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.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
