Diversification For The Future? How iPower Hopes To Fill Value Gaps In The Marketplace

In 2021, iPower Inc. IPW joined companies such as GrowGeneration Corp.  GRWG and Hydrofarm Holdings Group Inc. HYFM as a publicly traded company known for hydroponic equipment.

However, many people may have missed what other capabilities iPower brings to the table. According to iPower leaders, the company possesses a strong competence in hydroponics, e-commerce, supply chain, market research, merchandising and operational/channel expertise. 

These may seem like unrelated capabilities, but according to iPower leadership, they all stem from one strength: software and data. 

This diversification of capabilities may provide iPower with the agility necessary to avoid being tied too closely to any one industry — an example of this might be the recent struggles in the cannabis industry.

In January 2022 the AdvisorShares Pure US Cannabis ETF, which tracks how well the cannabis industry is doing in the U.S., fell nearly 20%. While drops in different agricultural industries such as cannabis could be concerning to hydroponics companies, iPower’s leadership is confident the company is effectively diversified to avoid the negative effects of such road bumps in industries. 

An example of this diversification is iPower’s expansion into different at-home product categories such as home ventilation equipment and storage/shelving units. 

Both home ventilation and storage/shelving units are examples of product categories that originated in iPower’s hydroponics line but were repurposed because of the significant category crossover potential company leadership saw in the product lines. This flexibility reportedly enables iPower to expand the company’s total addressable market into non-hydroponics categories such as commercial warehouse fans, garage fans, in-home fans and shelving.

iPower’s leadership has an approach to product development that they believe allows them to realize and act on growth in the at-home product category to fill value gaps in the marketplace. They believe this growth will be a trend that continues into the future.

Beyond hydroponics and at-home products, iPower has also diversified its portfolio via multiple joint ventures.

According to iPower leadership, the company’s success in hydroponics is an exciting achievement, but it has not taken away their excitement for the diverse product categories they are actively pursuing now.

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Featured photo by Richard T on Unsplash