Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Pictland, I used the example of Sports Direct, pick JD, could be any high street chain. Whether that is part of the strategy or not I do not know. But what I do know, this is a numbers game. I do agree the likes of Space NK and CultBeauty can be utilised, even working with Deepverge and tapping into their concept. You can sell into chains of gyms, spas and sports clubs as suggested, but with all these supply chains there needs to be message attached. I don't see product (s) arriving at a gym (example) and then it sits on shelf? Who promotes this product to the gyms clients, the staff. Possibly, that means all distrubtion chanels will need staff training, whatever retail enviroment the product lands into selling a new range of CBD will not be easy. If this is the case, then the cost of product will be high. I know Space NK pretty well, I know their staff are trained, have a knowledge of numerous products - Who is pushing sales in these stores, the staff when asked? POS, well that means shelf space and on it goes.
If CBX are going to push the premuim angle with a higher RRP tag, its going to be for me a risky strategy in the sense of not knowing what the competition will do, or how they will react. Its not difficult to bring product out, nor is it difficult to white label, not in this game and not where we are today. Buyers for chains etc will be on the look out for similar product, more affordable RRP entry points to satisfy their end user, Sephora use cheaper ranges to push their higher aspirational ranges.
I agree with Amran, I have said this a few times. Marketing, price point along with POS is going to be key. Premuim products mean higher earners, that does not equate to large numbers, but what it does do is burn cash at a high rate through marketing. Premuim = aspirational, that comes with its own problems short term.
The advantage of using chains such as SD is its mass volume, I wouldn't suggest dumping the full range, but having a product or two in chains such as these gets the brand message out. There is a reason the likes of Nike etc use the likes of SD etc. I don't believe there is anything wrong with this approach, it will certainly be cheaper than a full on marketign campaign with zero guarantees of ROI, if and I say if, the CBX range is premuim with all that entails then you need a product (s) that is affordable, is not in the higher end stores and is used as a introduction to the main range.
Lots of companies use this strategy, Mulberry used this with great success, even Range Rover brought out the Evoque due to the higher end RR Sports price tag and on it goes.
I am also quite interested to see how/if the crypto angle is used online or part of a strategy in store for their distrubtion channels - There is definaltly some good PR based around taking crypto/BTC for your CBD products.
Pictland, good observation. A lot of traffic here and no particular barrier to entry.
The guy who co-owned REN before selling to Unilever is probably the most important hire. He took the start-up from nothing to sales of about £40m+ in 15 years before selling out. He will know best how to promote the products.
pictland - I agree. I think it's critical for CBX to get out of the blocks fast. They need to get branding sorted ASAP and get samples out to the market and to influencers. They need to start getting reviews and hopefully awards to push the products. This all takes time and this should be underway before long and the brand should have visibility before dropping on to shelves. Having a clear brand will also give confidence to investors and generate media interest prior to official launch.
From what the company have put out there I also do not see the product being sold through the likes of Sports Direct. I assume they will be targeting chains of gyms, spas and sports clubs. A few high profile sports people will add kudos but will come at a cost.
There are numerous companies and brands (way too many to list) already selling a wide range of CBD products in the UK, from the lower cost options to the premium options. CBX are not bringing anything new to the market and are already way behind the numerous competition. If they are to prosper, it will have to be down to the marketing of the product. Nothing else.
As for the suggestion that they would sell via Sports Direct, that has to be a delayed April Fool, surely (not having a dig here). Sports Direct are a bargain basement store. CBX will have to sell as a premium brand, not in a shop like Sports Direct (who as far as I know do not currently stock any other brands of CBD products).
This share is definitely a big, big gamble and the main gamble being on whether or not CBX can create a premium product range and attract customers with the disposable income to match and sustain the interest. For me, I personally think they will struggle to sustain regular business. These type of products are more fad like. They are popular for a short time until the next wonder product appears. They are not going to compete with the big names in cosmetics and the market they are looking at is already flooded with products which are discounted because the demand isn't anything like as big as some make out. I still think the pet market is the one to aim at. More now than ever, the number of wealthier Boomers with pet dogs in particular is huge. If you can produce a novel product for this market, you will thrive.