Cannabis investors are well aware of the continued growth within the industry, which is projected to reach $146.4 billion worldwide by 2025. What they may not know is that due to overcrowding in the market and an inevitable oversupply of cannabis, there is far more potential on the tech side of the cannabis industry.
Those interested in the cannabis space may want to consider investing their money into companies that are creating solutions for the growing cannabis industry, instead of adding to the problems. One tech company that stands out among the masses is CannaOne Technologies Inc. (CSE:CNNA) (FRA: 3CT), which has developed an all-in-one e-commerce software kit that suits B2C cannabis companies of all sizes.
Cannabis Oversupply Concerns Turning Market Bearish
The initial boom of the cannabis industry created a ton of opportunity for cannabis companies and investors alike, with new deals being announced on a daily basis and M&A activity hitting an all-time high.
However, the wave of cannabis IPOs and an ever-increasing amount of planned capacity expansion among cannabis cultivators is leading to overcrowding in the market and an inevitable oversupply of cannabis. Those concerns were magnified recently when Canada’s largest cannabis companies reported disappointing financial results, after their sales and revenue missed the mark.
Despite rising concerns around supply and demand imbalance, there is still a major opportunity for investors to capitalize on the cannabis market, with savvy investors moving away from the cultivation and retail side of the cannabis industry and looking to the tech sector for more promising returns on their investments.
Cannabis Technology Taking Center Stage
There are a number of tech products coming out for the cannabis market including seed-to-sale systems, communication and mapping services, and cannabis e-commerce platforms.
Cannabis e-commerce software has been receiving a ton of attention in recent years, with celebrities and massive investment firms putting money on its success. Those looking to invest in publicly traded cannabis software companies might want to take a closer look at what CannaOne Technologies has created.
CannaOne Technologies, which is the first publicly traded cannabis e-commerce company, created its BloomKit software suite to offer cannabis businesses a turnkey solution that connects retailers to consumers and gives dispensaries a way to sell their products online and have them delivered to customers.
Similar to the privately owned counterpart Green Bits, CannaOne developed BloomKit for the cannabis industry and includes modular dynamic features that adapt to any government regulation, meaning cannabis retailers of all sizes can use it while operating in any legal jurisdiction.
CannaOne’s “design-focused cannabis commerce solution” provides customizable e-commerce platforms, so that its cannabis business clients can choose the template that is best suited to their target market and then combine this with Bloom Product Suite™.
CannaOne: More Than an Online Cannabis Store
Like Canadian tech-giant Shopify, Bloomkit offers businesses thematic, customizable online storefronts. The difference from Shopify is that CannaOne Technologies has created its platform to cater specifically to the cannabis industry. In fact, every one of BloomKit’s themes is built from the company’s principals of proper cannabis website design.
The CannaOne team spent years perfecting BloomKit, with an equal focus on UI (user interface) and UX (user experience) to perfect the cannabis user experience and ensure customers sign up and stick around.
The company’s attention to detail has created an aesthetically pleasing and functional platform that offers a number of features like review and rating systems, eye-catching product details, and payment and delivery options.
Businesses have the ability to manage products, and monitor and track scheduled pick-up and delivery logistics. Businesses have access to unique payment options and point-of-sale systems, as well as marketing advice specific to the cannabis industry. What’s more, CannaOne’s platform can be customized for medical and recreational-focused businesses with functionality that is streamlined and built with specific objectives.
The Future of Pot Intelligence
Prior to cannabis legalization, there wasn’t very much accurate data about consumers or their wants, buying habits, and brand loyalties. Now that the industry is in full swing in a number of states and across Canada, there are tons of dispensaries sprouting up.
The problem now is that it can be difficult for these businesses to keep up with the growing demand via regular commerce strategies, making online ordering and pre-ordering options ideal for meeting customer needs.
One of the products in CannaOne’s BloomKit suite is BloomMachine, which gathers data about consumers and uses artificial intelligence (AI) to predict behavior, recommend products, and track purchases. By incorporating AI, cannabis e-commerce businesses can boost their conversion rate significantly.
Being able to appeal to your customers in the early stages of this new market is key, as many consumers are only starting to form brand loyalty and get to know the different products available to them. Of course, as the market matures, the cost of retaining those customers will grow, which is why CannaOne Technologies created its BloomKit software suite with the future in mind.
CannaOne Technologies Moving into New Markets
In 2018, Canada became the second country after Uruguay to legalize the possession and use of recreational cannabis. However, there are a number of countries in both Europe and Latin America that are loosening their laws and legalizing medical cannabis and hemp/CBD.
One massive market that has approved the sale of hemp/CBD and medical marijuana is Mexico, offering a huge opportunity here for companies operating in the space.
CannaOne Technologies recently got its foot in the door of the Mexico market when it signed a formal agreement with Manna Health, a leading Mexican health and wellness products distributor.
The agreement will see CannaOne team up with Manna Health to develop, launch, and operate an industry-leading online hemp marketplace for the purchase and delivery of hemp/CBD products in Mexico.
Building out innovative software for platforms can be expensive and time-consuming, which makes CannaOne’s BloomKit suite the perfect solution for retailers in these emerging regions. Instead of spending years and thousands of dollars building their own e-commerce cannabis store, BloomKit allows retailers to set up their online marketplaces automatically.
It’s evident that CannaOne Technologies is onto something big with its BloomKit platform. Even if the market turns bearish and cannabis prices drop, the company’s business model should fair well, even in a difficult market.
It will be exciting to see where the business will go as more and more countries move toward legalization.
CannaOne Technologies began trading in November 2018 on the Canadian Securities Exchange, raising $500,000 through an IPO of 1.25 million shares at $0.40 CAD per share. The company’s share price hit a 52-week high in late February, reaching up to $1.84 CAD. On May 16, CannaOne Technologies stock was sitting at $1.37 CAD.
Featured Image: CannaOne