How to Develop Chinese Flower Auction Markets: Results from a Comparative Analysis

Kaida Qin, Xiaoli Jiang, Baojian Yang

.

DOI: 10.4236/ib.2010.24050                

Abstract

For the vast majority of floriculture business, the auction is the best way to realize an assortment of flowers with as broad a scope as possible, produced across the world, and available for market price. FloraHolland is the largest and successful flower auction market in the world and approximately 44 million cut flowers and 4.8 million houseplants and garden plants are traded daily. But the operation of Chinese flower auction markets is not so successful that some researchers have concluded that the auction method doesn’t suit to Chinese practice. This paper compares operational goals and performances of FloraHolland with Kunming, International Flower Auction Market (KIFA), which are two typical flower auction markets in the two countries. Finally, the paper gives five crucial advices for developing Chinese flower auction markets: transit of service strategies, cultivation of participants' network, establishing standardization, clever mechanism design and avoiding some factors impairing successful auction, and improving on operational performance continuously. Auction method will have a bright perspective in Chinese flowers trade in the future.

Keywords

Operations Strategy, Chinese Flower Auction Markets, Auctions

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	A. Kambil and E. van Heck, “Re-Engineering the Dutch Flower Auctions: A Framework for Analyzing Exchange Organizations,” Information Systems Research, Vol. 9, No. 1, March 1998, pp. 1-19.
[2]	S. Klein, “Introduction to Electronic Auctions,” International Journal of Electronic Markets, Vol. 7, No. 4, December 1997, pp. 3-6.
[3]	O. R. Koppius, E. V. Heck and M. J. J. Wolters, “The Importance of Product Representation Online: Empirical Results and Implications for Electronic Markets,” Decision Support Systems, Vol. 38, No. 2, November 2004, pp. 161-169.
[4]	K.-D. Qin and B.-J. Yang, “Implementation of Information Platform for Fresh Flower Supply Chain-Survey from Kunming International Flower Auction Market,” Proceedings of International Conference on Industry Cluster Development and Management, July 2008, pp. 595-599.
[5]	K.-D. Qin and B.-J. Yang, “The Storage Assignment Policy under Uncertainty: Case of Kunming International Flower Auction,” Proceedings of 2008 International Conference of Production and Operation Management (ICPOM’08), December 2008.
[6]	J. Heezen and W. Baets, “The Impact of Electronic Markets: The Case of the Dutch Flowe Auction,” Journal of Strategic Information System, Vol. 5, No. 2, Decemeber 1996, pp. 317-333.
[7]	J. Y. Bakos, “A Strategic Analysis of Electronic Marketplaces,” MIS Quarterly, Vol. 15, No. 3, September 1991, pp. 295-310.
[8]	X.-K. Zhu, “The Thinking about Chinese Agriculture Product Dealing Method,” Economic Issues, No. 3, March 2005, pp. 48-50. (in Chinese)
[9]	P.-J. Kou and F.-J. Lu, “The Adaptability Analysis of Implementing Agricultural Product Auction Method in China,” Chinese agricultural Economy, No. 8, 2003, pp. 18-23. (in Chinese)
[10]	D.-S. Li and G.-H. Zhang, “The Discussion of Some Technical Economic Issues about Agricultural Product Auction,” Agricultural Technical Economy, No. 1, 2003, pp. 31-34. (in Chinese)