Creating new demand and driving consumer activity

「一方、若年層を含むギフト需要は底堅く推移したものの、日常消費では節約志向や価格を重視する傾向が継続いたしました。」

「However, specialty retailers that accurately captured consumers' needs for experiential consumption and tailored their sales accordingly performed steadily.」

「Although personal consumption has remained approximately 4% weaker than in the previous fiscal year, consumption trends among people under 30 have gained strength and now exceed spending by people in their 30s and 40s.」

「Although the extreme heat led consumers to hold back on purchases due to concerns about product longevity, purchases by younger consumers in their teens and 20s increased, and lifestyles incorporating flowers became more widespread.」

「While mass retailers tended to struggle with sales as consumers became more focused on saving money, specialty stores that have evolved into select shops saw younger consumers in their teens and 20s purchasing flowers habitually.」

「In the floriculture industry, consumers' preference for saving strengthened and the frequency of purchases of flowers and greenery tended to decline. At the same time, growing interest in the SDGs has led to a trend, particularly among younger generations, toward more people enjoying a lifestyle with flowers and greenery on a daily basis, indicating a change in perceptions of the value of purchasing flowers and greenery.」

「Although consumers showed greater price sensitivity as inflation continued, home-use demand established during the COVID-19 pandemic remained intact, and flowers in affordable price ranges sold well.」

「In the floriculture industry, home-use demand for arrangements, gardening, houseplants and other products enjoyed at home remained firm. Event demand recovered as opportunities to go out increased, and wedding demand surged back to pre-COVID levels. As small-scale funerals and memorial services with fewer attendees became established, the number of such events recovered to pre-COVID levels, although their value remained below pre-COVID levels.」

「In the floriculture industry, domestic production has not increased due to population aging and higher production costs, while imports have also been relatively limited due to the weaker yen, and market prices remained high even compared with pre-COVID levels. As market conditions indicate, demand remained firm, with household and office demand rising due to the COVID-19 pandemic and the SDGs. Demand for events, gifts, weddings, funerals and other ceremonies also became active as people sought to return to their daily lives, although the scale of ceremonies declined while the number of events increased.」

「In the floriculture industry, demand recovered as wedding receptions that had been suspended during the COVID-19 pandemic resumed and events increased. In addition, household demand, the foundation of flower consumption, remains solid, while internet and subscription-based sales channels have opened up new demand among younger people. Overall demand has increased from pre-COVID levels.」

「Demand for houseplants and cut branches has expanded as people seek to make offices and homes more comfortable with greenery, while demand for home use, in which people decorate their living spaces with flowers and greenery, has grown steadily across all age groups. Gift demand has also increased beyond Mother's Day, as people have been unable to meet directly and weddings, funerals and other ceremonies have been held privately without the usual gatherings.」

「From October onward, commercial demand for weddings, funerals and other ceremonies, which had stagnated, also recovered, while individual demand, which had increased during the prolonged COVID-19 pandemic, remained firm.」

「In the floriculture industry, individual demand remained firm as prolonged stay-at-home conditions during the COVID-19 pandemic heightened interest in living with plants nearby, while growing awareness of environmental issues focused attention on the importance and benefits of greenery.」

「In the floriculture industry, demand for weddings, funerals and other ceremonies remained sluggish due to repeated declarations of a state of emergency and the issuance of priority preventive measures, although signs of recovery emerged. Individual demand was strong, while the industry association's "Okuléte gommen" campaign proved effective, particularly increasing the number of people buying flowers as gifts. Purchasing flowers through subscriptions has also become established. Consumer behavior is shifting toward experience-based consumption, particularly among younger people, and household and individual demand are expected to remain firm.」

「In the floriculture industry, commercial demand showed signs of recovery as wedding receptions and events gradually resumed, but their scale continued to shrink and conditions remained challenging. Meanwhile, as people increasingly refrained from going out and spent more time at home, household demand was rising. In particular, because many people spent the year-end and New Year holidays at home, household demand was stronger than usual.」

「Going forward, to meet not only commercial demand but also household demand, which is expanding as part of the new normal, we will work with producers to review our product mix and reduce distribution costs.」

「Meanwhile, continued calls to refrain from going out increased interest in flowers and greenery at home and boosted demand. The spread of contactless e-commerce in fresh-flower retail also provided a tailwind.」

「Although this did not appear in economic results, we strengthened the foundation of the business by increasing opportunities to collaborate with production regions, flower-shop chains, bouquet manufacturers and mass retailers, thereby deepening these relationships.」

「We will establish a flower distribution system offering flowers that preserve and develop Japan's flower culture, as well as flowers meeting consumer needs, including those under the so-called "Smart Flower standard," which allows for shorter stems.」

「Even as the challenging operating environment continues, sales of houseplants, cut branches and flowering plants have grown as environmental awareness has increased, particularly among younger generations, creating new demand in the new Reiwa era.」

「We believe this reflects the creation of new demand among people in their 20s to 40s who purchase flowers and greenery for everyday use, and the success of distributing products suited to diversifying consumer preferences.」

「Although the floriculture industry continues to face a challenging environment, our group will preserve the tradition of flower culture while responding to changing consumer lifestyles. We will address demand by use and business format through specialty stores proposing new ways of living with flowers, supermarkets and home-improvement stores offering flowers suited to different living situations at affordable prices, and online flower shops that reduce shopping time, all from the consumer's perspective.」

「In the gift sector, we will continue to focus on marketing and strive to distribute products that consumers want when demand is strongest.」

「We will also undertake initiatives to create new demand and drive consumer activity.」

「We will also undertake initiatives to create new demand and drive consumer activity.」

「Although individual consumption was weakening, experience-based consumption became increasingly active. Under these economic conditions, our group focused on promoting flowers essential to occasions, including Halloween, ikebana exhibitions centered on Culture Day, 22 November, Good Couple Day, Christmas and New Year celebrations, as well as flowers for weddings, funerals and other ceremonies. To establish household consumption as a habit, we promoted Weekend Flower, which encourages households to display flowers regularly, and carried out sales promotions together with fresh-flower retailers.」

「Under these economic conditions, our group strengthened supplies to wholesale markets in regional cities that were unable to maintain adequate product assortments due to poor weather, while promoting Flower Biz, an initiative encouraging companies to decorate offices with greenery and flowers, and Weekend Flower, an initiative encouraging individuals to make a habit of displaying flowers at home on weekends.」

「As measures to create new demand, we support and will promote the initiatives Flower Biz, recommended by the industry association, which encourages offices to display flowers on Mondays to support employees' wellbeing and stimulate corporate demand, and Weekend Flower, which encourages households to display flowers on weekends and enjoy time with flowers as a family, thereby stimulating individual consumption.」

「We will also undertake initiatives to create new demand and drive consumer activity.」