The current cannabis vape industry’s growth has been optimistic. Long(2021) uttered that online market trends have contributed to the rise of cannabis vape products. As the cannabis brand owner or business owner? Do you need a special vape for your cannabis brand? how to establish the cannabis vaporizer brand? What makes your cannabis vape different from other brands? Here are some tips for you.
Based on the 2021 forecast, legal cannabis sales in the United States are projected to reach more than $30 billion, equal to an almost 30% growth rate (Long, 2021). This rate is higher than the previous year’s expectation. Meanwhile, the vapes category will still be among the highest selling cannabis products in the market, with a forecasted valuation of $6.5 billion. With that being said, the business opportunity of the cannabis vape industry is promising. This opportunity applies to all stakeholders involved in the supply chain, including vapes manufacturers and distributors.
As many potential business owners are looking forward to establishing their cannabis vaporizer brand, they will expect some obstacles along the way. One of the critical questions to ask before starting the cannabis vaporizer business is, “what makes your cannabis vape different from other brands?” There is no merit in creating a similar product from the existing cannabis vape market, especially for a newly established brand that does not hold any reliability from consumers’ perspective. Due to its lucrative and promising future, the competitive nuance of this industry should be considered while preparing a business plan.
Do you need to build a vape manufacturing plant?
After the conceptualization process to create a unique product, a business owner needs to think about how they can actualize their notion into reality. One of the most common solutions to this step is by building a manufacturing site. However, considering that the cannabis market has been filled with legal complications, it is not easy to obtain the cannabis business permit to run a manufacturing site. Not to mention, potential cannabis vapes business owners should bear the costs of building a new manufacturing plant, which should come in a complete package with a workforce, machinery, and materials. They also have to tackle production costs while marketing their products. The high initial cost makes many cannabis lovers reluctant to jump into the cannabis vapes industry. The risk of failure is considerably high as the barrier to entry is high.
Potential cannabis vapes business owners can outsource their cannabis vapes from a trusted vaporizer manufacturer. There are two labeling services available to choose from.
White Labeling Service: The first is a white labeling service, in which the vape manufacturer independently designed and produced their cannabis vapes with no to limited customizations for their customers. This labeling service usually is contracted with several companies to distribute similar products under different brand labels. The drawback of this labeling service lies in the uniformity against the other products in the market. Thus, the product can be very generic and unappealing to many consumers.
Private Labeling Service: Meanwhile, the private labeling service provides an exclusive partnership with a brand or retailer. This labeling service allows the potential cannabis vapes business owners to establish a more reliable long-term deal, and most importantly, create fully customized cannabis vapes unique to their brands (Vargas, n.d.). The private labeling service is only suitable when potential cannabis vapes business owners already have a concrete plan and design on how they want to release their cannabis products. Therefore, it is not recommended for the newcomers who have just initiated their business within the cannabis industry. The intricate process in a private labeling partnership corresponds to a more prolonged and upscale preparation phase. However, if a business owner seeks an exclusive design, finding trustworthy manufacturers with portfolios is the next step. The essential part of this search process is to identify your company values and find a suitable partner that could achieve a similar goal.
Disadvantages and Advantages of Cooperating by Different Types of White Labeling Services?
The white labeling service clients are still new to the cannabis vapes industry and do not yet fully understand the cannabis vapes industry. They can also be companies that lack the expertise to design and plan for the product. Thus, with the help and expertise from the vape manufacturer, through white labeling, these new entrepreneurs will be able to embark on their entrepreneurial journey at ease. On the other hand, by relying on private labels, the cannabis vapes business owner must think and be ready to get involved in every step of manufacturing, including the cannabis vapes and their packaging designs, ingredients listing, product testing, and many others (Vargas, n.d.). The dilemma in choosing between those two types of labeling services must be solved by identifying the requirement and current level of understanding towards the cannabis industry.
In Cilicon, potential cannabis vapes business owners could choose to distribute Cilicon’s designed cannabis vape or start with an Original Design Manufacturing (ODM). But, what are the necessary steps to create an ODM?
The first and the essential part is to list down and discuss all product specifications including, but not limited to vape form factor, color, material, oil chamber size, and battery size. Once the manufacturing feasibility is corroborated, Cilicon will go through the engineering phase by creating the mechanical and industrial design for the cannabis vapes. Typically, this process starts from the external look and design before it ends with the device’s internal structure. Once the customer approves the design, Cilicon will move on to prototyping. In this step, the customer will see their dream products become a reality. One must note that cannabis vape prototypes are not expected to be perfect immediately and are subjected to multiple revisions. Once the customers are satisfied with the prototype, Cilicon will begin mass production. The mass production phase consists of the pre-production step to ensure quality control of the cannabis vapes adheres to the customer’s expectations and standards. The final stage of the partnership is to carry on with the big-scale production and deliver the exclusive cannabis vapes to the customer’s doorstep within four to six weeks, depending on the order quantity.
An excellent cannabis vaporizer manufacturing partner, especially for such an exclusive cannabis vape, will provide the best products and high-level service quality. Cilicon has a dedicated project management team to ensure the end-to-end processes of these fully customized cannabis vapes will run smoothly. Please keep in mind the partnership between Cilicon does not end after the product’s delivery. With the possible after-sale situations and unexpected disruption, the customers can rest assured that Cilicon’s service team will always lend a helping hand at any time of the day.