Expertise and personal advice remain decisive

With more than 50 affiliated businesses, around 30 of which are growers, and a modern trading hall on the grounds of the local wholesale market, the Blumengroßmarkt in Vienna, Austria, has long been one of the most important transhipment centres for ornamental horticulture in Central Europe. Since 2022, the market has operated under its own management company, BGM Blumengroßmarkt Wien Betriebs-GmbH, which has helped secure the market’s long-term future. Even so, Vienna’s growers and wholesalers face a number of significant challenges, as Rahim Dacik, founder and director of wholesaler Penzo Floristik and a board member of the Blumengroßmarkt, explains.

© Mirthe Walpot | FloralDaily.com
Rahim Dacik of Penzo Flora and Stefanie Wagner, director of GMW, the wholesale market operator, since July 2024

The majority of wholesalers source their products through partners and intermediaries, with direct imports occurring only on a limited scale. As with much of the Austrian sector, the Netherlands serves as the primary hub for ornamental horticulture products from around the world. “Roughly 90 percent of the cut flowers offered here either come directly from the Netherlands or have some other connection to the Netherlands,” says Rahim. “The top sellers include roses, tulips, chrysanthemums, gerberas and lilies. Seasonal products, green materials and pot plants are also largely sourced via the Netherlands.”

Rahim himself leads Penzo, a trading company he founded more than 30 years ago that has since grown into one of the largest businesses on the site. Despite steady growth, the current business climate is demanding, he acknowledges. “There is a degree of stability, but at the same time the sector is in transition. Vienna is one of the largest cities in the EU and, with its centuries-old tradition of balls, cultural events and other occasions, it represents an attractive sales market. Around 450 balls and other events each year generate a constant and high demand for flowers and plants.”

A gradual shift is nonetheless underway, Rahim continues. “The number of retail florists is steadily declining, while flexible, owner-operated businesses without staff are on the rise. Around 60 percent of businesses in our sales area now fall into that last category. Consumer behaviour is also changing: online ordering and click-and-collect are becoming the norm, and event organisers are planning their purchases further in advance. These are all factors we need to respond to in one way or another.”

Another trend is the growth of in-house production of cut flowers and related products. “Many businesses are creating an additional, independent revenue stream, responding to growing demand for regional and sustainable products,” says Rahim. “At the same time, many businesses are dealing with generational change or struggling to find a successor altogether. Across the board, however, the sector in our region looks to the future with confidence. Businesses that adapt flexibly to these changes, in particular to digitalisation, will continue to thrive. In my view, specialist expertise and personalised advice will remain a key differentiating factor.”

View the photo report of our visit to the Blumengroßmarkt Vienna here.

For more information:
Rahim Dacik
Penzo Flora
https://penzo-flora.at/