Secondary Market Report

Industry Information (IbisWorld, 2022)

● NAICS code: 11142 ( NAICS, 2023 )

● Emerging market

● Market Size: $6bn

● Number of Businesses in: 1,878

● Average Industry Profit Margin: 14.2%

● Industry Employment: 22,779

● There’s no major player in this industry

● Few competitors can be listed: Home Depot, Mirai

● PESTEL Analysis ( Kiara Miller, 2022)

- Legal:

Agricultural producers operating a farm business within the meaning of

the federal Income Tax Act, or start-up operations following a management
plan approved by the Minister, are eligible to register. Eligible agricultural
producers who have applied for registration and paid the appropriate fee will
receive a Registered Professional Agricultural Producers (RPAP) number
which is required to access the following provincial programs: Farmer’s
Purchaser’s Permits and Farm license plates.

- Political: To register as a sole proprietor or partnership:

○ Register business with the provinces and territories where you plan to do
business
○ Get a federal business number and tax accounts
○ Apply for any permits and licenses your business may need

- Economic / Environmental:
 ○ Affordability: relatively high, ranging from $60 - $200
○ Preservation: In Canada, summer climate is perfect for growing bonsai,
but the challenge is wintertime when deep freeze prevents us from
leaving the plants outdoors. For indoor bonsai gardening, choose a
small-leaved tropical woody plant such as fig, podocarpus and
schefflera.

- Sociodemographic:

○ Middle aged people with relatively high income

○ Plant collector with basic knowledge on how to preserving plant

- Technological:

○ search engines
○ online marketplaces
○ social media platforms

● Key trends based on PESTEL ( IbisWorld, 2022 )

➔ Demand for plants and flowers has increasingly coincided with the rise of

technology

➔ With political policies in trading and the freezing natural habitat of Canada,

import competition is expected to partly fuel declining industry revenue

➔ International trade conditions are working against industry growth

➔ Industry revenue growth has been supported by strong export growth

TAM, SAM, SOM model

TAM = ACV x total number of potential sales avenues

- Estimated the ACV (annual contract value) equals to $40 CAD on every

purchase from a customer

 - The total number of potential sales avenues for New Brunswick includes

approximately around 5% of the population of 775,610 inhabitants may

purchase for the bonsai tree ( 2021 Census, 2021 ), which results around 38,

780 + 79 establishments ( IbisWorld, 2022 ) = 38, 859 units

TAM = $40 x 38, 859 = $1,554,360

SAM = ACV x targeted segment of TAM

- Estimated the ACV (annual contract value) equals to $40 CAD on every

purchase from a customer

- The targeted segment of TAM, which is Fredericton includes approximately

around 5% of the population of 63,116 inhabitants may purchase for the bonsai

tree ( 2021 Census, 2021 ), which results around 3155.8 + 13 establishments =

3168.8 units

SAM = $40 x 3168.8 = $126,232

SOM = Last year's share x this year's SAM

- The total revenue in 2022 for New Brunswick’s Floriculture Production is

$59.9m ( IbisWorld, 2022 ), estimated revenue of our company is $126,232,

which mean our market share is $1,554,360 / $59,900,000 = 2,59%

SOM = 2,59% x $126,232 = 3275.62