1 00:00:05,160 --> 00:00:06,600 Speaker 1: This is what the Flux. 2 00:00:06,680 --> 00:00:09,280 Speaker 2: I'm Bratt and I'm justin and it's Friday, the fourteenth 3 00:00:09,320 --> 00:00:09,920 Speaker 2: of November. 4 00:00:10,080 --> 00:00:12,440 Speaker 1: Well, well, well it is good to be back. Juzzy 5 00:00:12,440 --> 00:00:14,880 Speaker 1: Boy and Flux family. We hope you enjoyed our in 6 00:00:15,000 --> 00:00:17,400 Speaker 1: conversation series as much as we did, but now good 7 00:00:17,440 --> 00:00:20,000 Speaker 1: to be back. Get this one. The unemployment rate has 8 00:00:20,000 --> 00:00:22,760 Speaker 1: declined to four point three percent in October, down from 9 00:00:22,760 --> 00:00:25,040 Speaker 1: four and a half percent in September, and Juzzy Boy 10 00:00:25,120 --> 00:00:28,000 Speaker 1: economist reckons this means there won't be another interest rate 11 00:00:28,040 --> 00:00:28,960 Speaker 1: cut this year. 12 00:00:29,160 --> 00:00:31,920 Speaker 2: Not what mortgage holders wanted to hear. The man No Fox, Adam. 13 00:00:32,000 --> 00:00:33,840 Speaker 2: If you haven't checked your credit score yet this month, 14 00:00:33,960 --> 00:00:37,000 Speaker 2: now is absolutely the time. Each month your credit score changes. 15 00:00:37,040 --> 00:00:39,000 Speaker 2: It goes up, it might go down to depending on 16 00:00:39,120 --> 00:00:41,159 Speaker 2: how you've repaid your loans. So if you want to 17 00:00:41,240 --> 00:00:42,960 Speaker 2: check if your credit score is change this month, make 18 00:00:42,960 --> 00:00:44,280 Speaker 2: sure to go to make sure you go to the 19 00:00:44,320 --> 00:00:46,080 Speaker 2: Flux app and check out credit score. 20 00:00:46,159 --> 00:00:49,040 Speaker 1: Checkup three marvelous stories today Juzzy Boy, let's do it 21 00:00:49,080 --> 00:00:52,040 Speaker 1: for our first menu. Log has announced it will close 22 00:00:52,080 --> 00:00:56,080 Speaker 1: its Australian operations after tough competition from global giants has 23 00:00:56,160 --> 00:00:57,480 Speaker 1: crushed its local market share. 24 00:00:57,520 --> 00:01:01,160 Speaker 2: Did somebody say, men, you close, we all be men? So? 25 00:01:01,320 --> 00:01:03,960 Speaker 1: Menulogue was founded in Australia in two thousand and six 26 00:01:04,400 --> 00:01:08,200 Speaker 1: as a digital marketplace that connected customers with local restaurants 27 00:01:08,200 --> 00:01:09,240 Speaker 1: and delivery drivers. 28 00:01:09,240 --> 00:01:11,960 Speaker 2: And how iconic with the Menulogue adds with snoop Der, 29 00:01:11,959 --> 00:01:15,559 Speaker 2: doubleg and Katie Perry as well genuinely exceptional Juzzy Boy, 30 00:01:15,720 --> 00:01:18,240 Speaker 2: and at its peak in twenty fourteen, Menulog was the 31 00:01:18,280 --> 00:01:21,959 Speaker 2: big dog of Australia's online food ordering marketplace. Yeah, back 32 00:01:22,000 --> 00:01:24,240 Speaker 2: then it had around eighty percent of local market share, 33 00:01:24,240 --> 00:01:26,520 Speaker 2: but this all started to shift when US giants like 34 00:01:26,600 --> 00:01:29,640 Speaker 2: Uber Eats and door Dash arrived on Ozzie Shaw's yeap. 35 00:01:29,720 --> 00:01:32,760 Speaker 1: In twenty twenty two, Menulog's market share dropped to just 36 00:01:32,760 --> 00:01:35,080 Speaker 1: twenty four percent and they reported an annual loss of two 37 00:01:35,160 --> 00:01:36,720 Speaker 1: hundred and seventy five million dollars. 38 00:01:36,800 --> 00:01:39,679 Speaker 2: And by this year, Menulog's market share dropped even further 39 00:01:39,880 --> 00:01:41,280 Speaker 2: to below ten percent. 40 00:01:41,480 --> 00:01:44,560 Speaker 1: Despite Ozzie spending more on food delivery services. It seems 41 00:01:44,760 --> 00:01:47,560 Speaker 1: Menulogue could not keep up with bigger players from overseas. 42 00:01:47,600 --> 00:01:49,360 Speaker 2: So true, so what is the key learning here? 43 00:01:49,480 --> 00:01:52,520 Speaker 1: Market share is the percentage of total sales that a 44 00:01:52,600 --> 00:01:55,480 Speaker 1: company earns compared to all of its competitors in that 45 00:01:55,560 --> 00:01:56,280 Speaker 1: same industry. 46 00:01:56,360 --> 00:01:58,880 Speaker 2: Brands with larger market share are often more visible and 47 00:01:58,960 --> 00:02:00,360 Speaker 2: trusted by customers. 48 00:02:00,200 --> 00:02:02,880 Speaker 1: Which makes it easier to attract new customers and keep 49 00:02:02,880 --> 00:02:06,120 Speaker 1: your existing ones, and vice versa. In competitive industries, market 50 00:02:06,120 --> 00:02:09,200 Speaker 1: share can be the thing that makes or breaks a company. 51 00:02:08,840 --> 00:02:11,320 Speaker 2: And they man, it's especially tough here in Australia because 52 00:02:11,320 --> 00:02:13,359 Speaker 2: we've got a relatively small market. 53 00:02:13,480 --> 00:02:16,680 Speaker 1: Yep. If there are already two dominant companies, the smaller 54 00:02:16,720 --> 00:02:18,920 Speaker 1: players often get pushed out of the market altogether. 55 00:02:19,000 --> 00:02:21,000 Speaker 2: Hello Uber Eats, Hello door Dash. 56 00:02:21,040 --> 00:02:24,120 Speaker 1: That's right, Menulog isn't the first food casualty in the 57 00:02:24,160 --> 00:02:25,160 Speaker 1: food delivery game. 58 00:02:25,360 --> 00:02:28,560 Speaker 2: Nope. Foodora left Australia in twenty eighteen, and Delivery stopped 59 00:02:28,639 --> 00:02:30,320 Speaker 2: uprating in twenty twenty two as well. 60 00:02:30,120 --> 00:02:32,800 Speaker 1: And Jasie White. With Menulog shutting down, there's even less 61 00:02:32,800 --> 00:02:35,400 Speaker 1: competition in the Aussie food delivery scene. 62 00:02:35,160 --> 00:02:38,440 Speaker 2: Which could mean higher prices for all and fewer cheeky 63 00:02:38,440 --> 00:02:40,840 Speaker 2: discount codes for our second story. 64 00:02:41,000 --> 00:02:44,360 Speaker 1: Asx listed, drone Shield has seen it shares plummet by 65 00:02:44,400 --> 00:02:47,440 Speaker 1: about thirty percent after a major sell down from its leadership, 66 00:02:47,480 --> 00:02:48,200 Speaker 1: team leadership. 67 00:02:48,240 --> 00:02:51,200 Speaker 2: Cashing out altogether is not a good look. So tell 68 00:02:51,200 --> 00:02:51,680 Speaker 2: me what. So. 69 00:02:51,919 --> 00:02:55,320 Speaker 1: Drone Shield is ASX listed and it's an Australian defense 70 00:02:55,360 --> 00:02:59,840 Speaker 1: technology company that builds systems to detect and neutralize drones 71 00:03:00,040 --> 00:03:00,280 Speaker 1: and this. 72 00:03:00,200 --> 00:03:03,160 Speaker 2: Has become a bigger business around the world with defense 73 00:03:03,160 --> 00:03:05,480 Speaker 2: spending going up across many many governments. 74 00:03:05,520 --> 00:03:07,800 Speaker 1: The company was founded in twenty fourteen in the US 75 00:03:07,840 --> 00:03:10,240 Speaker 1: and listed on the ASX in twenty sixteen. 76 00:03:09,880 --> 00:03:12,680 Speaker 2: And since then its share price has gone pretty gangbusters. 77 00:03:12,760 --> 00:03:15,200 Speaker 2: In fact, it's up more than six hundred percent since 78 00:03:15,320 --> 00:03:16,480 Speaker 2: January twenty twenty four. 79 00:03:16,560 --> 00:03:18,080 Speaker 1: But the last couple of days have been a bit 80 00:03:18,120 --> 00:03:20,840 Speaker 1: of a crash landing for the Drone Shield crew. 81 00:03:21,000 --> 00:03:23,840 Speaker 2: Earlier this week, drone Shield had quite an embarrassing moment 82 00:03:23,880 --> 00:03:26,359 Speaker 2: where it had to withdraw its ASX announcement. 83 00:03:26,480 --> 00:03:27,560 Speaker 1: What happened there, j doesy boy? 84 00:03:27,639 --> 00:03:30,440 Speaker 2: Well, they excitedly announced a seven point six million dollar 85 00:03:30,680 --> 00:03:32,320 Speaker 2: US government contract and. 86 00:03:32,320 --> 00:03:34,399 Speaker 1: I believe it turned out to be an old order 87 00:03:34,440 --> 00:03:35,480 Speaker 1: mislabeled as new. 88 00:03:35,840 --> 00:03:38,840 Speaker 2: Right after that, drone Shield CEO sold nearly fifteen million 89 00:03:38,880 --> 00:03:42,160 Speaker 2: shares worth nearly fifty mil And he wasn't alone. Nope, 90 00:03:42,200 --> 00:03:44,640 Speaker 2: the drone Shield chairman sold more than twelve million dollars 91 00:03:44,640 --> 00:03:47,880 Speaker 2: for shares. Another director offloaded nearly five million dollars of shares. 92 00:03:48,080 --> 00:03:51,320 Speaker 1: Next minute, Drone Shield chairs dropped faster than a drone 93 00:03:51,360 --> 00:03:54,080 Speaker 1: losing signal. We're talking more than thirty percent. 94 00:03:53,840 --> 00:03:56,760 Speaker 2: Because investors started to under why Drone shield was talking 95 00:03:56,840 --> 00:03:59,480 Speaker 2: up at sales pipeline and leadership was cashing out at 96 00:03:59,480 --> 00:03:59,800 Speaker 2: the top. 97 00:04:00,080 --> 00:04:01,520 Speaker 1: Yeah, so what is the key learning here? 98 00:04:01,560 --> 00:04:05,120 Speaker 2: When insiders selled big chunks of stock, investors pay attention, 99 00:04:05,280 --> 00:04:06,560 Speaker 2: and not usually in a good way. 100 00:04:06,640 --> 00:04:10,120 Speaker 1: Does he boit director? Sales aren't automatically bad, but timing 101 00:04:10,120 --> 00:04:11,880 Speaker 1: and transparency really matters. 102 00:04:12,000 --> 00:04:15,120 Speaker 2: Yeah, that's because insiders usually have the best understanding of 103 00:04:15,160 --> 00:04:18,159 Speaker 2: the company's prospects, so a sudden or large sell off 104 00:04:18,160 --> 00:04:20,920 Speaker 2: can make investors wonder if management thinks the stock is 105 00:04:20,960 --> 00:04:23,960 Speaker 2: peaked or if future growth may be weaker than expected. 106 00:04:24,040 --> 00:04:26,479 Speaker 2: And we've seen this movie before, haven't we that we have? 107 00:04:26,680 --> 00:04:29,120 Speaker 2: Remember when seti is founder sold off a massive chunk 108 00:04:29,160 --> 00:04:30,719 Speaker 2: of his shares in twenty twenty two. 109 00:04:30,640 --> 00:04:33,760 Speaker 1: I do the stock plummeted about ten percent immediately because 110 00:04:33,760 --> 00:04:36,320 Speaker 1: investors lost confidence in the company's growth story. 111 00:04:36,680 --> 00:04:39,280 Speaker 2: So be man when leadership cashes out in big volumes. 112 00:04:39,279 --> 00:04:42,240 Speaker 2: It can create a mismatch between what management says publicly 113 00:04:42,440 --> 00:04:44,600 Speaker 2: or what their actions actually indicate. 114 00:04:44,320 --> 00:04:48,120 Speaker 1: And in markets, actions speak louder than ASX announcements. 115 00:04:48,279 --> 00:04:52,320 Speaker 2: For our third and final story, Kim Kardashian's shapewhere brand, Skims, 116 00:04:52,440 --> 00:04:56,000 Speaker 2: has just raised fresh capital at a five billion US 117 00:04:56,000 --> 00:04:56,719 Speaker 2: dollar evaluation. 118 00:04:56,920 --> 00:04:59,120 Speaker 1: Kimmy Kay has the midas touch does in Boy, What's 119 00:04:59,160 --> 00:04:59,600 Speaker 1: going on here? 120 00:04:59,600 --> 00:05:01,640 Speaker 2: So Skim is the shapewaar and the power brand that 121 00:05:01,720 --> 00:05:03,799 Speaker 2: was co founded by Kim kardashi. 122 00:05:03,360 --> 00:05:07,080 Speaker 1: In If I'm not mistaken, We're talking bodysuits, midwaisted shorts, 123 00:05:07,120 --> 00:05:08,040 Speaker 1: a bit of shapeware. 124 00:05:08,200 --> 00:05:10,280 Speaker 2: Oh, very well done, be Man, and the brand has 125 00:05:10,320 --> 00:05:12,680 Speaker 2: grown rapidly. In fact, it's on track to record over 126 00:05:12,760 --> 00:05:15,400 Speaker 2: one billion US dollars in net sales in twenty twenty five. 127 00:05:15,440 --> 00:05:17,760 Speaker 1: It also announced a big partnership with Nike earlier this 128 00:05:17,839 --> 00:05:20,240 Speaker 1: year under its new brand Nike Skims. 129 00:05:20,560 --> 00:05:23,000 Speaker 2: Very rich of name. Help with that one. 130 00:05:22,839 --> 00:05:25,440 Speaker 1: Jokes aside, though, juzzy boy, Skims has just raised two 131 00:05:25,520 --> 00:05:27,760 Speaker 1: hundred and twenty five million US dollars in a new 132 00:05:27,839 --> 00:05:30,840 Speaker 1: round led by none other than Goldman Sachs Alternatives. 133 00:05:30,920 --> 00:05:34,000 Speaker 2: And this investment value skims at a wapin five billion 134 00:05:34,080 --> 00:05:34,680 Speaker 2: US dollars. 135 00:05:34,720 --> 00:05:36,120 Speaker 1: All right, what do they need the money for? 136 00:05:36,200 --> 00:05:38,040 Speaker 2: Will they say they plan to use the cash to 137 00:05:38,120 --> 00:05:41,320 Speaker 2: expand its lines into apparel and activewear. 138 00:05:40,920 --> 00:05:43,960 Speaker 1: As well as double down on retail and international growth. 139 00:05:43,680 --> 00:05:46,039 Speaker 2: And be man. This is just another reminder of the 140 00:05:46,040 --> 00:05:49,520 Speaker 2: power of not just celebs endorsing brands, but celebs actually 141 00:05:49,560 --> 00:05:50,400 Speaker 2: owning brands. 142 00:05:50,480 --> 00:05:51,520 Speaker 1: So what's the key learning here? 143 00:05:51,720 --> 00:05:54,960 Speaker 2: Star power gives a brand a launch pad most startups 144 00:05:55,000 --> 00:05:57,400 Speaker 2: could never buy and juzzy boy, it's no surprise that 145 00:05:57,480 --> 00:06:01,279 Speaker 2: investment firms have been leaning into celebrity back to consumer 146 00:06:01,320 --> 00:06:04,520 Speaker 2: brands because the marketing power is baked into the business model. 147 00:06:04,600 --> 00:06:07,480 Speaker 1: Yep. With celebrities like Kim Kardashian, she launches a new 148 00:06:07,480 --> 00:06:09,680 Speaker 1: brand and it gets seen by her audience of hundreds 149 00:06:09,680 --> 00:06:12,440 Speaker 1: of millions of followers basically immediately. 150 00:06:12,320 --> 00:06:14,960 Speaker 2: And that means the brand can gain awareness and distribution 151 00:06:15,320 --> 00:06:17,200 Speaker 2: much faster than a traditional brand. 152 00:06:17,200 --> 00:06:18,760 Speaker 1: We've seen this trend before, haven't we. 153 00:06:18,760 --> 00:06:21,560 Speaker 2: We have Hailey beavers Road sold to Air Left Beauty 154 00:06:21,560 --> 00:06:23,280 Speaker 2: for around one billion US dollars. 155 00:06:23,440 --> 00:06:26,839 Speaker 1: Old George Clooney sold this tequila brand, Casamigo's to Diagio 156 00:06:27,000 --> 00:06:28,920 Speaker 1: for one billion US dollars. 157 00:06:28,560 --> 00:06:31,240 Speaker 2: And with Skims flagging their ambitions for an IPO in 158 00:06:31,279 --> 00:06:33,560 Speaker 2: the next couple of years, you can just see the 159 00:06:33,600 --> 00:06:36,480 Speaker 2: investors licking their lips and jumping on board right away. 160 00:06:36,600 --> 00:06:38,479 Speaker 2: Flux Sam, it is good to be back on the 161 00:06:38,520 --> 00:06:41,440 Speaker 2: pod talking three business stories every single day. If you 162 00:06:41,520 --> 00:06:43,480 Speaker 2: enjoy the pod like this, or you enjoy the pod 163 00:06:43,520 --> 00:06:45,719 Speaker 2: with our in conversations, please let us know. We won't 164 00:06:45,720 --> 00:06:47,640 Speaker 2: get feedback. You can give us a five star rating 165 00:06:47,680 --> 00:06:50,000 Speaker 2: and review and it will help us continue to improve 166 00:06:50,040 --> 00:06:52,039 Speaker 2: the pod as we go into twenty twenty six. 167 00:06:52,200 --> 00:06:54,440 Speaker 1: Thanks for listening and we'll see you on Monday.