While it is exciting to get involved in a growth market, becoming a standout company is extremely difficult. Over the past few years, this is precisely what new CBD brands have been finding out – at their own expense. If they didn’t get in initially, these companies are playing catch-up compared to companies with years of experience.
PureKana is a prime example of a tried and trusted CBD brand. You can read pretty much every PureKana review, and they will all tell you the same thing: that the company provides high-quality CBD products at an affordable price. The brand ticks all the boxes when it comes to earning trust and establishing credibility, which is what any new CBD brand is after.
A study published in 2020 outlined issues such as mislabeling and fraud in the CBD industry. It gives an inkling of how hard it is for a new company to gain the credibility of an established brand like PureKana.
There are a minimum of 3,500 CBD brands in the United States alone. In such a saturated market, how can fledgling CBD brands – those with experience but little exposure – make the step up? Let’s take a look.
1 – Find a Sub-niche
If you’re a new CBD brand, looking to capture the entire market is a complete waste of time. You have little chance of beating the likes of PureKana, which already has an enormous customer base.
Instead, you should look for niche growth markets within the industry. Do you believe that your CBD oil is the best around? If it is, you need to invest all your time and energy into it, rather than making it just one product out of an expansive range.
Realistically, it would help if you looked into other parts of the market. There are dozens of CBD products available. While it is true that most aspects of the industry are already saturated, there are still areas with room to grow.
For example, Serene Jane is a company that knew precisely how to get both feet in the door. This brand specializes in products for women that are in perimenopause; in such a tightly defined niche, the company has managed to find a consistent customer base that they can rely on, rather than competing with thousands of other labels over the same target audience.
2 – Embrace Big Data Analytics
The term ‘big data’ relates to enormous data sets analyzed to reveal trends, associations, and patterns. Companies are especially interested in human behavior and interactions, as it can give them a unique insight into what customers think, need, and want.
If you want to become a successful CBD brand, you have to perform a deep dive into data and understand the story that it is telling. This means poring through the purchasing habits of consumers in your niche, analyzing studies into the products you’re selling, and browsing anecdotal evidence from users of similar products.
A few years ago, each CBD brand effectively took a stab in the dark due to the relative lack of data that was available. These days, there is no excuse due to the incredible amount of information at your fingertips. Although there is still an element of the ‘Wild West’ about the CBD market, consumers are now well-informed, and they expect CBD brands to be as well.
3 – Navigate Advertising Hurdles
This is perhaps the biggest challenge facing every CBD brand. Typically, a business understands the importance of social media when trying to reach as many people as possible. However, as CBD advertising is effectively banned on sites such as Facebook and Amazon, companies have a major obstacle to overcome. If you try to place a paid ad on any social media site, it will get taken down rapidly.
These limitations mean CBD brands have to get creative with how they advertise. They place features in hemp and CBD publications, host industry events, and even pay influencers to find savvy ways to get people to buy the brand’s products. Those who are unable to find a way through the minefield are quickly lost amidst the over-saturated market.
Then there are the constant issues with Google. Websites in the CBD industry work hard to get noticed on the search engine. Yet, they often find that a change to algorithms causes their traffic to collapse practically overnight. Hundreds of companies have gone out of business after the last few updates.
Therefore, you must find a way to get your CBD brand noticed without relying on Google. Creating partnerships with CBD websites is a mutually beneficial arrangement. However, many of the industry leaders already have agreements with your rivals!
Final Thoughts on How a CBD Brand Can Stand Out
If it were easy to become a successful CBD brand, we wouldn’t have a case where most people haven’t heard of 99% of CBD companies. The reality is a huge proportion of new CBD companies fail – especially when they don’t do their due diligence and put in the groundwork. Trying to become noticed in one of the world’s most saturated markets is tough, but it’s not impossible.
Find a sub-niche that hasn’t yet been exhausted, use big data, and find a way to advertise that doesn’t involve social media. Do all of the above, and you might have a fighting chance.