1 00:00:05,200 --> 00:00:06,640 Speaker 1: This is What the Flux. 2 00:00:06,720 --> 00:00:09,240 Speaker 2: I'm Brett and I'm Justin and it's Friday, the twenty 3 00:00:09,240 --> 00:00:10,040 Speaker 2: fourth of October. 4 00:00:10,119 --> 00:00:13,039 Speaker 1: Jasey Boy. The NRL's Penrith Panthers have taken over as 5 00:00:13,039 --> 00:00:16,000 Speaker 1: the most valuable sports club in Australia despite missing the 6 00:00:16,000 --> 00:00:18,800 Speaker 1: Grand Final this year, and that is according to consultancy 7 00:00:18,920 --> 00:00:24,079 Speaker 1: Brand Finance Australia. They've even out ranked Premiership winning Brisbane Broncos. 8 00:00:24,160 --> 00:00:26,320 Speaker 1: Now the Panthers are worth one hundred and twenty nine meal, 9 00:00:26,400 --> 00:00:28,520 Speaker 1: ahead of the Broncos at one hundred and nineteens and 10 00:00:28,560 --> 00:00:31,440 Speaker 1: for the AFL, Collingwood is still the most valuable brand 11 00:00:31,560 --> 00:00:33,680 Speaker 1: at one hundred and twenty seven mil plus. 12 00:00:33,680 --> 00:00:35,960 Speaker 2: Am. We are very excited that next week we're gonna 13 00:00:35,960 --> 00:00:38,800 Speaker 2: be kicking off What the Flux in Conversation. It's a 14 00:00:38,840 --> 00:00:41,720 Speaker 2: deep dive series with a range of business leaders from 15 00:00:41,760 --> 00:00:44,639 Speaker 2: around Australia talk about how they built their businesses, how 16 00:00:44,680 --> 00:00:47,640 Speaker 2: they lead and what gets them motivated to continue growing 17 00:00:47,840 --> 00:00:49,960 Speaker 2: day after days. To cracker of a series and you'll 18 00:00:50,000 --> 00:00:52,120 Speaker 2: be hearing from a special part of the Flux team, 19 00:00:52,360 --> 00:00:54,200 Speaker 2: the who will be joining us on that series. So 20 00:00:54,200 --> 00:00:56,440 Speaker 2: if you want to learn more about our business leaders, lead. 21 00:00:56,520 --> 00:00:58,720 Speaker 2: Make sure you keep your ears peeled. What the flux 22 00:00:58,760 --> 00:01:00,480 Speaker 2: in conversation started next week? 23 00:01:00,640 --> 00:01:03,680 Speaker 1: Three magnificent stories Today juzzy boy, let's do it for 24 00:01:03,720 --> 00:01:07,399 Speaker 1: our first Zip co, the asxis buy now pay lata company, 25 00:01:07,440 --> 00:01:10,319 Speaker 1: has seen its total transaction volume jump thirty four percent 26 00:01:10,360 --> 00:01:13,440 Speaker 1: for the last quarter as its US business really takes off. Gee. 27 00:01:13,480 --> 00:01:15,880 Speaker 2: Zip's been on that up and down roller coaster for years. 28 00:01:15,920 --> 00:01:16,959 Speaker 2: Be man, so tell me. 29 00:01:16,920 --> 00:01:19,760 Speaker 1: More so bit aboutground. Zip was founded in twenty thirteen 30 00:01:19,840 --> 00:01:22,319 Speaker 1: is one of the og buy now pay lata companies 31 00:01:22,319 --> 00:01:25,560 Speaker 1: in Australia, even slightly before after pay and Juzy Boy. 32 00:01:25,640 --> 00:01:28,600 Speaker 1: Since then, it's grown to over six million customers globally. 33 00:01:28,640 --> 00:01:30,720 Speaker 2: But it hasn't all been smooth sailing for Zip now. 34 00:01:30,840 --> 00:01:32,600 Speaker 1: At its peak in twenty twenty one, it had a 35 00:01:32,640 --> 00:01:34,560 Speaker 1: market cap of over nine billion dollars. 36 00:01:34,600 --> 00:01:36,640 Speaker 2: Wow, but today it's worth less than half of that. 37 00:01:36,720 --> 00:01:39,240 Speaker 2: But with its latest results, it's US business is giving 38 00:01:39,240 --> 00:01:40,920 Speaker 2: it a serious revival. 39 00:01:41,040 --> 00:01:44,240 Speaker 1: Arc yep, Get this. Zip reported total transaction volume or 40 00:01:44,240 --> 00:01:47,200 Speaker 1: TTV of almost four billion dollars for the quarter, which 41 00:01:47,280 --> 00:01:49,160 Speaker 1: is an increase of thirty four percent, and of. 42 00:01:49,080 --> 00:01:51,920 Speaker 2: That, two point nine billion came from the US which 43 00:01:52,000 --> 00:01:53,880 Speaker 2: grew fifty one percent year on year. 44 00:01:54,000 --> 00:01:56,240 Speaker 1: Now the Australia and New Zealand business for Zip only 45 00:01:56,280 --> 00:01:57,800 Speaker 1: grew nine percent. 46 00:01:57,560 --> 00:02:00,440 Speaker 2: And b Man Zip says the US business now contributes 47 00:02:00,480 --> 00:02:02,880 Speaker 2: over seventy percent of its total transaction volume. 48 00:02:02,880 --> 00:02:04,960 Speaker 1: And this is a massive shift for a company that 49 00:02:05,040 --> 00:02:07,280 Speaker 1: was once a purely Australian startup. 50 00:02:07,760 --> 00:02:09,120 Speaker 2: So what is the key learning here? 51 00:02:09,160 --> 00:02:11,320 Speaker 1: When the local markets tapped out, you've got to find 52 00:02:11,360 --> 00:02:13,519 Speaker 1: a new one to continue that growth. 53 00:02:13,880 --> 00:02:17,440 Speaker 2: Zip and after Pay both grew like wildfire in Australia. 54 00:02:17,480 --> 00:02:19,800 Speaker 1: But the truth is Australia's just too small to sustain 55 00:02:19,840 --> 00:02:20,840 Speaker 1: that kind of growth forever. 56 00:02:20,919 --> 00:02:23,960 Speaker 2: Yeah, we're talking twenty seven million people, so you'll eventually 57 00:02:24,240 --> 00:02:26,520 Speaker 2: run out of new shoppers. Zip went on a global 58 00:02:26,560 --> 00:02:29,240 Speaker 2: acquisition spree between twenty sixteen and twenty twenty two. 59 00:02:29,360 --> 00:02:31,640 Speaker 1: YEP. They bought buy Now pa La to provider Spotty 60 00:02:31,680 --> 00:02:33,800 Speaker 1: in the Middle East for twenty one million dollars and 61 00:02:33,880 --> 00:02:36,160 Speaker 1: Twist in Europe for one hundred and forty mil And 62 00:02:36,320 --> 00:02:39,639 Speaker 1: while some of Zip's overseas moves didn't exactly pay off, 63 00:02:39,680 --> 00:02:41,640 Speaker 1: they've managed to make it work in the US and. 64 00:02:41,639 --> 00:02:43,919 Speaker 2: The recent results show the US isn't just a side 65 00:02:44,000 --> 00:02:44,720 Speaker 2: hustle anymore. 66 00:02:44,800 --> 00:02:46,960 Speaker 1: No, it's basically the bulk of the business. 67 00:02:47,480 --> 00:02:51,359 Speaker 2: For our second story, Maya has redamped its loyalty program 68 00:02:51,480 --> 00:02:54,560 Speaker 2: to try and lure younger shoppers back to its stores. Yes, 69 00:02:54,720 --> 00:02:57,679 Speaker 2: Meyer is very gen x. So what's the story. Okay, 70 00:02:57,760 --> 00:03:00,519 Speaker 2: So Mayo's founded back in nineteen hundred and everything from 71 00:03:00,560 --> 00:03:02,000 Speaker 2: beauty and apparel to. 72 00:03:02,160 --> 00:03:04,720 Speaker 1: Tech and toys and homewere. But be man, it's been 73 00:03:04,760 --> 00:03:06,840 Speaker 1: a bit of a rough year for Maya. Yeah. After 74 00:03:06,840 --> 00:03:10,120 Speaker 1: announcing a major falling profit last financial year, Maya's share 75 00:03:10,160 --> 00:03:11,839 Speaker 1: price dropped thirty percent. 76 00:03:11,600 --> 00:03:13,799 Speaker 2: Through On top of that, it's acquisition of apparel brands, 77 00:03:13,800 --> 00:03:15,240 Speaker 2: which hasn't had the best start. 78 00:03:15,360 --> 00:03:18,480 Speaker 1: But now Maya is launching a completely revamped version of 79 00:03:18,520 --> 00:03:20,280 Speaker 1: the Maya One loyalty program. 80 00:03:19,919 --> 00:03:23,000 Speaker 2: Which already has over four point seven million active users 81 00:03:23,000 --> 00:03:23,720 Speaker 2: by Bla Baye yep. 82 00:03:23,760 --> 00:03:26,680 Speaker 1: The new program will have a tiered membership system. 83 00:03:26,360 --> 00:03:29,800 Speaker 2: And be man MEAs introducing their very own beauty reward 84 00:03:29,840 --> 00:03:30,519 Speaker 2: box as well. 85 00:03:30,560 --> 00:03:34,000 Speaker 1: And it's really all about enticing more loyalty from younger customers. 86 00:03:34,040 --> 00:03:35,680 Speaker 2: And I think I know another brand that's done that 87 00:03:35,720 --> 00:03:37,120 Speaker 2: pretty successfully, do you. 88 00:03:37,120 --> 00:03:39,320 Speaker 1: Juzzi boy? So I'm wondering what is the key learning here. 89 00:03:39,400 --> 00:03:43,400 Speaker 2: Loyalty programs drive higher shopping frequency and more spending from customers, 90 00:03:43,440 --> 00:03:45,440 Speaker 2: and that's why retailers need to get it right. 91 00:03:45,560 --> 00:03:48,200 Speaker 1: Get this one, Juzzi Boy. Meya's existing Maya one members 92 00:03:48,200 --> 00:03:51,360 Speaker 1: spend on average two point eight times more than non members. 93 00:03:51,000 --> 00:03:53,360 Speaker 2: So you can bet this loyalty program revamp is part 94 00:03:53,360 --> 00:03:56,280 Speaker 2: of their strategic move to keep new customers engage and 95 00:03:56,400 --> 00:03:58,400 Speaker 2: coming back for more and more and more now. 96 00:03:58,480 --> 00:04:01,600 Speaker 1: Maya says they're especially focus on customers under forty who 97 00:04:01,640 --> 00:04:05,080 Speaker 1: are quote very engaged in the beauty category and be man. 98 00:04:05,040 --> 00:04:08,080 Speaker 2: This beauty loyalty concept. It's not exactly stolen, but it's 99 00:04:08,120 --> 00:04:09,520 Speaker 2: maybe borrowed from someone else. 100 00:04:09,600 --> 00:04:12,000 Speaker 1: Yep. It does sound a little like Mecha's Beauty Loop 101 00:04:12,080 --> 00:04:13,680 Speaker 1: loyalty program, doesn't it. Juzzy Boy. 102 00:04:13,760 --> 00:04:15,840 Speaker 2: Yep, that's the one that gives customers a collection of 103 00:04:15,920 --> 00:04:19,119 Speaker 2: free beauty samples as well as experience based perks based 104 00:04:19,160 --> 00:04:20,480 Speaker 2: on their members loyalty tiers. 105 00:04:20,520 --> 00:04:23,120 Speaker 1: So instead of just buying a product, the loyalty program 106 00:04:23,120 --> 00:04:26,200 Speaker 1: makes members feel like VIPs and Nekka recently shared their 107 00:04:26,200 --> 00:04:29,120 Speaker 1: Beauty Loop program delivers an extra one point six million 108 00:04:29,200 --> 00:04:31,640 Speaker 1: visits to their stores and website each year, so it's 109 00:04:31,640 --> 00:04:34,000 Speaker 1: hardly a surprise that Maya wants a slice of those 110 00:04:34,040 --> 00:04:36,279 Speaker 1: sales to boost their shrinking profits. 111 00:04:36,480 --> 00:04:39,599 Speaker 2: For our third and final story, Football Australia has a 112 00:04:39,600 --> 00:04:42,480 Speaker 2: plan that would allegedly make it the most expensive sport 113 00:04:42,600 --> 00:04:45,080 Speaker 2: the gambling companies in Australia. 114 00:04:44,600 --> 00:04:46,880 Speaker 1: Would not have guessed that soccer could rank number one 115 00:04:46,920 --> 00:04:49,159 Speaker 1: in this department, Juzzy boy, So what is going on here? 116 00:04:49,160 --> 00:04:51,120 Speaker 2: It's a bit of background. The governing body of the 117 00:04:51,120 --> 00:04:54,240 Speaker 2: Matilda's and Soccer us is Football Australia YEAP, and recently 118 00:04:54,279 --> 00:04:57,240 Speaker 2: Football Australia has been negotiating behind the scenes with betting 119 00:04:57,320 --> 00:04:59,720 Speaker 2: companies in Australia. It's add corpse your sports bets, your 120 00:04:59,800 --> 00:05:02,080 Speaker 2: Enti which owns Ladbrokes and Neds brands as well. 121 00:05:02,160 --> 00:05:05,560 Speaker 1: Yep, they've been negotiating an agreement that allows gambling companies 122 00:05:05,600 --> 00:05:09,760 Speaker 1: to offer betting in exchange for a cut of betting proceeds. 123 00:05:09,800 --> 00:05:12,400 Speaker 1: The long story short, Juzzy Boy thinks of really dragged 124 00:05:12,400 --> 00:05:15,000 Speaker 1: and now it's understood that a dispute has emerged. 125 00:05:15,480 --> 00:05:18,880 Speaker 2: So now bookmakers including Ladbrokes, sports Bet and Tabcorp, are 126 00:05:18,880 --> 00:05:21,880 Speaker 2: removing the ability for some of their customers to gamble 127 00:05:21,920 --> 00:05:23,920 Speaker 2: on state based soccer competitions. 128 00:05:23,920 --> 00:05:26,200 Speaker 1: All right, So what is so controversial about the new 129 00:05:26,200 --> 00:05:27,560 Speaker 1: potential model here, jussy boy. 130 00:05:27,600 --> 00:05:30,080 Speaker 2: Well, under this new model, gambling companies will be required 131 00:05:30,080 --> 00:05:32,080 Speaker 2: to handle at one percent of turnover and up to 132 00:05:32,120 --> 00:05:35,679 Speaker 2: fifteen percent of gross products of gross profit, whichever is higher, 133 00:05:35,720 --> 00:05:37,880 Speaker 2: and that would be for each match or event that 134 00:05:37,920 --> 00:05:40,560 Speaker 2: involves an Australian soccer team. In fact, some betting companies 135 00:05:40,600 --> 00:05:43,720 Speaker 2: are allegedly threatening to pull a league gambling products all 136 00:05:43,800 --> 00:05:45,279 Speaker 2: together if this isn't resolved. 137 00:05:45,320 --> 00:05:46,839 Speaker 1: Well, so what is the key learning here? 138 00:05:46,880 --> 00:05:49,719 Speaker 2: The money that's sporting organizations make from betting companies is 139 00:05:49,720 --> 00:05:50,640 Speaker 2: called product fee. 140 00:05:50,680 --> 00:05:53,600 Speaker 1: That's a fee that betting companies pay and gives them 141 00:05:53,600 --> 00:05:57,200 Speaker 1: the license to offer betting to consumers on these sports. 142 00:05:57,240 --> 00:05:59,760 Speaker 2: And these product fees are common across all major Australian 143 00:05:59,760 --> 00:06:00,080 Speaker 2: sports tho. 144 00:06:00,360 --> 00:06:03,320 Speaker 1: Yeah, bookmakers have similar agreements with the NRL, the AFL, 145 00:06:03,400 --> 00:06:04,600 Speaker 1: the Australian Open. 146 00:06:04,400 --> 00:06:06,800 Speaker 2: For Context b Man. The AFL makes more than forty 147 00:06:06,920 --> 00:06:09,960 Speaker 2: million bucks a year in product fees from bookmakers. 148 00:06:09,440 --> 00:06:12,600 Speaker 1: And the NRL receives more than fifty million bucks annually. 149 00:06:12,279 --> 00:06:15,119 Speaker 2: And gambling sources reckon football Australia makes up to nine 150 00:06:15,120 --> 00:06:18,559 Speaker 2: million dollars over three years from bookmakers under the current model, 151 00:06:18,600 --> 00:06:21,719 Speaker 2: a number that could actually double under the new proposed changes. 152 00:06:21,760 --> 00:06:23,960 Speaker 2: But if this deal is adopted, it would make Football 153 00:06:23,960 --> 00:06:26,920 Speaker 2: Australia's product fees the highest in the country, much higher 154 00:06:26,920 --> 00:06:29,520 Speaker 2: than the percentage per dollar of turnover for the AFL 155 00:06:29,560 --> 00:06:32,320 Speaker 2: and NRL bucks. AM just a final reminder. On Monday, 156 00:06:32,360 --> 00:06:34,719 Speaker 2: we're can be kicking of our brand new series, What 157 00:06:34,839 --> 00:06:37,400 Speaker 2: the Flux in Conversation. We're gonna have three business stories 158 00:06:37,400 --> 00:06:39,719 Speaker 2: at the top and then a deep dive conversation with 159 00:06:39,800 --> 00:06:43,719 Speaker 2: business leaders, CEOs and major investors from across Australia. So 160 00:06:43,720 --> 00:06:45,320 Speaker 2: if you want to learn more about how the business 161 00:06:45,360 --> 00:06:48,000 Speaker 2: leaders in Australia think, act and feel, make sure to 162 00:06:48,040 --> 00:06:50,320 Speaker 2: listen to What the Flux in Conversation on Monday. 163 00:06:50,440 --> 00:06:53,120 Speaker 1: Thanks for listening and we'll see you on Monday.