A Christmas tree, for that reassuring feeling
Trees snapped up despite higher prices and economic storm
Teh Shi Ning, Business Times 26 Dec 08;
(SINGAPORE) Live Christmas trees are weathering the economic storm; sales have stayed evergreen despite greatly reduced retail spending this holiday season.
Within three weeks, IKEA Singapore sold out all 2,000 real Christmas trees it brought in this year - in contrast to last year, when the same number of trees were brought in while the economy was booming, but prices had to be marked down.
Far East Flora sold out all its stock of live Christmas trees too, even though it had a greater number on sale this year. Similarly, Island Landscape & Nursery said its 400 Noble Firs, imported from Oregon, USA, were snapped up in two weeks.
IKEA also saw a larger number of first-time buyers this year, as evidenced by more customers having to purchase tree stands along with their trees.
'People need to celebrate Christmas even if times are bad, and certain symbols, like the Christmas tree, are considered essential to celebrating Christmas. These are things people aren't prepared to cut back on,' said Lars Svensson, IKEA Singapore's marketing manager.
All around the world, Christmas tree sellers are cheering their better-than- usual business, which some say reflects a longing for a sense of normalcy in turbulent economic times.
America's National Christmas Tree Association (NCTA) estimated that 31.3 million American households bought real Christmas trees at an estimated cost of around US$1.3 billion in 2007, 9 per cent up from 28.6 million households in 2006, Reuters reported.
NCTA spokesman Rick Dungey said: 'Over the years, we've found the economy doesn't impact tree sales that much at all. As a family tradition, it's way too important.'
Some argue that it is not merely despite the financial turmoil, but because of it, that Christmas tree sales have been strong.
Catherine Howard, editor of trade publication Christmas Trees Magazine, was quoted by Reuters as saying: 'When times are tough, people like to cling to these traditions because they make them feel comfortable.'
Increased demand and a Christmas tree shortage have also driven up prices. Denmark, leading grower of the much coveted Nordmann firs, produced 8.5 million trees for export mainly to Germany, Britain and France this year. But supply is expected to fall short of demand by some 300,000 trees, AFP reported.
According to Reuters, producers expect this shortage of Christmas trees in Denmark to push up prices in a trend likely to last till 2012.
In Singapore, Island Landscape said prices for its Christmas trees had risen by 10 per cent this year mainly due to increased freight costs. Prices for the trees sold by the various retailers here ranged from S$45 for a 5-foot tree to S$5,000 for a 20ft tree.
As for why real Christmas trees seem to be gaining in popularity over artificial ones despite their cost, IKEA's Mr Svensson suggested: 'Perhaps authentic Christmas trees, with their scent and falling needles, represent something genuine in times like these.'
