Buying plants is a logical act for a passionate gardener. On the other hand, the matter could become complicated if the availability of the wallet is reduced and if, at the same time, the price of plants increases. We will undoubtedly have to redouble our efforts to attract new gardeners…
The price of plants
With the help of France Bleu, Odoxa is offering us a survey for the start of the 2023 school year to find out consumers’ intentions in the face of price increases.
This year, 87% are paying more attention to their finances. Some even consider that they have significantly reduced their current consumption (49%) and leisure (46%) spending.
The garden being part of leisure activities, it is also concerned by this major subject.
We cannot pass through the drops. The increase in prices is a reality, it is reinforced by the media coverage of the subject. Inevitably, consumers position themselves in “caution” mode when it comes to spending their money. And for plants, which are often an ephemeral product, the reflection will be even more present in the minds of amateur gardeners. Our distributors will therefore have to offer exceptional offers, promotions and highlights to continue to attract their customers. But there is the margin, which must be preserved… The equation is still the same, but it is a little tighter! And the producer/distributor relationships too?
France Agrimer tells us that the average price of a plant is 4.37 euros in 2022. And this average price has increased by 0.85 euros since 2019.The acceleration is a little stronger in hypermarkets where this famous control plant has increased by 14% in one year.Just one detail that is important, the average budget per household increased from 130 euros in 2021 to 115.60 in 2022.The figures are a bit complicated, but hey, being very basic, we simply see that the average price of plants is increasing and that the average budget per household is decreasing.The more expensive the plant, the less we buy. At first glance, it makes sense 🤨. But for an enthusiast, the price was previously unimportant. Today, that is changing.When the situation is financially difficult, the first instinct is to be a little more careful with your spending. And in such a situation, the distributor responds with low prices. How far will we go with plants to manage this tension? Are we going to end up with micro-clumps in all the shelves?
The garden and plants are a pleasure purchase, but in times of restriction, pleasure takes a back seat. To divert the attention of our customers, we started by reducing the size of the trays of flowers or vegetables which can go from 10 to 6. If there is a misunderstanding, the gardener will think of a reduction in price. Recently, we have also seen the development of inexpensive mini-plots… hoping that the novice gardener can manage this particularly fragile plant. And then there are the offers, the promotions… which start earlier and earlier… While hanging around garden centers here and there, we increasingly see significant discounts of 25 to 30% on plants that have just arrived on the shelf. This is not the type of house, the garden center is generally not very keen on sales. So there would be danger in the house?At the same time, ever-increasing energy prices have forced some “plant factories” to close their doors in Northern Europe.If the supply decreases, mechanically, the price increases! Will the consumer accept increases for a “leisure” product likely to disappear with the first winter frosts?
The Garden Consumer Guide
For the release of our third Garden Consumer Guide 2024*, we decided to analyze the ins and outs of this plant market. We carried out a survey in partnership with Promesse de Fleurs. Of the 2,000 plant enthusiasts surveyed last June, more than 56% have postponed or canceled a plant purchase because of the price. The amounts spent on small flowers are therefore a reality that we will have to integrate as a priority subject in the weeks and months to come.And the solutions are not legion. We all need margin to pay for watering, soil and our employees. Distributors will therefore have to redouble their efforts to present the plant in its best light. And more than ever, be present in the aisles of the nursery, the flower market and the hothouse to advise and support customers who come to visit us. Perhaps sales and hospitality is the solution?But do we still have the knowledge, availability, patience and desire to respond to our customers? If so, we have a clue 😊!
*Reserve the 2024 Garden Consumer Guide on Plants now at email@example.comAvailable from October 20, 2023