Are cannabis consumers more loyal to brands or products?

In the commodity industry where most consumers package, brands drive decisions. Shoppers walk into a store looking for Coca-Cola, Nike or Tides, and without these brands, many people will leave without buying.

Cannabis Retail tells a different story. Here, product loyalty often outweighs brand loyalty, and the difference is the way shaping the competition between pharmacies and manufacturers.

While some cannabis companies have made progress in building recognizable brands, many consumers have not yet been loyal to logos, palettes or celebrity representatives.

Instead, they remain true to the product – the form, effect and price that meets their needs.

Brightfield Group’s latest cannabis consumer survey data, published on the newly released MJBIZFACTBOOK, shows that many consumers are willing to switch brands if their preferred options are not available, while only a few people regard all cannabis brands as interchangeable.

vape cartridge shoppers may prefer a certain brand, but if there is no stock, they usually choose another one instead of returning empty-handed.

In these categories, brands may play a role, but this is rarely a decisive factor. This makes the loyalty of cannabis products stronger than the brand loyalty that shapes the basket at checkout.

“Brands are still growing in the buying drivers of the cannabis industry,” said Kate Stevenson, director of customer strategy at Brightfield Group. “Most consumers consider the product itself before the brand when making a purchase decision.”

According to Stevenson, 60% of cannabis consumers agree: “The cannabis brand is not important to me, and I bought the product that this product offers.”

More importantly, about 80% of people say that if they want the stock in stock, they will choose similar products from another brand.

Still, that doesn’t mean the brand is irrelevant, Stevenson said. “Only 30% of consumers think all cannabis brands are almost the same. Tell us that people do have preferences, or at least the favorite brands they switch.”

The keys are meant to keep the company visible and available on the shelves, she added. “Keep stock and make sure the product meets consumer needs and the preferred format is crucial to attract attention in a market that is still a relatively young CPG category.”

Some markets are better for brands

Green Dot Labs has focused its cannabis business on markets that allow and select markets that consumers choose. The Boulder, Colorado-based company has established a reputation in states such as Colorado and now Arizona, which allow consumer-packed merchandise companies to market directly to shoppers.

“We are interested in focusing on operating on free market territories like Colorado and Arizona where real competition can thrive and not only allow CPG brands but also connect with keen consumers,” said Alana Malone, co-founder and CEO of Green Dot Labs.

Malone said the company avoided limiting markets for brands including Canada, Connecticut and Florida because such rules prevented the company from showing the breadth of its products. She added that over time, Green Dot Labs has built consumer trust in its quality standards, regardless of brand-centricity.

Green Point Labs shapes the niche of marijuana by catering to quality consumers, which Malone says is often underserved. While many cannabis markets focus on bulk graded flowers and mid-tier products, she believes picky buyers are looking for higher standards.

“Serving this part of the cannabis community is not for the faint of heart, but for what we are here to do, and we are always pursuing the pursuit of being relevant and connected to our audience,” Malone said.

Malone notes that the company’s brand helps attract new customers to design, navigate and tell stories. But she stressed that lasting loyalty depends on the quality of the product itself, not the flashy packaging. “If the products don’t execute, they won’t be fooled by flashy designs, and we don’t want them to be,” she said.

She added that the dynamics of marijuana are sharper than those of other consumer-packaged merchandise areas such as beer, liquor and skin care, where individual brands sometimes bring more weight.

Both products and brands can be an advantage

For retailers, the difference in products is important. If shoppers are more loyal to the product than brands, through promotions, product placement and pricing, pharmacies can gain leverage in turning to purchase.

Stocking the right combination of formats, including flowers, pre-rolls, food, beverages, vapes, is more important than catering to any single brand. Retailers who can expect consumer intent and meet with reliable inventory are more likely to win duplicate business.

For brands, the challenge is different. In an environment where consumers care more about effects and formats, rather than logos, this means trust is built over time.

This may be consistent with effectiveness and quality, innovative new products or with consumer value (such as sustainability or local production).

Companies that successfully break down brand loyalty are often those that combine strong product delivery with storytelling.

“At the end of the day, it’s dealing with people,” said Vic Mensa, a Chicago-born musician, entrepreneur, actor and philanthropist. “Depending with people and creating things.”

“That’s difficult,” he Mesa. “It takes a lot of wit.”

Mensa will share marketing insights at MJBIZCON at 11 a.m. on December 3rd at 11 a.m.

As the industry matures, the balance between brand and product loyalty is likely to develop. Just as craft beer eventually establishes strong product categories and recognizable brand identity, marijuana may move in the same direction.

However, at present, product loyalty dominates. Consumers are buying experiences, not just names, and retailers who recognize this dynamic will be the best-suited retailers to guide the next phase of cannabis retail growth, namely the merger of product and brand loyalty.

As the market stabilizes, brands will have more room to invest in marketing, packaging and engagement. Differentiated experiences will begin to shape the way shoppers choose not only the product they want to buy, but also which brand they trust.

Over time, this may bring cannabis retail closer to the traditional CPG industry where product categories anchor decisions, but strong brands direct premium shelf space and long-term consumer loyalty.

You can contact Andrew Long at andrew.long@mjbizdaily.com.