Chinese flower industry is still in the low end of the world industrial chain

chinese flower industry is still in the low end of the world flower industry chain. From the industry-wide profit margins of view, although china is the world’s largest flower producing countries, but the yield per unit area, output and efficiency perspective, are still at a low stage. Chinese flower industry is still inefficient in high-speed, quantity expansion phase, not the flower industry resources into industrial advantages.



In the Netherlands, Colombia and other flowers in developed countries, the average annual production per square meter of land rose 250-500, while China alone produced more than 100 branches. More more backward in terms of varieties, the Netherlands, a newly launched flowers are often ordinary kind in China more than 10 times the price of flowers, and some even up to a hundredfold difference. Plus royalties, the presence of saplings, making China’s flower industry profit margin is very low.



Compared with developed countries, flower companies, domestic small-scale flower business, competition is weak, there is still no international impact of large enterprises. China flower producers are basically farmers and state-owned nursery production from developed on the basis of. To decentralized management, small-scale peasant as the main pattern has not fundamentally changed, production facilities and production technology level is still relatively backward. General performance of the production organization as “large” or “small”, low degree of specialization of production, small scale, weak competition in the market. Many enterprises have not only engaged in the introduction, complex types of testing, but also engage in production, management and marketing; both the production of cut flowers and potted plant production, trade-off. An inability to form their own characteristics and competitive products, can only compete with each other at a low level, operating the road gets narrower.



Flowers layout from China, China’s flower industry around has not been effectively integrated, production layout is unreasonable, low-level, redundant construction seriously. By market interests and the government industrial planning drive, many Chinese provinces of quick success, swarmed investment flower industry is currently very serious situation. Many regions are trying to grow every flower, the garden-style production structure is very common. Some areas do not take account of local climatic conditions, regional consumption, the blind development of cut flowers production, resulting in low-level duplicated construction investment and blind. Flower production yield is low, poor quality, the flower industry in China has created a significant negative impact.



Since at a low level, relatively simple species, the Chinese flower industry can easily be imitated in other countries, now Vietnam, Thailand and other Southeast Asian countries to imitate China’s flower industry has had a great threat. According to some experts to do business florist flower Southeast Asia, told reporters last three years, Vietnam, Thailand and other Southeast Asian countries in the flower industry is developing very fast. Before their own, such as Thailand are not many species of flowers, but now many species with similar flowers in Kunming, although the quality than the Chinese badly, but because the local production of local sales, there is a great advantage. With more than China, Vietnam is still low labor costs, in the flower industry on China poses a greater threat. Currently, the market in Southeast Asia, Vietnam rose with the price advantage has been highlighted different military, domestic florists, flower growers generally feel a huge threat.



Urgent need to shift from labor-intensive and technology-intensive



Chinese flower industry in the world flower industry a long chain of low-end, the Chinese flower industry’s future development prospects are very uncertain, this objective needs of Chinese flower industry on industrial upgrading as soon as possible, out of the low-end chain. To achieve this goal, we must make the flower industry in China as soon as possible from the labor-intensive to technology-intensive.



China’s flower industry to strengthen the R & D capacity, so China has to enter the international market, with independent intellectual property rights of new varieties of flowers. According to the investigation by the reporter, currently represented by many Chinese Yunnan province has begun to guide the province’s flower industry to make the difficult transformation and upgrading, and increased investment in research and development of independent intellectual property rights of flowers.

Flower industry in Yunnan Jinyuan Co., Ltd. is engaged in flower production and sales of China’s largest private enterprise, company executive vice president of Fei-Peng Lee told reporters that several years ago the company set up its own R & D department of flowers, has introduced more than 20 research personnel, as of the end of May this year, has developed a proprietary 23 flowers, has become the intellectual property currently has the largest flower company. “These flowers not only make our own intellectual property rights have the confidence to continue to maintain the advantage on the market in Southeast Asia, is more important is that we have a flower into the mainstream consumer market in the world may be.”

“However, the difficulties of transition full flower industry is also very large, there are two main issues, namely lack of funds, the second is lack of talent.” Fei-Peng Lee said.


Lack of funds is the flower business transformation process of the most troublesome problems. According to the investigation by the reporter, the rapid development of Japan’s flower industry, the reason to increase the capital investment is an important factor. Japanese government attaches great importance to investment in research funding. Flowers of Japan in the year to invest more than 500 billion yen, of which the government invested more than 200 billion yen. Countries have research and experimental base, counties, cities, towns also have their own institutes or test site. State, county government established by the research unit’s research facilities, advanced equipment, well-resourced, the average R & D staff have research funding 5 million yen.

The Chinese investment in research on very small flowers, such as China’s largest flower production in Yunnan province, the government only invested each year 800-10000000 yuan. Coupled with the flower companies are agricultural enterprises, loans to agricultural enterprises in China and very difficult, can not flower as mortgages, making China the flower business investment in research funding is very small, difficult to develop new varieties of flowers.

In terms of talents, China’s flower business, the very small proportion of students have studied the ability of the flowers is even more scarce. China engaged in the production and sales of flowers as the largest private enterprises in Yunnan Flower Industry Co., Ltd. Jinyuan more than 20 researchers, new varieties of flowers can not meet the needs of research subjects.

Blue chip market growth potential

Funds from various quarters are crowding the flower industry

With the transformation of the flower industry, with domestic and international markets, the domestic flower industry chain are maturing and improving the environment of government policies, China’s flower industry is now increasingly becoming the new hot spot for domestic and foreign investment, but also began to venture capital speculation large numbers, the majority of investors need to guard against this in advance.