CBD companies seem to be popping up left and right, and it is anyone’s guess which companies will survive the ebbs and flows that impact small-medium businesses, especially as the demand for CBD products levels out. So what can small-medium companies do when their customers can just as easily pick up CBD at Walmart?
Branding and Marketing
Small-medium CBD companies need to utilize smart branding concepts to drive interest in their products and differentiate themselves from the competition. There are various ways for a company to do this.
It is key to have a niche or angle that allows a CBD company to stand out from the crowd. Here are a few different things that a company can focus on to win over potential customers.
- Make your product from high-quality organic materials
- Use packaging that has a low carbon footprint and promote sustainable living
- Find a niche and put some thought into what CBD product(s) to sell
- Ensure your products undergo third-party testing
- Give something back to your community
- Promote diversity and acceptance within your business and beyond
The methods of growing hemp are various and sourcing products from farms that are local, grown organically, and/or use environmentally-friendly methods is key in the current culture. Another key decision for CBD companies to consider is which products to develop/sell. CBD products are everywhere from skin care to pet care. There is even a growing market for CBD-infused lubricants.
Focusing your brand on carrying/producing products that are clean, vegan and/or organic is important. It is not just hemp or CBD either; the sourcing of carrier oils and other ingredients in the product is also key.
Customer Interaction
Regardless of the fact that people can spend large amounts of time online, the majority are still looking for a human connection. Providing unique in-store or online content that connects to the customers’ interests and needs is crucial in growing a CBD business. Even though CBD has been “legal” since the passing of the Farm Bill in 2018, many people are still uneducated on this specific cannabinoid. Providing education for customers with both virtual and in-person modalities is one way that customers learn about the many different health benefits of CBD as well as how to decide which products are right for them.
CBD companies should also consider the different consumption methods customers can use to unlock the therapeutic benefits of CBD, and how those methods differ from each other. For example, it’s important for a customer who prefers using edibles or oil to be aware of the length of time — in comparison to vaping or smoking — these consumption methods take to work in the body.
Finally, there is the trust factor. It is well-known that Walmart is not carrying the best quality products. Consumers inherently know there is a quality difference between produce from Walmart and the local farmer’s market. CBD products are no different. With that said, there should be plenty of future opportunities for small-medium CBD companies to expose the inadequacies of mass producing corporations.
