HONG KONG — For decades, graduation season delivered a reliable revenue surge for Hong Kong’s flower shops. This year, however, many small florists are watching those profits wilt as a wave of low-cost arrangements from the mainland Chinese city of Shenzhen floods across the border, undercutting local prices by as much as 50 percent.
Outside university campuses, proud families carrying pastel-wrapped bouquets adorned with teddy bears have become a familiar sight this graduation season. But a growing number of those arrangements were purchased not from Hong Kong florists but from shops in Shenzhen, where lower rents, cheaper labor and wholesale flower prices allow businesses to offer elaborate displays at a fraction of the cost.
“We used to count on graduation season to make up for slower months,” said a florist who has operated a shop in Kowloon for more than two decades. “Now customers come in, take photos of our bouquets, and then tell us they can get something similar from Shenzhen for half the price.” The florist spoke on condition of anonymity to discuss sensitive business pressures.
Cross-Border Competition Intensifies
Industry participants say the trend has accelerated due to social media marketing and same-day cross-border delivery services. Shenzhen-based florists advertise heavily on Chinese platforms such as Xiaohongshu and Douyin, showcasing oversized bouquets featuring imported roses, plush toys and customized decorations. Prices typically run 30 to 50 percent lower than comparable Hong Kong arrangements.
The result has been intensifying competition in a market already squeezed by high operating costs. Commercial rents in Hong Kong remain among the highest in the region, while labor and logistics expenses continue to compress margins. Several independent shop owners told The Associated Press that graduation bouquet demand has weakened this year despite a rebound in cross-border travel.
“Customers are more price-sensitive than before,” said another florist in Mong Kok. “They compare everything online. If they can save HK$200 or HK$300 on a bouquet, many will.”
Consumer Choices Reflect Economic Realities
Some consumers argue the shift is a rational response to economic pressures. University graduate Emily Chan said her family ordered flowers from Shenzhen after comparing prices online.
“The bouquet looked beautiful and arrived on time,” Chan said. “For students and families who are already spending on graduation photos and celebrations, the savings matter.”
Cross-border purchasing has expanded beyond flowers in recent years, affecting sectors from dining to retail and personal services. Hong Kong residents increasingly travel to Shenzhen for shopping and leisure, drawn by lower prices and a wider range of offerings.
Florists warn the flower trade is especially vulnerable because bouquets are highly visual products that can be marketed effectively online, making price comparisons straightforward for consumers.
Broader Economic Implications
Industry representatives say the challenge extends beyond graduation season. If cross-border flower orders continue to grow, smaller neighborhood florists may struggle to remain viable. Some businesses have responded by focusing on premium arrangements, bespoke designs and faster local delivery. Others are experimenting with workshops, subscription services and corporate contracts to diversify revenue.
Still, many operators remain concerned. “People think flowers are just flowers,” said one florist. “But every bouquet supports local workers, delivery drivers and small businesses. If customers keep moving across the border, some shops won’t survive.”
While it remains unclear how large the long-term impact will be, the graduation bouquet trade has become a symbol of a broader economic challenge confronting Hong Kong’s small retailers: competing against lower-cost rivals just across the border.
For many florists, the coming graduation seasons may determine whether their businesses can adapt—or whether another traditional local industry is gradually squeezed out by the economics of cross-border commerce.