Gifts and Flowers


Gifts and Flowers

The flower and gifts industry is a dynamic segment of the retail economy. The trends, tastes, and buying habits of consumers are constantly changing. As the economy slowly recovers from the impact of the pandemic, countless weddings, and large gatherings begin to take place. Guests are willing to spend more on exotic floral arrangements like the ones they see on social media. Therefore, profitability has gone up, and more florists are focusing on large wedding events to increase their revenue.

Besides challenges, the pandemic also opens the segment up to more promising opportunities. While traditional in-store florists have seen their sales decline over the course of the pandemic, many have evolved into studio florists designing for weddings, parties, and corporate events. In addition, the online marketplace has rapidly evolved to keep up with the ever-increasing demand of hassle-free flower gift delivery. The mobile segment is also witnessing growth, in accordance with the increasing number of millennial and Gen-Z consumers.

What used to be the domain of network florists like FTD and 1-800-Flowers is now home to lots of innovation from tech-driven start-ups. These companies are developing a proprietary supply chain and can deliver on-demand flowers as a new standard. This transition fires the beginning of a digital transformation that will change the entire business model of this ever-changing segment.

Recent Statistics

The compound annual growth rate of the worldwide ornamental flower and plants market is expected to increase by over 6% between 2021 and 2025

The total worth of cut flowers sold in Canada in 2019 equalled $133.55 million

60% of all flowers and plants sold globally are purchased as a gift for someone else

Floral industry statistics reveal that 42% of major florist brands’ Instagram followers are under 34.

Boomers are 19% more likely to share florist brands’ social media content

83% of millennials consider online content when making their purchase decisions.


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Digital Transformation In Gifts and Flowers Industry

The floral industry has traditionally been a delicate balance of time, labour, and resources. Therefore, flowers are quite expensive to grow and ship. But now, the advancements in technology and data analytics have changed the way florists operate. Online stores provide customers with personalized experience, easy access to flowers any time of the day, anywhere in the world. In addition, agricultural technology is allowing flowers to be grown without damaging the environment.

As the internet of things has infiltrated the floral industry, advancements in seed systems and precision agriculture have resulted in incredibly efficient flower-growing operations. Floral industry growers are now using software that tracks and monitors plant growth and changes, providing accurate statistics that have helped them predict growth cycles and demand.

Digital transformation also changes consumer’s habits. People are increasingly buying gifts digitally. For one thing, it’s often easier to shop for people you don’t know very well with the click of a button than it is to fumble around with a bouquet. For another, gifts that you send digitally can also be customized in ways that flowers or merchandise are not. You can change the font, add an image, use a different language—whatever you want. This can make a gift feel more personal and special. Likewise, augmented reality (AR) and virtual reality (VR) technologies are also gaining traction in the gifts and floral industry. These technologies can allow you to add 3D images to your products, which can help your customers feel more connected with the product and make their gift-giving experience even more memorable.

The digital revolution is here to stay, so keeping up with all the news and updates on digital transformation in the gifts and flower industry is essential to the growth of any business.

01. It’s not only the digitization of flower sales that has an impact on the segment but the digitization of horticulture as well. Solid-state lighting technologies (SSL) have allowed florists to get more light into the growing areas, increasing plant growth and efficiency. LED lighting can be tuned to a specific wavelength to mimic sunlight, and increases light coverage by 2-3 times compared to traditional grow lights. 

These automated systems also track and collect data over the growth of plants and flowers, aiding demand prediction and decision making. The data also helps florists know how to quickly produce more flowers and sends an early warning of potential shortages. Automation and robotics are also predicted to be increasingly used in farming. Soon we will see robotic arms harvesting and wrapping flowers bouquets in the future.

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02. In recent years, ordering flowers has become mundane and frigid as online companies compete with similar cookie-cutter arrangements from professional photoshoots that arrive looking totally different. Since flowers are usually impersonal gifts to oneself or others, there has been a demand for personalized bouquets that deliver a message. 

BOKAY is the first company to let users fully personalize flower arrangements and visualize their creation in real time–delivering unique designs overnight with the exact flowers selected. Customers can choose the types of flowers, colours, greenery, and vase and see it come to life on screen with a real-time 3D model. Plus, customers can make a payment using Dogecoin, Ethereum, or Bitcoin. Consumers can now design their own bouquets from the comfort of their home with a few clicks and have them sent to their loved ones in no time.

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03. The online marketplace has rapidly evolved to keep up with the ever-increasing demand from stay-at-home consumers. The result is a more refined, hassle-free flower gift delivery for the customer, which leads to more comparison shopping and more educated decisions. Gone were the days when customers had to place orders for flowers a week or two in advance. With an automated operation system, stock management becomes more consistent and seamless, leading to a speedy delivery process. Companies are falling over themselves to find the fastest, cheapest route for their goods to get to the customers’ doors. 

Subscription services are growing consistently due to technological changes in retail, aggressive brand-building strategies, and the element of surprise attached to the subscriptions. These services are ideal for consumers as they simply choose their preferred flowers and frequency of delivery, then have them brought to their doorsteps. With convenience brought about by technological advancements, the worldwide market for Gifts and Flower is expected to grow roughly 6,3% over the next five years, reaching $57.4 Billion USD in 2024.

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There’s really no shortage of reasons to send flowers, and e-commerce has made it easier than ever.

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