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    Flower Market

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    Aditi Sharma
    The floral industry has grown significantly in recent decades to become a global industry worth over $100 billion annually. Demand for flowers is driven by various occasions and festivals but is less responsive to price changes than typical goods. Both supply and demand factors like seasonality, costs, and expectations affect pricing in flower markets, where prices often double or triple on high-demand occasions. The flower industry exhibits characteristics of perfect competition with many buyers and sellers and standardization of products.

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    Flower Market

    Uploaded by

    Aditi Sharma
    474 views12 pages
    The floral industry has grown significantly in recent decades to become a global industry worth over $100 billion annually. Demand for flowers is driven by various occasions and festivals but is less responsive to price changes than typical goods. Both supply and demand factors like seasonality, costs, and expectations affect pricing in flower markets, where prices often double or triple on high-demand occasions. The flower industry exhibits characteristics of perfect competition with many buyers and sellers and standardization of products.

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    The floral industry has grown significantly in recent decades to become a global industry worth over $100 billion annually. Demand for flowers is driven by various occasions and festivals but is less responsive to price changes than typical goods. Both supply and demand factors like seasonality, costs, and expectations affect pricing in flower markets, where prices often double or triple on high-demand occasions. The flower industry exhibits characteristics of perfect competition with many buyers and sellers and standardization of products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    474 views12 pages

    Flower Market

    Uploaded by

    Aditi Sharma
    The floral industry has grown significantly in recent decades to become a global industry worth over $100 billion annually. Demand for flowers is driven by various occasions and festivals but is less responsive to price changes than typical goods. Both supply and demand factors like seasonality, costs, and expectations affect pricing in flower markets, where prices often double or triple on high-demand occasions. The flower industry exhibits characteristics of perfect competition with many buyers and sellers and standardization of products.

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    FLOURIEST BUSINESS ANALISYS

    INTRODUCTION

    The floral industry is one of the major industries in many countries. Floriculture as an industry began in the late 19th century in England, where flowers were grown on a large scale on the vast estates. The present day floral industry is a dynamic, global, fast-growing industry, which has achieved significant growth rates during the past few decades. In recent years, the floral industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion.

    USES OF FLOWERS

    Festivals Marriages As a token of love Decorations Gift Worship

    Demand

    In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay. Law of demand states that the amount demanded of a commodity and its price are inversely related, other things remaining constant. But flower industry is an exception to the law of demand. Elasticity of Demand: Lies between perfectly inelastic and stiff behavior. Thus Ed lies between 0 and 1 but tends more towards 0.

    Factor Affecting Demand

    Ability to pay Seasonal demand Festivals and Occasions Geographical Factors Tastes and Preferences Change in Price Income of person Availability

    Supply
    Supply is the amount of some product that producers are willing and able to sell at a given price all other factors being held constant. Other things being same, quantity supplied of a commodity varies directly with its price, i.e. There is direct relationship between the price of a commodity and the quantity in which it is supplied. Flower industry follows law of supply as supply of flowers is increased before certain occasions, the reason for this is increase in price. Elasticity of supply: Elastic market . Thus Es is greater than 1 but do not tend towards infinity.

    FACTORS AFFECTING SUPPLY

    Expectations Natural Factors Resources and Cost Prices of related goods Government Policies Stock

    PRICING
    Pricing in the flower market is generally done in the same way as for other products, i.e. supply and demand decides the prices of flowers. When demand is high on certain occasions, prices are almost doubled or tripled. When demand is normal, prices fall. Pricing of flowers is generally fixed by the wholesale market and producers and not by the retailers.

    PERFECT COMPETATION MARKET

    Large Number of Buyers and Sellers No Entry and Exit Barrier Perfect Information about the Product Aim is Profit maximization Homogeneous products

    MARKETING AND INNOVATION

    Use of internet Online Ordering Imports and exports of flowers Art of Packaging and Decoration of Bouquets Use of Dry and artificial Flowers Shops opened near or with Gift and Cake Shops

    Reference

    http://en.wikipedia.org/wiki/Perfect_competition http://www.indiastudychannel.com/resources/106 262-Law-Demand-with-its-assumptionsexceptions.aspx

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