"In fashion, I sold things to people that they didn't need. You don't need a beautiful bustier dress from Dolce & Gabbana, you want it, so it is about a want-based marketing," says Clement Kwan, co-founder of luxury cannabis brand Beboe, on the latest episode of the Innovators podcast by TheCurrent.
"In marijuana what we realized was everything was about the product. How high can you get? At what price? So we flipped the script," Kwan, who is a former executive at YOOX and Dolce & Gabbana, notes.
Beboe launched in 2017 at a time when cannabis consumption was riding high. Off the back of the growing wellness trend, consumers have become increasingly educated on the physical and mental benefits of the plant, and a series of new products and retail models have entered the market to respond to the demand. The plant has now been legalized for medicinal use in 33 US states, and for recreational use in 10. The country now accounts for 90% of the global legal marijuana trade, valued at $8.5bn.
For Kwan and his business partner, tattoo artist Scott Campbell, the ambition was to create the first luxury global cannabis brand, so its product design and marketing approach played a key role in helping destigmatize the plant and attract a more influential clientele.
By creating a desirable product that acted as a conversation starter, consumers would naturally become brand advocates, he explains. The approach has so far made Beboe stand out from the crowd, and earn the nickname of the "Hermès of cannabis", as coined by the New York Times.
During the conversation, Kwan tells TheCurrent's Liz Bacelar how he is applying his learnings from fashion into creating a desirable wellness and lifestyle brand, why education is the industry's biggest challenge, and what's next for Beboe's growing portfolio.