Bodie V. Pennisi1
Paul A. Thomas1
Forrest E. Stegelin2
Major urban and suburban areas of the Southeast are experiencing rapid growth in population, which causes a proliferation of residential and commercial construction. This economic and population growth is contributing to a demonstrated demand for plant materials for commercial and private markets. In addition, consumers and avid home gardeners have become more adventurous with their plant choices. They are prompting growers and landscapers to become savvy in catering to this spirit of landscape adventure. This increased demand extends both to the landscape and the interiorscape. Conversations with landscape designers and garden center retailers suggest property owners and consumers are willing to experiment with (and purchase) plant materials in new and/or different value-added presentation formats, such as combination containers, hanging baskets, plant towers, window boxes and living centerpieces with a wide diversity of plants.
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| Combination gardens can be medium to large, free-standing containers or smaller, tabletop arrangements, used as a centerpiece. |
Niche Products
The majority of the plants used for interior decoration are considered “foliage plants” because of the highly decorative value of their leaves. Most of them originated in tropical and subtropical areas of the world and are adapted to low light levels, making them a natural choice for interior environments. Florida has the largest market share in the foliage industry. Florida growers produce foliage products at lower cost compared to growers in more northern states, including Georgia. The higher production costs in these states are due to extended heating periods and higher energy costs.
For some foliage crops, especially faster growing species, however, the extra heating is not required after the late spring. This allows production at more competitive cost to the northern grower. In addition, the increased demand for novel and different materials in the landscape is opening possibilities to explore some alternative uses of foliage materials, such as new and decorative annuals, as landscape components.
In order to remain profitable, floriculture operations in Georgia have to compete successfully with Florida growers who sell to the large mass merchandisers. Selling prices of floriculture products at the box stores can be considerably lower, thus making it difficult for small and medium-size growers to compete. Most of these growers have had to develop some type of a niche market.
We are reporting recent research results on the derived demand markets for foliage plant material in selected Southeastern U.S. consumer markets located in USDA zones 7 and 8. Using market analysis, we determined which segments of the foliage market (i.e., species, varieties, forms, container sizes, etc.) are feasible opportunities to satisfy the demand at retail (such as florists, garden centers, lawn and garden supply stores, discount department stores, home improvement and hardware centers, and supermarkets.) Finally, we developed economic engineering models and enterprise budgets to evaluate the economic profitability of producing foliage for the identified market opportunities.
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| Crotons (right) and Bird of Paradise (left) planted in large street planters in Chicago make a successful summer landscape with caladium, coleus and liriope. |
Derived Demand for Foliage Plant Materials
Consumer surveys were conducted in the large urban centers in Georgia, Alabama and South Carolina (Atlanta, Augusta, Savannah, Macon, Columbus, Valdosta, Mobile, Charleston, Charlotte) on consumer awareness of foliage plants and the various attributes of foliage. Responses revealed very few push promotion and even fewer pull promotion activities by the foliage industry.
A post-purchase survey that focused on customer satisfaction with their shopping experience and their familiarity with the availability and uses of selected plant materials, especially foliage, was developed and distributed to 30 independent retail garden centers in 9 urban communities in the 3 states. The one-page survey used a Likert-scale format (i.e., 1-5 scale) to query the purchaser and was attached to the consumer’s receipt with instructions to bring the survey back during their next visit to the garden center. To encourage participation, most of the retailers provided a “gift” in exchange for the completed survey. Surveys were identical, regardless of location, although retailers were invited to add a specific question if they had an issue to address. Nearly 2,000 completed surveys (1,897) were returned to the researchers by the retailers in late spring 2003.
Analysis of the survey response
