April has been an exciting month so far for probiotics and CBD oil company HempFusion (TSX: CBD.U). Joining us again in this interview on The Dales Report, is Dr. Jason Mitchell, the CEO. We’ve hosted him before to discuss HempFusion marketing strategy, CBD regulation for 2021, and upcoming cardiac system clinical trials being performed by Dr. Harnick in Mount Sinai hospital. This week, here to discuss the big news regarding HempFusion’s recently released operational update as well as their presence now on the world’s two biggest ecommerce platforms: Amazon and Tmall.
Here’s some highlights from the interview:
2020 revealed a changing market space
“I don’t believe that the retail market at large will ever be the same again. I think the retail brick and mortar market is going to continue to grow and expand and do wonderful things, however it’s clearly obvious that digital platforms became increasingly even more valuable throughout the year 2020,” says Mitchell. He acknowledges that 2020 was a challenging year for most companies, his no less, and that many companies have had to take a hard lesson to heart – ecommerce is more important now than ever, and may become a permanent part of the way we shop.
HempFusion’s online business sales have pivoted in the last 12 months from a mere 6% to 24% in March of 2021, and while the numbers are good, challenges have come with it. CBD can’t be marketed online with the same tactics that are used in a face-to-face shopping experience, but recent additions to his team are becoming a ‘monumental’ part of their new marketing direction for their online presence and digital strategy.
Probulin Probiotics serving as a gateway to brand recognition while HempFusion seeks to acquire regulatory compliance for CBD
HempFusion’s first step into digital market spaces happened last year, as they sought to understand the Amazon Marketspace in the United States. Amazon isn’t open to CBD oil at the moment, however the initiative built around the HempFusion Probulin line has tripled Amazon sales.
When HempFusion decided to launch on Tmall, they decided to follow a similar strategy, launching Probulin first followed by CBD products.
The Tmall announcement is big. For those who are unaware, Alibaba’s Tmall Marketplace is the world’s largest cross-border online marketplace. It serves around 775 million consumers in the Asian region, and the market is interested in CBD.
Demand for CBD oil expected to grow
Databridge Market Research says that the CBD oil market is expected to grow at a compound annual growth rate of 30.8% between 2020 and 2027, and Mitchell agrees that the demand is there for HempFusion products. Being approved as a vendor by Tmall hopefully will provide footing into markets that aren’t yet accepting CBD, as well as others such as Japan and Hong Kong, that already do.