to say hello even if you re not purchasing, or planning on purchasing.

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Jewel Leonard
5 years ago
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1 In 1849 there was the Gold Rush, and in 2017, we ve entered an entirely new and likely even more lucrative era: the Green Rush. The cannabis industry is expected to be worth $50 billion by 2026, with 25% growth year-over-year through To put this into perspective, the legal weed market is growing as fast as broadband internet in the 2000s. It s arguably the most high-growth industry in the country, expected to outpace the National Football League and organic food industry in less than a decade. And it isn t just the market opportunity that is appealing; the legal cannabis sector is projected to create more than a quarter of a million jobs by 2020 more than the expected jobs from manufacturing, utilities or even government job. In turn, companies in the industry are beginning to think more deeply about branding as a point of differentiation; through packaging, through logos and slogans, through design. There s apps, there s delivery services and there s even experiences. Yet with the advent of inspired entrepreneurial endeavors, one facet on the outskirts of the space has remained nearly untouched: the smoke shop. Although these establishments are purveyors of products intended for tobacco consumers, smoke shops are still considered taboo. While lifestyle brands have infiltrated nearly every industry, even those surrounded by societal stigmas think about Babeland and THINX the smoke shop has remained relatively stagnant since the 60 s, not straying far from its counterculture roots. Each retail operation is nearly indistinguishable from the next (comparable to the homogenous nature of corner bodegas). However, nestled in between 1st Avenue and 2nd Avenue, you ll find the East Village s most recent addition:, a one-of-a-kind store founded by could be grannies (their words, not ours). Zvia Eldar and Vered Behr opened with a single mission in mind: to create the type of smoke shop that didn t already exist. Putting brand first-and-foremost something quite different to their St. Marks counterparts a mere few blocks away the local establishment has quickly developed a loyal customer base, with most of their business sparked by word of mouth. It also doesn t hurt that earned a coveted (and well-deserved) spot on NY Mag s The Best of New York Shopping roundup. Featuring an assortment of products that look like works-of-art worthy of a front-and-center display on your mantel, and an atmosphere that provides an oasis from the hustle and bustle of New York City, it s no wonder that has become a neighborhood mainstay. However, there s something even more important that has contributed to the overwhelming positive response; Zviah and Vered, themselves. Between their contagious warmth and exuberant passion, it s hard not to walk by without stopping in

2 to say hello even if you re not purchasing, or planning on purchasing. Below, we talked to Zviah and Vered about cultivating community in the age of social media, the challenges of marketing in a taboo industry, and finding success against all odds. What were you doing before starting?

3 Zviah: I was a creative director, working on films, commercials, and branding for many years. And then I just had enough of working 24 hours a day, and began looking for something else to do; something that was creative, something that involved building a brand, something that combined everything that I was doing before. Vered: I was a jewelry designer. It was all one-of-a-kind pieces that I made by hand. It was great while it lasted, but [Zviah and I] decided that we needed to secure our retirement age, and be adult about our future. Zviah: We had fun for many years, and we began thinking, What s our next stage in life? What s the origin story of? What led to its founding? Zviah: We began exploring, and Vered had the idea because how do I say it she had more connections to the industry than I had. Vered: In 2016, every category of retail had a lifestyle store; but smoke shops, they were still all the same. I didn t understand why there wasn t a different smoke shop that existed. Zviah: Look at other smoke shops: there isn t a lifestyle; you can t touch the merchandise, you can t appreciate it, and I think there s also a distance between the seller and the buyer. We wanted to have more of a community feeling. Did you guys consider any other concepts?

4 Zviah: No, it wasn t like that; we didn t just decide, Let s do a business together. Vered: It was only this because it didn t exist. That was the idea: to do something that didn t already exist. Which you could also argue is risky because there is no information out there. We had to fight our way through because everybody else in the industry said, No, you cannot do that. Wow, really? Vered: We had a lot of issues. We heard a lot of You cannot do it and You do not understand. Zviah: A lot of No s. So every time we heard a No, we said, Okay, how do we solve it? How do we deal with it? And we re women. Yes, how is it being a woman in the industry? Zviah: I think it s more inviting; the clients love it I mean love it. It doesn t matter if they re men or women, young or old they feel more comfortable, and they don t feel intimidated to ask questions. And that was ultimately part of the vision: How do we make a comfortable environment? And how do we sell a lifestyle? We want clients to come back, we want to hear from them, and we want to understand the products that they bought if they liked them, what they liked and what they didn t like.

Vered: I think is more like what things used to be like. you know, a neighborhood shop? The type of place where people return, and you meet their grandchildren and their grandmothers.

5 Vered: I think is more like what things used to be like. you know, a neighborhood shop? The type of place where people return, and you meet their grandchildren and their grandmothers. Today, you go into store and nobody talks to you, or looks at you for that matter; you buy what you need, and you leave. There s no personal relationship anymore. We know about our customers. They share with us their stories, whether they had a good or bad day it s what it used be like. Zviah: Yes, it s more of a neighborhood shop. A lot of people come back. We were surprised from the beginning by how many clients are coming back and back and back or even just drop in to say hello. How did you raise the capital to open?

6 Zviah: We re self-funded. Vered: That was the other thing; we wanted to do things the old-fashioned way. We had a strict budget each one of us of what we were willing to put in. We went the extra mile to make it work; with displays, with merchandise with everything. Zviah: We didn t want to seek funding, go and get a loan, or ask friends or family. Vered: Because it would mean somebody else would control our decisions. And we already come from outside-the-box thinking. So that s how we did it. We said we were going to find a way to do it, and we did it. Against all odds. Zviah: Against all odds. Again, we heard so many No s. Vered: At all stages, too. Rent is crazy, You re not going to make it past three months, Who needs another smoke shop. Zviah: About everything. But, I think if you feel it in your heart and you know that it s right, it s right. Go after it. How did you approach the design and buildout of the space? Zviah: We started by looking towards other retail stores, and seeing what was already out there. We had a budget, and that was the budget we were going to work with; no more, and hopefully less. And we stuck to it. We knew that we wanted everything open. But again, people were like: What are you doing? Your products are all glass. We had to think out of the box. There were so many nights spent talking and just figuring it out. Vered: It wasn t like we were drawing up a plan it wasn t like that at all. We actually built most of it as we went along. The only thing we had custom-made was the counter. Zviah: I think since both of us come from a creative background, it was easy to have a vision; a vision of what we wanted to have and what we didn t want to have. There was a lot of thought put into the colors, and materials. There were a lot of things creatively that we saw eye-to-eye, which was lucky, because it could have been a mess. Vered: Also, the shape of the space it definitely wasn t what we were looking for, but we fell in love with it.

7 Zviah: We knew it was our store. How do you go about sourcing your merchandise? Zviah: A lot of legwork. Vered: We go the extra mile. We really do. Zviah: Even though something might sell, if it s not part of the vision that we have for the store, we won t put it in. And again, people said to us, You have to have that in the store. It s bread and butter. But, it doesn t fit our store, so we don t sell it. What challenges and opportunities result from working in a somewhat taboo industry? Zviah: I think the challenge is the marketing of it. Did you know that we can t use Facebook? Even though it s just a smoke shop?

8 Vered: Because it s a smoke shop. Zviah: You can have a Facebook page, but you can t advertise. Vered: We had trouble finding a register as well as insurance for the space. Most [companies] won t work with smoke shops. Zviah: There are so many things that were stacked against us because it is a taboo industry. That s wild.

9 Vered: But, we found a way. Zviah: We did but, it was a challenge. I mean, how do you market in a social world, if you don t have Facebook or Instagram? So, it is challenging. But, I think the whole thing ended up being okay. Instead, we decided to go Underground and focus on word of mouth. That s how we got included in NY Magazine for being one of the best shopping places in the city; the writer had heard about us and came in. So, you have to be the best at what you do, and know that you re doing the right thing. It s also important to look after your brand. Everything on Facebook and Instagram has to have the look that you want to be perceived as so that people will start talking about you. Vered: We gave them something to talk about. Zviah: Yes, and especially with the name. Yes, tell me more about the name. Vered: That s [Zviah]. Zviah: I d been in the industry, you know with branding? So my thought process was: well, first of all, we re not young Vered: We could be grandmas we could be. But, think of the future we can live up to the brand! Zviah: There are so many young people that live here so, we are sort of the grannies of the village. And we knew that people would talk about it; people would want to walk in and at least find out what was. It doesn t shout smoke shop. On the flipside, do you think there are any opportunities that come from working in a

10 taboo industry? Zviah: That s the whole thing we re surprising everybody. People are interested in learning why; they want to meet us and know the story behind. Vered: Also, I think because we opened it a few weeks after the election what happened is it became sort of a safe space for people to express themselves. I m very political. So, I always encourage discussion. And I began to realize how much people really want to talk about it. Also, I think this is something else that is coming back: people need more community than they used to because social media has isolated us to some degree they need more of a human touch. So, without us even thinking it I mean this would have been my dream but I didn t even think it would happen became that space. That s very true. A lot of stores are not so welcoming. Vered: Yes, and it wasn t even our plan it s just the way we are. It wasn t that we wrote out in our business plan: And will be a community space. Not at all. Zviah: I think we got it from people coming and telling us that Vered: Yes, it s not a given; not every store is like this. People don t even come to buy always they just come to talk, to check-in on something, or to tell us about something that they were going to see. It s nice, it s pleasant, it s human. It s what we need all of us.

15 What s your most effective marketing channel? Zviah: I think the most effective [marketing channel] is us. Vered: Yes and the merchandise. Zviah: Yes. But I think that it s more about how we welcome people and people do talk. Everyone tells us that they told their friends about us. We have so many people that are bringing their friends in. That s why I said it s kind of The Underground? Not The Internet Underground, but more of The People Underground. And that seems better than any social media marketing? Because it s building the foundation for something more long-lasting. Zviah: We don t want to be a trend. The idea is not being a trend. The idea was not going up and a year later disappearing. We want to be here we want to be part of the community. Did you come from a business background, or did you teach yourselves finances (balances sheets, cash flow statements, etc.) as you went?

16 Zviah: I knew a little bit about it. Before studying film, I studied a little bit of business administration, but I left after a year I hated it. I know how to read the numbers, and we have people that we can go to if we have questions. Vered: But then, you know it s really life? I don t have any business background nothing whatsoever. And this is where we re a little bit different: I don t believe in business. I mean we have a business plan but, no matter how prepared you are, reality eventually checks. So, you can have this beautiful business plan, but then it s reality. You sit with the numbers every day and every week and every month, and you see the expenses and the profit it s true you can go to school and learn whatever, but then it s reality. Since starting, do you think there s a lesson you ve learned that you would like to share with someone looking to start their own business? Zviah: Go with your passion. Vered: If you honestly believe you really believe in it and you really care about it and you want to go for it don t listen to anybody else. Live your life. Everybody is going to discourage you not to go and do something; because they ve done it, and they ve been there and they know. People will always be there to kill your ideas. And not because they are bad people, but because they had a bad experience we all come with our own traumas. Zviah: And our own personalities maybe other people would have done the same thing as us and it wouldn t have worked. Vered: I remember when we were starting and we had a meeting with our accountant. I said to him, If I was your mother, and I came up with this idea, what would you tell me? And he s an accountant he knows number and that s it. And he said, I would tell my mother to go for it. I see that you re so passionate about it. When he listened to us and believe us, we re not millionaires, we re on a strict budget he said, Yeah, you should do it. I see the passion. But he also said something else important: If the business isn t working, you need to recognize that and know when to stop investing. Zviah: That s a really good piece of advice. You can keep investing, and thinking things will

17 improve and then all of the sudden you ve lost your house. Vered: That s why I tell this story to people. This meeting was really helpful for us. Zviah: We were willing to hear his advice, and stick to it. And I think that is really when we decided to go for it. What s the 5-year vision for?

18 Zviah: Hopefully, more stores. Expanding within New York or Vered: International. We had a woman in from last week, and she loved it and said, Why don t you open a store in London? and I said, Why don t you open a store in London? You buy the rights from us, we ll help you set it up, we ll connect you but, it s gonna be yours. Zviah: That s why we re building the brand. We want to do it right. So, you ve built this store as an expression of who you are? Vered: That s exactly what it is and that s why it works. Because it s really us. We don t do anything that is foreign to us and that we don t relate to. Zviah: That s why we have our faces on our logo; we believe in who we are. Vered: We stand behind it. More from : Everyone s Talking About Lola 6 Instagram Tips for Small Businesses (by Small Businesses)

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