We’ve all been impacted by the coronavirus in one way or another. As a cannabis advertising agency, we’ve seen friends and family take on these impacts ourselves. Businesses of all sizes have been affected by the fear and panic shopping associated with the coronavirus outbreak.
The concern is very real, and we must do what we can to reduce the spread of the virus. However, we find ourselves wondering: How it will impact the cannabis industry? How are dispensaries and CBD shops holding up?
Coronavirus and the Impact on Manufacturing & Disposable Income
One of the first things we noticed as a cannabis advertising agency is the blow to businesses in the cannabis industry. Between quarantining and subsequent closures (however temporary), everyone is feeling it. Some of this comes from small business owners not wanting to purchase equipment from China. However, it’s also because the economy overall has taken a hit.
One of the biggest ways the cannabis industry will be affected is due to shutdowns in other countries. Hardware like vaporizers or something as simple as packaging materials could be in short supply until those manufacturers are in operation again.
On the consumer side, coronavirus has had an impact on the level of disposable income available. While some people are still working from home, others are furloughed if not fired. These customers are far more likely to spend their income or budget on necessities in the event they can’t make it to stores later.
The panic shopping we saw in the early stages of the pandemic ate away at people’s disposable income. This is income that may have been used on CBD oil, medical marijuana, or recreational cannabis. You don’t need a cannabis advertising agency to see that this has a severe impact on a dispensary’s business. However, as stimulus bills continue to pass, so too shall these economic woes.
Production Problems & Cancelled Events
Another area of concern is the lack of hemp that China is exporting to the United States. When you couple this with the impact of the virus on the stock market, the average investor is less likely to put their money in the cannabis industry.
In an interview, Nic Easley, CEO of 3C Consulting, said: “It’s a huge wake-up call. It’s forcing companies to look at their supply chain. Where do my products come from? Do I have multiple options for vendors? Everyone was looking for the cheapest option, and that’s China.”
As a cannabis advertising agency with experience in an array of industries, we have seen this problem in numerous businesses. There’s little to no diversity when it comes to manufacturers, leaving many business owners waiting. When a business becomes dependent on a sole source, even the smallest hiccup can be devastating.
Likewise, numerous events that could potentially feature cannabis brands have been canceled or postponed. Below are just a few canceled events that would have been beneficial for dispensaries and others in the cannabis industry:
- New England Cannabis Convention
- International Cannabis Business Conference
- National Cannabis Unity Conference
- AHPA Hemp-CBD Supplement Congress
For many business owners, it may feel like a cloud of knives more than it does one single blow. Coronavirus’s impact on the cannabis industry can truly be felt on a global scale.
Is There a Silver Lining to the Coronavirus Cloud?
Some optimistic individuals in the cannabis industry believe there’s a silver lining to the coronavirus pandemic. There are local manufacturers in North America that may be able to fill that gap caused by the shutdown in China. Their hope is for manufacturing to become more localized and more sustainable.
There are those who aren’t too concerned right now as well. The website Portland Mercury recently released a statement regarding the pandemic.
“Former pandemics such as the Swine Flu, SARS, and others didn’t have a measurable impact on the industry.” This suggests that the concern over the pandemic is more speculative, that cannabis might not see much of a fallout. It’s important to remain calm and optimistic about this budding industry as we receive coronavirus updates.
Weather the Storm with a Cannabis Advertising Agency
Our cannabis advertising agency has experience in a broad spectrum of industries. We’ve seen how a disaster can impact a business. Throughout it all, we have continued to boost exposure for our diverse group of clients.
If you are a small business owner, we can help you weather the storm of coronavirus and reach a broader audience through cannabis marketing. Are you ready to work with a cannabis advertising agency? Our team of experts is ready to help you put together a holistic digital marketing strategy.
Remember how important it is to take care of your health and protect your community in this pandemic. Coronavirus can spread easily, so it’s important to take the basic measures to prevent the spread. Wear a mask and gloves when you leave your home, wash your hands regularly and thoroughly, and practice social distancing.