This DTC eCommerce brand specializes in customizable paint-by-numbers kits & accessories, allowing customers to upload a photo on the website to create a kit. The company offers pre-picked photos that have been turned into paint-by-numbers kits, custom puzzles, key chains and paint supplies. Engaging in artistic activities like painting can have significant therapeutic benefits and this company offers an outlet for self-expression and creativity. Minimal effort has been made in digital marketing, and with the ability to explore untapped demographics besides couples, influencer marketing campaigns, Amazon, and affiliate marketing, this brand could quickly expand its customer base.
The company uses a simple inventory model with products sourced in China. Payments are made weekly to the supplier. The business requires minimal working capital and is easy on cash flow.
MARKETING AND KEY METRICS
The brand currently focuses on direct response TikTok ads focused on couples, as it has proven most lucrative.
There are multiple opportunities for growth including increasing social media advertising and posting quality content regularly, user-generated and curated content, exploring untapped demographics besides couples, influencer marketing campaigns, and expanding to secondary sales channels like Amazon and affiliate marketing.
AOV: $50, Monthly Visits: 180,000, Sales peak in Q4, peak around Valentine’s Day
The typical customer is based in the US, tends to fall into a younger demographic, and often purchases these products as gifts for a loved one.
BUSINESS MODEL & RESOURCES NEEDED
The owner works only seven hours weekly on the business, primarily managing ads, brainstorming new angles, and finding new media-buying solutions. Two full-time employees work as a CSR and video editor.
The arts and crafts vertical focuses on artistic activities that can have significant therapeutic benefits. The benefits of painting are not just for the final product but also for the creation process. This company provides an outlet for customers of all ages to get creative and express themselves. It targets all demographics and could appeal to schools, teenagers, adults, and those with pets.
OPPORTUNITIES TO SCALE
The company has tremendous scale potential with the ability to increase social media advertising, expand to Amazon, explore untapped demographics, and introduce affiliate marketing.
Asking Price: $742,000
Gross Income: $1,821,729
Cash Flow: $297,028
Year Established: 2020