In the cannabis world, the vast majority of plant-touching operators are heavily investing in CPG offerings and retail experiences as cannabis breaks into the mainstream consumer sector. However, these successful operators often lack the tools and accessories to support their burgeoning product lines. Curating compelling accessories for target consumer audiences remains an afterthought for most dispensaries. Not only is this inconvenient to customers who have to go to more than one shop to purchase everything they need, it is also a missed revenue opportunity for retailers in states where it’s legal to sell accessories in-store.
This situation strategically positions ancillary companies to create a “house of brands” that supports the plant-touching side of the business. For the entire industry to reach its full potential, ancillary cannabis brands must also scale and consolidate in a way that will better serve multi-state operators (MSOs). Given the current state of the regulated market, accessories brands can achieve this goal and maximize their own growth opportunities through streamlined and sophisticated ancillary operations.
Elevating the entire consumer experience
At this point, most CPG industries offer a full retail experience upon walking in the door. When you enter an Apple store, you can not only buy your iPhone or MacBook, you can also find all of the accessories that go with it and enhance the user experience. Consider the Apple Wearables line—a selection of products that enhance the overall user experience –including cases, chargers, AirPods, Apple TV and more. The Apple Wearables, Home and Accessories business alone has grown to the size of a Fortune 500 company. This ancillary sector has become a major fuel of Apple’s financial growth, bringing in $6.5 billion in Q3 of 2020 alone while also offering a one-stop-shop experience for the customer.
The process of purchasing cannabis products at a dispensary should be elevated to this same level. Wherever regulations permit, accessories should be sold alongside cannabis products right in the dispensary. Rather than having empty, unused space, dispensaries can complete their floors with products that complement their selection such as water pipes, high-end vaporizers, rolling papers and more. This makes a dispensary more inviting and visually appealing while saving the customer time and trouble. Offering these bespoke accessories that align with the needs and preferences of target demographics will also foster consumer loyalty—a crucial element in the increasingly competitive retail landscape.
To Read The Rest Of This Article By Nick Kovacevich on Benzinga
Published: January 06, 2022
Founder & Interim Editor of L.A. Cannabis News