Highlights
- The supply chain industry failed to recover much after the COVID-19 pandemic.
- Due to the shortage of staff and a lack of raw materials, manufacturers could not record gains.
- COVID-19 restrictions have impacted the florists all over the world.
One of the most impacted industries during COVID-19 is the supply chain, as countries had restricted the entries of outsiders to curb the spread of the deadly virus. It is feared that this disruption in supply chain could last for another few months or even a couple of years.
During the second half of 2021, demand skyrocketed as lockdowns eased but supply networks that were interrupted because of the global health crisis are still dealing with significant issues and are struggling to recover.
How did disruption in supply chain impact florists?
The COVID-19 pandemic badly affected the flower growers who were forced to scrap their supply in 2020 and 2021 due to the poor supply chain. This is still impacting the florists as flowers are imported from different countries. Valentine’s Day is one of the biggest days for florists as they earn most of their year’s profit during the V-day week.
Due to rising supply chain issues and higher freight costs, the florists are forced to sell the flowers at higher prices. Some of them are trying to bring down the cost for customers by putting different colours and types of flowers in one bouquet.
According to one of the florists in Perth mentioned by a media company, "most roses are imported on passenger aircraft from countries like Kenya and Ecuador. Retail costs have risen by 40% over pre-COVID levels." People who want traditional flowers sent to their loved ones had to pay a premium.
Compared with pre-COVID to now, freight charges have risen by 300-400% depending on where they were coming from. Due to recent heatwaves, WA's rigorous border controls, and flooding in South Australia hampering rail freight was also more challenging. Looking into air freight options was also not easy as borders are blocked in WA and air freight options are limited, expensive, and unrealistic.
Bottom Line
Therefore, this Valentine’s Day was not so rosy for the florists. If the supply chain issues continue, this would impact the florist next season too. The supply chain issues will ultimately impact the customers who will have to bear the increased cost of the flowers.