Christmas Trees: Warm in Winters

"It’s not what's under the Christmas tree that matters, it’s who’s around it”. Moreover, it’s who’s behind it. The trees are the only light in these seasonal industries. A shift from natural to artificial is observed in this industry as in all others. This shift has consequences not only on the environment but also on the strategies of Christmas Tree producers. How do they make the most out of one day's festival? How do they turn the odds into their favour? Is the industry threatened by a recession in the coming years? Or a shutdown?
BY DEVANSHI JAIN | 6 Mins Read

When the end of November is approaching, all I know is that Christmas is here. Almost , But not quite. Christmas means warm ugly sweaters that swallow you up, fuzzy socks that make you slip on the floor, fairy merry lights, hot chocolate and lazy mornings and decorating Christmas Trees.

“Christmas isn’t a season. It’s a feeling.” ―Edna Ferber

How wrong would I be if I say that a christmas is no christmas without the Christmas tree, without the decorations, the presents, the merry lights and the warmness that all of this brings to our lives? I guess not wrong at all. Which is why it becomes alarming for us to know that the Christmas business might be under threat of a recession or even worse, a shutdown.

The life of Christmas lies in the beautiful Christmas trees we put up for celebrations. When you see a Christmas tree, it immediately drives you back to all the decorations, the hanging of socks and keeping presents beneath it.

Christmas trees are symbolic to the celebrations and are a part of the true essence of the festivities.

However, as a matter of fact the availability of live Christmas trees is reducing and it is getting tougher to find them with each passing year. The beginning of this shortage can be traced back to the 2008 financial recession. There have been several economic, climatic, social factors that have led to this. After the recession, the number of trees being planted reduced substantially because the farmers shifted to alternate practices or simply sold off lands and stopped production. Among the various factors there were some market factors in play. Understanding the market related factors that led to the decline is a little more complex. Now, gen next is apparently very low on time and do not have the patience or time to get into the hassles of a real Christmas tree. They prefer the artificial version since it's easy to keep and doesn't require any maintenance as such. Hence, leading to a rise in the demand for artificial Christmas trees. The problem doesn't entirely lie in the usage of artificial trees but in the demand for these trees. The relative decline in demand for real trees has been much greater than the increase in demand for artificial ones.

 Other than these basic factors, another problem arises that affects the supply of these trees is that the growing of Christmas trees is inherently a tedious and heavy process. Farmers wouldn't have problems going through all of that If there was a remarkable demand however, due to the decrement over the years, farmers are also not incentivised to go through the entire procedure. This is dependent on the fact that they are not getting desirable or substantial results to the efforts they're putting in. Therefore, understanding the nature and effects of demand and supply for these trees, it can be understood how the business is under threat of even a further decline that may end up in extinction.

But it is important to understand that the problem is not limited to traditions or nostalgia of live Christmas trees for festivities. It also has a detrimental impact on the environment. Artificial trees are essentially made out of plastic and are harmful for the environment. However, live Christmas trees are easily degradable and do not contribute to environmental degradation. Also, their deforestation is not dangerous as per reports from various environmentalists due to their carbon footprint compensation.

Hence, it's economically, culturally, and environmentally sad to see a decline in the live Christmas tree industry.

OK Boomer- the millennials could be the saving grace of the christmas tree business!

We think that the Instagram-loving generation will help bolster the numbers of natural trees sold at lots or even at choose-and-cut farms. People love to take pictures with Christmas trees at christmas tree farms.

“I think it ties into these Christmas trees, decorating them and holding onto those memories. I think that’s what millennials like to do.”

Adding to that the fact all the millennials try to be as woke as possible and are concerned about the environment in a way that our older generations were not, will help boost the sale of natural tress over the plastic ones.

These trees if in excess or unused can be recycled and used as mulch. "Every setback is a setup for a comeback."

Maybe the world can still save christmas.

This has made me wonder how seasonal businesses like that of christmas tree survive and sustain themselves.

Running a seasonal business requires year-round work and tough self-discipline. Behind every successful seasonal business is an entrepreneur who's willing to work twice as hard and twice as smart as the conventional business owner.

"Like any business or project in life, the outer results mirror the

 inner world of the individual at the helm," says Terry Kyle, author of

 400 Latest & Greatest Small Business Ideas.

 Let’s have a look at what they do differently

 Make the most of the peak season

 •Try to maximise income through every angle as each penny counts

 and not doing so may attract financial problems in the off season.

 •Learn what works for your business and what’s successful and get prepared for the next season accordingly.

Creating a calendar based budget

Often, seasonal businesses have the most expenses just before the season starts, which is when money is typically tightest.

It is advised to plot out everything--from when sales typically hit to the best time to purchase materials and hire staff. Then allocate the cash accordingly.

Buy low, sell high

Most of the entrepreneurs of seasonal businesses sell almost 80% of time stock around the season and only 20% during the off season so if one doesn’t have a plan they would be up the creek without a paddle.Literally.

The companies order Christmas stock in July, winter stock in spring and summer stock right after Christmas. Why? Because when demand is low, so are prices.

Maximise time during the off season

•Use the information gathered in the peak season to come up with new ideas, models, concepts or designs for the next season.

• Maximise your free time in the off season marketing which helps to bring more business during the season. It could include marketing with local businesses and creating an emotional bond of the brand with the people etc.

Seasonal business owners have to think like hardcore guerilla marketers and employ all the lateral thinking they're capable of. The

best time to brainstorm such ideas and to experiment with them is during the slow season.