Need Diversification?

Need Diversification?

How are you evaluating your target customers? Are you targeting big box customers or other markets? The recent growth in the big box stores has given horticulture a tremendous lift in the last ten years. The questions must be asked, “Where will the next ten years see healthy markets? Will big boxes lead the way? What other channels will be embraced by consumers?”

Here is how a report card called the U.S. stock market has graded our industry’s biggest customers: The Home Depot, Wal-Mart and Lowe’s. In all three cases, the market gives them pretty low grades over their one and three year indexes. Whether this trend continues or not begs the question, how much should we focus on three customers and how much should we focus on diversification?

Well-designed diversification reduces risk, increases margins and strengthens business. Even Wal-Mart is diversifying to attract more customers to its stores and widening its product line to get its customers to shop in more departments per visit. Apple Computer diversified into music. Disney diversified into sports.

Apple and Disney diversified successfully because they remembered why their customers liked them. Apple for its powerful artistic tools. Disney for family entertainment. Growers looking to diversify must remember to do the same. Diversify into new markets with a connection to the past that customers can believe in.

So if we are to diversify, where should we look? Here are mega trends our industry can bite into: 

Population Growth

The United States will be roughly 300 million by 2010. And based on the population growth in Nevada, Arizona, Colorado and Utah, it is highly suggested that we develop crops with the following attributes: dry weather tolerance, dry shade tolerance and high heat tolerance. Based on growth in Georgia and Florida, we should be growing for heat and humidity.

A 6.7 percent population growth in California and 9.6 percent growth in Texas are substantial given larger base population sizes. These are strong markets to diversify into.

Notably, bilingual marketing should be considered in the diversification question. Latino population demographics are fueling much of this country’s growth. Will an up-and-coming Latino friendly retailer sneak up and surprise us? Consider the recent growth in Latino TV and radio.

What about Generation Y, roughly 80 million strong now? Not since the Baby Boomers have we seen a generation with the purchasing power of Generation Y. I love how Takao Nursery in California captures marketing to Gen Y by tapping into their largest discretionary spending category: Saturday night out. Takao suggests merging home-owners and beer gardens. Singles and gardening joined with beer and lo, you’ve got volume in October. Now that’s clever diversification. 

Growth Segments For Diversification

Organics are growing at 20 percent per year, although they’re still smaller than McDonald’s as an industry. Now is the time to earn market share and let the growing market reward your prowess. Nokia and Qualcomm were market leaders in cellular technology before it went mainstream. Secretaries at Qualcomm retired as millionaires after working just seven or eight years.

Landscape. Low interest rates created a housing boom. Behind housing came landscaping. Behind landscaping came lawn and garden maintenance. What’s behind lawn and garden maintenance? We are now seeing a large demographic of people with money but no time and a new kind of green industry service: flower bed rotation. Once thought of purely for corporate centers, now homeowners are getting into the act.

Existing box stores themselves. Retail square footage in the big three is expanding yearly. Diversifying within an existing customer base is done the same way Wal-Mart is doing it today. You get the same customers to buy a broader range of products from you. There are those who are doing it with unique genetics and exclusivities. There are those who are doing it with production efficiency and growing economies of scale pulling prices down. There are those who have done it with clever marketing bundles. Right now, someone is pioneering a new paradigm for big boxes. Someone is diversifying inside the box.

New retail horticulture participants. Ikea, Neiman Marcus, Nordstrom, Crate & Barrel — these retailers are lifestyle oriented. Will they embrace plants into design and lifestyle? Maybe they need our help.

If you would like to obtain product recommendations to fit any of your diversification plans, we invite you to ask us. McGregor Plant Sales is a logistics engine sourcing thousands of varieties from around the world. Our team of experts can help with logistics, distribution, product selection and cultural information.

The Economic Research Service of the USDA publishes an annual yearbook for the floriculture market in the United States. For a PDF file of this report including market size and growth rates, visit

Leave a Reply

More From Marketing...
Heuchera 'Red Lightning' (Terra Nova Nurseries)

October 6, 2015

14 New Perennials For Containers, Pollinators, Beds And Borders

With an abundance of blooms and textures, new fuss-free perennials add interest to the garden year after year. Here are 14 perennials new for 2016 to consider for your growing operation.

Read More
Stephanie Whitehouse-Barlow, Peace Tree Farm

October 6, 2015

Generation Y’s Reluctance To Garden Linked To Fear Of Failure

The Rookie Gardener is easily spotted at a garden center by her nervous and unsure energy that’s as glaring as a scarlet letter, or by his exuberant, self-assured confidence that is only otherwise seen at a college fraternity party. They are our industry’s enigma, our Kryptonite, the treasure chest we cannot open. The Rookie Gardener’s reluctance to garden isn’t from our industry’s lack of targeted marketing or encouragement but from Millennials’ Fear of Failure (FOF). It is obvious that failure is a part of life, but we as a generation have been programmed to not expect or accept failure. Since early childhood, we were encouraged to always win, to do our absolute best at school every day, to beat the competition. “Focused on getting the grades or winning the game, these children have internalized the pressure, (which) paralyzes kids in their ability to take risks,” writes Holly Korbey in an […]

Read More
CropKing Fall Workshop Schedule 2015

October 6, 2015

CropKing’s Grower Workshops Offer Training On Growing In Controlled Environments

The next two workshops take place Oct. 9-10 in Oregon and Nov. 6-7 in South Carolina. Space is limited, so sign up quickly.

Read More
Latest Stories

October 4, 2015

ePlantSource Adds 5 New Partner Companies

ePlantSource has announced an additional five companies that have been added to its partner distribution list. Not only do the additional partners offer more supplier options to ePlantSource customers, but the website now also provides a more diverse product list with the addition of bulbs, clematis and many new varieties. New partners added for the 2015 – 2016 season: A.D.R. Bulbs Lennon Farm Greenhouses Micandy Gardens Pacific Growers Roseville Farms “We make it a priority to respond to our customers, and we have had many requests for additional options and a more diverse product line, so we are continually evaluating suppliers that work well with our non-traditional approach to the sale of live goods,” says Gary Falkenstein, President and CEO of ePlantSource. “We feel that it is good for our company, our customers and the industry as a whole to keep looking forward and seeing how we can improve and expand how […]

Read More

October 2, 2015

How To Make Your Website More Google-Friendly

During a presentation at Cultivate’15 this past July, Katie Dubow of the Garden Media Group offered several tips on how you can use search engine optimization (SEO) tactics and Google’s search features and updates to your advantage.

Read More

September 28, 2015

Filmmakers Release “Field To Vase, The Documentar…

“The Field to Vase Dinner Tour is a series of meals set on flower farms across the country. Each dinner is curated by a local chef and floral designer, highlighting the region’s produce and flowers. This is the story of Santa Cruz, California.” These opening lines introduce “Field to Vase: Santa Cruz,” a new documentary filmed, written and produced by the Los Angeles-based husband-and-wife team, Hyunsoo Moon and Haejung Kim. This past June, Haejung and Moon traveled to Santa Cruz in pursuit of a visual narrative that had captured their creative imaginations. They were enamored with the storytelling potential of the Field to Vase Dinner Tour and wanted to document their observations on film. The result of their efforts is “Field to Vase: Santa Cruz,” a documentary about the American grown flower movement and the people involved in the floral renaissance that is taking place on farms and in flower […]

Read More
Gerbera Revolution Series (Kieft Seed)

September 23, 2015

Join SAF And Other Growers To #PetalItForward And Sprea…

Next month, the Society of American Florists (SAF) will tap into the popularity of random acts of kindness with its latest public relations campaign, "Petal It Forward." Find out how you can join SAF and other growers to take part in this campaign and spread happiness with the power of flowers.

Read More
Retailers declined a coupon deal for hanging baskets because of timing

September 19, 2015

Retailer To Grower: Why Aren’t Garden Stores Letting Gr…

Have you ever sat around at a family gathering and heard someone recount a story from your childhood, except knowing your own version of the story, it’s something that casts an entirely new light on everything you think you experienced? It seems like that dynamic happens a lot between growers and retailers. Both sides know the same story, but each version is so different, it’s like two unconnected stories. This came to mind when I was talking with a regional grower, Elmer Grosser, who owns Cincinnati-based Diefenbacher Greenhouses. The operation serves about 50 customers — an even mix of local garden stores and landscapers. Grosser first came to my attention last fall, when one of his customers, Chris McKeown of Bloomin’ Garden Centre, told me I needed to call Grosser, because he was a great example of a grower who cares about retail. When Grosser and I connected, he was […]

Read More
eMailMarketing feature image

July 23, 2015

Is eMail Dead?

Email as a marketing technique may seem outdated, but when done well, it is still an effective way to share content and market your brand.

Read More

July 22, 2015

Cultivate’15: Keynote Nancy Fire Says Use Passion…

In the second keynote presentation at Cultivate’15, Nancy Fire, founder and creative director of Design Works International, discussed how the horticulture industry can capitalize on the latest design and lifestyle trends. Fire works with companies to help bring their designs to the next level, and she has expertise with textiles and surface design, market analysis and corporate rebranding. She was appointed as design director for HGTV HOME in 2011. Fire says customers today are interested in companies that show passion for what they do. That, combined with following the general direction of trends and maintaining a brand, are what will keep horticulture businesses relevant to their customers. A trend isn’t just a passing fad, Fire says, but rather, it indicates that something is developing or changing in a certain direction. Plants are important to consumers today, and fit into current trends, both inside and outside the home, Fire says. “I don’t […]

Read More
LuxFlora logo feature image

July 21, 2015

Luxflora Launches With Cultivate Speaker Event, New Web…

A new organization for women in horticulture that aims to change the way consumers think about flowers, launched at Cultivate’15 by sponsoring Ketty Maisonrouge, a marketing expert, who presented “How To Create A Luxury Brand.” Luxflora recently launched its website, as well as a page on LinkedIn, to facilitate networking among women in horticulture. The organization is working on next steps, including setting up a board of directors and officers. Updates and information on future events will be available at the Luxflora website as they are scheduled. Read about Luxflora’s mission and what it hopes to accomplish in “Luxflora Wants To Create A Lifestyle Movement.” In the session during Cultivate, Ketty Maisonrouge, owner of KM & Company, adjunct professor of luxury strategy at the Columbia University Business School and the author of “The Luxury Alchemist,” presented her ideas and expertise on luxury strategy marketing, and how it applies to horticulture. […]

Read More

July 15, 2015

New Products Featured At Cultivate’15

A multitude of new products were on display at Cultivate’15, held in Columbus, Ohio. Attendees were given a first-hand look at new plant introductions coming to market, as well as innovative hardgoods, technology and equipment. One of the new options for varieties featured at Cultivate’15 was Sporticulture, winner of the 2015 Fresh Ideas Award. Sporticulture offers access to major sports leagues’ licensed products and packing. Team logos can appear on containers and tags, allowing growers and retailers to benefit from the loyalty customers have for their favorite team. Some of the featured plant varieties included Jolt interspecific Dianthus, from PanAmerican Seed, plus six new varieties from Sakata, including ColorWorks petunias, ‘Dragon’s Breath’ Celosia, PartyTime Coleus, ‘Proud Mari’ Marigold, SunPatiens Impatiens and Vitalia Vinca. Emerald Coast Growers featured its Marsala-toned plants, as a nod to Pantone’s Color of the Year. The collection included Pennisetum messiacum ‘Red Buttons,’ Pennisetum ‘Rubrum and ‘Eaton […]

Read More

July 8, 2015

Behind The Sale: Why Dümmen Orange Bought Florexpo, And…

Dümmen Orange recently announced it has acquired the product portfolio of Florexpo Costa Rica, a leading specialist in the production of perennials, herbs and annuals. During the fall of 2015, Dümmen Orange will start up production of perennials at its upgraded Antigua Flowers Guatemala farm, formerly the Ecke II facility in Antigua, Guatemala. The Altmanns, who founded Florexpo, as well as some of the key managers in the Florexpo team, will be assuming roles in this new endeavor. “In its long history Florexpo has built a good assortment, an outstanding sales network and a professional team of employees,” Perry Wismans, managing partner at Dümmen Orange, said in a press release. “With this move, Dümmen Orange takes the next step in realizing its growth strategy – aimed at creating synergies in technology, production and sales. We realize these synergies by distributing a variety of breeding programs and cross selling these products […]

Read More
Feature image The 2015 Perennial Plant Of The Year, Geranium x cantabrigiense ‘Biokovo.’

June 27, 2015

Perennial Plant Association Wins The 2015 Excellence In…

With its emphasis on education and its Perennial Plant Of The Year program, the Perennial Plant Association boosted the popularity of perennials and helped make it the vital category it is.

Read More
baker creative

June 23, 2015

Baker Creative Wins International Award For Work With J…

Baker Creative, a local branding agency, was recently selected as a Gold Award winner for the Association of Marketing and Communication Professionals’ 2015 Hermes Creative Awards. Baker Creative won in the Advertising/Direct Mail Piece category for creating a factory opening invitation mailer for Jiffy Group . Hermes Creative Awards is an international competition for creative professionals involved in the concept, writing and design of traditional and emerging media. The Hermes Gold Award is presented to those entries judged to exceed the high standards of the industry norm. Only 22 percent of the entrants received the award. “When Jiffy needed to make a splash to draw attention to the opening of its new substrate facility in West Bridgewater, Mass., we turned to Baker Creative. The video card created by Baker Creative assisted us greatly with getting the much needed attention when inviting professional growers to the official opening,” a Jiffy Group […]

Read More

June 17, 2015

Marketing Ideas You Want To See From 2015 California Sp…

Back when California Spring Trials (CAST) were still called Pack Trials, new plants were placed on growing benches in packs so attendees could see for themselves how uniformly the plants grow. It was practical and useful. Today, CAST is primarily about introducing new plants in a way that catches your imagination and convinces you that these plants are not only disease resistant, need almost no inputs, including plant growth regulators (PGRs) and have excellent timing, but also that they are plants consumers will fall in love with. In other words, marketing. Some of the breeders go a few steps further and pull together ideas and information that growers can use for their own businesses. It can be methods to connect better with their retail customers or even to help promote our industry and its great plants directly to the public. Here are some of the standouts from CAST 2015. Pacific […]

Read More
Medal of Excellence Award

June 10, 2015

Greenhouse Grower Announces 2015 Medal Of Excellence No…

On this page, everybody’s a winner, because we’re announcing Greenhouse Grower‘s 2015 Medal Of Excellence nominees for two of our three awards in breeding, the winners of our Medal Of Excellence for Industry Achievement and Excellence In Marketing awards and the winners of our Grower Of The Year program, who are finalists for Operation Of The Year and Head Grower Of The Year. All honors will be presented during Greenhouse Grower’s prestigious Evening Of Excellence on Monday, July 13, during Cultivate’15. We hope we will see you there! Correction: Lobelia ‘Starship Deep Rose’ was bred by Kieft Seed, not Darwin Perennials, as we mistakenly printed in the June 2015 issue. Medal Of Excellence Watch Benchrunner in the coming weeks to read profiles of our Industry Achievement and Excellence In Marketing award winners, and look for these articles in our July 2015 issue. Industry Achievement Award The Kientzler Group Excellence In Marketing Perennial […]

Read More
Double Whammy Merchandise Display At CAST2015

May 28, 2015

Grow Inspiration To Grow The Horticulture Industry

We need to work together as the horticulture industry to inspire and instruct consumers with our plant knowledge and marketing expertise.

Read More

May 28, 2015 And Assist Consumers Wit…

The recently launched and websites offer growing and maintenance tips, where-to-buy information and design ideas to help consumers have success with growing and finding plants.

Read More
Four Star Greenhouse Proven Winner Plants At English Garden

May 26, 2015

Retailer To Grower: It’s Time To Offer Services To Loc…

Retailers wonder why mass merchants are the only ones to receive stocking, merchandising and plant care from growers.

Read More
New Guinea Impatiens

May 14, 2015

10 Tips To Improve Retail Shelf Life Of Bedding Plants

Good-looking plants at retail lead to stronger sales and less postharvest shrink. Try these 10 ideas for maintaining quality and keeping plants looking beautiful.

Read More