Valentine’s Day has long been associated with the exchange of thoughtful gifts, and few tokens of affection are as iconic as a bouquet of flowers.
The impact of inflation on consumer purchasing power, however, has led many to reassess the significance of these traditional gestures. This led brands and retailers across essential and non-essential product types to emphasize the value they bring to customers, in a bid to get consumers to spend.
The floral industry is no exception, and one firm is pitching its product as an investment of sorts.
“Our flowers are more than a purchase; they are an investment in long-lasting luxury,” Seema Bansal Chadha, co-founder of Venus et Fleur, said in an interview with PYMNTS.
The prices of Venus et Fleur flowers start at $44 and reach up to $2,200.
Venus et Fleur is known for offering luxury roses that reportedly last at least a year. The appeal lies not only in the enduring nature of the flowers but also in the perception that such an investment is a more sustainable and worthwhile expression of love.
But as many consumers rein in spending due to inflation, the company has decided to emphasize its worth by putting product quality, innovation and an improved floral experience at the forefront — marketing its products as an investment with longevity.
Current Consumer Sentiment
Recent reports suggest that consumers hold positive views on the economy and inflation trends.
According to the University of Michigan’s survey, the January consumer sentiment reading is 78.8, reflecting a 13% increase from December and a 21% rise from the same period last year. In terms of inflation expectations, the outlook for the next year decreased to 2.9% in January, down from 3.1% in December, and significantly lower than the 3.9% recorded a year ago.
Looking ahead over the next five years, inflation expectations were adjusted to 2.8%, reflecting a decrease from 2.9% in December and 3.2% in November. Despite previous estimates anticipating a return to pre-pandemic inflation levels around late 2024, consumer views are now supported by confidence in a positive turn in inflation trends and strengthened income expectations.
Surveys of Consumers Director Joanne Hsu notes that sentiment has risen nearly 60% above the all-time low recorded in June 2022, likely providing positive momentum for the economy.
Given the current positive consumer sentiment, Venus et Fleur anticipates favorable results, particularly in relation to its widely recognized hat boxes.
How Venus et Fleur Carved Out a Space in Florals
Seema Bansal Chadha and Sunny Chadha, founders of the luxury floral brand Venus et Fleur, began dating in 2015, right before Valentine’s Day.
For the occasion, Chadha ordered a bouquet to be delivered to Bansal Chadha. This decision, according to Bansal Chadha, played a significant role in shaping their long-lasting personal and business relationship.
It wasn’t the appeal of the flowers that influenced their journey. In fact, the delivered bouquet looked quite different from what Chadha had initially chosen.
This dissatisfaction prompted the couple to create preserved real flowers that maintain their beauty for a year or more, leading to the establishment of Venus et Fleur less than six months into their relationship.
Today, Bansal Chadha highlights that the company’s Eternity Flowers distinguish Venus et Fleur from competitors that offer arrangements with a floral lifespan of a week.
While the brand’s flowers are entirely real and cultivated in diverse countries worldwide, they undergo a unique process upon reaching the U.S. A non-toxic solution removes their natural color, after which they are treated with non-allergenic wax and natural oils. This process essentially dehydrates the flowers, enabling them to be re-dyed and endure for a full year without the need for water.
Venus et Fleur is planning to open of two new stores, introduce several collections and collaborate with brand partners.
How Venus et Fleur Is Making Luxury Flowers Accessible
Although the cost of these flowers might be high for many, with a single Eternity Flower being priced at $44, the company has explored various payment options to enhance affordability. Leveraging platforms like Shop Pay, PayPal and Affirm, Venus et Fleur has tapped into the buy now, pay later (BNPL) approach, a payment method that resilient consumers, as reported by PYMNTS, are adopting.
In a recent report on Synchrony Financials’ fourth-quarter results, the company noted gaining traction in Pay Later options presented at checkout.
The company observed that partners of Synchrony Financial providing Pay Later solutions experienced a 20% increase in new accounts, with 95% of Pay Later sales originating from customers who are entirely new to the network.
“We do not see a shift where the consumer is trying to really stretch dollars. We do see our transaction values down and frequency up a little bit, which means that … they are trying to be efficient with their dollars, but not really pulling back,” said Synchrony Financial CFO Brian Wenzel during a call with analysts.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
