(AOF) – Bic has chosen for a period of three years to associate the image of its BIC Hybrid Flex rechargeable razors with three French rugby internationals (Romain Ntamack, Arthur Vincent and Matthis Lebel). Designed by Hungry & Foolish, the campaign is activated on YouTube, Instagram and Facebook in the form of videos, as well as in the press and in stores in the form of posters.
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Key points
– World number one in lighters with 55% market share, world number two in pens with 8% of the market and world number two in razors with 23% of the market;
– Defensive positioning with an offer of “quality products at the best prices, sales of €1.8 billion, split between pens (37%), lighters (39%) and razors;
– 26% of sales made in emerging countries (mainly in Latin America, Brazil being 2
th
group market), behind North America (43%) and Europe (31%);
– Business model combining capacity for innovation and an industrial integration strategy (91% of Bic objects produced in its factories), resulting in an operating margin higher than that of competitors;
– Capital locked in by the founding Bich family (46% of the capital and 60.1% of the voting rights), Nikos Koumettis chairing the 12-member board of directors, Gonzalve Bich being managing director;
– Solid balance sheet with, at the end of June, €1.8 billion in equity against €937 million in gross debt).
Challenges
– Horizon strategic plan: annual growth above 5% for stationery (Human expression), lighters (Flame for life) and razors (Blade excellence);
– Innovation strategy funded at 1.5% of turnover rich in 347 patents:
aimed at launching new products (9% of sales) and obtaining environmental benefits / accelerated by the Data-Driven Invention Lab using consumer data and by partnerships (Alty rewards for accelerating the pace of R&D through artificial intelligence…) / marked by excellence, 8% of sales coming from innovations less than 3 years old;
– 2025 environmental strategy “writing the future together”: 2030 vs 2019 objectives: 100% renewable energy and 50% reduction in CO2 emissions for scope 1 and 100% for scope 2 and 5% for scope 3 (suppliers) / ecocircularity with 100% recyclable packaging vs. 60% in 2021 and the offer of “sustainable” products (containing 50% recycled or alternative plastics), refillable pens and razors made from recycled materials / program buybacks of shares with an environmental impact;
– Expansion of markets through the subcontracting of high-precision blades for other brands or semi-permanent or temporary tattoos with the American InkBox;
– Reinforcement of the weight of e-commerce, to 10% of total sales.
Challenges
– Strong competition, particularly from Asia, in lighters (50% of the world market);
– Diversity of margins between divisions, with lighters remaining the most profitable and the main contributor to profits (70% in operations);
– Inflation in the cost of plastic materials, freight and energy, of €100 million in 2022: creation of strategic stocks, long-term contracts with suppliers and expansion of their number, increased use of recycled plastics, increase in prices and volumes;
– After a 15.5% increase in turnover on 1
er
semester, 2022 target increased by 10 to 12% growth in sales, increased operating income and free cash flow of more than €200 million.
The French beauty and hygiene market continues to decline
In recent years, the French have simplified their beauty routines, which has resulted in lower spending. According to Kantar, the weight of personal care and beauty in spending on consumer products has steadily decreased over the past five years, dropping below 10%. Thus in 2021, health and beauty expenditure accounted for 8.5%. For the NielsenIQ panelist, the development of telework penalizes the sector because teleworkers reduce their health and beauty purchases twice as quickly as the average French person. This trend is likely to continue in 2022. To this is added another negative factor: with inflation and the loss of purchasing power, the French will certainly carry out arbitrations in their spending, which could be at the expense of the hygiene-beauty.