Russian importers pin their hopes on summer

Not only the growers who export to Russia are suffering from the low ruble, but also the Russian importers. "The requests are less as the flowers are too expensive. Fortunately, together with the growers we often come to tailored solutions. However, it remains a challenge and our hopes are pinned on summertime," says Denis Kolpakov of 7Flowers, a Russian distributor of ornamentals.

Julia Katrenko, Denis Kolpakov and Olga Gad of 7FLowers.

Low ruble causes less requests
"Russia is a flower-loving country and does not mind paying a little extra for flowers. However, last month, the flowers prices increased sharply as the ruble dropped in value again, against the dollar and euro," says Kolpakov. According to him, the value of the ruble reached a similar level of the Black Monday in 2015. Therefore, the amount of requests for plants and flowers dropped too. "Compared to last year, the request for ornamental products decreased by approximately 25%. Besides that, this year we do not have any requests for any expensive products. And on top of that, requests do not always become orders, last year around 50% became an order. This year, not more than 30 percent has become an order. More people are comparing the offers and are looking for better prices."

Growers want to maintain market
Fortunately, the growers want to maintain their market share in Russia, which is beneficial for importers like 7Flowers. "Growers put a lot of effort into entering the market and they do not want to lose it. Because, if they lose the Russian market, it will be difficult to get it back. Therefore, some suppliers support us with looking for alternative and tailored solutions. Some are shipping the flowers in mixes and others can make a discount, for example," says Kolpakov.

Hopes pinned on summertime
Kolpakov pins his hopes on summertime. "Due to the fact that many people are dealing with a difficult financial situation, less people will spend money on their vacation. Many people own a summer house in Russia and many of them will go there instead of traveling abroad. We hope that people will start decorating their gardens with garden plants and trees," says Kolpakov.

Bottom reached next spring
However the bottom has not been reached yet. According to Kolpakov, the real bottom will probably be reached next spring. "Now, not all people are aware of the financial situation. But next year, they will start to notice they have less money and they will therefore stop buying luxury products, including ornamentals," he concludes.

For more information
7Flowers
Denis Kolpakov
Email: [email protected]
www.7flowers.ru