It is a known fact by everyone that Bangalore is a very costly city. The price of everything that is sold in Bangalore is always more than that of other cities. Not only is this the case with transport or houses but this is also the case with Flowers Delivery in Bangalore. Flower bouquets are very costly in Bangalore and the demand for them is also very high. This high demand raises their price all the very more. In case of Valentine’s Day or Rose day the demand is very high and so are the prices of flowers. Thus the opening of online stores in Bangalore has helped release the pressure from demand as well as made supply less costly. The only question is how?
Ø These online stores Send Diwali Gifts to India at a cheap rate as they buy directly from the growers of these flowers. Since intermediaries are absent the price falls greatly.
Ø Another thing that works in their favor is that they do not sell in brick and mortar stores. Sellers that sell in the local stores face high cost issues since through the sale of these items they have to realize both their fixed as well as variable costs. But in case of these stores there are no such fixed costs at least thus it helps them lower the price. Removal of fixed costs in a city of Bangalore benefits them greatly also.
Ø The rapid rise in demand of flowers of these stores is working in the favor of them also. Since demand is rising they would not mind decreasing the price a little more to attract more number of buyers.
Impact of these on local storesFlorist in Bangalore has faced a rapid fall in sales due to the opening of these online stores. This has made them opt for a similar strategy of lowering of prices to some extent. The entire benefit of this is for the consumers as they can now buy flowers from either of these two. The rapid rise in competition is working more in favor of online stores as they face less cost issues.