Flower salon owners: unfair competition is frustrating

Florist Inesa Borkovska Eltai, owner of the Inesa Flowers florist, said the store was ready for the introduction of the second quarantine, so a large number of flowers had been discarded, and to continue developing its activities, it was reoriented towards the online sale.

“Because we faced an unplanned situation during the first quarantine, we had to throw away the flowers and sell them cheaper. And we were ready for the second quarantine, so we lost the flowers: we had a plan B, an online store, and we reoriented everything towards her. Buyers are also apparently used to this situation, and florists who stay working remotely deliver orders very safely and properly. No need to go to the salon, “he said.

“It just came to our attention then. Our online store appeared during the first quarantine, and it is not a very long period of time, but everything developed quickly enough,” added I. Borkovska.

The businesswoman also said that the logistics of flower delivery and other means during the second quarantine were not disturbed in any way, but hinted that there was a slight increase in the price of flowers.

“The supply chain had stalled a bit during the first quarantine, so we were afraid to accept some orders. Now nothing has changed in the market. It is not that we do not receive any orders or that somehow the prices of the flowers go up a lot, even if they have become a bit more expensive. The logistics are going very well ”, he assured.

Evaluating the government’s support for businesses affected by the pandemic, I. Barkovska stated that while they are sufficient to pay taxes, there is a lack of effective means of covering rent.

“The support is enough to pay taxes. Still, a significant loss – rental of premises. (…) I cannot say that the support is very good, but overall I am glad it is there,” he said.

Speaking about the rotation of the flower room, the owner said that the introduction of the second quarantine could have reduced it by about 30 percent. I. Barkovska added that the search for alternatives and the development of activities helped to avoid further losses.

“I would say at least 30 percent. Demand has certainly dropped. (…) If we hadn’t tried to refocus on other areas, like business gifts, what we’ve done, (…) we would have had up to 50%, less orders and turnover ”, he assured.

Meanwhile, Victor Bobin, director of the Florisima flower salon, said losses after the introduction of the second quarantine were inevitable, but not as great as during the first quarantine.

“It just came to our notice then. Of course, we were a little prepared for that after the first quarantine, because the first quarantine ended unexpectedly. So the loss of emissions was a nightmare. Even before the announcement of the second quarantine, we were living with The idea that one day it would be announced, and we were preparing, we did not order large quantities, so the losses were not that great, but they were inevitable.

Sales discounts didn’t help either. As the quantity of flowers in our company is large, because we have 6 stores in Vilnius, we cannot have a small quantity of flowers just for that ”, he assured.

In evaluating the benefits of online commerce, Bobin said it is not a substitute for physical sales.

“It is not that demanding and attractive to customers. A man buys with his eyes. (…) We have had an online store for many years, but it is not the case that after the quarantine closes the live stores, everyone can buy online, ”Eltai said.

Mr. Bobin pointed out that the supply chains for flowers for the hall had not been affected by the terrible pandemic, but stressed that the most pressing problem he currently faces is the concentration of trade in the main retail chains.

“The supply is not interrupted, there were no major problems with the suppliers in the spring. Rather, we are faced with a store sales and operation problem. The government concentrated all trade in the big commercial sharks and banned the small ones from working. “… the government’s position on this issue is strange,” he said.

In addition, according to the director of Florisima, state support is very low compared to the first quarantine.

“First of all, we will receive downtime allowances, because the employees who place them are, of course, very supportive. And the second part, which we are waiting and looking forward to, during the second quarantine, is very scarce compared to the support we received in the spring. Mainly for compensation for the rental of the premises. In the spring, it helped us a lot and allowed us to survive that period quite well. The subsidy is ridiculously small. “… Perhaps this will allow us to survive if the quarantine does not last more than a month,” he said.

Finally, Bobin said that he expects an increase in sales after the launch of the quarantine, as it happened after the first quarantine.

“It just came to our notice then. We are still a little supported by maybe just Lithuanian funeral traditions, for which a lot of flowers are bought. We expect higher sales if the quarantine is released and we are allowed to work. But if the quarantine is extended, online trading will not help, (…) we will not reach the level that we would reach with live trading, ”he told Eltai.

Meanwhile, one of the founders of the “Nijolės gėlių namai” flower hall Nijolė Beliakienė stated that after the introduction of the second quarantine, the hall managed to avoid losses and did not need to throw a large number of flowers.

“Because we shop online, we didn’t really have to do that, we calculated the quantity of fresh flowers and reduced their quantity. I think we won’t suffer much. We put a lot of effort into ideas, we invest.” … But it takes a lot. more work to do, each order takes longer to process, “he said.

N. Beliakienė also emphasized that clients have adapted to the existing quarantine conditions and continue to use the salon services.

“Buyers have adapted a lot, they have a great understanding of the situation. We meet very strict requirements (…) and we really fulfill all the wishes of our clients, so that they continue to use our services. It is sad that there is more mourning for the commemoration during the quarantine, “he said.

However, N. Beliakienė considers it incorrect that large retail chains can trade with what is prohibited for small entrepreneurs. He added that while financial support is also very useful, fair competition is no less necessary.

“It is unfair to sell flowers in supermarkets and small businesses have to close the door. Of course, we hope that the time will come when it will not be like that and trade will be fair, when small businesses do not suffer, “he told Eltai.

“I would like a sharp mind and honesty on the part of the Government. Money is very necessary, but fair competition is extremely important to us. (…) It is not possible that one is commercialized and the other must be closed,” added N Beliakienė.