It always amazes me how very different industries can have so much in common and learn from one another. Of course, this is not a new concept. Ford Motor Company once completely revamped how they stocked parts in their car factories after touring a large supermarket. It is called cross-industry (or unconventional company) benchmarking. In essence, it is noncompetitive companies sharing successful practices across all disciplines. I have seen it work dozens of times in my career, and I see another perfect example happening right here in the smoke/vape shop world.
In the early 2000s, the pet industry exploded. Pet ownership rose by 30%, and the industry went mainstream. Pet expenditures in the United States went from $20 Billion to $152 Billion in 2024 and are expected to hit $250 billion by 2030. No more little pet stores hiding in strip malls; now we have pet bakeries, boutiques, and megastores dotting the urban landscape. But despite the growth in spending and pet ownership, 2015 saw an interesting trend. Small stores were being bought and driven out of business by the burgeoning chains and pet supermarkets – and Amazon (currently the world’s largest seller of pet products). Pets became a growing, nay exploding industry, yet each year, there were fewer and fewer retail doors to support it. A complex trend that forced the smaller and older retail stores to rethink their business model in order to survive. Sound familiar? The same trend is occurring right now in the smoke shop world. So, what can we learn from pets?
With the pet trend having reversed again with more and more pet stores opening each day, we have a clear view of what happened and the formula the smaller stores used to succeed. The answer was simple yet difficult to implement. The winners created an experience for their customers and radically differentiated their product line. Lets examine each of those a little more closely, as I believe the same will hold true in our industry.
Create an experience. Get to know your customers. They cannot just be people who walk in and out. They are the lifeblood of your business. Get to know them. Communicate with them. Give them gifts on their birthdays and know their product preferences. My local pet store that I frequent often has a solid CRM that captures all kinds of information about me and my pet. They know what flavor treats my dog likes and recommend new brands of the same flavor when I check out. I can see the cashier asking me questions that are clearly promoted by their POS screen to get to know me better. And I tell them the answer each time. Why? Because each time I do, my experience in the store is more personalized. Do the same with your customers! Do they vape or still roll? Have they tried the new cryo-infused THCP? Do they use kratom, and why? There is so much information to collect. Ask questions and use the answers to make the experience in your shop personal and meaningful. Then, go beyond. Have in-store events, create a community. That could be classes or product demonstration days – be creative and fun with what your customers are looking for. As the world moves to online shopping, there are endless studies that show how consumers crave a personalized experience and human contact. Tap into that to create loyal and returning customers.
Curate your products. It is so tempting to carry the major brands and mimic the best sellers you find in all the stores around you. The argument I always hear is, “If I don’t sell the brand they are looking for, they won’t shop here.” Completely untrue and proven as well. People want different. They want unique products. They rely on you as the store owner to find new and upcoming brands, products with the same quality and better pricing, or just really cool new items. Be that ambassador and go outside the box. In the pet world, the ideal mix was 55% unique items and 45% best sellers. Go find your curated product mix that surprises customers and has them coming back for what is new.
