Risks related to Consumer Demand and Growth BIC is vulnerable 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. Change in Consumer habits impacting BIC’s three categories were observed during the Covid-19 pandemic, including: shift to e-learning in Stationery; • increase in home-grilling in Lighters; • decrease in shaving frequency in Shavers. •
Research & Development (R&D) focused on product innovations and • brand positioning to address the decline and change in consumer demand; adopt a Consumer-lens to category expansion, adapt to shifting consumer • habits and expand in faster-growing creative expression and digital writing markets; continued focus on sales growth in Developing Markets; • increase total addressable 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. Serve consumers wherever they shop, including all channels from e-commerce to hyper markets, to Stationery stores to small Mom and Pop stores.
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”. Traditional and convenience stores were particularly affected by reduced activity due to total or partial store closures during the lockdown periods, implemented to fight against the Covid-19 pandemic.
Expand in e-commerce by covering the spectrum from Pure-Play e-retailers to omniretail customers and deploying our Direct To Consumer offer. Deploy strong displays in retail stores and strengthen SEARCH efforts in e-commerce to drive impulse purchases from consumers.
• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •