The heart of the global flower industry
The Netherlands, often known as the "Flower Capital of the World", is home to Royal FloraHolland (RFH), a remarkable institution that plays a crucial role in the global flower industry. Our visit to this auction house offered a unique lens into the vibrant global horticulture industry.
RFH's dominant global position: dominant position in the flower supply chain
RFH's dominant position in the flower supply chain is intriguing. As a marketplace, it connects growers with buyers, boasting a market share of 90% in the Netherlands and about 60% globally, which makes it the largest flower auction in the world. The diversity of its offerings, with imports from countries like Ethiopia, Kenya, Israel, Ecuador, and Colombia, mirrors the international scope of the flower market.
The buying process: from growers to buyers
In the warehouse, every flower cart is assigned to a designated buyer. Warehouse employees, equipped with headsets, play a crucial role in the seamless transfer of flowers and plants from growers to buyers. They receive precise, automated instructions via their headsets, detailing the specific types and quantities of flowers and plants each buyer requires. Remarkably, RFH has streamlined this process to such an extent that they can deliver flowers purchased by buyers within an hour after the sale is finalized.
Read more at Harvard Business School.