5 minute read
How can CBD retailers survive?
HOW CAN CBD RETAILERS SURVIVE?
by Chynna Pearson
When people think of medical remedies for pain that don't involve opioids, there are not many options to choose from and most will
immediately think of medical marijuana before CBD. Due to this, what can CBD retailers do to survive in a world full of THC? There are about
35 states that have some type of cannabis available for medical use or have decriminalized cannabis in certain amounts. The rest of those states only have the option for CBD as it is federally legal. It would be obviously easier to survive as a CBD store in states where cannabis is still criminalized as there are no other options.
In other states, CBD stores have to have different and unique strategies to gain customers and make profits. It’s almost comparable to a locally owned grocery store trying to compete with a Target and a Walmart coming into town. To some, it may seem like a useless effort but that is far from the truth. Not only is CBD different from many medical marijuana products, but CBD is also still a necessary medication for many people who do not like treating their ailments with THC-infused products or opioids.
Before we fully dive in, let’s understand what CBD is and what its effects are on the body. CBD stands for Cannabidiol. Cannabidiol is a part of the cannabis plant that is not psychoactive or addictive. It is also the first cannabisrelated drug that has been approved by the FDA. CBD is specifically used for treating a lot of different issues within the human body.
The Harvard Health School has said that it is good at, “The reduction of anxiety, insomnia, reducing chronic pain and inflammation, and helping treat addiction.” Each ofthese things CBD can assist with are all tough problems that sometimes onlyspecific drugs and supplements can help with. With all these uses for CBD
there is a strong market for its products even if the market is small. According to Hemp Industry Daily, the unfortunate side effect of the pandemic was that many CBD stores were going to have to close down while the CBD market was still holding tight to its market shares.
“As one would expect, the most established brands are best positioned to survive market contraction. Brightfield predicts that survivors will be companies such as Longrunning CBD brands that have already established brand loyalty, Multistate MJ operators that can leverage capital and ‘vast dispensary and retail distribution networks,’ Supplement brands that already have connections in retail and experience marketing nutraceuticals, Consumer packaged goods (CPG) behemoths such as Anheuser-Busch and Unilever, which are ‘ready to join the competition as soon as a pathway is cleared’ by U.S. health regulators, Canadian MJ operators because of their “tremendous cannabis infrastructure and connections, legitimacy, and investor dollars, Pharmaceutical companies.
Brightfield predicts more pharmaceutical-grade CBD producers may seek approval to join the market, and Scrappy disruptors.”
It was predicted in 2020 that some newcomers into the CBD industry will have made tremendous headway over the course of months and some have even been picked up by larger retail chains and thus have found the spotlight.
If the CBD company isn’t well established, then what? Will they have to give up and close up shop? Not necessarily. Let’s take a look at the company i+i Botanicals, founded by Jennifer Culpepper and Selam Kelati in 2019. Culpepper has said that, “Our biggest challenge is to find our positioning and where we differentiate ourselves from other brands. How do you differentiate your CBD in a tincture?” she said.
This concept Culpepper is talking about has actually been proven to work by research and experience. Many of us are still unaware that the CBD market is less populated by those suffering from extreme pain and it is now looked at as more of a multivitamin and supplement.
Due to this change in viewpoint, the CBD retailers didn’t have as hard of a year as it was predicted. CBD has become a wellness trend and less associated with THC and cannabis, think about it along the same lines as meditation, acupuncture, and veganism.
Additionally, the growth of big retail companies has ended up fueling the growth of smaller companies too because lots of people are looking to cut out the middleman and simply purchase their CBD from smaller, locally owned stores. Marketing a store locally always makes a big difference in consumership and popularity as we are all drawing away from big names and looking to support the area we live in.
CBD stores that are still trying to make it work in a town flooded with THC also should look into the CBD for pets area as well.
CBD for pets has become a huge area as more people are realizing that their pets can benefit from natural supplements too! Old dogs and cats have been moving like puppies and kittens with the implementation of CBD into their diet.
Pets are a huge soft spot in our hearts so appealing to them is a great way to get people into a store. Lastly, the best part of selling CBD is that you can sell it online. This is the biggest advantage that a CBD retailer as compared to the THC industry. CBD can be ordered and delivered anywhere in the country and it is not flagged by the post office for illicit substances. This means that CBD stores can send out samples to anyone who wants one and if someone really enjoys that specific CBD store they don’t have to stop purchasing when they move away.
Hopefully, this article has given some insight into the world of CBD and how retailers can survive in a THC-dominated world.
Not only is CBD non-psychoactive but CBD is federally legal and is available everywhere, online and in person. If your CBD store can benefit from opening an online element, be sure to check out options to get that setup! It’s the best advantage you’ve got!
