ProFlowers
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| ProFlowers | |
| Type | Private |
|---|---|
| Founded | 1988 |
| Headquarters | San Diego, California |
| Key people | Bill Strauss CEO |
| Industry | Retail |
| Products | Flowers |
| Website | www.proflowers.com |
ProFlowers, a Provide Commerce brand, is a major flower retailer in the United States.
ProFlowers is an e-commerce marketplace that sells products shipped from growers, suppliers and distributors to consumers. The Company's platform combines an online storefront, proprietary supply chain management technology and established supplier relationships to create a market platform that includes growers, manufacturers and distribution warehouses.
Through their network of suppliers, ProFlowers has eliminated some intermediaries from the legacy supply chain, realizing cost advantages and higher margins. Their platform reduces or eliminates many of the typical costs associated with traditional retail businesses including inventory, capital expenditures, labor and administrative expenses.
Liberty Media Corportion owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Its businesses include some of the world's most recognized and respected brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, Expedia and News Corporation.
ProFlowers is headquartered in San Diego, California.
Contents |
[edit] History
Provide Commerce launched its marketplace in 1998 through its ProFlowers brand. Provide Commerce also offers fruit, sweets and premium meat direct from the supplier through its Gourmet Food Business Unit.
In February 2006 Liberty Media Corporation (NYSE:L; LMC.B) purchased Provide Commerce, Inc. (Nasdaq: PRVD) for a sum of $477 million in cash, at which point Provide Commerce became a wholly owned subsidiary of Liberty. Provide Commerce, which was formerly listed on the Nasdaq National Market under the symbol "PRVD", has voluntarily delisted its securities from trading on Nasdaq.
[edit] Litigation
ProFlowers was sued by its major rival, Florists' Transworld Delivery (FTD), for false advertising and unfair competition in August 2005. The suit focused on ProFlowers' claim to ship "direct from the fields" with "no middlemen", alleging that the company actually often stored flowers in refrigerated warehouses, including those of third parties. Analysts minimized the business significance of the suit, with one calling it a semantic distinction because ProFlowers owns its flower inventory while FTD orders are often filled by local florists buying from wholesalers.[1] For its part, ProFlowers responded that the lawsuit was "without merit" and brought counterclaims against FTD. The lawsuit was settled a year later with neither side admitting wrongdoing or paying any money to the other. ProFlowers did agree to make some modifications to its advertising in order to have a separate trademark action dismissed.[2]
Two months after the FTD suit was filed, two law firms filed a class action lawsuit claiming that ProFlowers used deceptive marketing, also targeting the company's freshness claims. ProFlowers called it a copycat of the FTD lawsuit. It was settled with ProFlowers not admitting any wrongdoing, but offering $10 store credits to the millions of customers in the class and paying $250,000 in attorneys' fees, most of which was covered by insurance.[3]
[edit] Brands
- ProFlowers – Flowers
- Cherry Moon Farms – Gourmet fruit and gift baskets
- Secret Spoon – Desserts
- Uptown Prime - Steak, seafood & pork
[edit] Competitors
[edit] References
- ^ Davies, Jennifer. "FTD sues rival, calling 'fresh' ads false". San Diego Union-Tribune, August 25, 2005.
- ^ Provide Commerce and FTD Resolve Lawsuit, joint press release, August 8, 2006.
- ^ Vuong, Andy. "Lawsuit Pricks at Net Florist". Denver Post, November 6, 2006.
