Super Flowers by Rogelio Leon

Author:Rogelio Leon [Leon, Rogelio]
Language: eng
Format: epub
Publisher: First Edition in English
Published: 2018-09-15T05:00:00+00:00

The evolution of Dounan's wholesale flower market

Few scenarios, such as the Dounan market, reflect the agricultural evolution of a city over time. Thirty years ago, where today stands a large commercial cluster of cut flowers that awakens the amazement of the world, a humble market of vegetables and cereals was erected in an informal trading plaza that generated low profit margins and, with it, a status quo of poverty for its farmers.

The flower trade was born in the mid-80s with street sales in small Sunday fairs that eventually became permanent. In 1999, under the administration of the state flower company Kunming, the Government completed the construction of the Dounan market in an area of 6 hectares, located in the district of Chenggong.

With this formalization, sales skyrocketed and, with it, a rising reputation was created. In this journey, the Government recognizes the urgent need to develop greater technical and commercial capacities to professionalize the sector and take it to levels of international competition.

Traditionally, the Chinese citizen is a lover of flowers and nature. However, the sophistication of the product and its transformation as a tradable good of high commercial value was initially focused on the more cosmopolitan and higher income provinces (east coast). Thanks to an intense marketing strategy, developed in the last fifteen years, the demand area has managed to expand, although it is still concentrated in the east of the country. Although Yunnan is the largest producer of cut flowers in China, there are also provinces, such as Canton, Zhejiang and Jiangsu, where an interesting local production supplies part of its own domestic demand.

In 2002, the prestigious Aalsmeer Flower Auction (VBA) of the Netherlands signed an agreement with the Government of Yunnan to build its own auction center, which would be known as the Kunming International Flowers Auction (KIFA), adding several hectares to the already established Dounan market.

Currently, KIFA has an orderly sales and distribution mechanism that consolidates it as the largest wholesale flower market and the price thermometer in the whole country. In 2010, its associates added about 6,000 producers and 1,000 buyers from all over China.

In that same year, the Government of Yunnan promoted the creation of the logistics services company Yunnan United Floral Transport & Marketing Co. Ltd. (FLY), to provide the KIFA with all additional services, such as storage, cold rooms, spraying areas, areas of manual process for final finishing, loading-unloading areas for air and land transport by roads or railways.

KIFA is designed for large-scale transactions that secure supplies to the country's largest trading centers (wholesale and retail markets, flower chains and supermarkets), particularly to the top provinces such as Beijing, Shanghai and Hangzhou. It also maintains a line of exports to South Korea, Thailand, the Philippines, Singapore, Russia, Europe, Japan and Oceania.

In contrast, Dounan's wholesale market, with its traditional sales system, handles smaller volumes of up to one tenth of the minimum traded in the auctions, and caters to smaller marketing channels, retailers in Yunnan and other lower-income cities, characterized by being more traditional

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