SHANGHAI: Shanghai could be the most romantic city in China - if measured by consumption of flowers.

In fact, Shanghai's taste in flowers has flooded the market with florists, who are now struggling against the tight margins and tough competition.

The city has long been the country's biggest consumer of fresh flowers, and this year Shanghainese could end up consuming more than 700 million stems, according to the Shanghai Agricultural Commission.

That would be about a tenth of the nation's overall flower consumption, Shen Luoya, an executive from the commission, told China Daily.

A Shanghainese buys 35 to 40 stems of fresh flowers each year, compared with the national average of only six or seven.

Higher incomes and a hunger for a higher quality of life are transforming more ordinary citizens flower buyers.

Chen Weikun, a senior consultant at the Shanghai Flowers Association, told China Daily that in the past, organizations were the main buyers of flowers, primarily for business purposes. But now, the average man or woman on the street is much more likely to grab a bouquet of fresh flowers to liven up their homes.

Celebrations, holidays and even weekends have become occasions for giving fresh flowers. On Valentine's Day, red roses are everywhere.

"There is 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 are about 50 flower markets scattered about the city, offering 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 per cent of Shanghai's flower supply," he said.

The flourishing flower industry has also stimulated other businesses.

Trendy flower-arrangement 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 bridal limousines with fresh flowers as a sideline service.

Online flower shops have also been caught up in the buzz. Chen estimated that there are 20 to 30 registered online shops selling flowers, though the actual figure may 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 shop 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, told China Daily that his shop had ridden a surge two years ago, but the stiffening competition had since cut into his margins.

Still, Chen said Shanghai's flower market is 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 Shanghainese," Chen said.

(China Daily 12/21/2006 page3)