I saw this topic in Zhihu Daily today, but I was not very satisfied with the answer after reading it carefully. I think we can make some additions. I have studied the micro-competitive economics of Michael Porter before. A case is about the Dutch flower industry. I visited the auction market in the Netherlands and met several people in the industry. I looked through my old notes and enjoyed it here. The article is summarized from the case of HBS, which is long and can be read selectively.
1. Overview of the Netherlands
The Netherlands is a small country in the North Sea with a population of about170,000, bordering Germany and Belgium. The Netherlands has a long history in international trade. As of 2009, the Netherlands is the 22nd largest economy in the world, and its per capita GDP ranks 9th in the world, reaching US$ 465,438+0,367. The logistics network in the Netherlands is very developed. The job market is highly educated, and about 33% people have received higher education. The Netherlands has a special tax preference for international enterprises, which is lower than the average level in Europe, and the enterprise supervision standards are very advanced in the world. Doing business in Holland is very easy. She is a member of the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD). Dutch tertiary industry accounts for 73% of GDP, mainly concentrated in logistics, business services, banking and insurance. In 2008, oil and natural gas accounted for 9.4% of Dutch exports. The Netherlands is the third largest oil and gas producer in the world and the second largest exporter in Europe. Rotterdam is a very important international oil transshipment center. Holland is a traditional agricultural country. Agriculture contributes 2% of GDP and 3% of employment, but it accounts for 17% of total exports.
2. Flower industry
The flowers in the flower trade market have been picked, which are perishable and have a preservation period of 5-8 days. The main traded flowers are roses, carnations and chrysanthemums. Flowers are carefully cultivated to improve their quality, and all kinds of flowers selected from generation to generation can meet the needs of different customer groups. The life cycle of each flower factory is about 3 years, and the growth cycle of each flower is different. The picking, grading and packaging of flowers are generally done by hand. Once picked, flowers rot easily. Flowers are protected by boxes during transportation, and there are boxes of different sizes to ensure that flowers will not be damaged during transportation. In addition, a highly developed logistics system can control the temperature during transportation, so that flowers will still be beautiful when they are finally presented to consumers through auction houses, warehouses, retailers or supermarkets.
Consumers buy flowers for gifts, weddings/funerals and other special occasions, as well as interior decoration or public decoration. The price of flowers fluctuates greatly according to its scarcity, quality and season. Rich countries spend a lot of money per capita, and the Netherlands ranks third in this respect, second only to Norway and Switzerland. More than 50% of flowers are sold through flower shops. Although the Internet only accounts for 65,438+0% of flower sales at present, it is developing rapidly and has great potential.
The main flower producers in the world are the Netherlands, Colombia and the United States. The main exporting countries are the Netherlands, Colombia, Ecuador and Kenya. Germany is the largest importer of flowers in the world, followed by Britain, the United States, the Netherlands and France. The Netherlands imports a lot of flowers by auction and then exports them to Europe or other countries in the world.
3. Dutch flower industry cluster
When it comes to flowers in the Netherlands, we have to mention tulips. 1570 was imported from Turkey to the Netherlands. In the prosperous tulip bubble from 16 10 to 1637, Newton suffered heavy losses as a receiver. Early Dutch flowers were mainly exported to Germany, France, Britain and Russia. Two flower markets (Bloemen Lust and Centrale Aalsmeer Seveiling) were established by flower farmers and intermediary traders at 19 12. With the improvement of the overall economic situation in Europe, flowers play an increasingly important role in people's lives. In the 1960s, flowers auctioned in the Netherlands were transported to European countries by trucks, and major European flower exporters began to set up offices in the Netherlands. As of 2009, KLM shipped more than 65,438+00,000 pounds of flowers to the United States every day.
As early as 1950s, the Netherlands began to establish contact with other countries in flower cultivation. The Dutch have always been in a leading position in the production and innovation of flowers, such as special logistics management and flower transportation (1972), artificial lighting (1978), greenhouse climate control (1983), mechanical planting and harvesting (1985).
In 2009, flowers in the Netherlands, including re-export, accounted for 60% of the world's flower exports and 66% in Europe. More than 90% of the flowers are exported to Germany, France, Denmark, Finland and other countries. Relatively speaking, in countries with their own flower production, such as Spain and Italy, the market share of Dutch flowers is relatively low, only 20% and 29% respectively. Tulips and collective flowers produced in the Netherlands account for 100% of global exports, and roses also account for 24%.
3. 1 flower growers
As of 2007, there are about 3,770 flower growers in the Netherlands who can provide flowers of different varieties, quality and price. These growers unite to integrate the marketing and sales of flowers. From 2003 to 2007, the output value of flowers in the Netherlands increased by 65,438+00% every year, reaching 5.6 billion euros.
Most flower growers are members of the Dutch Flower Council and the Dutch Flower Growers Research Group. The Dutch government also actively participates in the environmental protection of flower planting to maintain the sustainable development of the industry.
3.2 suppliers
Holland is the world leader in planting and supplying flowers and seeds, and also the distribution center of world-class flower planting organizations, where various new varieties are constantly cultivated.
3.3 auction house
Plant and FloraHolland auction houses trade more than 20,000 kinds of flowers, and every day, 1, 200 to 1, 500 new categories are launched. The transaction volume of flower auction in the Netherlands is growing rapidly every year, and the corresponding auction infrastructure is also constantly being invested and built.
Flower auction house is a market where wholesalers and retailers concentrate on buying flowers, where flowers are packaged and sold in large quantities, and then repackaged to retailers or end customers. A large number of flowers are packed and transported to the auction center, repackaged automatically by machines, and then packaged into small packages for display and auction.
It is estimated that about 80% of flowers in the Netherlands are sold by auction, and the flowers sold by Dutch flower auction account for 40% of the global flower trade.
Representing the two auction houses is the Dutch Flower Auction Association. The association provides a platform for the flower industry to enjoy knowledge, supply chain cooperation, market exchange and the influence of policies and regulations.
3.4 Logistics
Flowers will be transported to their destination after they are sold. As of 2008, there are 693 flower export companies in the Netherlands, and the logistics cost accounts for 20% of the flower auction price. After the flowers arrive at the destination, they will undergo strict quality inspection to ensure product quality and environmental safety.
3.5 Research and Development
The International Plant Research Center in Vakhnin Root is a prestigious research institution in the field of flower cultivation and biological cultivation, which can provide good innovation support for the flower industry in the Netherlands.
4. Competitors
By the end of 2009, more than 10 countries exported more than $6,543.8 billion of flowers every year. Colombia, Ecuador and Kenya are three emerging flower suppliers in the Western Hemisphere. And China's ability to produce and consume flowers is increasing day by day, and it is expected to become a strong competitor in this market.
Colombia is the second largest flower producer in the world, second only to the Netherlands, and its main market is the United States. The logistics cost of flowers exported from Colombia accounts for 75% to 80% of the final flower price.
From 1998 to 2008, Ecuador's annual flower export increased by 13%, reaching US$ 566 million. The main exporting countries are the United States (72%), Russia (10%) and the Netherlands (6.7%). Like Colombia and Ecuador, the logistics cost of flowers is between 70% and 85%. This is unmatched by the logistics and transportation network that the Netherlands has been operating for almost a century.
As of 2008, 70% of Kenya's flower production enterprises are owned by Dutch growers, and the flower industry is Kenya's third largest source of foreign exchange, second only to tourism and tea industry. Kenya's flowers are transported to Europe and sold all over the world through the auction network in the Netherlands. In cooperation with the Ministry of Agriculture of the Netherlands, Vakhnin University and Kenyan Ministry of Agriculture, a student exchange program was established as early as 1994.
Although China's flowers now account for only 65,438+0% of the world's exports, they are growing rapidly, with 90% of the flowers produced in China flowing to Beijing and Shanghai. According to statistics, as early as 2007, China had the largest flower planting base in the world, covering 72,700 hectares of greenhouses and 224,600 hectares of outdoor planting area. The flower market in Kunming also cooperates with the Dutch auction house.
Future challenges
The Dutch flower market is facing the challenges of rising prices and environment. From 2006 to 2008, the price of natural gas doubled, and natural gas is an important supply for the Dutch flower industry.
In addition, more and more auction house customers only want to use part of the auction house system, rather than the whole set of services, such as logistics system services. Some wholesale retailers outside the Netherlands have also begun to contact flower growers directly outside the auction house, and more and more transactions are conducted online.
What should the Dutch flower industry do next? Do you pay more attention to the value-added services of the industry, such as logistics support and variety cultivation, or do you carry out localized production to further improve your competitiveness?
References:
Dutch Flower Cluster (1 1 month15,2013), Michael Porter, jorge ramirez Vallejo, Fred Van Ennenham, Harvard Business School.
Source: www.zhihu.com, Zhihu.