1 00:00:05,240 --> 00:00:08,600 Speaker 1: This is what the flex I'm brand. I'm justin and Wednesday, 2 00:00:08,640 --> 00:00:10,000 Speaker 1: the third of September. 3 00:00:09,600 --> 00:00:12,600 Speaker 2: Jusey Boyd, the Trump family just made about five billion 4 00:00:12,720 --> 00:00:16,040 Speaker 2: US dollars in paper wealth after its new digital currency 5 00:00:16,320 --> 00:00:21,400 Speaker 2: WLFI aka World Liberty Financial launched publicly, kind of the 6 00:00:21,440 --> 00:00:25,319 Speaker 2: equivalent of an IPO for digital currencies. And boy of course, 7 00:00:25,360 --> 00:00:28,080 Speaker 2: this follows the trump Mean coin that launched in jam 8 00:00:28,120 --> 00:00:30,840 Speaker 2: this year and then the Millennia coin as well, both 9 00:00:30,880 --> 00:00:33,000 Speaker 2: of which have plummeted in price since. 10 00:00:32,840 --> 00:00:35,720 Speaker 1: Trumpet his family are getting that bag. The man they are. 11 00:00:35,880 --> 00:00:38,600 Speaker 1: Much of producers are getting that bag as well because 12 00:00:38,600 --> 00:00:41,360 Speaker 1: there is a major global much of shortage, and we 13 00:00:41,400 --> 00:00:43,600 Speaker 1: have done an awesome deep dive in the Flex app 14 00:00:43,600 --> 00:00:45,440 Speaker 1: talking about why there's been such a huge increase in 15 00:00:45,440 --> 00:00:47,639 Speaker 1: demand for mature, why there's a shortage, and where it's 16 00:00:47,680 --> 00:00:48,920 Speaker 1: going to go from here. So if you want to 17 00:00:48,960 --> 00:00:51,000 Speaker 1: learn more about the global much of shortage may shut 18 00:00:51,080 --> 00:00:52,920 Speaker 1: download the Flex app and check out the video. 19 00:00:53,040 --> 00:00:55,840 Speaker 2: Three gigantic stories today, Juzzy boy Let's do it for 20 00:00:56,040 --> 00:00:59,160 Speaker 2: our first. The Reject Shop is planning to rebrand its 21 00:00:59,160 --> 00:01:02,520 Speaker 2: stores into Dollarama stores as it pushes towards becoming a 22 00:01:02,600 --> 00:01:04,000 Speaker 2: super low priced retailer. 23 00:01:04,080 --> 00:01:07,720 Speaker 1: Wasn't it already kind of low price? Hallou can you do? Yeah? 24 00:01:07,760 --> 00:01:08,560 Speaker 1: Tell me what's going on here? 25 00:01:08,840 --> 00:01:11,440 Speaker 2: So the Reject Shop started in Melbourne in nineteen eighty 26 00:01:11,440 --> 00:01:14,640 Speaker 2: one as a retailer that sold discontinued lines of products 27 00:01:14,680 --> 00:01:15,800 Speaker 2: and factory rejects. 28 00:01:15,840 --> 00:01:17,720 Speaker 1: But over the years it's become a lot more than 29 00:01:17,800 --> 00:01:18,560 Speaker 1: just rejects. 30 00:01:18,720 --> 00:01:21,320 Speaker 2: It sells everything from snacks to party hats, to health 31 00:01:21,319 --> 00:01:23,039 Speaker 2: foods and cleaning supplies. 32 00:01:23,040 --> 00:01:25,880 Speaker 1: But beman, from late twenty thirteen to early twenty twenty five, 33 00:01:25,920 --> 00:01:28,640 Speaker 1: the Reject shops share price had plummeted more than eighty 34 00:01:28,720 --> 00:01:29,360 Speaker 1: three percent. 35 00:01:29,480 --> 00:01:32,240 Speaker 2: So in July this year, Dollarama announced his acquisition of 36 00:01:32,280 --> 00:01:34,839 Speaker 2: the Reject Shop for two hundred and fifty nine million dollars. 37 00:01:35,120 --> 00:01:37,240 Speaker 1: Man, if you're wondering who Dollarma is, that is the 38 00:01:37,280 --> 00:01:40,840 Speaker 1: nearly fifty eight billion dollar Canadian discounting behavior which has 39 00:01:40,880 --> 00:01:42,560 Speaker 1: a nothing of a five dollar promise. 40 00:01:42,600 --> 00:01:45,480 Speaker 2: Yep, it literally has nothing in store over five bucks. 41 00:01:45,520 --> 00:01:48,400 Speaker 1: And now the Reject Shop's new corporate overlord has revealed 42 00:01:48,440 --> 00:01:51,760 Speaker 1: its plans for a full scale transformation of the Reject Shop. 43 00:01:51,960 --> 00:01:54,640 Speaker 2: The Reject Shop's iconic name will eventually disappear and it 44 00:01:54,640 --> 00:01:56,680 Speaker 2: will be replaced by Dollarama branding and. 45 00:01:56,600 --> 00:01:59,360 Speaker 1: The Dollarma crew. It planted double the Australian store count 46 00:01:59,400 --> 00:02:01,520 Speaker 1: to seven hundred by twenty thirty four. 47 00:02:01,560 --> 00:02:04,680 Speaker 2: They're also planning to leverage dollar Arma's massive supply chain 48 00:02:04,760 --> 00:02:07,680 Speaker 2: to flight Australian stores with ultra cheap products. 49 00:02:07,360 --> 00:02:09,600 Speaker 1: And they man they're certainly trying to disrupt the market 50 00:02:09,639 --> 00:02:10,920 Speaker 1: with some price leadership. 51 00:02:11,000 --> 00:02:12,480 Speaker 2: So what is the key learning here? 52 00:02:12,560 --> 00:02:15,440 Speaker 1: Price leadership is most commonly when a company uses lower 53 00:02:15,480 --> 00:02:17,920 Speaker 1: pricing to reshape an industry. 54 00:02:17,520 --> 00:02:20,440 Speaker 2: It forces competitors to either follow suit or risk losing 55 00:02:20,480 --> 00:02:21,040 Speaker 2: market chare. 56 00:02:21,080 --> 00:02:23,720 Speaker 1: In Australia, We've seen Audi pull out the price leadership 57 00:02:23,760 --> 00:02:26,400 Speaker 1: against Coles and Woolies over the past two decades. 58 00:02:26,040 --> 00:02:28,000 Speaker 2: And of course I've seen Kmart do this to Big 59 00:02:28,160 --> 00:02:30,120 Speaker 2: W and ironically the Rejac shop too. 60 00:02:30,200 --> 00:02:32,600 Speaker 1: But now the Region Shop with its Dollarma might is 61 00:02:32,600 --> 00:02:34,680 Speaker 1: pulling out the unu reverse cards Kmart. 62 00:02:34,760 --> 00:02:37,400 Speaker 2: The danger for incumbents is that they can't always match 63 00:02:37,440 --> 00:02:39,799 Speaker 2: those prices without crushing their own margins. The goal for 64 00:02:39,880 --> 00:02:42,120 Speaker 2: dollar Ama would be to push out weaker players from 65 00:02:42,160 --> 00:02:42,600 Speaker 2: the market. 66 00:02:42,639 --> 00:02:45,400 Speaker 1: We know that Big W is already struggling after it's 67 00:02:45,440 --> 00:02:47,960 Speaker 1: thirty five million dollar loss for the last financial year. 68 00:02:48,080 --> 00:02:51,560 Speaker 2: So this price leadership is about resetting customer expectations for 69 00:02:51,720 --> 00:02:53,240 Speaker 2: what cheap actually looks like. 70 00:02:53,320 --> 00:02:55,960 Speaker 1: The real discount war has only just begun. Your move 71 00:02:56,040 --> 00:02:58,280 Speaker 1: next Kmart For our second story. 72 00:02:58,560 --> 00:03:01,320 Speaker 2: Rocked, the Aussie tech company, has been revalued by its 73 00:03:01,400 --> 00:03:04,480 Speaker 2: major investors to over seven billion dollars as it ramps 74 00:03:04,520 --> 00:03:06,040 Speaker 2: up towards a potential IPO. 75 00:03:06,200 --> 00:03:09,080 Speaker 1: Good Old Rocked aka the backstage crew of online shopping 76 00:03:09,320 --> 00:03:10,000 Speaker 1: tell me more. 77 00:03:09,919 --> 00:03:13,560 Speaker 2: So Rocked that is rokt is an Australian e commerce 78 00:03:13,600 --> 00:03:16,280 Speaker 2: software company that was founded by the former jet Star 79 00:03:16,400 --> 00:03:17,760 Speaker 2: CEO in twenty fourteen. 80 00:03:17,880 --> 00:03:20,919 Speaker 1: That's a website pop up that let's advertisers get exposure 81 00:03:20,960 --> 00:03:23,560 Speaker 1: to new customers via the partner websites. 82 00:03:23,760 --> 00:03:26,360 Speaker 2: So for example, if you purchase a flight with Jetstar 83 00:03:26,520 --> 00:03:27,760 Speaker 2: to Sydney. 84 00:03:27,440 --> 00:03:29,920 Speaker 1: Then boom rock slides in with as what a ca Hi, 85 00:03:30,080 --> 00:03:31,000 Speaker 1: how about a hotel deal? 86 00:03:31,240 --> 00:03:33,080 Speaker 2: Or what about a Hello fresh box that you may 87 00:03:33,200 --> 00:03:34,800 Speaker 2: never use but you'll forget to cancel? 88 00:03:35,160 --> 00:03:37,760 Speaker 1: And the man Rocked has been hugely successful because it 89 00:03:37,800 --> 00:03:40,560 Speaker 1: knows that the customer's buying intention is very high at 90 00:03:40,600 --> 00:03:41,800 Speaker 1: that moment of purchase. 91 00:03:41,920 --> 00:03:44,160 Speaker 2: The old credit card is already out in about and. 92 00:03:44,160 --> 00:03:46,520 Speaker 1: Clearly it seems to be working because Rock has seen 93 00:03:46,560 --> 00:03:49,040 Speaker 1: its revenue jump forty percent over the past twelve months 94 00:03:49,040 --> 00:03:51,520 Speaker 1: to five hundred million US dollars last year, and. 95 00:03:51,520 --> 00:03:53,920 Speaker 2: Now two of Rock's major investors have marked up the 96 00:03:54,000 --> 00:03:57,080 Speaker 2: value of their Rock stakes by over twenty eight percentile. 97 00:03:56,600 --> 00:03:58,960 Speaker 1: Yep, we're talking a markup from five point six billion 98 00:03:59,000 --> 00:04:00,800 Speaker 1: dollars to seven zo point two. 99 00:04:00,600 --> 00:04:03,640 Speaker 2: Bill and Juziboy. There are now whispers that a US 100 00:04:03,680 --> 00:04:05,560 Speaker 2: IPO is on the cards for Rock. 101 00:04:05,440 --> 00:04:09,680 Speaker 1: This year, especially after Figma's high profile and very successful float. 102 00:04:09,800 --> 00:04:11,080 Speaker 2: So what is the key learning here? 103 00:04:11,160 --> 00:04:13,840 Speaker 1: Going public isn't just about being ready, It's that whether 104 00:04:13,880 --> 00:04:15,120 Speaker 1: the market is receptive. 105 00:04:15,240 --> 00:04:17,520 Speaker 2: This is often referred to as the IPO window. 106 00:04:17,600 --> 00:04:19,960 Speaker 1: That's when investor appetite for growth stocks is hot and 107 00:04:20,040 --> 00:04:21,440 Speaker 1: companies rush to list. 108 00:04:21,480 --> 00:04:23,600 Speaker 2: Think the IPO boom of twenty twenty one when two 109 00:04:23,680 --> 00:04:25,600 Speaker 2: hundred and four companies listed on the ASX. 110 00:04:25,680 --> 00:04:28,120 Speaker 1: Compare that to twenty twenty four when just twenty nine 111 00:04:28,160 --> 00:04:29,680 Speaker 1: companies listed on the ASEX. 112 00:04:29,400 --> 00:04:33,040 Speaker 2: And Jazi boy. When market sentiments softens, IPO floats get shelved. 113 00:04:33,240 --> 00:04:36,359 Speaker 1: For example, Rocked actually paused its IPO plans in twenty 114 00:04:36,360 --> 00:04:38,680 Speaker 1: twenty two when tech valuations drop. 115 00:04:38,520 --> 00:04:41,760 Speaker 2: But Figma's enormous debut earlier this year has shown that 116 00:04:41,839 --> 00:04:43,440 Speaker 2: demand might be warming up again. 117 00:04:43,520 --> 00:04:46,520 Speaker 1: So for founders and investors, missing the IPO window can 118 00:04:46,560 --> 00:04:49,719 Speaker 1: mean years of waiting or listing at a discount, so 119 00:04:49,880 --> 00:04:53,080 Speaker 1: it's unlikely that rockt will miss its IPO window this time. 120 00:04:53,080 --> 00:04:56,000 Speaker 2: Are out for our third and final story. Out These 121 00:04:56,120 --> 00:04:59,760 Speaker 2: vegetable suppliers are facing court action over alleged price fixing. 122 00:05:00,160 --> 00:05:03,600 Speaker 1: An Aussi veggie cartel allegedly ganging up on Audi here, 123 00:05:03,640 --> 00:05:04,640 Speaker 1: so tell me more well. 124 00:05:04,640 --> 00:05:07,400 Speaker 2: Audi is the German supermarket chain that was founded in 125 00:05:07,560 --> 00:05:09,000 Speaker 2: nineteen forty six. 126 00:05:08,839 --> 00:05:11,280 Speaker 1: And first opened in Australia in two thousand and one, 127 00:05:11,320 --> 00:05:13,240 Speaker 1: but now has nearly six hundred. 128 00:05:13,040 --> 00:05:15,480 Speaker 2: Stores and Jesse boy. It quickly became popular for its 129 00:05:15,520 --> 00:05:17,560 Speaker 2: low pricing and weekly special buyers. 130 00:05:17,320 --> 00:05:19,080 Speaker 1: Yep, the only grocery store where you can pick up 131 00:05:19,080 --> 00:05:21,559 Speaker 1: your potatoes and a Plarty's machine in the same shop. 132 00:05:21,640 --> 00:05:24,719 Speaker 2: But now the a Triple C is investigating four of 133 00:05:24,760 --> 00:05:27,560 Speaker 2: Audi's veggie suppliers and what would that before be mad 134 00:05:27,760 --> 00:05:30,400 Speaker 2: well for allegedly working together to fix the prices of 135 00:05:30,400 --> 00:05:34,240 Speaker 2: broccoli cauliflower, iceberg, lettuce, and other veggies that are sold 136 00:05:34,320 --> 00:05:36,799 Speaker 2: to Audi. The A Triple C claims price fixing happened 137 00:05:36,800 --> 00:05:40,280 Speaker 2: in AUDI stores across three different states between twenty eighteen 138 00:05:40,360 --> 00:05:43,279 Speaker 2: and twenty twenty four, where these four veggie suppliers privately 139 00:05:43,279 --> 00:05:46,200 Speaker 2: agreed to submit the same price for their produce. 140 00:05:45,800 --> 00:05:48,359 Speaker 1: Instead of competing with one another, Bear and Square. 141 00:05:48,400 --> 00:05:50,039 Speaker 2: And this is a big no no, no, no no 142 00:05:50,320 --> 00:05:51,800 Speaker 2: in the A Triple C's eyes. 143 00:05:51,800 --> 00:05:54,120 Speaker 1: So the accused businesses could face fines of up to 144 00:05:54,160 --> 00:05:57,360 Speaker 1: fifty million dollars if they're found guilty after the investigation. 145 00:05:57,560 --> 00:05:59,040 Speaker 2: Razy, So what is the key learning here? 146 00:05:59,080 --> 00:06:01,400 Speaker 1: Price fixing is the idea the businesses who are supposed 147 00:06:01,440 --> 00:06:03,800 Speaker 1: to be competing with each other secretly agreed to set 148 00:06:03,800 --> 00:06:05,760 Speaker 1: the same prices for their products. 149 00:06:05,320 --> 00:06:07,039 Speaker 2: Instead of letting the market decide. 150 00:06:07,080 --> 00:06:09,920 Speaker 1: And this is considered anti competitive behavior because companies are 151 00:06:09,920 --> 00:06:11,640 Speaker 1: supposed to compete in a free market. 152 00:06:11,640 --> 00:06:14,720 Speaker 2: Competition leads to low prices, better quality products and services, 153 00:06:14,800 --> 00:06:16,600 Speaker 2: more choices for the en buyer. 154 00:06:16,760 --> 00:06:19,320 Speaker 1: So when so called competitors fix their pricing, it means 155 00:06:19,400 --> 00:06:22,440 Speaker 1: there's no real competition, so customers end up paying more 156 00:06:22,520 --> 00:06:24,479 Speaker 1: than they should. Back in two thousand and seven, the 157 00:06:24,520 --> 00:06:28,479 Speaker 1: atriple C investigated Australian paper recyclub Visy engaging in price 158 00:06:28,520 --> 00:06:30,320 Speaker 1: fixing behavior with its competitor am core. 159 00:06:30,480 --> 00:06:32,960 Speaker 2: Visy was found guilty and find thirty six million bucks 160 00:06:33,000 --> 00:06:34,440 Speaker 2: for its anti competitive behavior. 161 00:06:34,560 --> 00:06:37,600 Speaker 1: So, whether it's paper or produce, the atriple C is 162 00:06:37,680 --> 00:06:41,520 Speaker 1: not letting companies go lightly bluck. Fammucha has become one 163 00:06:41,560 --> 00:06:44,480 Speaker 1: of the most popular drinks at cafes all around Australia 164 00:06:44,560 --> 00:06:46,800 Speaker 1: and the world, and now it's based in a major 165 00:06:47,000 --> 00:06:49,200 Speaker 1: global shortage. You want to learn more about why, make 166 00:06:49,240 --> 00:06:51,080 Speaker 1: sure to download the Flux app and watch our deep 167 00:06:51,120 --> 00:06:51,600 Speaker 1: dive video. 168 00:06:51,640 --> 00:06:54,000 Speaker 2: Thanks for listening and we'll see you on Friday.