SEEKING DREAM FLOWERS
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1 SEEKING DREAM FLOWERS January 9, 2018 Tiamchai Phimma Managing Director, Sakamoto Nursery COMPANY PROFILE SAKAMOTO NURSERY - Relatively high altitude 550m - Cool in summer(20-35c) - Good hours of sunlight - Close to Tokyo, big market - 3hrs drive to the big Flower Auction in Tokyo Gunma Pref. 1
2 COMPANY PROFILE Production scale: Glass House 7300 m2 Open Cultivation 3600 m2 Man power: Production Line: Hydrangea 60 varieties Cyclamen 52 varieties Production Volume (annual): Hydrangea 25,000-30,000 pots Cyclamen 22,000-26,000 pots Market: Flower trade market 75% Direct sales 10% On line 15% CYCLAMEN 2
3 SAKAMOTO NURSERY Successor Tiamchai Phimma Awarded Japan Flower of The year and others Awarded Japan Flower of the year 2006 Award Gold Medal at Floriade 1992 Shoji Sakamoto Started Breeding in 1973 HYDRANGEA VARIETIES 3
4 HYDRANGEA VARIETIES CHALLENGES OF SAKAMOTO GARDENING Japanese wild species Activated Hydrangea breeding Improved by Dutch breeders Pioneer of Hydrangea breeding in Japan Develop many varieties Publish breeding method Exclusive license of Fairly eye Branding of regional agriculture Develop double flower Hydrangea firstly in the world No.1 gift of Mother s day Demand Expansion 4
5 1 Strong stem 2 Compact 5
6 3 Repeat Flowering 4 New color 6
7 5 New shape 6 Strong Root 7
8 7 Easy to grow 8 Uniform 8
9 9 Strong to pest and disease HYDRANGEA BREEDING PROGRESS 9
10 HYDRANGEA BREEDING PROGRESS HYDRANGEA BREEDING PROGRESS 10
11 HYDRANGEA BREEDING PROGRESS GROWTH THROUGH BRANDING Sakamoto Nursery ( Sakamoto PVP Hydrangea) Partner Flower Market Direct Sales (Local) Online All PVP Sakamoto Hydrangea Branding 11
12 PVP OF HYDRANGEA IN JAPAN Sakamoto Nursery Royalty Hydrangea(PVP) Royalty Sakata Seed Corporation Introduce to growers Royalty Kansai(west) area Kanto(east) area Growers(control) Growers(control) GROWTH THROUGH BRANDING Gunma Ajisai 10 growers Fairly-eye (PVP) Japan Flower Selection (Flower of the year 2006) Same Quality Quality Control Japan Flower Business Award 2008 Price Control Still top selling Hydrangea for 2017 (FAJ) 10 years selling 25,000 35,000 pots per year Get Royalty per pot Fairy Love, Fairy Kiss, Pinky Ring 12
13 PVP OF HYDRANGEA IN EUROPE Sakamoto Gardening Royalty Hydrangea(PVP in Europe) Representative of Sakamoto Royalty Sole Distributor/Grower(control) Sell to other growers Netherlands Germany PVP OF HYDRANGEA IN USA Sakamoto Gardening Royalty Hydrangea(PVP in Europe) Representative of Sakamoto in Europe Royalty Growers in USA Sell to Customer Hydrangea(PVP in USA) 13
14 JAPANESE HYDRANGEA MARKET The flower market is shrinking Mother s Day is the peak of flower sales Hydrangea marked 250% growth at Mother s Day in (Data from Yahoo Shopping : Sales by prefecture May 2017 vs May Hydrangea NO Pref. Year Qty(pot) Amount (thousand yen) Average Price (yen) Qty % from 2016 Amount Average Price 1 Aichi ,870 61, % 116% 114% 31.8% ,912 52, Gunma ,115 61,169 1, % 121% 99% 31.7% ,468 50,456 1,278 3 Saitama ,388 27,713 1, % 130% 101% 14.4% ,531 21,211 1,033 4 Chiba ,214 10, % 114% 113% 5.3% ,161 8, Tochigi ,497 9, % 97% 106% 4.9% ,345 9, Shimane ,681 9,277 1, % 343% 100% 4.8% ,667 2,705 1,622 7 Fukuoka ,526 3,152 1, % 186% 105% 1.6% ,430 1,686 1,179 8 Mie ,259 2, % 231% 107% 1.3% ,515 1, Tokyo ,934 2, % 113% 201% 1.1% ,195 1, Kanagawa ,846 1, % 54% 95% 0.8% ,241 2, Others ,357 4, % 180% 195% 2.2% ,155 2, Total , , % 123% 113% 100.0% , , Source: Flower Auction Japan(October 17, 2017) Sales Amount Constituent Ratio 5.3% 1.3% 1.1% 0.8% 2.2% 4.8% 1.6% 4.9% 14.4% 31.7% Gunma Aichi Gunma Saitama Chiba Tochigi Shimane Fukuoka Mie Tokyo Kanagawa Others Total Aichi 31.8% Aichi Gunma Saitama 1.3% 2.8% Chiba 4.7% 6.6% Tochigi Shimane Fukuoka Mie Sales Quantity Constituent Ratio 1.5% 0.9% 4.6% 1.6% 13.1% Average Price (May 2017) , ,271 1, % Gunma 1,633 Aichi 39.1% ,000 1,500 2,000 Aichi Gunma Saitama Chiba Tochigi Shimane Fukuoka Mie Tokyo Kanagawa Others 14
15 MARKETING STRATEGY TOWARD A DREAM AICHI THE BIGGEST HYDRANGEA PRODUCTION PREFECTURE IN JAPAN HYDRANGEA PRODUCTION VOLUME: 78,870 POTS HYDRANGEA SALES VOLUME: 61,452,000 YEN PUT EMPHASIS ON PRODUCTION VOLUME, NOT EMPHASIS ON PVP VARIETIES PRODUCTION GUNMA THE 2 ND BIGGEST HYDRANGEA PRODUCTION PREFECTURE IN JAPAN HYDRANGEA PRODUCTION VOLUME: 48,115 POTS HYDRANGEA SALES VOLUME: 61,169,000 YEN PURSUITS NOT VOLUME BUT QUALITY, FOCUS ON PVP VARIETIES PRODUCTION AICHI VS GUNMA VOLUME 78,870 POTS 48,115 AVERAGE PRICE PER POT 779 yen 1271 yen MONEY 61,452,000 yen 61,169,000 yen 15
16 TOP 50 sales - Hydrangea (May 2017) Ave. % from May 2016 Rank Ave. % from May 2016 Rank Rank Name Qty Amount Price Qty Amount Price 2016 Rank Name Qty Amount Price Qty Amount Price Fairly Eye 20,762 29,441,676 1, % 104% 100% 1 26 Magical Green Fire 1,383 1,450,497 1,049 82% 94% 114% 18 2 Dance Party 22,982 20,561, % 92% 98% 2 27 Cotton Candy 1,171 1,326,126 1,132 3 Hydrangea 18,974 12,823, % 173% 157% 3 28 Crystal 1,373 1,241, % 135% 158% 33 4 Iyo Shishitemari 10,277 8,575, % 173% 96% 5 29 Hawaiian Blue 1,359 1,195, % 117% 103% 27 5 Temari temari 8,194 7,950, % 108% 96% 4 30 Hawaiian Pink 1,223 1,061, % 115% 98% 32 6 Mangekyo 4,126 6,766,020 1, % 244% 98% Fairly Kiss 686 1,056,600 1, % 166% 112% 43 7 Magical Revolution 4,529 5,397,340 1, % 158% 110% 9 32 Starlit Sky 759 1,040,660 1, % 1056% 204% Konpeito 5,619 4,469, % 102% 87% 6 33 Himiko ,750 1, % 1130% 96% KEIKO 2,161 4,048,580 1, % 121% 102% Hydrangea 1, , % 105% 82% Tivoli 4,365 3,880, % 177% 109% Annabel 1, , % 68% 105% Sugar White 3,821 3,226, % 107% 119% Hydrangea 4, , % 195% 237% Hanaarare 1,835 3,112,230 1, % 298% 100% Hydrangea 1, , % 220% 202% Hawaiian First L 3,073 3,069, % 109% 91% Bali 1, , % 92% 98% Ginga 1,767 3,060,040 1, % 1457% 77% Peach Hime 1, , % 83% 113% Fairly Love 2,006 2,979,044 1, % 112% 98% Chikushi Ruby ,600 1, Maihime 1,754 2,892,620 1,649 82% 89% 109% Green Shadow 1, , % 106% 104% Pinky Ring 1,487 2,715,900 1, Popcorn ,730 1, % 321% 88% Hydrangea(blue) 4,500 2,697, % 64% 104% 7 43 Hydrangea 1, , % 85% 141% Dance Party Happy 2,802 2,502, % 3600% 75% Lumiere ,800 1, % 118% 104% Hydrangea 1,367 2,031,150 1,486 75% 89% 117% Hot Tivoli ,060 1, Posy Bouquet Noble2 1,339 1,947,410 1, % 258% 78% Maruru ,270 1, % 1547% 76% Mirai 1,030 1,838,000 1,784 37% 43% 115% 8 47 Sumidano Hanabi 1, , % 410% 96% Arigato 1,242 1,655,780 1, % 229% 104% Hot Red , % 72% 81% Deep Purple 1,151 1,548,788 1, June Bride ,520 1, % 195% 86% Hydrangea(pink) 2,402 1,474, % 116% 105% Harmony % 147% 168% 55 Source: Flower Auction Japan(June 12, 2017) THANK YOU VERY MUCH 谢谢 16
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