Adult colouring related products were massive in 2015. Indeed, the trend started in late 2014, spiked by mid-2015 and spiked again later in the year.
Commencing in the UK, it next hit Australia. The second spike came as a result of US suppliers and retailers joining the party, late.
Looking back on the phenomenon, there are useful learnings I’d like to explore.
- Being an early adopter is important. Those who got into this space before the magazine publishers made the most money as it was high margin and high volume.
- Focusing on margin for a short life space product matters. Connecting with suppliers who are early-adopters was key as you could sell above RRP because pf product scarcity.
- Suppliers can wreck the party. While I didn’t mind some of the magazine publisher offerings, many were rubbish and not appreciated by customers.
- Late to enter competitors must wreck the party for their benefit. Publishers bringing out titles today, for low margin, ruined adult colouring as did supermarkets entering the space with crappy product.
- Understanding the whole opportunity helps you make the most. This is where overseas insights proved to be crucially in helping the most from early adoption.
- Have an exit strategy. Knowing when to pull back so you were not left with too much stock was essential.
- Traditional newsagency suppliers are likely to be late. And they were. Some ripped us off taking space and labour for product that came to market too late. They did not care about us.
- Be ready for extensions. We are seeing this now. Adult colouring and general colouring: greeting cards, wallpaper, place mats, socks, party mats, t-shirts, door decals, jigsaw puzzles and light fittings. I have seen all these and more being pitched at gift and toy trade shows over the last two weeks. Many will come to Australia.
While adult colouring will be a hobby for some for years to come, sales today are not what they were last year. Given this, many of are such that plenty of retailers are getting out, as the return they are achieving is insufficient.
Some suppliers are not done. We already have calendars in this space. Watch out for greeting cards, jigsaws, specialty journals and wrapping paper. While some of the additions could be valuable because of goos profit, others with a lower than 50% gross profit will be of dubious value.
For high interest trends we need to get in early, execute well, get out ahead of the curve and manage the amount of low margin product compared to fair margin product. We do this by being proactive. If an Australian supplier tells you about a trend you have not heard of before, it is likely you would be introducing the product after the trend has started fading overseas.
Footnote: I have seen plenty of adult colouring greeting cards, wrap and jigsaws at international trade shows over the last few weeks.