Thailand, after amending the Drug Act, surprised the cannabis industry and became the first Asian country to legalize the sale of this commodity. This is an opportunity for companies and retailers to do business legally and expand their markets. Companies that grow, produce, sell, and distribute cannabis plants or preparations for certain uses will be licensed. Therefore, they are expanding the market through multi-channel sales to meet the needs of customers everywhere. This both creates development potential and helps maximize revenue for sellers. In this article, we would like to analyze the cannabis companies in Thailand after the legal shift.
Overview of the cannabis market in Thailand after the legal shift
The cannabis companies in Thailand are attracting interest from companies large and small in the country, with huge amounts of investment. The Food and Drug Administration of Thailand has changed the laws on cannabis and hemp. They will be removed from the list of class 5 drugs and operating a legal cannabis-related business in the country can be done with a registered license. This legal change makes Thailand the first country in Southeast Asia to legalize cannabis, attracting the attention of businesses who see it as an opportunity.
The market becomes more exciting when there is the presence of big players in the retail industry investing in. They proceed to grow cannabis in a large area. In the quantities harvested, companies seek to extract the essence of the plant and sell it to drug, food, and beverage manufacturing customers. The market value of cannabis-related businesses is estimated at 31.8 billion baht this year and is expected to grow to 43 billion baht by 2025, according to the University of the Thai Chamber of Commerce. Not only in prepared products, other food items such as bread, cookies, and pizza can also be added in sufficient quantities.
Leading cannabis companies in Thailand after legal shift
The activities of cannabis companies in Thailand are vibrant. The country is not alone in relaxing cannabis laws. Therefore, it has cooperation with many different organizations around the world. This commodity and crop is accepted as a profitable agricultural crop for poor farmers and supports national tourism. Not only the presence of companies in Thailand, foreign companies and private individuals also participate in this market. However, the activities of the organizations seem to be limited. They only sell mostly in physical stores, with only a few companies choosing the right software solution to sell on the online marketplace. To start selling, an individual or organization needs to first apply for a business license. It is important that the products do not contain more than 0.2% tetrahydrocannabinol (THC).
When it comes to business strategy, cannabis companies in Thailand need to pay attention to their sales and marketing. After the legal shift was announced, the use of cannabis within the allowed level was legal in many fields such as food, medicine, and cosmetics. Due to increasing buyer demand, retailers need to rely on reports through inventory management and analytical data to import, produce and distribute accordingly. As for the marketing strategy, it can be difficult for businesses to advertise their cannabis products. The Thai government in particular and the governments in the Asian region in general have some restrictions on advertising and selling cannabis. Therefore, it is important for businesses to be aware of cannabis advertising limits and stay up to date with the latest policies. They need to be aware of existing advertising rules and advertise products accordingly within the limits of the restrictions.
Tips for cannabis companies in Thailand
One piece of advice for businesses that have, are or are about to enter this market is that researching the market carefully is important. The market analysis will allow businesses to collect the statistics and information they need about cannabis users in Thailand and determine their views on cannabis. Cannabis users’ purchasing behaviors, price preferences, and demographic data are also factors to consider. In addition, competitor or user experience analytics can also provide businesses with insights in terms of identifying industry niches. From there, the company can make business decisions, make the most accurate plans.
Furthermore, branding is a great way to differentiate a business from its competitors. A good brand creates a memorable impression on consumers and forms a favorable perception of the brand in their minds. Cannabis companies’ branding can make a significant impact on their business. It can change the way consumers perceive a business, forming familiarity and sympathy. The cannabis market and consumer preferences are constantly changing. Therefore, businesses should consider branding as a long-term process and they should evolve to catch up. Another tip is that the organization should appeal to the target customer about the legitimacy of the product and service. In the Thai market, there may be some people who don’t know about it and are afraid to use it. People may have a tendency or bad perception of the mislabeling of goods and services by cannabis businesses. This can possibly hurt businesses and reduce reputation. So, the seller needs to clarify the issues and direct the buyer to the positive.
To fulfill the above needs, companies need to find a POS solution that meets the needs and fits the market.
ConnectPOS is a point-of-sale (POS) system suitable for businesses in Thailand because it is first available in English and Thai languages. Cannabis companies in Thailand need the help of this solution to have a perfect selling process from order to payment. The software supports order management features to ensure that customer requirements are responded to quickly. In addition, with inventory management combined with centralized data, product and order data is managed on a single channel, anywhere. Sellers will have the correct decisions and appropriate strategies to maximize sales and profits. What’s more, customer programs from management support will help sellers to offer suggestions and support to buyers according to their previous transaction histories. Notably, ConnectPOS is able to divide inventory by product and sales into units of grams and packages to best suit customers. It also integrates with payment gateways to facilitate a safe, fast, and secure payment process.
Leading cannabis companies in Thailand have been actively participating in this market after the legal shift. The support of technology platforms coupled with the right business strategies helps organizations achieve better business results, and maximize revenue and profit. What’s more, it facilitates consumers to make purchases. If you are looking for a business support system for your business, feel free to contact us.
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