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Shanghai could be the most romantic city in China - if measured by the number of flowers purchased.

In fact Shanghai's insatiable appetite for blooms has resulted in the number of florists in the city growing rapidly. But they're now struggling with tight margins and tough competition.

The city has long been the country's biggest consumer of fresh flowers and this year Shanghai residents could end up buying more than 700 million stems, according to the Shanghai Agricultural Commission. That's about a tenth of all the flowers bought in China, said Shen Luoya, a commission executive. 

A Shanghai resident buys 35-40 stems of fresh flowers each year compared to the national average of only six or seven. Higher incomes and a hunger for a better quality of life are transforming ordinary citizens into ardent flower buyers.

Chen Weikun, a senior consultant at the Shanghai Flower Association, observed that previously organizations were the main buyers and this was primarily for business purposes. But now the average person on the street was much more likely to grab a bouquet of fresh flowers to brighten up their homes.

Celebrations, holidays and even weekends have become occasions for giving fresh flowers. And of course on Valentine's Day bouquets of red roses are everywhere. "There's a large demand for fresh flowers of good quality and diversity," Chen said. "People want to reflect their taste for romance and good taste."

The surging demand has given rise to a thriving market for flowers in Shanghai. Chen said there were around 50 flower markets scattered about the city. They were selling flowers grown not only in Shanghai but also in cities like Kunming and Guangzhou and south China's Hainan Province. "Indigenous flowers account for only 40 percent of Shanghai's flower supply," he said.

The flourishing flower industry has also stimulated other businesses.

Trendy flower-arranging shops are doing a roaring trade. Post offices and courier companies are offering fresh flower delivery services for birthdays and other special occasions. Bridal salons are decorating wedding limousines with fresh flowers as a sideline service.

Online flower shops have also been caught up in the buzz. Chen estimated there are 20 to 30 registered online shops selling flowers though the actual figure could be much bigger.

The market is so hot that the unfettered competition among these flower shops is squeezing profit margins. Chen said a small-scale flower shop could expect to make 1,000 to 1,500 yuan (US$128-US$192) a month while a bigger concern would see only 2,000 to 3,000 yuan (US$256-US$384) a month.

Pan Xian, a manager of the online Qianqian Flower and Gift Shop, said his shop had ridden a wave two years ago but stiffening competition had since cut into his margins.

However, Chen said Shanghai's flower market was still at its infancy. "A successful flower dealer must be able to provide high-quality flowers and keep bringing new species to cater to the needs of Shanghai residents," Chen observed. 

(China Daily December 21, 2006)