Cannabis is a booming market but it has started seeing a stalling rhythm with time. This is surprising, primarily, because the demand for cannabis is still high and is increasing day by day. Then, what’s the issue that the market growth of legal cannabis has actually slowed down and is seeing a possible failure altogether? To address the situation it is first necessary to understand why it happens in the first hand.
The first reason that the legal cannabis industry is being unable to reap profits is that investors are losing interest. But, why? Why would investors lose interest in something that has the potential of exploding? The reason is simple – stagnation. The market is unable to produce profits. That being said, the real reason that legal cannabis is witnessing failure is that it is not being able to reach the end-customers. Precisely, the problem exists in the current supply-chain model. And what’s better than technology to recorrect and redesign the model? Therefore, for reaping the benefits it deserves, it’s mandatory to understand the relationship between cannabis and tech.
Tech solutions target supply rather than production. The benefits of this shifted focus are listed below.
- Seamless supply ensures that the movement of cannabis from one stage to the other doesn’t lag or stop.
- Tech can ensure that only the highest quality weed reaches customers. Once customers develop a taste for high-quality weed, they discard the tampered product instantly. It will automatically resolve another problem – major supply still happens through the illegal network that’s also one of the reasons that the legal market is suffering.
- The technology establishes a direct connection between sellers and customers that helps in developing mutual trust. Customers are able to track the origin of the product. There’s also the option of leaving a star rating behind. When a product earns positive customer reviews, it earns popularity in no time.
- Tech offers discretion as well as safety. Since customers aren’t buying via illegal networks, there’s no risk involved. Also, the information remains hidden.
Moving further, some important tips that’ll help investors in making the right call are listed below.
- Cut down on investing in the raw product. Invest only after the product is manufactured to ensure what you’re investing in has the potential to attract customers.
- Invest in smaller firms as well since they too have the potential of exploding with the right amount of investment.
On a closing note, nothing in the market can exist without tech these days, and the same is true for legal cannabis.