California-based cannabis producer and distributor Rodedawg International Industries, Inc. (OTC:RWGI), announced Wednesday that it has launched of its own TikTok Shop. The move came nearly two years after the company acquired Tree Moguls, a premium cannabis lifestyle brand based in Southern California.
Why It Matters
The company said the move is aimed at leveraging the e-commerce potential of TikTok, considering that it has over one billion active users worldwide. An analyst from Statista now predicts that e-commerce sales on TikTok Shop are projected to reach $11 billion by the end of 2024, the company said in a press release.
Rodedawg looks to expand its market reach which is planned to increase sales of its product lines.
The initial product offering is the all-natural Elixicure Topical Pain Relief cream.
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"Our Elixicure sales efforts began on Amazon.com and Walmart.com and since then the global e-commerce market has been experiencing rapid growth with TikTok Shop emerging as a major player," CEO Chris Swartz said. "Launching our TikTok Shop marks a significant milestone for Rodedawg as we continue to innovate and adapt to changing market dynamics."
What's Next
"The potential for online sales through TikTok Shop is immense, and we are thrilled to offer our high-quality, organic, and THC-free products to a broader audience," Swartz continued. "This initiative aligns perfectly with our goal of driving revenue growth and increasing shareholder value.
Cannabis And TikTok
One of the companies that benefited from marketing its cannabis products on TikTok is Nowadays. As highlighted by Benzinga's Nicolás Jose Rodriguez, Nowadays – co-founded by Justin Tidwell and Anthony Puterman – makes cannabis-infused spirits providing a light and buzzy experience without the effects of alcohol, is an example.
"By strategically positioning their product as a non-alcoholic alternative that offers a buzz without alcohol, Nowadays has successfully navigated the limitations of marketing cannabis products online, amassed a significant following on TikTok and gained over 50,000 subscribers and 15,000 orders in just 60 days," Rodriguez wrote in his 2022 story.
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Now read: Marketing Cannabis On Instagram And TikTok In 2022: Tips And Tricks To Make A Splash