKED BY PROVINCE, 1996-2002* 83
  • A.5.4 Consumer Wealth: GDP Per Capita by Province 83
    • Table A.12 PER CAPITA GDP RANKED BY PROVINCE, 2000-2003 84
  • A.5.5 Consumer Wealth: Concentration of Wealth by Province 84
    • Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2003 85
  • A.5.6 Consumer Wealth: The Major Cities 85

    Table A.13 LEADING CITIES KEY ECONOMIC INDICATORS, 2003 86

• A.6 Households 87
  • A.6.1 Households: Overview of Household Conditions 87
  • A.6.2 Households: Total Households by Size 88
    • Table A.14 NUMBER OF HOUSEHOLDS BY SIZE, 1997-2003 88
  • A.6.3 Households: Total households by Urban/Rural Split 88
    • Table A.15 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 1997-2003 89
  • A.6.4 Households: Income Earners Per Household 89
    • Table A.16 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 1997-2003 89
• A.7 Employment 90
  • A.7.1 Employment: Number of Workers by Sector 90
    • Table A.17 NATIONAL EMPLOYMENT BY SECTOR, 1997-2003 90
  • A.7.2 Employment: Growth by Sector 91
    • Table A.18 GROWTH IN EMPLOYMENT BY SECTOR, 1997-2003 91
  • A.7.3 Employment: Number of Workers by Gender 91
    • Table A.19 TOTAL NATIONAL WORKFORCE BY GENDER, 1997-2003 92
  • A.7.3 Employment: Number of Workers by Habitation 92
    • Table A.20 NATIONAL WORKFORCE BY HABITATION, 1997-2003 92
  • A.7.4 Employment: Urban Unemployment 93
    • Table A.21 URBAN UNEMPLOYMENT RATES, 1997-2003 94
• A.8 Consumer Income 95
  • A.8.1 Consumer Income: Average Incomes by Sector 95
    • Table A.22 AVERAGE INCOMES BY SECTOR, 1997-2003 95
  • A.8.2 Consumer Income: Growth by Sector 96
    • Table A.23 GROWTH IN AVERAGE INCOMES BY SECTOR, 1997-2003 96
  • A.8.3 Consumer Income: Average Incomes by Region 96
    • Table A.24 AVERAGE INCOMES BY REGION, 1997-2003 97
  • A.8.4 Consumer Income: Growth by Region 97
    • Table A.25 GROWTH IN AVERAGE INCOMES BY REGION, 1997-2003 98
• A.9 Consumer Market 99
  • A.9.1 Consumer Market: Spending Trends 99
    • Table A.26 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 1997-2003 99
  • A.9.2 Consumer Market: Per Capita Consumer Expenditure 99
    • Table A.27 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 1997-2003 100
  • A.9.3 Consumer Market: Retail Sales and Consumer Spending 101
    • Table A.28 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE, 1997-2003 101
  • A.9.4 Consumer Market: Urban Income and Spending Compared 101
    • Table A.29 URBAN AVERAGE ANNUAL INCOME/EXPENDITURE, 1997-2003 101
  • A.9.5 Consumer Market: Average Urban Weekly Shopping Basket 102
    • Chart A.1 AVERAGE WEEKLY URBAN SHOPPING BASKET, 2003 102
  • A.9.6 Consumer Market: Average Rural Weekly Shopping Basket 103
    • Chart A.2 AVERAGE WEEKLY RURAL SHOPPING BASKET, 2003 103
  • A.9.7 Consumer Market: Average Urban & Rural Weekly Shopping Baskets Compared 104
    • Chart A.3 URBAN & RURAL SHOPPING BASKETS COMPARED, 2003 104
• A.10 Exchange Rates 105
  • A.10.1 Exchange Rates: China 105
    • Table A.30 AVERAGE ANNUAL EXCHANGE RATES, 1997-2003 105
  • A.10.2 Exchange Rates: Hong Kong 105
    • Table A.31 AVERAGE ANNUAL EXCHANGE RATES, 1997-2003 105