The networking opportunities at trade shows are essential for small- and medium-sized businesses (SMBs) to grow and build strategic relationships. SMBs need alternative ways to meet new customers, sellers, and partners while in-person events are on pause. The upcoming Alibaba.com US Nutrition & Supplements Online Trade Show is the first of many online events to facilitate these critical connections. We spoke with Chief Customer Officer of PureKana Kathy Casey and Marketing Director of USA CBD Expo Nicole Beiner in this past week's virtual fireside chat to hear their thoughts on forming strategic partnerships in a digital world. You can find some of their advice below.

PureKana is one of the top ten brands in the CBD industry. Primarily a direct-to-consumer (DTC) brand built online, PureKana is migrating to an omnichannel environment — turning to other ecommerce platforms and brick and mortar businesses. USA CBD Expo is the largest CBD event in the US. Their last show was in mid-February, right before stay-at-home orders were issued. Now, USA CBD Expo is partnering with Alibaba.com to host the Alibaba.com US Nutrition & Supplements Online Trade Show while Kathy is a keynote speaker at the event.

How has COVID-19 affected your business?

Kathy (PureKana): Our brick and mortar business has been negatively affected because there is a lack of traffic. Consumers have moved online. So we've seen a lot of growth in our ecommerce business throughout COVID-19. Our sales are up 50%, but we've also seen an increase in conversion rates. Typically, our conversion rates are 3-5%. We're now seeing a 9% conversion rate. Consumer buying behaviors have changed. We plan to analyze these behaviors to inform our future decisions.

Nicole (USA CBD Expo): COVID-19 was detrimental to live events. It's changed our mindsets about everything — how to put on shows, creating contingency plans, and working from home to name a few. We're in a unique position now but have plans for in-person shows at the end of 2020 and into 2021.

How did you meet each other?

Nicole: We've built a strategic partnership together. A presenting sponsorship became available at our trade show in February. It was a little last minute, but we touched base with Kathy and she agreed to participate. We went through the list of marketing initiatives included in the sponsorship — billboards, radio ads, anything with the USA CBD Expo name on it also had PureKana. We over delivered because Kathy was such a great partner.

What are the benefits of forming strategic partnerships?

Kathy: The CBD industry is a competitive business with around 3,000 brands. It's difficult to separate yourself from the noise. Relationships with companies like USA CBD Expo help us get brand awareness. We're a lean company. We do some things extremely well, but we turn to companies in different areas when it is their specialty. We have a couple key partnerships. There is a digital company we use that drives us quality traffic. PureKana owns a part of it so it's a profit-sharing partnership. We have our own sales agency but use brokers too. These partnerships keep our footprint small in terms of assets but enable us to leverage the best thinking in the marketplace to move forward quickly.

Nicole: I agree with Kathy that profit-sharing partnerships work well. It incentivizes both parties. Sometimes companies don't want to give up any profit, but you gain so much more from it.

What advice do you have for SMBs looking to form strategic partnerships?

Kathy: I would start with a self-assessment. Take time to pause and ask yourself three questions:

1. Are there gaps in our company that we need to solve for because they are barriers to our success?
2. Are there areas we could benefit from acceleration and could we use another company to meet the needs of consumers faster?
3. What is our right to win? If we have a defined right to win going forward, is it still relevant in the new retail landscape? If not, what can present additional or different opportunities for our company?

This assessment will help you see where you need a partner. I would then go out and find the best partners and choose one that has similar values and aligns with your ideal outcomes. I would also suggest finding a few hand-picked partners and putting them on an advisory board. When I first started in the CBD industry, I worked with experts in supply chain, consumer insights, manufacturing, and marketing. I put them on an advisory board and spoke with them weekly. Any business, regardless of size, can pull together an informed advisory board. It just takes a little bit of time and research.

Nicole: Always go in with a win-win mentality. Any time I go into a partnership, it has to make sense for both sides. Never try to go in with an uneven representation. Look at it from different angles. Find a middle ground and think of unique ways to make the partnership work.

What about the Alibaba.com US Nutrition & Supplements Online Trade Show are you most excited about?

Kathy: We can't physically connect with buyers and sellers, so we need to figure out what innovation looks like. We're in a new normal. This will be a beta test for our team to learn from and go forward. I think it will be an efficient use of my time. I'll have the chance to communicate PureKana's story to all attendees. It's a quick point of connection. We hope to build some long-term relationships with attendees. They may purchase products from us or we can help each other build our brands.

Nicole: Genuinely, our whole goal as a trade show is to connect exhibitors with attendees. It made sense for us to partner with Alibaba.com on this to help push the industry forward. USA CBD Expo is focused on removing any negative connotations of CBD and making sure the right information is out there. Alibaba.com has been a great partner for us in the past and we're excited to work together on this.

All exhibitor slots for the Alibaba.com US Nutrition & Supplements Online Trade Show are filled, but you can still participate as a buyer.

Watch the full virtual fireside chat with Kathy Casey and Nicole Beiner here:

Watch our virtual fireside chat with Brian Beck, Enceiba Managing Partner and industry expert, to hear how your company can drive growth in revenue through ecommerce. He shares the importance of digital transformation and how to align selling channels to see even greater success. You can view our other virtual fireside chats here.

Never over promise when forming a strategic partnership. Clearly define your value and be transparent about what you bring to the table.