The good news.
This should make those inthe cannabis business break into a wide grin. The cannabis retailbusiness worldwide is on the rise. Growing acceptance, proven benefits and legalisation are the obvious drivers.Unlike dozens of other industries across the globe, cannabis experienced significant growth as a result of the COVID-19 pandemic.
In fact, with the consumption of both medical and recreational products on the rise, 2020 was a record-breaking year for the industry. The global cannabis market will reach a value of $57 billion by 2027
To jump onthis bandwagon, here are a few things worth considering and doing.
Work on formats.
While seasoned consumers prefer smoking cannabis, other consumers are actually drawn to alternative forms that the plant comes in. Proprietary research from New Frontier Data reveals the products that most appeal to potential U.S. cannabis consumers:
• 69% solid edibles
• 54% liquid edibles
• 44% topicals
This holds true for India too. CBD oils, gummies, vati, modaks are gaining usage because of their inherent health benefits.
This brings us to the next point.
Create Unique Formulations.
Select herbs, dry fruits and other ayurvedic formulations are complementary to medical cannabis. They enhance its health benefits, plus make it interesting. Like Sanan Relief Classic 350 Churan. It is a cannabis-infused churan that has ingredients like mulethi, ajwain, sauf, amchoor etc. It increases your product portfolio.
Create New Category.
Speaking of product portfolio, it can go beyond consumables.
The cannabis compound is a new addition to a wide range of products such as skincare, makeup, and supplements that can now be purchased almost anywhere—from eCommerce sites to local grocery stores.
Keep stock
If a potential customer is greeted by an out-of-stock message, then it’s a loss of a customer to a competitor. Soput-out products only when you have the capacity to scale up to match demands. If you’re sourcing, find a good, genuine source. Like Bombay Hemp Company (Boheco), backed by investors like Ratan Tata, is a major supplier of raw material to other hemp startups.
Be on different platforms.
Marketing of CBD and hemp products can be tricky. Most platforms don’t allow it.
Throwing caution in the wind. E-commerce sites like Amazon, Big Basket andFlipkart( whereyou can find most of your potential customers) do not accept CBD or hemp products on their platforms. So be on marketplaces that would. Like ItsHemp.in and vegan dukan.com List your products and use their ad space to bring your product to the notice of the consumers.
Use platforms like FB/ Insta to build audience, communities etc. But it would all have to be organic. Fb and Instagram do not allow ads or promoted posts on CBD and hemp. In fact, any paid communication that has the word hemp, cannabis or that shows the leaf can get your FB or google ad manager account blocked. Watch out for that.
Be a little unorthodox and explore platforms like Quora, Reddit to establish thought leadership or start conversations. One obvious one that most businesses consider low-ticket but can actually do wonders for brands is e-mail marketing. It’s rich, highly customizable, data-driven and the best part is the platform doesn’t dictate.
Collaborate with doctors.
Delhi-based startup, HempStreet business model is in collaboration with doctors. The start-up claims to have gone from 0 to 850 clinics across 22 states in less than four months between November 2020 and March. So take the hint and look for more ways to open up new channels for your product. Ayurvedic doctors can be great influencers.
Consider White-labelling.
Take products from other brand/s, put your own label and you’re good to go.
Sana Relief is taking the whole game of white labelling to a new level. As a pioneer of the medical cannabis business in India, the company has all the expertise one needs to navigate through the tricky business of cannabis. Like obtaining licensing, development of new formulations, packaging, marketing support etc. The services don’t stop at products. But it’s rather end-to-end.
If we consider a market’s maturity to a product or service, cannabis is only just beginning to take off. While it looks set to grow with the forecast for medical cannabis market value in India expected to be around 89.1million, the somewhat nascent stage of the category means there’s no proven path to success. Except for one. Keep an open mind.
Recent Comments