As a cannabis business owner, you have to be aware of the latest trends and the latest technology. You should know that Social media is an essential tool in this industry, and that dispensaries are transforming into distribution hubs. You should also know that many have begun experimenting with cheap pot seeds, infused beverages and virtual wearables. Read on to find out more about these emerging cannabis businesses today.
Social media is a must-have for cannabis businesses
Cannabis businesses aren’t the only ones utilizing social media. Cannabis social networks like WeedLife and Leafly are dedicated to the cannabis community and make it easy to promote and advertise their products and services. They also offer mobile applications and discussion groups that allow cannabis businesses and consumers to interact. In fact, the use of social media in cannabis businesses has been estimated to reach $39.4 billion by 2023.
However, cannabis businesses need to balance their social media content between promotional and educational content. While many users have an aversion to ads, sharing opinions and insights can grow your audience’s trust. Cannabis businesses can use social media to attract new customers and overcome common marketing hurdles.
Tailoring Tools for Every Cannabis Business
In the varied world of cannabis enterprises, a customized approach to required equipment and supplies is critical. Operating an e-commerce site, growing marijuana, or producing a line of CBD products—each business endeavor has distinct requirements.
Digital platforms, e-commerce solutions, and online marketing tools must be strategically prioritized by online retailers. Sales can be increased and customer engagement can be improved by developing a strong online presence, making sure user interfaces are easy to use, and putting marketing tactics into practice.
On the other hand, companies that produce CBD products—particularly those that have a culinary component—need a fully functional kitchen. Investing in equipment and supplies for the cannabis kitchen, premium ingredients, and fine-tuning tools is essential. These will ensure the production of high-quality, consistent products that meet industry standards.
Similar to this, companies that cultivate and package cannabis require equipment specifically designed for their purposes. Among the necessary materials are automated packing machines, grow lights, and climate control systems. Carefully choosing the right equipment guarantees the best possible circumstances for plant growth and effective packing procedures, which eventually help the business succeed.
By addressing these specific needs, entrepreneurs can position their businesses for growth, compliance, and long-term success in this evolving industry.
Dispensaries are becoming distribution hubs
Growing demand for marijuana products has led to a shift from traditional stores to dispensaries. While the large cannabis stores have thrived throughout the cannabis pandemic, they may soon be on the decline. As delivery services like Uber and Lyft increase, dispensaries are likely to be in decline as well. However, it’s important to note that opening a dispensary is still a complicated process. Various state regulations must be followed, and licenses are limited in some states.
Many new dispensaries are popping up near the traditional retail sector, creating a rarefied retail experience for consumers and growers of male and female weed seeds. New York City residents can shop at dispensaries as soon as mid-March. Those in upstate New York have long crossed the border into Massachusetts to purchase their marijuana. While dispensaries are becoming the new trend in retail, regulators are concerned about ensuring that their customers still have access to the medical products they need.
Virtual wearables
Cannabis brands have a lot to gain from NFTs. They act as avatar clothing in the virtual world, allowing cannabis brands to increase their visibility and brand awareness. One such brand is Kandy Girl, a cannabis company owned by Boyce Capital LLC that sells THC-infused gummies. It has recently acquired land on the virtual world Decentraland, and has begun selling virtual wearables. Kandy Girl has been giving away and selling marijuana-themed NFTs and has sold nearly $30k worth of virtual wearables since December.
VR is a technology that’s still in its infancy, but it’s already transforming the medical industry and will soon be a powerful retail tool for cannabis businesses. Dispensaries are physical locations, but they can only display a limited number of products at one time. And they must be secure and fresh. Virtual wearables can help dispensaries increase customer trust and increase sales by allowing users to shop without leaving their offices.
Infused beverages
Cannabis-infused beverages are a fast-growing market. With more states legalizing recreational marijuana, infused drinks are becoming an increasingly popular alternative to smoking. This trend is only expected to increase over time, thanks to changes in federal regulations. In addition to beverages, cannabis-infused foods and edibles are also becoming more popular..
The benefits of infused drinks are obvious. Health-conscious consumers are increasingly “Cali sober,” which means they substitute alcohol with a “less harmful” alternative. However, cannabis is still dangerous to your health and should only be consumed in moderation. The effects of cannabis can include psychosis, addiction, and memory problems, so marketing it as a health beverage is disingenuous. Fortunately, there are several ways to avoid being fooled by false claims.
Challenges in securing financing
Currently, the marijuana industry faces significant barriers to accessing bank loans. While cannabis companies have made significant advances without the assistance of conventional banks, their continued absence will hamper long-term growth. It is important to note that the SAFE Banking Act would make it easier for cannabis businesses to access bank loans. The industry’s growth may largely depend on such legislation. But until then, cannabis entrepreneurs should continue to look to other funding options for their projects.
While cannabis is legal in many states, federal banking laws are still extremely restrictive. As such, banks and service providers are reluctant to do business with cannabis businesses. Moreover, cannabis businesses do not have access to federally-chartered banks, which makes it difficult to establish a bank account or secure a loan or line of credit. In addition, cannabis businesses cannot rely on national banking relationships, which result in higher fees and limited lending opportunities.
