Smoke Cartel sees market opportunity in the head shop and smoking accessories industry, ecommerce industry, and the cannabis industry. The Company has vertically integrated its operations in order to easily bring new products to both online retail and wholesale markets. We've seen the market experiencing rapid growth and we believe that it will require experienced and well-established companies to take the lead.
Head shop and Smoking Accessories Industry
In the past 20 years, the smoking accessories industry has experienced rapid growth and changes to the industry. Before this time there were very few glass pipes manufacturers. Now, according to a 2013 report from Headquest Magazine, smoke shops generate an estimated $10 billion in revenues annually in the United States, which is culled from data collected before most legalization laws had passed. The growth in the head shop and cannabis accessory industry has been rapid and is relatively new; there is not a lot of market research available right now. However, in our opinion, the demand for cannabis accessories is set to increase with the increase of the legal cannabis market.
Ecommerce: Online Retail and Wholesale Industry
Smoke Cartel’s business is conducted primarily through online commerce, which is increasing nationally and globally. The National Retail Federation (NRF) expects that online retail will grow 8-12%, up to three times higher than the growth rate of the wider retail industry.
In worldwide ecommerce sales, data from Statista anticipates a 246.15% increase in worldwide ecommerce sales, from $1.3 trillion in 2014 to $4.5 trillion in 2021. We believe The global market is shifting toward ecommerce because it offers wide product selection to consumers all over the country and the world. Ecommerce is an easier and more efficient process for most buyers and this includes the cannabis accessories market.
Statista’s data also shows that the B2B wholesale ecommerce market is worth 234.78% more than the B2C ecommerce sales. Their data shows that by the close of 2017, B2C ecommerce sales will hit $2.3 trillion worldwide while B2B ecommerce will reach $7.7 trillion. We believe Smoke Cartel’s expansion into wholesale B2B online sales adds significant value as the online wholesale market is growing at much faster rate than online retail.