- CBD market projected to grow to $2.1 billion by 2020
- Large Asian-American market receptive to traditional Chinese medicine and nutraceuticals
- Cannabis Strategic Ventures combines brand experience with niche knowledge
Cannabis Strategic Ventures, Inc. (OTC: NUGS) is out to take a slice of the billion-dollar Asian Nutraceutical pie. The company recently cut a deal to acquire the Fitamins CBD brand (http://cnw.fm/LC8cm). Under the terms of the agreement, Fitamins will be distributing its vitamin and hemp-derived CBD formulations through a network of more than 600 wholesalers that serve the Asian-American market. Guided by a team that has developed two successful ventures, Cannabis Strategic Ventures will leverage its knowledge of this underserved market to provide value to both customers and shareholders.
As large as the Asian-American market is, it is often overlooked because many marketers are daunted by the communication challenges involved. Cannabis Strategic Ventures, on the other hand, is comfortable and familiar with the demographic. The company is led by Simon Yu, BBA, MBA, who holds the position of CEO. He is supported by Chris Young, who recently joined Cannabis Strategic Ventures as a board member (http://cnw.fm/7cDIP).
Young is the founder of Pure Applied Sciences, Inc. (PAS), which is now a subsidiary of Cannabis Strategic Ventures. He holds a JD from Southwestern Law and an MBA from the University of Southern California, and he has already built two successful ventures. First, he founded a women’s fashion brand, which was sold two years later. Second, he co-founded Coordinates Collection, a luxury jewelry brand that’s marketed to over 500 stores in 10 countries. After his second successful exit, Young moved on to become a strategy and branding consultant, developing consumer packaged goods (CPG) products for celebrity-led brands.
The Asian-American nutraceutical market appears to have a great deal of potential because of its immensity and historical characteristics. The Chinese segment of this large demographic numbered about five million in 2015, according to the well-respected Pew Research Center (http://cnw.fm/H2BVm), with an English proficiency rate of 70 percent, which highlights how important specialized knowledge of the culture is for a marketer. Most Chinese-Americans can be found in California, with 604,000 in Los Angeles, 519,000 in San Francisco and 194,000 in San Jose, but New York also has a substantial number (798,000 in NYC).
Chinese-Americans are also open to using nutraceuticals because of their exposure and familiarity with traditional Chinese medicine (TCM), which embraces herbal remedies. Moreover, TCM and nutraceuticals are receiving official support. No less a personage than China’s president, Xi Jinping, has been promoting TCM, calling it “the gem of Chinese traditional science.” He is urging practitioners to “push for TCM to step onto the world stage”, according to the Economist (http://cnw.fm/gbM3T). As a result, around 60,000 TCM treatment options have been approved by the government’s food and drug regulator, accounting for almost a third of China’s pharmaceutical market, the world’s second-largest.
The Chinese public has been welcomingly receptive. The number of patients visiting TCM hospitals and doctors has risen. In 2011, they accounted for 14 percent of health care; by 2015, they comprised 16 percent. It seems very likely that the CBD products being marketed by Cannabis Strategic Ventures will align with these cultural and historical trends.
For more information, visit the company’s website at www.CannabisStrategic.com
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