4 steps to beat the competition in the CBD business
CBD World
The conditions for growing, processing and selling hemp are constantly changing. CBD rules are gradually loosening and since 2018, when the US Farm Bill stipulated that commercial cultivation is possible if less than 0.3 % THC is present in the plant (for the Czech Republic the limit is 1 % from January 2022), the hemp market has opened up and is now one of the fastest growing business sectors. It is no wonder that the number of people wanting to get involved is growing rapidly. After all, almost 25 % of CBD users are adopting more than one product.
More and more brands are popping up, trying to attract and convert users to their side. But it is getting harder and harder because the products are very similar and the competition is strong and fierce. On the other hand, you (the sellers) are being hit by the huge interest from people, and so far it is not a problem to meet the increased demand. In some countries, you will see CBD at virtually every turn, for example at the gym, the chiropractor or the convenience store. However, you should check the quality of the product and have certification and content analysis available before making any purchase. The fact that CBD is more readily available than ever gives the impression of its safety. The more people involved in the CBD business, the higher the risk of running into rogue producers. Cases of contamination with toxic substances or non-compliance with the declared cannabidiol content may also be more common.
Place in the market
First and foremost, be clear about what you are selling, who you are offering your products to and where you are aiming. It's better to focus on a few products you believe in, have a story to tell and returning customers.
Big stores, where it's easy to get lost in the plethora of products and where there is an impersonal, money-making approach, may seem like successful entities, but the truth is usually on the other side. You have to target potential customers by being passionate about cannabis (and maybe even using CBD yourself), being informed and constantly educating and pushing yourself.
Customers for pleasure
Enticing people to offer CBD products is not enough today. You may find your customers, but you won't stand out. And as soon as a more interesting offer comes along, people will disappear and go for a better one. You need to offer something extra to keep the attention and hook shoppers. There are plenty of options, and it's up to the retailer to decide whether to go for a playful, "pampering" or educational method.
Options to differentiate yourself from the competition:
- Regular promotions, discounts or competitions
- Educational content
- Gifts with purchase (stickers, pens, product samples, handwritten messages)
- Quizzes and interactive in-store facilities
- Advice
Digital World
Operating in the online world is now an integral part of doing business and much of communication takes place there. Focus on keeping all channels under control. They need to be optimised to replicate the brand's objectives and each platform fulfils its purpose.
The three "touch points" of doing business in the online world:
- The store website
- Social networks
- Review sites
Don't underestimate SEO and responsive web design (displaying pages adapted to a specific device and its resolution - laptops, tablets or phones) and monitor traffic. You need to use all available data analysis tools and keep an eye on site management. It's all fairly simple and will yield great progress over time. A fifty percent increase in traffic is no exception.
The power of advertising
If you want to outpace your competitors even more, you need to invest a considerable amount of money in advertising and advertising. However, check out the various options beforehand, when, how and, most importantly, to whom you can entrust the promotion of your brand. Social networks are reticent about CBD, while other sites do not allow such advertising at all. You may find that you put money into a project that gets stopped after a few weeks because it breaks the rules. Always find out in advance if your requirements for advertising and brand promotion are realistic.
Instagram and Facebook - CBD is perceived as a dangerous substance and, with the exception of selected beauty products, all advertising will be stopped. Facebook's algorithms automatically report cannabidiol in headlines, captions or images.
Social networks do not have a green light for cannabis products. Ads and promotions are punishable by deleting the post or blocking the account for repeated violations.
Tik Tok - CBD ads are banned, but cannabidiol-themed content can be uploaded. These are therefore the loosest terms to make the substance known.
Google - The PPC tool GoogleAds does not tolerate advertising or promotion in any form. Only SEO campaigns are allowed, which are used by some companies.
An interesting alternative is "influencer marketing" where you reach out to familiar faces and offer to work with them on promoting your products and company. Some social media influencers want a contract and money for the work they do, others just want regular commissions. By promoting them and the people who follow them, you can spread awareness of your brand and products quickly and easily.
Summary
Competition in the CBD business is getting fiercer, so retailers have to come up with new ways to differentiate themselves. Fortunately, they don't have to invest money to make their presence known. Often all it takes is honesty with customers and a website with quality content.
Photo: Shutterstock
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