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Investing.com -- A former product manager from Adobe has recently spoken about the increasing competition Adobe is facing from Canva, particularly in the small and medium-sized business (SMB) sector. The ex-manager shared his insights with In Practise, a business analysis platform.
The former Adobe employee stated, "In my opinion, Canva is a bigger threat to Adobe because the whole SMB space is shifting to Canva. In Canva, you can do things you would do in Photoshop, Illustrator, and InDesign, all in one simple tool. Unless you need something very specific in terms of workflow, you might use Adobe desktop products. Otherwise, most people, especially those under 40, have shifted to Canva."
This shift in user preference is believed to have significant implications for Adobe’s market share in the SMB space. The former product manager noted, "This is crucial for the SMB space. In the SMB space, Adobe’s market is definitely being eroded. There’s no doubt about that."
He further identified the year 2021 as a turning point in the competition between Adobe and Canva. "I believe the division line was around 2021. When I was there, I was advocating for Adobe to switch to mobile and web platforms. However, Photoshop was still the cash cow at the time, so nobody really cared. But I would say 2021 was the division line," he said.
The comments suggest a growing challenge for Adobe (NASDAQ:ADBE) as it competes with Canva in the SMB sector, especially as younger users increasingly turn to the latter’s more streamlined, integrated offering.
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