BIC - 2019 Universal Registration Document
RISKS MANAGEMENT
Description and mitigation of main risk factors
Risks related to Consumer Demand and Growth
BIC is exposed to changes in consumer appetite trends for its products based upon consumer preferences and attitudes towards its products in all three categories – Stationery, Lighters, and Shavers. Global consumer trends can include: rise in digital stationery technology, tobacco use cessation, change in shaving habits. Level of risk: high Potential Impact on BIC: Examples of Risk Mitigation:
A lack of viable responses to the decline in consumer demand for all three business categories due to reduced usage of tobacco products, the shift in shaving trends, and the rise in digital stationery technology, would impact sales and profitability. Although the full impact of the Covid-19 epidemic is difficult to assess by the time this document is published, the Group should be exposed in several ways, notably in case of economic recession affecting consumer demand globally
Research & Development (R&D) focused on product innovations and • brand positioning to address the decline in consumer demand;
Adding enhancements to stationery products for adults; • Continued focus on sales growth in developing markets. •
Risks related to Retail Disruption and Consolidation BIC ® product sales may be adversely impacted due to the consolidation of retail customers via e-commerce and the potential decrease in pricing power related to retailers’ demand for lower pricing, increased promotional programs, direct to consumer channels. Level of risk: high Potential Impact on BIC: Examples of Risk Mitigation: Changes in consumer purchasing patterns may result in reduced pricing power through e-commerce channels. With a change towards e-commerce, a potential market share threat in terms of distribution ( i.e. , ease of finding BIC ® products on the e-commerce portals), which may cause a decline in BIC sales. Change in e-commerce purchasing trends by consumers to “need-driven” rather than “impulse buying”. Expand in e-commerce and strengthen omnichannel positioning, notably through “BIC 2022 – Invent the Future” transformation plan."
Although the full impact of the Covid-19 epidemic is difficult to assess by the time this document is published, the Group should be exposed in several ways, notably by customers’ reduced activity or store closures particularly in the Traditional and Convenience channels in affected countries
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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •
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