Enterprise

Cannabis retailers need strong brands for business

The demand for retail cannabis continues to surge forward with Canada joining the minority of countries which declared weed as a fully legal market in both recreational and medical use. However, the country could not keep up with the demand, and after the legalization took effect, retail shops are almost sold out. Cannabis industries operate on various supply chains such as cultivation.

The demand for retail cannabis business continues to surge forward. Canada joined the minority of countries which declared weed as a fully legal market in both recreational and medical use. However, the country could not keep up with the demand. So, immediately after the legalization took effect, retail shops are almost sold out, per Fortune.

Cannabis transactions started to grow

Canadian patients signing up for medical cannabis has increased by 10 percent. Dried cannabis sales saw a 6 percent increase and a 16 percent monthly growth rate in cannabis oil transactions. Overall, around $5.7 billion was spent by 4.9 million cannabis consumers in 2017. And that number will go higher with 450,000 daily customers. This translates to a projected market cap of $3 billion by 2021 with continued strong growth in the adult legal cannabis market in Canada alone.

Cannabis operates on various supply chains such as cultivation, operations, and retail sales. Also, operates even on ancillary services such as security and packaging for cannabis businesses. Large-scale growth and expansions continue to be developed in order to strengthen operational capabilities. In addition, aims to bridge the gap between cannabis supply and demand.

Effective branding can vastly improve the appeal of a cannabis business. (Photo by Cannabis Reports via Flickr. CC BY 2.0.)

Industry representatives

Retailers, in particular, have added responsibilities as the primary sources of business representation for both regular and first-time customers. Their roles will be to help introduce and provide knowledge on what is still a controversial and illegal substance in many parts of the world.

Effective merchandising can play a large role in removing the stereotype of cannabis as an addictive substance that promotes indolence. Increasing studies continue to unearth the medicinal capabilities of cannabis. As evidenced by medical cannabis users who rely on it to treat various conditions like anxiety, depression, PTSD, and substance addiction.

Promoting a brand’s cannabis lineup with unique business models can help portray cannabis as a recreational source of enjoyment. As well as an effective medical aid for a number of conditions.

With this in mind, retail businesses must also ensure that all legal responsibilities, such as proper licensing and compliance to ever-changing regulations are up to date. While also helping to promote better understanding and safe consumption practices for the massive amounts of casual users.

Enhanced recognition

In order to stand out from the rest, cannabis retailers must develop an engaging and powerful brand to drive interest and convert people into loyal customers. Having an identifiable brand and customer experience is crucial for establishing a solid presence in the cannabis industry.

Knowing the type of product that will be distributed as well as fully understanding the target demographics will help align the goals of business development. It will also ensure that retail locations feature the right environment and knowledgeable staff for a pleasant first time or continued experience.

Having a well-thought-out business plan and marketing efforts will help increase the exposure of a company’s brand. Logos, packaging, and even displays can play an important role in promoting eye-catching and effective design elements to enhance brand appeal to potential customers.

Finding success in a competitive market is never a small feat. And cannabis businesses can often find a healthy boost of support through various investments and partnerships from others in the industry. A strategic business relationship with a well-known cannabis brand, can play a major role in gaining exposure. And also potentially earning the trust of consumers alongside increased supply chain capabilities.

Canada’s cannabis cultivation and distribution capabilities are unable to face the demand (Source)

Best of all, this can also provide expert advice through consultants who can facilitate smoother business development.

Cannabis cultivation and the legal market

Canada’s cannabis cultivation and distribution capabilities are unable to keep pace with current demand from the newly launched legal market. This has resulted in a massive push to increase supply chains to maximize output.

Having an effective brand and mission in the market as a cannabis retailer will help distinguish it from the rest of the pack. With effective business relationships being capable of pushing it to the next milestone in a highly competitive sector.

(Featured Image by Rick Obst via Flickr. CC BY 2.0.)

Anne Kings

Anne Kings is a reporter for the financial sector, often tackling Wall Street and shareholders' interests. She also covers the intersection of media and technology, and delves into interesting topics on entertainment. Sometimes she also writes about the cannabis industry, in particular CBD and hemp. She is currently based in New York.

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