Grow Your Business

At this time of the month, only two things matter: flowers and chocolates. And for Dustin Andaya, the man behind Island Rose, the largest retailer and wholesaler of roses in the country, it’s a yearly event they prepare for very well. “While we produce and deliver roses all year round, for this season we have to rent out additional warehouse space and sometimes triple our customer service personnel to accommodate the additional demand.” And what about the remaining 11 months of the year?

As far as seasonal businesses go, Island Rose is a prime example of how to ride the business wave. According to Dustin, aside from Valentine’s Day in February, Island Rose has several peak seasons in the year as well: Christmas in December, and Mother’s Day in May. “But of course,” he says, “people also celebrate birthdays every day, so the remaining months of the years are pretty stable.” Meanwhile, their lean months are from June to September. “Then when the –Ber months enter, the sales start going up again.”

Started in 1982 by Dustin’s father, Armando Andaya, the company that holds the Island Rose brand, Philippine Cut Flower Corp. (PCFC), began as a flower wholesale outlet selling only to establishments like florists, restaurants, hotels, and wedding coordinators. In 2000, Dustin joined the company and expanded the business online launching their online shop, IslandRose.net, selling to the general public. “We went online with the idea of providing roses direct from the farm to the consumer,” says the now CEO. “As of now, 75 percent of our business is from the website, while the remaining 25 percent is the old wholesale business.”

Their farm, meanwhile, located in the cool province of Tagaytay, Cavite, is an efficient greenhouse facility housed on a 5.5 hectare patch of land. Fully automated, a computer controls everything inside the greenhouse: from adjusting ventilation, shading, and cooling, to feeding and misting to ensure that the plants receive the exact amount of nutrients while avoiding wastage. “The farm produces flowers all year round,” Dustin is proud to say, up to an amazing 2 million stems a year.

During peak seasons, they can choose to increase production. Inversely, during the lean months, they can lower it as well. But controlling production isn’t the only way Island Rose deals with the yearly demand swings. Starting with flowers, they logically expanded their product line to cater to more customers and more occasions. “We now have stuffed toys, vases, essential oils, scents, even a jewelry and chocolate line,” says the 41-year-old entrepreneur.

Just early this year, they acquired a Belgian chocolate company with hopes of distributing their products beyond the Island Rose website. And in keeping with the theme, the company also acquired two online gift sites that they plan to launch within the first half of this year. “If your business is seasonal, you have to find ways to augment the lean months,” says Dustin. “We usually do averages. When it comes to the selling price, we take a look at the whole year and examine the breakeven points for the whole year. We don’t do it per month because if you look at it that way, it won’t really add up.”

Going online has also helped the business not just in expansion. “I like the whole concept of people being able to order without the many layers in the supply chain,” citing that when people place orders on the site, the flowers come directly from their farm. And because of the added ease and efficiency, they are also able to pass on the savings to their customers.  A bouquet of a dozen red roses, for example, costs about P1,700 including delivery to anywhere in the country. “With that price,” says Dustin, “we’re already able to include the delivery cost, nice packaging, taxes, and still be able to deliver the product at an affordable rate.”

And with a large part of their presence online, focusing on search engine optimization practices has also helped them reach a wider customer base. “In fact,” Dustin points out, “more than half of the orders on the site come from customers outside the country who want to send flowers to people inside.” Island Rose also has marketing efforts across the different social media websites, and is also a regular advertiser online.

“Of course, there will be weak and strong months,” says Dustin. “Every retail business, for example, will do well in December and not as well in the other months. It’s all just a matter of putting products out there that’s appropriate and that people will like.”

Philippine Cut Flower Corporation/ Island Rose
www.islandrose.net
G/F Tropical Palms Bldg., 103 Dela Rosa Street, Legaspi Village, Makati City 1229
(02) 816-3091

 

Photos courtesy of Island Rose

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