One year after its launch, London-based start-up Alphagreen has reinforced its position as Europe’s leading marketplace for CBD and alternative healthcare products
When it began trading in November, Alphagreen listed four brands offering 50 products and began with 211 page impressions. Six months later, the platform is populated with 100 brands that offer 1,200 products and now enjoys 10 million page impressions.
In an increasingly competitive market, Alphagreen’s point of distinction is the time and energy it devotes to audit and curate every listed brand and product. This allows the public to safely buy top quality products and services that have been reviewed and researched by healthcare professionals.
During its first year of operating, Alphagreen’s highlights include:
– sales rising 41% while gross revenue and orders both climbed 30%
– a rise in average customer value to £51.47
– the top selling products are sample kits, vapes, oils and patches
– most popular products are those related to wellbeing, self-care, anxiety and sleep … the most common time for a purchase is 2pm on Wednesdays
– brands beginning to diversify products on offer
– rising demand for B2B services from listed clients
“A sign of the sector’s maturity is the rising demand from brands and retailers for end-to-end solutions to address the specific pain points,” said Alexej Pikovsky, co-founder and CEO of Alphagreen. “For example, a significant number are beginning to expand into many SKUs to ensure their inventory is efficiently and profitably managed.”
“Another recent development is the trend to offer consumers a wider range of products. For example, some companies who’d previously only listed drinks are now launching CBD oils. They’re a more profitable online item than drinks – while drinks are much more popular in restaurants and shops, these points of sale have been badly affected by the pandemic.”
The emergence of the Covid-19 pandemic and resulting lockdown earlier this year in the UK and countries across Europe led to a spike in sales. However, Alphagreen remains confident this momentum will be maintained over the next 12 months.
“A direct impact of the Covid-19 crisis was an immediate surge in demand for a wide range of CBD products and other health goods such as vitamin supplements,” said Alexej Pikovsky.
“Looking beyond the horizon, we hold a bullish outlook for 2021 and are planning for a ten-fold expansion in both B2C and B2B sales. Next year we’re looking for revenue – excluding our medical cannabis operation – to reach £1.6m, with a key driver being the growth and expansion of our marketing services such as Display Ads, Analytics, Influencer Marketing, SEO, Creative Services, Product Insights and Translation.”
Next month marks the next stage of the company’s European expansion plan, with the launch of the platform in Sweden. And with a move into the US planned for Q4 2021, Alphagreen has also hired Connor Bruggemann, former Vice President of Revenue at Herb, to assist in its move into the world’s biggest market as head of business development.
“Connor’s recruitment is a real coup for us,” said Alexej Pikovsky. “He was an early investor in Herb, the leading cannabis media and tech company in the US, and our clients will benefit from the years of CBD marketing experience he brings to Alphagreen.”