How to Succeed in the Booming CBD Market at the Retail Level
A March 2019 study by High Yield Insights found that about 40% of U.S. adults age 21 and older were willing to explore CBD and CBD-containing products. Cannabidiol (CBD) is one of more than 100 phytocannabinoids found in cannabis plants. The CBD industry is exploding, with analysts at the Brightfield Group expecting the industry to grow to $22 billion by 2022.
Effective POP print and design is always important, but it is essential in the booming CBD market. While the market is flourishing, it’s still a new industry. Consumers have yet to establish brand preferences, which means the opportunity to cement customer loyalty is too good to pass up. The barrier to entry into the industry is low, so there’s a sort of CBD ‘gold rush’ as new brands and manufacturers are emerging. Some local markets may already be saturated. That’s why effective retail signage and merchandise displays can help your brand stand out and rise above the competition.
Here are some tips that will help CBD brands stand out in this growing industry.
- Focus on Educating the Consumer – As is often the case in new markets, most consumers will need to be educated about the beneficial qualities and best ways to use CBD Oil. As CBD is related (but not identical) to marijuana, many people are hazy on CBD’s legality, efficacy, uses and effects. There are many different benefits of CBD Oil, from reducing anxiety to easing aches and pains. Ensuring that your retail signage provides some lessons for your consumers will help them make the choices that lead to higher sales.
- Have a Clear Message – Since there’s some education necessary in the CBD market, consumers can easily get confused or overwhelmed by their choices. Keeping messaging concise and to the point will help consumers make their choices quickly and encourage repeat purchasing. Easy to read, easy to understand marketing materials are a must!
- Build Your Brand – In such a new market, focusing on your branding is key. No one will know how good your products are if they never pick them up! Create a unified brand language that tells your story and how you are different from the crowd. Pay attention to your packaging and your retail displays. Make them eye-catching and unique. Strongly branded products create strong brand loyalty!
- Keep Design in Mind – CBD products are sold in a variety of locations—from dedicated storefronts to pharmacies and vape shops. One size does not fit all with retail signage and POP displays. They are most effective when specifically designed for their locations. A small counter display might work great in one location and get lost in the crowd at another. If you’re outfitting a specific location, work with in-store marketing vendors to create custom displays to improve your sales. If you’re on the move or are retailing at a variety of locations, you will need a number of options to tailor your displays to each environment.
- Keep it Safe! – On the one hand, putting your products in locked cases may deter sales. A customer can’t just walk right up and pluck it off the shelf, and some people might be dissuaded from a purchase that requires in-store help. On the other hand, CBD products are often high-value items in small containers, ideal for pickpockets and thieves. There is no right approach for every location, but the safety of your products needs to be considered. Attractive cases can heighten the allure and status of a product if done correctly, so consider more security if you feel it is necessary.
With the right plan and the right marketing materials, you can succeed in the burgeoning CBD market. KDM works with emerging consumer brands to help them stand out at the shelf by offering design and production services for your packaging, product labels, temporary and more secure displays, and POP print. Have a stand-alone store or part of a larger CBD franchise? KDM can execute an entire store environment to include fixtures and décor aligned with your brand. Contact us today to get started.