A Study on Price Difference between Fresh Cut Flowers and Preserved Flowers

Abstract The purpose of the research was to discover the product differentiation in flower industry. By using price analysis between Taiwan’s fresh cut roses and preserved roses which is quoted to Taiwan’s H company from Japan’s Amifa Inc. The result revealed the pricing of latter can be 8 times greater than former that has made an excess value of flowers. While moving forward to the market of orchids, the study has found 5 to 8 times of extra price difference in Japan’s P company preserved orchids when comparing to Taiwan’s fresh cut orchids. According to ITC (International Trading Center) statistics, the global import net value of fresh cut flowers had reached 230 billion New Taiwan Dollar in 2015, which is believed to represent the demand of consumer market share and the promising potential growth in future. In summary, the study findings may serve as a guide to create additional value after the ordinary cut flowers have proceeded with unique preserved process. By pursuing the business pattern of product differentiation, we expect the development will bring the prosperity to Taiwan’s flower industry, and also lead both transformation and evaluation in modern knowledge- based economy. Key Words: Roses, phalaenopsis, fresh cut flowers, preserved flowers, flower industry