Many traditional companies that are looking to create buzz like to present themselves as tech companies. Salad company Sweetgreen once said it acted more like a tech company than a food one. The New York Stock Exchange has also called itself a tech company and even Fortune Media has been known to whisper that it's a tech company that does journalism.
It's easy to understand why non-tech companies might want to hype their tech cred, considering the market love that actual tech companies like Microsoft and Nvidia receive in droves. But what claim can a maker of good ol' ballpoint pens, lighters, and razors make to be a tech company?
Gonzalve Bich, whose grandfather Marcel Bich founded Bic in 1945, acknowledges that while it may not fit the traditional definition of a tech company, Bic embodies the spirit of innovation that is often associated with tech giants. Bic's approach to technology may not involve developers and programmers, but it does involve a relentless pursuit of more sustainable materials for its disposable razors and innovative ways to extend the lifespan of its lighters, he says. To be fair, Bic's portfolio does include tech products, such as the cloud-connected, smart, and reusable notebooks made by Rocketbook, a company it acquired in 2020.
"We have a very rich legacy, and we honor the past, but then we talk about reinventing the future, whether it be through technical innovation or technological innovation," says Bich, who took the reins as CEO in 2018.
Bic, which trades on the Euronext stock exchange in Paris, has looked for growth by venturing into the world of temporary tattoos. Bich describes himself as a tattoo artist on his LinkedIn page and sported tattoos on his arm depicting waves when he met with Fortune). The company also plans to more than double the color options in its markers in a perhaps more modest display of innovation. Last year, net sales rose 9% (stripping out the impact of currency fluctuations) to hit 2.26 billion euros ($2.5 billion at current rates.)
"When you say tech company, if you mean a company turned towards the future, that's a definition I would apply," says Bich.
This interview has been edited and condensed for clarity.
Fortune: Your public relations touted Bic as a tech company. What case can the maker of pens and shaving sticks make that it's a tech company?
When you say 'tech company,' you mean a company turned toward the future, contemporary with its time, and maybe even a couple of degrees ahead of it. I think that definition would apply to us. We're honoring our rich legacy and then inventing the future. So we've made investments, like Rocketbook and tattoo companies, as well as technical innovation.
You sell pens in an age when people communicate by text and other digital means. Why the bullishness on writing tools?
The debate around the importance of handwriting was put to rest a while back. Experts around the world have all agreed that while we can't fight technology coming into our lives, the creativity and fine motor skills you acquire when you write early in life are critical to brain development. Also, we sell in about 160 countries, and not all of them have the technology we have. When we look at the growth we've had, a lot of it comes from developing markets. These are countries where people are still growing their purchasing power.
You call yourself a tattoo artist, and you've talked up Bic's tattoo business on earnings calls. Can this ever be more than a niche market?
In the last 30 years, you've seen the normalization of tattoos in plain sight. We are offering temporary tattoos that last a little more than two weeks. Most people walk into a tattoo store and see a wall full of options. They go on Google. They'll think, 'I haven't found my perfect tattoo,' and that's where temporary tattoos have come into their own. We offer a different level of permanence. This isn't a fad.
Bic mentions sustainability in its annual reports. But help me reconcile the idea of sustainability with the production and sale of disposable razors.
If you look at publicly available life cycle analyses of what you might call system shavers—those with a replaceable head—and our high-end disposable shavers, you'll find the biggest impact is at the end of life of the product. It's the water consumption during the shave (reduced when a razor works well since it shortens shaving time). The environmental impact of the disposal of the handle is a lot higher than our disposable one. In terms of packaging, we went from 20% of it being recycled to 80% last year. In our women's products, 40% of the handle is recycled, and you're going to see us go higher and higher.
So, where are we in the facial hair cycle? Lots of beards out there.
If you look at 150 years of grooming history, it comes up and down. We're now in a cycle of facial hair with remote work. On the other hand, body shaving has exploded over the last 20 years.
So many razor brands have emerged in the last decade like Harry's and Dollar Shave Club. What's Bic's differentiator?
We are number one or number two in the disposable razor segment, depending on the market. We launch exciting new products or update them. We were the first to change the handle of female razors to something ergonomic that allows ladies to shave in six different positions.
Let's talk about lighters. Cigarette use has declined sharply in the West, but is cannabis use helping you make up for that?
It's created some positive momentum, but it's not the stratospheric growth rate that some had predicted. We run these market studies and ask people what they use a flame for. Yes, people are smoking, but they are also lighting candles. In the U.S., the use of lighters for candles is equal to the use for smoking. In developing markets, there are other uses, such as boiling water to make it potable or for hygiene. Four years ago, as part of a strategic pivot, we rebranded this division from "lighters" to "flame for life" to reflect all the different usages. We also partnered with Snoop Dogg and Martha Stewart for marketing.
