As cannabis companies look back on this year’s 4/20, reports of fluctuating sales follow the industry’s most celebrated day. While some companies boosted revenue due to a surge of consumer stockpiling related to COVID-19, others were hurt by restrictive stay-at-home orders that prevented in-person sales and large gatherings that typically accompany the holiday for marijuana lovers.
The industry expects a whiplash of customer demand once social distancing restrictions loosen up across the country, leading to an increase in sales and cannabis-related events, but balancing an approach that prioritizes profits and ethical behaviors is a challenge that brands will be sure to face.
Brands will look to maintain a responsibility to their communities, ensuring that they don’t contribute to the spread of COVID-19 while attempting to maintain a profitable level of sales. While many cannabis businesses reported an increase in sales at the beginning of social distancing in March, the reality of the situation was a spike in sales that has continued to taper off. Consumers initially bought cannabis products in stockpiling behavior, but now that those businesses aren’t going anywhere after being deemed essential, panic demand has eased and real struggles are beginning to set in.
Of those cannabis businesses that have successfully coped with social distancing requirements, a new dependence on digital strategies for customer service and marketing has formed. Utilizing services like WeedMaps and curbside pick-up, consumers are able to obtain their products safely.
The question still remains, how does the cannabis industry stoke demand with a lack of live events to fuel community and demand? Some have turned to virtual smoking parties while others look to foster a sense of community on their social media. Regardless of the strategy, a new reliance on providing brand experience across multiple digital channels will be sure to help businesses survive.
Brand Iron has grown its roots in the cannabis industry, having formed flowering relationships with brands of all paths, including businesses that develop edibles, CBD products, and hemp products. If you’re a cannabis business struggling to establish your brand’s presence, contact us for a complimentary consultation and take the first steps to achieve your business goals.