1 00:00:00,200 --> 00:00:03,440 Speaker 1: Right back home. Bad news for the country's leading online 2 00:00:03,440 --> 00:00:06,439 Speaker 1: buy and sell website. Trade Me's written down the goodwill 3 00:00:06,640 --> 00:00:09,399 Speaker 1: value of its online marketplace from two hundred and seventy 4 00:00:09,440 --> 00:00:12,240 Speaker 1: five million dollars to one hundred and thirty seven million. 5 00:00:12,840 --> 00:00:15,920 Speaker 1: The reason for this has been given as a restrained 6 00:00:16,120 --> 00:00:19,880 Speaker 1: short term future growth for that part of trade Mean's business. 7 00:00:20,079 --> 00:00:23,240 Speaker 1: Bolang is a marketing professor at mass University and joins 8 00:00:23,239 --> 00:00:24,080 Speaker 1: me now Voda good. 9 00:00:23,960 --> 00:00:27,200 Speaker 2: Evening, Good evening, Ryan, How are you very well? 10 00:00:27,200 --> 00:00:29,840 Speaker 1: Thank you? So people basically aren't selling their stuff on 11 00:00:29,880 --> 00:00:31,720 Speaker 1: trade me? Is that what's going on here? 12 00:00:33,280 --> 00:00:35,640 Speaker 2: Yeah? I think there's effectively that so that I think 13 00:00:35,720 --> 00:00:40,440 Speaker 2: the company had to adjust its growth expectations and they're 14 00:00:40,520 --> 00:00:43,479 Speaker 2: just they're still the market leader, but that market leadership 15 00:00:43,560 --> 00:00:47,480 Speaker 2: is I think increasingly coming under threat. And so what's 16 00:00:47,520 --> 00:00:51,479 Speaker 2: happened is we've got more competition and as a result, 17 00:00:51,520 --> 00:00:53,800 Speaker 2: I think their growth expectations are just much lower, and 18 00:00:53,840 --> 00:00:57,480 Speaker 2: so that's why they've produced their their goodwill is face. 19 00:00:57,880 --> 00:00:59,840 Speaker 1: You know, there's Facebook marketplace that I know a lot 20 00:01:00,080 --> 00:01:03,360 Speaker 1: people are using, but are we buying less? You know? 21 00:01:03,440 --> 00:01:07,600 Speaker 1: Is it other secondhand outlets and online shops that we're 22 00:01:07,600 --> 00:01:09,559 Speaker 1: going to or is it actually that we're buying lots 23 00:01:09,600 --> 00:01:12,760 Speaker 1: of temos stuff, new stuff that's just as cheap. 24 00:01:14,319 --> 00:01:15,880 Speaker 2: Yeah, I think it's a mixture of things. I think 25 00:01:15,880 --> 00:01:20,320 Speaker 2: it's so there's definitely more competition in the secondhand space, 26 00:01:20,480 --> 00:01:23,800 Speaker 2: and so the biggest one is obviously Facebook Marketplace, but 27 00:01:23,880 --> 00:01:26,920 Speaker 2: then there's other sites as well. So back in the 28 00:01:27,840 --> 00:01:30,160 Speaker 2: back when trade we started, there was no competition and 29 00:01:30,200 --> 00:01:33,320 Speaker 2: so that was the only place really we could sell things, 30 00:01:33,360 --> 00:01:36,080 Speaker 2: and in fact they did effectively a couple of other 31 00:01:36,120 --> 00:01:39,119 Speaker 2: businesses out of business. So I think maybe we're seeing 32 00:01:39,160 --> 00:01:44,040 Speaker 2: this now slowly occurring here. So there's other used goods 33 00:01:44,120 --> 00:01:49,840 Speaker 2: retailers or sites rather, and then there's also certainly brand new, 34 00:01:50,320 --> 00:01:54,920 Speaker 2: very cheap Chinese products that we can buy on huge 35 00:01:55,000 --> 00:01:58,840 Speaker 2: I mean massive platforms that provide an incredible amount of choice. 36 00:01:59,560 --> 00:02:01,880 Speaker 2: And the second factor, and I think the third factor, 37 00:02:01,920 --> 00:02:04,840 Speaker 2: to be honest, is also the arrival of really big 38 00:02:04,840 --> 00:02:07,720 Speaker 2: box retailers in New Zealand like Ikea. I mean, now 39 00:02:07,760 --> 00:02:10,720 Speaker 2: that we have Ikea in the country, it's pretty easy 40 00:02:10,800 --> 00:02:15,400 Speaker 2: for anybody anywhere in New Zealand to order fairly inexpensive, 41 00:02:15,919 --> 00:02:21,040 Speaker 2: really innovative, creative, modern goods that just weren't available previously, 42 00:02:21,240 --> 00:02:24,760 Speaker 2: and so if you're after a lampshade or I don't know, 43 00:02:24,840 --> 00:02:27,360 Speaker 2: whatever it might be, you know, there is now another 44 00:02:27,520 --> 00:02:28,840 Speaker 2: really big name Intel. 45 00:02:30,200 --> 00:02:32,880 Speaker 1: Is trade me kind of at risk here? Like is 46 00:02:32,919 --> 00:02:36,200 Speaker 1: this potentially a terminal development for them? Or do they 47 00:02:36,240 --> 00:02:39,280 Speaker 1: just operate as a smaller business into the future and 48 00:02:39,480 --> 00:02:41,880 Speaker 1: is there anything they can do to turn that sort 49 00:02:41,880 --> 00:02:43,000 Speaker 1: of brand thing around. 50 00:02:44,680 --> 00:02:46,920 Speaker 2: Yeah, that's a great question. I think it's certainly a 51 00:02:46,960 --> 00:02:49,560 Speaker 2: business model issue, and so the business model is a 52 00:02:49,639 --> 00:02:52,480 Speaker 2: a threat and that's because there's much more competition. I 53 00:02:52,480 --> 00:02:56,480 Speaker 2: think consumer sentiment has moved on. Why deal with you know, 54 00:02:58,120 --> 00:03:01,560 Speaker 2: other consumers buying something on line that is used that 55 00:03:01,680 --> 00:03:04,000 Speaker 2: may or may not be good when you can buy 56 00:03:04,000 --> 00:03:07,640 Speaker 2: something brand new and dirt cheap from a Chinese retailer. 57 00:03:08,400 --> 00:03:10,720 Speaker 2: So that's I think a big, big problem that that 58 00:03:10,880 --> 00:03:13,000 Speaker 2: sort of changed, or the threat to the business model, 59 00:03:13,600 --> 00:03:16,880 Speaker 2: and what can they do about it? I think, you know, 60 00:03:16,919 --> 00:03:19,600 Speaker 2: it's time for innovation and it's time to really listen 61 00:03:19,680 --> 00:03:22,760 Speaker 2: to customers and to think about, you know, what does 62 00:03:22,800 --> 00:03:25,800 Speaker 2: the research tell us. So I'm sure trade me, you know, 63 00:03:25,919 --> 00:03:28,600 Speaker 2: has focus groups and all sorts of other tracking studies, 64 00:03:29,120 --> 00:03:31,639 Speaker 2: and they would be listening very closely to what are 65 00:03:31,639 --> 00:03:34,640 Speaker 2: the you know, the barriers or what are the turnoffs. 66 00:03:34,639 --> 00:03:39,120 Speaker 2: So why do people stop selling things via tradeing marketplace 67 00:03:39,200 --> 00:03:43,000 Speaker 2: and why is that? And then turning those things around, 68 00:03:43,040 --> 00:03:45,760 Speaker 2: and it might be some of those things might be 69 00:03:45,840 --> 00:03:47,760 Speaker 2: very easy to fix. It might be that they feel 70 00:03:47,760 --> 00:03:50,760 Speaker 2: that the fees that are being charged to excessive or 71 00:03:51,160 --> 00:03:53,600 Speaker 2: that the process is to come withsome and so you know, 72 00:03:53,640 --> 00:03:56,480 Speaker 2: there's there's scope to improve these things, but it's certainly 73 00:03:56,600 --> 00:03:59,400 Speaker 2: big picture. It's a threat to the business model because 74 00:03:59,440 --> 00:04:01,320 Speaker 2: there are others in the market and then there are 75 00:04:01,360 --> 00:04:05,120 Speaker 2: other big brands that sell brand new products that are 76 00:04:05,240 --> 00:04:06,280 Speaker 2: not that expensive. 77 00:04:07,000 --> 00:04:09,000 Speaker 1: Good point, buddy, Thank you for that, Body Lang, who's 78 00:04:09,000 --> 00:04:10,760 Speaker 1: a marketing professor at Massi University. 79 00:04:11,440 --> 00:04:14,600 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 80 00:04:14,720 --> 00:04:15,240 Speaker 2: news talks. 81 00:04:15,240 --> 00:04:18,440 Speaker 1: It'd be from four pm weekdays, or follow the podcast 82 00:04:18,560 --> 00:04:19,560 Speaker 1: on iHeartRadio.