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The rising budget consciousness of its market meant that Bic’s market is expanding and this means that its market base is increasing particularly on its budget friendly reusable razors where it…
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Download file to see previous pages... A significant portion of the consumers in North America are Millennials who are dependent on their electronic gadgets in their daily lives. This trend has a negative impact to Bic because it undermines one of its primary products which are stationery, notebooks and pens. The trend says that the more the millennial market spends on electronics and gadget, the less they will spend to stationeries and pen which are Bic’s products. In addition, the pervasive use of gadgets also provided an alternative to Bic’s other traditional products which are coloring, drawing pencils, crayons and felt pens. They can now also be done in softwares such as photoshop, Corel Draw or other apps and this means reduction in demand and consequently, market share.
Other traditional products however such as sticky notes and writing pens (white board) will not be affected by the trend of increased use of gadgets. Their demand could even increase as their use are becoming popular in presentations and group meetings.
Another trend that could run counter to Bic’s profitability interest in the long run is its lighter market. At present, 40% of Millennials and 21% of adults may be smoker but this trend is going down. The increasing awareness for health and the ill effects of smoking will have negative impact on the demand for cigarettes and along with it is the decreasing demand for lighters which is Bic’s product. Various interests groups and advertising campaigns are increasingly becoming aggressive in convincing people to quit smoking. At present, many people are already trying to quit smoking or are resorting to e-cigarettes as an alternative. The figures are discouraging because 44% of men and women are already using e-cigarettes which have no use of Bic’s lighters. Either way, this does not spell good for Bic because it undermines its lighter products. ...Download file to see next pagesRead More
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