How to Develop Chinese Flower Auction Markets: Results from a Comparative Analysis

Abstract

For the vast majority of floriculture business, the auction is the best way to realize an assortment of flowers with as broad a scope as possible, produced across the world, and available for market price. FloraHolland is the largest and successful flower auction market in the world and approximately 44 million cut flowers and 4.8 million houseplants and garden plants are traded daily. But the operation of Chinese flower auction markets is not so successful that some researchers have concluded that the auction method doesn’t suit to Chinese practice. This paper compares operational goals and performances of FloraHolland with Kunming, International Flower Auction Market (KIFA), which are two typical flower auction markets in the two countries. Finally, the paper gives five crucial advices for developing Chinese flower auction markets: transit of service strategies, cultivation of participants' network, establishing standardization, clever mechanism design and avoiding some factors impairing successful auction, and improving on operational performance continuously. Auction method will have a bright perspective in Chinese flowers trade in the future.