Auteur
Manoel XAVIER PEDROZA FILHO
Abstract
For a long time, one governance structure dominated the marketing of cut flowers in France: the wholesalers and the traditional florists. Recently, this governance structure has lost much of its appeal, while new governance structures have become more popular. This paper tries to explain the actual changes in the governance structure of the global value chain of cut flowers in France and prints out implications for the foreign suppliers. In line with the debates addressed in this subject, the specific focus is upon the rising power of supermarkets and flower shops franchises in the coordination of supply chain and the new competences demanded to the suppliers in order to be successful. Based on the literature on global value chains and governance structure we identify the main factors of chain governance in the cut flowers industry. Data were obtained through field work in France was conducted in 2007 and data was collected from face-to-face interviews with supply chain participants including large food retails, wholesales, franchise flowers shops, institutions (VINIFLHOR - French professional office of fruits, vegetables, wines and horticulture, FNPHP - French national federation of horticulture and nursery producers, Flower Council of Holland), freelance consultants and the managers of the largest French wholesales markets (SICA/Hyères and Rungis/Paris). The structure of the supply chain in the French market is characterized by a complex circuit of distribution channels such as Dutch auctions and wholesalers, or more direct channels such as large retailers. This paper serves as a useful case study through which to examine the more specific ways in which retail chains are reshaping the chain governance and strengthening own position in the chain. Fieldworks in France show the increasing marketing share of supermarkets and flower shops franchises in the sales of cut flowers and the changes of supply chain governance. The organization of supply chain of these channels in purchase centers underlines two important aspects of governance structure: the reduction of wholesaler’s roles and the need of large and specialised producers in order to meet the new retailer’s demands in terms of large volumes, varieties of flowers, and regularity of supply. French large retailers have recently begun to forge much more direct connections with foreign growers and Dutch importers. This link is coordinated from large structures of purchase called purchase centers. This structure allows the retail chains to maintain control over the supply channel from a fully integrated marketing chain.Results show that in considering the pressures over foreign producers in order to comply with the retailers’ demands, the complexity of new competences requested does not stop with the low cost production and large volumes. The implications for foreign producers concern also the need to adapt their production process to meet the new demands concerning products innovations (colors, varieties), labels and logistic structure.
Auteur
Manoel XAVIER PEDROZA FILHO
Abstract
For a long time, one governance structure dominated the marketing of cut flowers in France: the wholesalers and the traditional florists. Recently, this governance structure has lost much of its appeal, while new governance structures have become more popular. This paper tries to explain the actual changes in the governance structure of the global value chain of cut flowers in France and prints out implications for the foreign suppliers. In line with the debates addressed in this subject, the specific focus is upon the rising power of supermarkets and flower shops franchises in the coordination of supply chain and the new competences demanded to the suppliers in order to be successful. Based on the literature on global value chains and governance structure we identify the main factors of chain governance in the cut flowers industry. Data were obtained through field work in France was conducted in 2007 and data was collected from face-to-face interviews with supply chain participants including large food retails, wholesales, franchise flowers shops, institutions (VINIFLHOR - French professional office of fruits, vegetables, wines and horticulture, FNPHP - French national federation of horticulture and nursery producers, Flower Council of Holland), freelance consultants and the managers of the largest French wholesales markets (SICA/Hyères and Rungis/Paris). The structure of the supply chain in the French market is characterized by a complex circuit of distribution channels such as Dutch auctions and wholesalers, or more direct channels such as large retailers. This paper serves as a useful case study through which to examine the more specific ways in which retail chains are reshaping the chain governance and strengthening own position in the chain. Fieldworks in France show the increasing marketing share of supermarkets and flower shops franchises in the sales of cut flowers and the changes of supply chain governance. The organization of supply chain of these channels in purchase centers underlines two important aspects of governance structure: the reduction of wholesaler’s roles and the need of large and specialised producers in order to meet the new retailer’s demands in terms of large volumes, varieties of flowers, and regularity of supply. French large retailers have recently begun to forge much more direct connections with foreign growers and Dutch importers. This link is coordinated from large structures of purchase called purchase centers. This structure allows the retail chains to maintain control over the supply channel from a fully integrated marketing chain.Results show that in considering the pressures over foreign producers in order to comply with the retailers’ demands, the complexity of new competences requested does not stop with the low cost production and large volumes. The implications for foreign producers concern also the need to adapt their production process to meet the new demands concerning products innovations (colors, varieties), labels and logistic structure.
