LivRio July Issue 2018

Evolution of online businesses

JULY

20I8 ISSUE No.17

in this issue: I M P O RTA N C E O F E - C O M M E R C E - F LO W E R S O N D E M A N D O N L I N E F LOW E R B U S I N E S S - T H E VA LU E O F P R E - B O O K I N G - B R E E D E R ’ S CO R N E R

LIVRIO

THE E-MAGAZINE OF RIO ROSES Issue No.17 JULY 2018 PEOPLE OF RIO BLOOM OF THE MONTH IMPORTAN CE OF E-COMMERCE FLOWERS ON DEMAND ONLINE FLOWER BUSINESS AUGUST WEDDIN G COLLECTION THE VALUE OF PRE-BOOKIN G FLOWERS OF C HARLOTTE BREEDER’S CORNER C A RE & HANDLIN G COMMUNIT Y OUTREAC H FOR INQUIRIES marketing@equiflor.com

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PEOPLE of RIO

RIO FAMILY TALKS

ONLINE VS FLOWER SHOP DO YOU THINK IT IS MORE CONVENIENT TO SHOP ONLINE FOR FLOWERS OR AT A FLOWER SHOP?

EMILIO MARTINEZ

> IT I prefer shopping online. Shopping online saves time and is more convenient.

< FERNANDO MARTINEZ MARKETING I prefer shopping at a store vs online. I like to physically see what I am purchasing, even though online shopping is definitely more convenient.

<EL A MORA HUMAN RESOURCES I prefer to go into a flower shop so I can see, feel, and smell the products. I love the whole experience of picking out my own selection.

RICARDO SANGIO > SALES I prefer flower shops, because I want to see what I’m buying and make sure the final product will be exactly what I want. I feel like that can be a risk when ordering online.

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^ S I LV I A LY N C H SALES Location is very important factor for consumers when it comes to purchasing a product. If a flower shop is located close to a customer, it would be more convenient to purchase there. If the shop’s location is far away, then I believe it would be more convenient to shop online.

BLOOM of the MONTH handpicked, fresh from our farm

Rio Ranunculus

Rio Ranunculus consistently provide the thickest and longest stems in the industry, and are offered in Fancy, Select and Super Select grades. We grow these beautiful flowers year-round on our Ecuador farm, and carry a huge range of colors suitable for any occasion.

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THE IMPORTANCE OF E-COMMERCE TO YOUR FLORAL BUSINESS

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n today’s digital age, e-commerce is not just a good idea, it’s a vital component to increasing your business. At Rio Roses, for example, our Equiconnect online purchasing system enables our customers to purchase Rio products when it’s convenient for them, 24 hours a day, 7 days a week.

While it may be a bit daunting to think about launching a website if you haven’t done so, it’s a long-term investment that can truly take your sales to a whole new level.

Face-to-face customer interactions and building relationships will always be a cornerstone of any floral business, however there are many advantages to giving your customers access to an online website:

1. You can sell more, by offering everything you sell online. This lets your customers browse through different categories of items, such as wedding arrangements, party flowers, add-ons, and more. Who knows? They might come across something they would never have considered purchasing before!

2. You are available to your customers 24/7 when you have an e-commerce site! Customers can order at their convenience, in their robe drinking their morning coffee or in the evening when they have some downtime to relax and surf, surf, surf your site. You can see a dramatic increase in sales this way.

3. By freeing up your sales associates who may have been answering questions that your site can answer, they are now able to focus on building relationships, researching floral design trends, and looking for new accounts! This is vital, because you can’t solely rely on your website to bring in customers; your salesperson is your best ambassador, and the one who can make your customers feel special and cared for.

4. Your digital marketing possibilities expand greatly: Send out an email with a direct link to a promotional item on your website, or post on your social media feeds at night and let your followers be the first to place an order before the start of business the next day. The possibilities are infinite!

5. By reviewing what sells best online, you can then target customers more effectively. For example, say you begin to see a certain flower or arrangement selling way above anything else, or a specific novelty item selling to a certain customer base. Now you can create a marketing campaign around these items, to a customer you KNOW will buy them!

Think of your website as another part of your sales team, an investment in the future that can reap huge rewards!

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FLOWERS ON DEMAND: On-demand flower companies are thriving these days, and itâ&#x20AC;&#x2122;s no wonder: online retail is capturing a broader and broader section of the market in almost every category. Customers are looking for fresh, on-demand ways to get their flowers and not just for special occasions like birthdays or anniversaries; with the ease and comfort of purchasing online, customers are now able to buy flowers for any reason at all, and know they can be delivered in as little as a few hours.

In the past, consumers had only two options for buying flowers: the local florist shop or the grocery store. Delivery business started to blossom with phone ordering services like 1-800-Flowers, Telaflora, and FTD, but it exploded with the advent of the internet! Now, a whole new crop of on-demand florists has sprouted up, such as The Bouqs, Urban Stems and KaBloom among many others. Even Amazon is in the flower delivery business!

While the floral industry has never been more vibrant, these on-demand services are creating serious competition for brick-and-mortar florists. IBISWorld, a leading industry research firm, projects that by the year 2022, there will be steady growth of online flower sales and a steady decline of brick-and-mortar florists. In 2017, they projected revenue for brick-and-mortar flower shops at $4.9 billion and online flower shop sales at $3.1 billion, with online sales showing no signs of slowing down.

With the fast delivery times that an online florist can provide, itâ&#x20AC;&#x2122;s easy to understand why these on-demand brands are so appealing. However, speed is just one factor, and each type of online florist has a different business model.

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A FLOURISHING BUSINESS! Networks like 1-800-Flowers and FTD offer a huge assortment of bouquets online, which they route from a florist near the customer and take a cut of the profit from the local florist.

Additionally, local florists have to pay a monthly fee to be considered as a fulfillment location.

Newer on-demand florists like The Bouqs and UrbanStems boast an entirely different model, offering cheaper arrangements by cutting out the middleman entirely and sourcing their flowers directly from farms. They may offer fewer arrangement options, but they are able to determine what their customers will respond to and let the farmers know ahead of time what they will need for each collection. This vertically integrated supply chain means that customers can often get their flowers delivered the same day, for a lower price than a traditional florist delivery network.

While

the farm-to-warehouse-to-customer

model

eliminates fees for local florists and effectively removes them from the equation, there are still many ways local florists play an important role. Events, for example, are key income-producers for brickand-mortar

florists.

Additionally,

florists are best positioned to fulfill recurring corporate orders, so the office and restaurant market is still a vibrant one.

With so many options and a continued demand, the online floral market will continue to bloom for many years to come.

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HOW TO S TART A SUCCESSFUL ONLINE FLOWER BUSINESS There is no end of opportunity to grow your flower business online, but the question remains: How do you get started? There are a few key elements to create a great online presence for your flower business.

Supply chain and economics The start of an online business makes it even more important to ensure you have a good working relationship with everyone on your supply chain. It’s extremely important to know what your wholesalers can and can’t deliver in a timely manner, and for what cost, as this will determine what you offer on your website.

A strong, compelling logo If you don’t already have a clean, eye-catching, well-designed logo that is unique to your floral business, the time to get one is yesterday! Your logo creates brand recognition that sets you apart from your competitors, and goes a long way in assuring success for your online flower boutique.

An easy-to-navigate website It’s important that your website is attractive and user-friendly. It’s also important that you optimize your web pages to increase your visibility in the search engine results; optimizing your web page helps to generate increased traffic to your online shop. Your website also needs to be easily accessible from both desktop computer screens and mobile devices, so that your users have a seamless ordering experience. Once your site is up and running, advertise your online business on Twitter, Facebook, Instagram and other popular social media channels.

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Market research

Once you have established your website, ensure that you are advertising to the correct targeted demographics. Do your market research to determine who will be most likely to purchase online from your shop. A good starting point is to get a list of wedding planners, event planners, funeral homes, local businesses and hotels, and inform them about your online flower shop.

Delivery system

Before you launch your online business, you need to have a well-coordinated and dedicated courier or delivery system in place. Quality, on-time delivery is essential: Your customer may be able to order easily, but if the flowers arenâ&#x20AC;&#x2122;t delivered in the expected time and in high-quality condition, you wonâ&#x20AC;&#x2122;t have a repeat customer!

Coordinating with other service providers

With your website up and running, you may also want to add gifts to your bouquets. Coordinate with the suppliers of these items to provide timely service to your customers; these added services may attract even more customers to your flower business!

With these elements in place, added to your own creativity in arranging and presenting your flowers, you will be well on your way to a successful online flower business!

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RIOâ&#x20AC;&#x2122;S 2018

AUGUST WEDDING COLLECTION Hand-curated by our Floral Designer

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Muted peaches, corals and caramel colors combine beautifully with whites and creams to create a sophisticated

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palette that’s perfect for both traditional and casual weddings. As always, this collection celebrates flowers from a variety of blooms.

RIO’S 2018 AUGUST WEDDING COLLECTION 1.

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Rio Kahala Rio White Disbud Button Rio Antique Caramel Carnation Rio Peach Statice Baby Rio Snowflake Spray Rose Rio White Mayra Rio White Ranunculus Rio Whistler LA Hybrid Lily

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T H E VA LU E O F PRE-BOOKING How booking your floral orders in advance through programs like Rio Bite Size can save you time and money In these hectic times, anything that can give you an advantage when ordering your flowers from suppliers is a bonus. Pre-booking programs, like our Rio Bite Size program, enable you to pre-book farm-direct orders for the best prices.

Here are some of the advantages to pre-booking:

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Sa ve Money and Increase Margins

With the Rio Bite Size program, you receive advance pricing on some of the next month’s products so you can pre-sell directly to your customers. Bite Size highlights products that are in demand each season, or special prices for slower months. These pre-booking savings can be kept in-house to increase margins or offset other expenses, or passed on to customers as an incentive.

S a v e Va l u a b l e T i m e

At all levels of the distribution chain, anything that can save time is a huge plus. With so many of us wearing multiple hats, both buying and selling in many cases, it requires more planning time; by ordering ahead of time in pre-book periods, you then have time to plan how to market and sell the flowers before they arrive.

For example, with Rio Bite Size, in the first week of November you would receive a list of our specially-priced products for December, giving you almost three weeks to make plenty of pre-sales. To save you even more time, our marketing team will also create brand sales sheets for your customers, using your logo and company information.

Manag e Inventor y Bet t er

Often customers find it hard to get popular items in the stores, which is one of the original reasons for prebooking. By pre-booking through Rio Bite Size, you can better determine how much to buy prior to the first release, and also get a better idea of what to keep in inventory after the initial release.

Add to your Opt ions

Even the largest suppliers can only carry so much inventory due to budget constraints. Moreover, floral trends are constantly changing and customers have their own personal tastes, which may not always align with what you have on hand. By pre-booking, you can increase the number of items you can offer to customers without having to risk inventory dollars. In alignment with this, the Rio Bite Size program includes different combinations each month based on flower trends and availability.

Help Increase Sales

You may have a distinct advantage over the competition by pre-booking, as you remove your customer’s budget early. Additionally, once your Rio Bite Size order is ready to ship, you have another reason to contact your customers for possible additions, saving even more money on freight and processing charges.

Im prove your Cash Flow

As your customer has already committed to purchasing from you when placing the order, they will usually complete the transaction shortly after the product’s release, which assists with your overall cash flow.

Ke e p yo u r Te a m M o t i va t e d

As pre-book orders come in, it can generate a buzz among your salespeople. This excitement is contagious and can motivate other salespeople, thereby increasing your overall sales and profits.

With so many advantages, it’s easy to see why pre-booking programs like Rio Bite Size are a g r e a t o p p o r t u n i t y f o r a n y f l o r a l w h o l e s a l e r t o s a v e t i m e a n d m o n e y. A s o n e w h o l e s a l e r p u t i t : “ I f y o u d o n’ t t r y t h i s y o u a r e m i s s i n g s o m e v e r y c o n s i s t e n t b u s i n e s s t h a t a l s o g u a r a n t e e s you an extra share of the pie on delivery days.”

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This month, LivRio is proud to spotlight Flowers of Charlotte, based in North Carolina.

What began in 2005 as a traditional florist fulfilling wire service orders for a 1-800–Flowers franchise has expanded into a multifaceted floral business specializing in weddings and events, as well as a flourishing online business.

What sets Flowers of Charlotte apart is their business model as a flower market. “Everyone wanted to come into our coolers, but for safety reasons we could not allow that,” said Shelly Hagan, Flowers of Charlotte’s owner. “Listening to our customers over the years, we finally decided to let them in the cooler to choose their own flowers.

That’s when we transitioned into a flower market.”

This transformation paved the way for Flowers of Charlotte’s highest period of growth. With floral designers working behind the scenes and customers picking their own product directly from the coolers, it created a DIY experience for the customer. This made the shop stand out from traditional florists and become extremely popular in this “DIY-everything” era.

Shelly Hagan Owner

It took a full two years to make the transformation from traditional florist to flower market, but it has proved fruitful, with two current locations and a third planned to open in the near future.

“DIY brides are one of our biggest customers,” said Ms. Hagan. “We also do a lot of business with nonprofits and churches, and of course we have a lot of walk-in customers.” They have also developed a great relationship with the local university, which sends students over for products and supplies, and they donate products to Dress for Success and the Charlotte Rescue Mission every year.

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Flowers of Charlotte has thousands of varieties, with their most popular being roses, hydrangeas, peonies and greenery. Not only do they offer plants and flowers, they also offer gift bags, gift baskets, and gourmet baskets. This one-stop-shopping gives customers more variety and is essential to repeat customers. “We are very customer-service oriented,” said Ms. Hagan. “We focus on highquality products and make sure the images we show on our website look exactly like what we have in our store.”

Another element that gives Flowers of Charlotte an edge over their competition is their DIY Floral Design Workshop Series. Workshops take place in their Charlotte Flower Market retail space, taught by their Master Floral Designer. By the end of the class each attendee has a beautiful arrangement to take home. “By offering these classes we can also offer customer discounts,” said Ms. Hagan.

“For example, if you come to a class and you bring a friend, you can receive a discount on your next class. Even during events and shows you can receive discounts for product purchases.”

The relationship between Flowers of Charlotte and Rio Roses has been a great partnership: “We love the quality of the products and the open lines of communication between both companies” said Ms. Hagan.

What does the future hold for Flowers of Charlotte?

Continued growth, certainly, but more than that, a true community florist offering a variety of products and experiences to Charlotte residents. “We want customers to come into our stores on a regular basis, not just for occasions,” said Ms. Hagan. “We want Flowers of Charlotte to be known as the go-to store for flowers.”

For more information you can visit flowers of Charlotte at www.flowersofcharlotte.com R I O R O S E S . C O M 17

BREEDER’S CORNER

Rio Roses from Equiflor is excited to introduce our seventh breeder, DeRuiter.

HISTORY De Ruiter was founded a century ago in the Netherlands, one of the first rose breeders. Originally a family business, De Ruiter has grown into an organization of international renown in the breeding and propagation of several varieties of roses, working continuously on the improvement of the rose as a product. Additionally, De Ruiter played a pioneering role in the development of modern pot rose cultivation.

With the aim of bringing added value to the market, De Ruiter Innovations has set up partnerships in the main flowerproducing countries (Colombia, Ecuador, Kenya, China) and has a presence in 20 countries across the world. The differences in altitude, micro-climate and cultivation technology are a determining factor in the many regions where De Ruiter Innovations has set up its showrooms and test greenhouses.

In addition to cut roses, De Ruiter has also developed breeding programs for hip roses, field-cut roses, pot roses, patio roses, garden roses, as well as cut and pot Hypericum.

BREEDING Breeding takes place at De Ruiter’s headquarters in the Netherlands, using modern greenhouses with advanced systems to control and regulate climate conditions.

De Ruiter remains attentive to the market trends and rose producers’ requirements when developing their breeding, in order to create varieties with higher productivity, disease-resistance and a greater vase life among other aspects; they select the best varieties for each producing country.

The extensive experience at De Ruiter helps them to create distinct varieties for different purposes at an early stage in the process.

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CUPIDO:

OPALA:

- Color : Red - Flower Stem (cm) : 50-80 - Flower Size (bud height) : 5.5 - 6.0 cm - Vase Life: 12-14 days after transport - Production : 1.2-1.4 F/P/M - Number of Petals : 35-40

- Color : Medium Pink - Flower Stem (cm) : 50-70 - Flower Size (bud height) : 5.5 - 6.0 cm - Vase Life: 12-14 days after transport - Production : 1.2-1.4 F/P/M - Number of Petals : 35-40

FRUTTETO:

To learn more about DeRuiter, visit www.deruiter.com

We would like to hear your opinion on the selected varieties provided by DeRuiter. Please send us an email to marketing@equiflor.com and share your feedback!

MANDALA:

- Color : Novelty Pink - Flower Stem (cm) : 50-70 - Flower Size (bud height) : 5.5 - 6.0 cm - Vase Life: 14-16 days after transport - Production : 1.2-1.4 F/P/M - Number of Petals : 35-40

- Color : Novelty Pink - Flower Stem (cm) : 50-70 - Flower Size (bud height) : 6.0 - 6.5 cm - Vase Life: 10-12 days after transport - Production : 1.1-1.3 F/P/M - Number of Petals : 50-55

SUPER SUN:

SNOW BLISS:

- Color : Yellow - Flower Stem (cm) : 50-70 - Flower Size (bud height) : 5.5 - 6.0 cm - Vase Life: 12-14 days after transport - Production : 1.2-1.4 F/P/M - Number of Petals : 45-50

- Color : White - Flower Stem (cm) : 50-70 - Flower Size (bud height) : 6.0 - 6.5 cm - Vase Life: 10-12 days after transport - Production : 1.4-1.6 F/P/M - Number of Petals : 35-40 RIOROSES.COM 19

RANUNCULUS: fresh & fun Care & Handling

The name Ranunculus is Late Latin for "little frog", the diminutive of rana.

This probably refers to many species being found near water, like frogs. Ranunculus is a genus of about 500 species of flowering plants in the family Ranunculaceae. Members of the genus include the buttercups, spearworts and water crowfoots. Usually available from September to May, these breathtaking, chic blooms are not only affordable, but may surprise you with how long they last! Receiving Ranunculus as buds, or with a tight cut point, you can expect anywhere from 5-7 days vase life. These multi-layered petals are an absolute feast for the senses as they open. When the delicate, paper thin layers unfurl, they reveal gorgeous tone on tone colors, giving a completely unique look to every bloom. Artfully arranged in clusters as stand-alone arrangements, or in bouquets mixed with other flowers, Ranunculus give a superb look to any design.

Watch your Ranunculus bloom into their full glory by following a few easy steps: Avoid getting water on blooms! Ranunculus are prone to botrytis when blooms are over saturated.

Ranunculus are ethylene sensitive; insist that your supplier treats with an ethylene inhibitor such as EthylBloc™ to protect against exposure. Do not store or display near ripening produce or products that produce ethylene.

Start with a clean bucket, sanitized with D.C.D.® cleaner.

Fill buckets with cool water mixed with flower food solution according to manufacturer’s recommendation. Do not put flowers directly into metal/galvanized buckets. Use clean, good quality water that has not been treated with a water softener as the salt levels can be damaging to flowers.

Cut or don’t cut stems if using Floralife® Express Technology and be sure to Quick Dip. Re-cut stems approximately 1” using clean, sanitized clippers or knife. Remove any foliage that fall below the solution level.

Most common defects: - Flowers with limp stems and/or petals - Brown stem tips - Brown centers - Yellow leaves / Burned edges on leaves

Place flowers in prepared container.

Allow a minimum of 2 hours to hydrate placing buckets in an area with good airflow.

To learn more about best practices from the experts in flower care, visit www.floralife.com

“Don’t try to be perfect!

Just be an excellent example of being human.”

- Tony Robbins

RIO PINK RANUNCULUS

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COMMUNIT Y OUTREACH

RIO ROSES CONTRIBUTES TO THE WHEELCHAIR DIVISION OF THE AJC PEACHTREE ROAD RACE

Every July 4, Shepherd Center sponsors the Wheelchair Division of the AJC Peachtree Road Race in Atlanta. For the past 6 years, Rio has worked with Halls Atlanta Wholesaler to support this annual 10K event featuring more than 60 world-class athletes from around the globe, as well as wheelchair-bound participants; 30 racers in wheelchairs participated in this yearâ&#x20AC;&#x2122;s race.

Shepherd Center staff members, patients and their families always line the race route along Peachtree Road in front of the hospital to cheer on the wheelchair and foot racers. For this yearâ&#x20AC;&#x2122;s event, Rio donated Corazon Roses, Delphinium, and White Button Cremon Mums to decorate all the tables with beautiful 4th of July centerpieces. Halls donated greenery, vases, oasis foam and extra flowers for the end tables.

This is just one of the many ways Rio works to give back to our communities and bring a smile to the people who need it most.

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ANNIVERSARIES + BIRTHDAYS

“Thank you for your years of dedication to our team.

You are terrifically tireless, exceptionally excellent, and abundantly appreciated.”

“Happy Birthday. May all your B-day wishes come true on your special day.”

Maya Sagastume

Rene Ojeda

7/26/2016 2 yrs

07/17 Sales Department

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T H A N K S

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