As Canada gears toward the legalization of marijuana, the industry is expected to generate sales exceeding $7bn next year, a Deloitte study said.
Deloitte said cannabis consumption would inflate by up to 35% once the landmark legislation to lift Canada's 95-year-old prohibition on recreational pot is approved.
The report said current cannabis consumers would likely shift two-thirds of their purchases to legal channels even if they have to pay up to 10% more per gram post-legalization.
Deloitte partner and cannabis national leader Jennifer Lee said consumers can be swayed to ditch illegal purchases with the right combination of quality, price and safety.
"Cannabis companies will need to have secure supply chains to protect the quality and integrity of their products, and retailers will need to meet consumer expectations, including providing a positive, engaging retailing experience and protecting the privacy of their customers, especially online,” Lee explained.
On the part of the government, it has to set in place strategies to ensure that the industry blossoms in a safe, healthy, secure and well-regulated environment. There should also be efforts to help erase the stigma surrounding cannabis use.
With this, it is important for cannabis players to employ retail fundamentals in which they have to view customer insight and data as critical part of their development strategies.
Just last week, the Senate approved the proposed legislation allowing the recreational cannabis and introduced several amendments.
According to the Toronto Star, one of the amendments allows provinces to ban home cultivation of cannabis if they decide to do so. Currently, the bill permits a household to have at most four marijuana plants.
Another proposed change to the bill concerns advertising by cannabis companies. Under the Senate's version of the bill, pot firms are prohibited to promote their brands on T-shirts and ball caps.