Real Christmas trees creep back into favour despite cost
Nisha Ramchandani, Business Times - 15 Dec 2007
(SINGAPORE) Singaporeans are going natural this season - real Christmas trees are proving more popular than artificial ones.
Eelin Lee, owner of Blooming Affairs, says that demand for real trees has grown. People prefer the natural appearance, she says. 'And the smell from real trees is nice, fresh and more therapeutic.'
Christine Tan, from Ji Mei Flower, also says that real trees are more popular this season, especially with foreigners who want to recreate a sense of home.
Pan Pacific Singapore, which has a long-standing tradition of using real Christmas trees for its festive decorations, is displaying this year a 30-foot tree imported from the United States.
It was so big that it took three days to decorate and install. The tree demonstrates the hotel's commitment to its corporate philosophy of caring for the environment, says Cheryl Ng, Pan Pacific's public relations manager. With decorations, the price tag came to $25,000.
Generally, Christmas trees are priced according to height - from about $60 for a 1.2-metre specimen to more than $1,100 for one four metres tall.
The owner of Chye Heng Orchid Garden, Shane Teo, says that he has brought in about 500 poinsettias this year to meet the expected demand. The potted plants are usually used for display in offices and homes. The average price of a poinsettia is about $15. While Mr Teo has no plan to raise his prices, he says that some nurseries and florists lift prices to $18 to $22 as Christmas Day approaches.
Edwin Pereira, managing director of Petals and Leaves, says that demand for Christmas plants is growing as Singaporeans become increasingly affluent.
Nurseries and florists say that Christmas tends to boost sales by 20-25 per cent.
But most also point out that costs are going up too. Europe is a popular choice when it comes to importing Christmas trees but the stronger euro and rising transport costs mean higher prices. Also, the market is very competitive, says John Gwee, owner of Far Horizon Nursery and Landscape.
And while the increase in the Goods and Service Tax (GST) from 5 to 7 per cent lifts prices for Christmas trees marginally this year, says Royston Low, managing director of Katong Garden, prices in general remain relatively stable. He expects sales to pick up as Christmas approaches, although he says that poinsettias have been selling well so far.
'Demand has been slightly better than last year, especially with the younger generation who prefer real Christmas trees,' he adds.
Flower Matters, at Millenia Walk, has chosen to absorb the GST increase to cushion the blow to customers. Christmas products usually account for about 10 per cent of revenue for Flower Matters.
This year it projects a 50 per cent increase in sales of Christmas items compared to previous years. Orders started coming in as early as November.
As for Christmas trees, while it is debatable which is the more environmentally friendly option, artificial trees cannot be recycled, although they last longer than real ones.
With climate change hogging headlines these days, Singaporeans may be going green for a reason.
Additional reporting by Yeo Han Liang, Bernice Huang and Tng Wen Quan
