China's rising consumption creating room for horticulture businesses
CGTN Global Business
China's rising consumption and the increasing popularity of upscale apartments and houses are creating room for horticulture businesses to grow. A report says that about 5,000 Chinese companies are competing for market share in the horticulture sector.
Analysts say that companies with better design and processing capabilities and low-cost products have the edge. Meanwhile, government efforts to make cities greener are also promoting the development of the horticultural sector.
Globally, Chinese companies are taking a large share of the low- to medium-end horticultural market while also gaining the high-end market.
Flowers used to be a lavish purchase in China but that's been more than a decade ago. The fact is, the flower retail industry is blossoming so well in China that it is expected to reach 100 billion yuan by 2020.
With the Beijing Horticultural Expo taking place in Beijing, what does this event mean to Chinese floral industry insiders?
China is moving into the so-called "experience economy," which means that people buy things not to fulfill a physical need but because of the feelings and memories they get by engaging it. Flowers fit this notion because even though they don't have a functional role, they can make people happy.
The horticultural exhibition is not just about flowers, but a green lifestyle and green economy.
20 years ago, a Class A1 World Horticultural Expo was held in Kunming, China. Two decades later, the Horticultural Expo was held in China again, this time in Beijing. In the past 20 years, China has witnessed rapid economic growth and significant improvement in people’s well-being.
Flowers have become part of the everyday life. The successful holding of the Horticultural Expo in China will surely have a great influence on the development of the horticultural industry in the country.
Wu Fei, founder and manager at Peking Youth Hostel, said the Horticultural Expo is a good opportunity for people to understand and engage in the industry.
Wu added "this is a large-scale event that enables the public to see all kinds of plants. I think everyone could find something he or she likes at the expo."
Cao Xue, founder and manager at Huatianxiaoqi, a natural plant design-related app, said the Horticultural Expo is the highest-level event in the industry. It could influence the industry in two aspects. "First, in terms of gardening and fresh-cut flowers, the expo could significantly boost the development of the industry. In China, home-grown plants represent a market that is 10 times larger than that of fresh-cut flowers." said Cao.
In developed countries like the United States and Japan, it is common for families to have their own gardens or grow plants on their balconies. As income increases, consumers will be willing to spend more on activities that help them enjoy life, such as reading, having high tea or taking care of plants.
On the second hand, the expo is a platform for the popularization of horticultural knowledge.
Besides, designers and suppliers from around the world gather at the Horticultural Expo, creating opportunities for people to learn new knowledge.