Environmental analysis – PESTEL
Political uncertainty has forced Philips to redesign their suppliers and supply chains in Europe. According to Independent’s report, due to Brexit, Philips will close its factory in Glemsford, England and move its operations to the Netherlands. This change will have a significant impact on Philips' development in the UK, such as the increases in transportation costs and tax. In the report, the CEO of Philips UK claimed that Philips still regards the UK as an important market and they will continue to invest in this market. According to Ernst & Young's statistics, 36% of their customers showed intention to move some of their UK business. This situation is influential in various industries in the UK. Philips' electric toothbrush business will face a more complex market.
According to forecasts, the size of the oral care market will continue to expand. The oral market is expected to exceed 40 billion dollars in 2021, of which electronic oral care will reach 7.2 billion. The electric toothbrush market will attract more investment and bring higher returns. Repeated purchases are an important feature of this industry. Toothbrushes is a kind of consumable products. People change their toothbrush about every three months. Electric toothbrushes are a replacement for traditional toothbrushes and have similar characteristics. Customers often purchase such products repeatedly. For companies, it is critical to have a stable customer base. After purchasing an electric toothbrush, many customers will purchase replacement heads of the same brand. Continuous consumption is an important way for companies to increase their profits.
The customer has inertia in the purchase of the toothbrush. For used brands, many people will buy again. Since the average price of manual toothbrushes is not high, consumers often do not spend too much time on analyzing before making a choice. Electric toothbrush users may take more time to collect product information due to higher prices and longer use cycles. In the family, family members often buy toothbrushes at the same time. This means that after the customer has a willingness to purchase, it is possible to purchase multiple electric toothbrushes for other family members. Many companies are aware of this feature and have designed different product combinations, such as couple electric toothbrushes.
Many studies have confirmed the effectiveness of electric toothbrushes. American dentists give professional gives advice about how to use toothbrushes properly. They explained the strength, angle and time of using the toothbrush. But it is difficult for both adults and children to adhere to the standard brushing method. Electric toothbrushes make this process simple. A number of studies have shown that after three months of use, those who use electric toothbrushes have a 21% reduction in plaque and a 11% reduction in gingivitis. The effectiveness of the...