1 00:00:05,240 --> 00:00:08,000 Speaker 1: This is what the Flux I'm brand and I'm justin 2 00:00:08,119 --> 00:00:10,639 Speaker 1: as Friday, the sixth of September, Jesse boy, if you 3 00:00:10,720 --> 00:00:14,440 Speaker 1: feel like getting insurance on your TV sometimes costs more 4 00:00:14,480 --> 00:00:17,560 Speaker 1: than the TV itself, you, my friend, are not alone. 5 00:00:17,720 --> 00:00:20,159 Speaker 1: There's a new data from Canstar that shows that and 6 00:00:20,239 --> 00:00:22,840 Speaker 1: your premiums on home and contents insurance has gone up 7 00:00:22,840 --> 00:00:25,840 Speaker 1: by about fifteen percent or a lazy two hundred and 8 00:00:25,880 --> 00:00:28,120 Speaker 1: eighty six bucks in the past twelve month of. 9 00:00:28,160 --> 00:00:31,159 Speaker 2: Rooney's very exy. Speaking of insurance, b man, we have 10 00:00:31,200 --> 00:00:34,040 Speaker 2: a brand spanking new academy course in the Flux app 11 00:00:34,040 --> 00:00:36,440 Speaker 2: this month. It's eight rundown on everything, and I mean 12 00:00:36,600 --> 00:00:39,080 Speaker 2: everything that you need to know about insurance. We're talking 13 00:00:39,159 --> 00:00:42,080 Speaker 2: income protection insurance. We're of course talk a health insurance. 14 00:00:42,120 --> 00:00:44,080 Speaker 2: To make sure to check out the academy in the 15 00:00:44,120 --> 00:00:46,600 Speaker 2: Flux app this month to become an insurance guru. 16 00:00:47,479 --> 00:00:50,839 Speaker 1: Three protective stories today, Juzzy boy, let's do it for 17 00:00:51,000 --> 00:00:54,200 Speaker 1: our first. Coles is cutting two of its liquor chain 18 00:00:54,280 --> 00:00:56,640 Speaker 1: brands and it's going to fold them under the liquor 19 00:00:56,760 --> 00:00:58,760 Speaker 1: Land banner to grow sales. 20 00:00:58,480 --> 00:01:01,240 Speaker 2: Down down to brand. Sit down, bee man, So what's 21 00:01:01,280 --> 00:01:01,800 Speaker 2: going on? Here. 22 00:01:01,840 --> 00:01:03,920 Speaker 1: Well, Josie boy, have you ever noticed how right next 23 00:01:03,960 --> 00:01:06,320 Speaker 1: to a coal supermarket you'll often see a liquor Land 24 00:01:06,360 --> 00:01:09,039 Speaker 1: or a Vintage Sellers, or even even maybe a First 25 00:01:09,120 --> 00:01:12,679 Speaker 1: Choice Liquor Market I have. Well, that's because these three 26 00:01:12,720 --> 00:01:15,600 Speaker 1: brands are all owned by the one and only Coals. 27 00:01:15,319 --> 00:01:17,760 Speaker 2: And then man, when Coals release its annual profit of 28 00:01:17,760 --> 00:01:20,200 Speaker 2: over one point one billion dollars last week, it had 29 00:01:20,240 --> 00:01:21,560 Speaker 2: a little thorn in its. 30 00:01:21,400 --> 00:01:24,520 Speaker 1: Side, and that thorn is that its liquor earnings actually 31 00:01:24,640 --> 00:01:26,040 Speaker 1: dropped six and a half percent. 32 00:01:26,240 --> 00:01:29,400 Speaker 2: So now Coals announced it will scrap Vintage Sellers and 33 00:01:29,600 --> 00:01:30,760 Speaker 2: First Choice Liquor Market. 34 00:01:30,800 --> 00:01:33,800 Speaker 1: Apparently these two liquor brands have low brand awareness. 35 00:01:34,000 --> 00:01:37,800 Speaker 2: So now Vintage Sellers will now be known as Liquorland Sellers. 36 00:01:37,520 --> 00:01:40,120 Speaker 1: And First Choice Liquer Market will be known as Liquor 37 00:01:40,160 --> 00:01:44,040 Speaker 1: Land Warehouse. Cop that chemist warehouse, cop that harehouse warehouse. 38 00:01:44,720 --> 00:01:47,200 Speaker 2: So for Goals, the goal is to simplify the message 39 00:01:47,240 --> 00:01:50,360 Speaker 2: to consumers because right now they're run as three separate 40 00:01:50,360 --> 00:01:52,560 Speaker 2: liquor businesses under the same parent company. 41 00:01:52,600 --> 00:01:55,000 Speaker 1: Interesting, Josie boy, so what is the warehouse? 42 00:01:55,080 --> 00:01:55,200 Speaker 2: Key? 43 00:01:55,280 --> 00:01:55,720 Speaker 1: Learning here? 44 00:01:55,800 --> 00:01:59,160 Speaker 2: Brand consolidation can be a powerful strategy for companies that 45 00:01:59,240 --> 00:02:01,880 Speaker 2: own multiple brands within the same industry. 46 00:02:02,120 --> 00:02:05,120 Speaker 1: Rather than juggling multiple brand identities that compete for the 47 00:02:05,120 --> 00:02:08,919 Speaker 1: same market share, consolidating brands can streamline the whole experience. 48 00:02:08,960 --> 00:02:12,800 Speaker 1: We're talking Simplifying operations could be reducing costs from marketing 49 00:02:12,880 --> 00:02:16,440 Speaker 1: and staff, as well as creating a more unified customer experience. 50 00:02:16,480 --> 00:02:19,440 Speaker 1: Get this one. Currently, liquor Land, First Choice, and Vintage 51 00:02:19,440 --> 00:02:22,360 Speaker 1: sellers might all be running separate promotions on the same 52 00:02:22,480 --> 00:02:25,160 Speaker 1: six pack of Corona in the same darn week. 53 00:02:25,160 --> 00:02:27,799 Speaker 2: Or as they say, three different ways across three different 54 00:02:27,800 --> 00:02:28,920 Speaker 2: brands now Dasboy. 55 00:02:29,040 --> 00:02:31,720 Speaker 1: In the early nineties, Colgate Palmoliv had acquired a heap 56 00:02:31,720 --> 00:02:34,520 Speaker 1: of household products and then they cut twenty five percent 57 00:02:34,560 --> 00:02:35,600 Speaker 1: of their product range. 58 00:02:35,639 --> 00:02:37,840 Speaker 2: It's saved in twenty million bucks a year, but also 59 00:02:37,919 --> 00:02:40,680 Speaker 2: strengthened the market positions of the brands that remained. 60 00:02:40,720 --> 00:02:43,760 Speaker 1: So with this consolidation, Coles is aiming to strengthen its 61 00:02:43,760 --> 00:02:44,720 Speaker 1: market position. 62 00:02:44,560 --> 00:02:47,440 Speaker 2: And ultimately drive better sales artcomes as well. 63 00:02:47,560 --> 00:02:50,600 Speaker 1: For our second story, Country Road Group has reported a 64 00:02:50,639 --> 00:02:53,520 Speaker 1: sixty six percent drop in annual profit as it struggles 65 00:02:53,520 --> 00:02:56,679 Speaker 1: to find its feet after breaking away from David Jones. 66 00:02:56,440 --> 00:02:59,240 Speaker 2: Jeez country Roads clearly not taking this breakup well be then, 67 00:02:59,560 --> 00:03:00,920 Speaker 2: so what the story here, well. 68 00:03:00,880 --> 00:03:03,360 Speaker 1: Jose Wait. Country Road Group is the fashion retailer that 69 00:03:03,400 --> 00:03:07,480 Speaker 1: owns the brands of Country Road and Mimco, Witchery, Tranery, 70 00:03:07,880 --> 00:03:10,320 Speaker 1: Your Boys, Politics Man. 71 00:03:10,440 --> 00:03:13,800 Speaker 2: The group is owned by the South African company Woolworth's Holding, 72 00:03:13,840 --> 00:03:16,359 Speaker 2: the company that also used to own David Jones. 73 00:03:16,120 --> 00:03:17,920 Speaker 1: Not the Aussie supermarket Wolworths, not. 74 00:03:17,800 --> 00:03:19,640 Speaker 2: The fresh food people of South Africa. 75 00:03:20,360 --> 00:03:23,360 Speaker 1: Country Road Group has just released its annual results and 76 00:03:23,440 --> 00:03:26,320 Speaker 1: reported that sixty six percent drop inprofit to fifty one 77 00:03:26,360 --> 00:03:27,840 Speaker 1: point three million bucks. 78 00:03:27,520 --> 00:03:29,520 Speaker 2: All while Country Road is in the middle of a 79 00:03:29,680 --> 00:03:32,880 Speaker 2: major workplace behavior scattled right now, yaikeriddies, But. 80 00:03:32,840 --> 00:03:34,960 Speaker 1: Jose Wait Country Road reckons that a big part of 81 00:03:34,960 --> 00:03:37,800 Speaker 1: its weak earnings was driven by Woolworth's selling off David 82 00:03:37,880 --> 00:03:39,400 Speaker 1: Jones in December twenty twenty two. 83 00:03:39,480 --> 00:03:41,600 Speaker 2: They reckon they lost out on a number of shared 84 00:03:41,640 --> 00:03:43,960 Speaker 2: services that they had with David Jones and as a result, 85 00:03:44,040 --> 00:03:46,240 Speaker 2: they've lost out on economies of scale too. 86 00:03:46,320 --> 00:03:48,120 Speaker 1: And right before I sneeze, Josey, wait, what is the 87 00:03:48,160 --> 00:03:48,760 Speaker 1: key learning here? 88 00:03:48,800 --> 00:03:51,160 Speaker 2: Economies of scale happen when a company is able to 89 00:03:51,240 --> 00:03:54,680 Speaker 2: spread its costs across more products and services. Yep, it's 90 00:03:54,720 --> 00:03:56,640 Speaker 2: kind of like buying in bulk. You end up paying 91 00:03:56,720 --> 00:03:57,600 Speaker 2: less per unit. 92 00:03:57,640 --> 00:04:00,520 Speaker 1: You see, Jose Wait, When Woolwort's Holdings owned both Country 93 00:04:00,600 --> 00:04:03,600 Speaker 1: Road and David Jones, the two companies benefited from economies 94 00:04:03,600 --> 00:04:04,000 Speaker 1: of scale. 95 00:04:04,040 --> 00:04:06,800 Speaker 2: They shared certain costs, this out same infrastructure, and it 96 00:04:06,880 --> 00:04:09,440 Speaker 2: reduced overall operating costs for both companies. 97 00:04:09,640 --> 00:04:12,000 Speaker 1: But since David Jones was sold, Country Road has been 98 00:04:12,080 --> 00:04:14,040 Speaker 1: left to bear those production costs on its own. 99 00:04:14,160 --> 00:04:16,640 Speaker 2: So it's not a major surprise. The Country Road Group's 100 00:04:16,640 --> 00:04:19,400 Speaker 2: operating profit margin fell from twelve point four percent last 101 00:04:19,440 --> 00:04:21,760 Speaker 2: year to just four point six percent in this year, 102 00:04:21,920 --> 00:04:24,400 Speaker 2: and b Man, we've seen economies of scale do wonders 103 00:04:24,400 --> 00:04:25,480 Speaker 2: in the supermarket sector. 104 00:04:25,600 --> 00:04:28,120 Speaker 1: In fact, Colson Woolies have argued that if they lost 105 00:04:28,120 --> 00:04:31,040 Speaker 1: their economies of scale, grocery prices would have to go up. 106 00:04:30,960 --> 00:04:33,479 Speaker 2: And clearly Country Road Group is finding out the hard 107 00:04:33,480 --> 00:04:34,279 Speaker 2: way right now. 108 00:04:34,440 --> 00:04:38,240 Speaker 1: For our third and final story, Canvas has jacked up 109 00:04:38,279 --> 00:04:40,279 Speaker 1: the prices on some of its product offerings by up 110 00:04:40,360 --> 00:04:42,520 Speaker 1: to three hundred percent if you don't mind Josie boy As. 111 00:04:42,560 --> 00:04:45,600 Speaker 1: Canvas plans for a potential listing in twenty twenty six. 112 00:04:45,839 --> 00:04:48,640 Speaker 2: What happened to Canva being Adobe's cheaper cousin? B Man 113 00:04:48,960 --> 00:04:49,520 Speaker 2: tell me more? 114 00:04:49,560 --> 00:04:51,560 Speaker 1: Well, we all know the story of Canvas. The Ossie 115 00:04:51,560 --> 00:04:54,000 Speaker 1: founded design software startup. 116 00:04:53,600 --> 00:04:55,960 Speaker 2: Started in Perth as a yearbook design platform and has 117 00:04:56,000 --> 00:04:59,360 Speaker 2: grown to over one hundred and seventy million active users worldwide. 118 00:04:59,000 --> 00:05:01,640 Speaker 1: And Joe boite can has already grown its valuation to 119 00:05:01,680 --> 00:05:04,280 Speaker 1: thirty nine billion bucks, which has made some Australian venture 120 00:05:04,279 --> 00:05:06,120 Speaker 1: capitalists a lot of muller. 121 00:05:06,279 --> 00:05:09,479 Speaker 2: Yet, first it monetized individual designs on the platforms one 122 00:05:09,560 --> 00:05:10,360 Speaker 2: buck per design. 123 00:05:10,440 --> 00:05:12,920 Speaker 1: Then it rolled out a premium account called Pro. Then 124 00:05:13,000 --> 00:05:15,599 Speaker 1: came Teams where you could collaborate with colleagues. Then came 125 00:05:15,600 --> 00:05:18,880 Speaker 1: a whole suite of products to compete with Microsoft. 126 00:05:18,279 --> 00:05:20,719 Speaker 2: And then of course the AI features, because are you 127 00:05:20,760 --> 00:05:22,839 Speaker 2: even in tech these days if you don't have AI? 128 00:05:23,240 --> 00:05:25,960 Speaker 1: So fair? Now Canvas has announced that it's Canvas Teams 129 00:05:26,000 --> 00:05:28,159 Speaker 1: product will jump in price by a wap in three 130 00:05:28,200 --> 00:05:29,120 Speaker 1: hundred percent. 131 00:05:28,839 --> 00:05:31,000 Speaker 2: And they claim it's because of their growing suite of 132 00:05:31,040 --> 00:05:34,479 Speaker 2: AI products they need to be paid for by somebody boy. 133 00:05:34,520 --> 00:05:37,440 Speaker 1: The incident has blown up with people threatening to defect to. 134 00:05:37,720 --> 00:05:39,960 Speaker 2: Adobe not Adobe. 135 00:05:40,360 --> 00:05:43,880 Speaker 1: These pricing changes will test Canvas price elasticity, So what 136 00:05:44,000 --> 00:05:46,640 Speaker 1: is the key learning here? Price elasticity of demand is 137 00:05:46,640 --> 00:05:50,000 Speaker 1: a concept that measures how sensitive buyers are to changes 138 00:05:50,000 --> 00:05:50,440 Speaker 1: in price. 139 00:05:50,520 --> 00:05:53,240 Speaker 2: If a product is elastic, a small increase in price 140 00:05:53,360 --> 00:05:55,400 Speaker 2: can lead to a significant drop in demand. 141 00:05:55,440 --> 00:05:56,760 Speaker 1: For example, airline tickets. 142 00:05:56,800 --> 00:05:58,560 Speaker 2: If the price goes up by five percent, but the 143 00:05:58,640 --> 00:06:01,560 Speaker 2: demand falls by tempers, the product is elastic. 144 00:06:01,640 --> 00:06:04,800 Speaker 1: When your ticket to Europe is tipping three thousand bucks, 145 00:06:04,800 --> 00:06:07,920 Speaker 1: you're starting to think about maybe mikinosk can wait until 146 00:06:08,000 --> 00:06:08,560 Speaker 1: next year. 147 00:06:08,880 --> 00:06:11,760 Speaker 2: On the other hand, in elastic products see little change 148 00:06:11,760 --> 00:06:13,640 Speaker 2: in demand despite price hikes. 149 00:06:13,720 --> 00:06:16,560 Speaker 1: For example, petrol, if the price goes up by fifty percent, 150 00:06:16,600 --> 00:06:18,480 Speaker 1: we're not seeing fifty percent less purchases. 151 00:06:18,520 --> 00:06:21,000 Speaker 2: So aman it'll be interesting to see if Canvas users 152 00:06:21,040 --> 00:06:24,320 Speaker 2: perceive the new generative AI tools as essential. 153 00:06:23,880 --> 00:06:26,799 Speaker 1: Which could see demand remain stable even with higher prices. 154 00:06:26,800 --> 00:06:30,560 Speaker 2: Fox amm Homan Contents, Insurance, TPD, life, insurance. All the 155 00:06:30,680 --> 00:06:33,919 Speaker 2: sexy words you've never understood is all captured in a 156 00:06:34,000 --> 00:06:36,760 Speaker 2: nice little package in the Flex Academy. This month, it's 157 00:06:36,800 --> 00:06:39,039 Speaker 2: the Insurance Academy that we take you through everything you 158 00:06:39,080 --> 00:06:40,920 Speaker 2: need to know about insurance. To make sure to check 159 00:06:40,960 --> 00:06:42,320 Speaker 2: it out in the flex out this month. 160 00:06:42,360 --> 00:06:44,400 Speaker 1: Thanks for listening and we'll see you on Monday.