According to a report, cannabis retail sales can be predicted to increase by up to $5 billion in just California, with a $20 billion increase in sales across the nation. However, as retailers expect increased sales and customers expect increased usage, there are some obstacles in the pathway. With the industry seeing new regulations entering into new states, there are limitations for a lot of businesses. This post discusses the important aspects of marijuana retail in 2020.
Growing Support Across State Borders
The biggest case in the industry this year is that of Illinois that legalized the sale of pot in January but imposed certain limitations. It is seen that rules differ from one city to another and among the neighbourhoods. Non-residents living in the state are not allowed full access. Illinois should be monitored to find how it handles the commerce as it remains a model for other states.
2020 should be an influential year for cannabis policy reforms in the United States. At the time, 18 more states are planning to legalize medical or recreational use of pot for adults with some or the other provision. Here are some significant places you should know about –
Arizona – With neighboring states of Nevada and California indulging in the legal sale of weed to adults, Arizona has 49 percent voters supporting the legalization. If a state like New Mexico joins the wave of legalization, Arizona can face pressure to regulate it and be open to business opportunities coming from this drug.
Pennsylvania – Republicans who control both houses of the Legislature in the state oppose legalization but the wave coming from other states makes it difficult for Pennsylvania to remain out of the potential for development.
New Mexico – The Governor as well as House of Representative support legalization and have passed a bill. While it depends on the session vote, the stage seems to have been set for the state to regulate weed, opening doors for cannabis commerce.
Mississippi – This state has an active group working on the legalization of marijuana. It has already received sufficient signatures on the bill and waits to get the measure verified. Adult use of medicinal weed is the first step towards legalization and it is important to see how an initiative in a conservative state performs.
Struggle at the Federal Level
The SAFE Banking Act is an important bill that provides protection for financial institutions serving marijuana-related businesses. The act consists of measures like preventing banks and institutions from federal charges to serve firms, growers and dispensaries working with the substance as long as they follow the state laws. While marijuana remains illegal at the federal level, about 33 states have legalized its use in some form and 14 states permit the use of cannabidiol products leaving behind only three states with no approved use of this supplement. Senators issue bills to support the research on cannabis and its components, breaking the barriers at making research on this drug difficult. They are aimed at streamlining the process of research to develop new medications that are approved by the FDA for safe use by consumers.
Merchants Embrace New Technology
Any retail industry can be reshaped with technology. Cannabis retail is no different. There are many discussions on the challenges industry experts face in their business. The illegal state of products they sell makes it difficult for them to use the latest digital techniques like paid advertising, email marketing and website development. A number of e-commerce giants choose to follow federal law. Even Google considers CBD and weed to be restricted topics for Adwords campaigns. However, there are solutions to each problem. A number of resources are invented to address the needs of the audience. There are CRMs that integrate easily with other platforms to enhance user experience. Direct to consumer sales and wholesale marketplaces allow consumers to access their products from their preferred brands.
A Growth Potential
To be able to flourish as an industry, businesses should embrace digital methods right from the beginning. Not all B2B platforms are capable enough to work with the compliance requirements or adjust to changing rules. This model works for any emerging industry that contains unregulated services or products. This is a unique industry as it has grown amidst all the obstacles to become unstoppable for a growing audience. CBD-based products have started entering pharmacies, grocery stores and retail stores. The trend is spreading and the only way is to embrace the latest changes.