WEBVTT - Bloomberg Businessweek Weekend - December 13th, 2019 0:00:02.520 --> 0:00:06.400 This is Bloomberg Business Week from Bloomberg Radio. Hi, I'm 0:00:06.480 --> 0:00:09.160 Jason Kelly. I'm Carol Masser. Welcome to the Bloomberg Business 0:00:09.200 --> 0:00:12.360 Week Weekend podcast. It's a special edition. Carol, What a 0:00:12.520 --> 0:00:16.320 week here in New York City. It was the Bloomberg fifty, 0:00:16.400 --> 0:00:20.799 the big event finance to fashion, technology, to trade, the 0:00:20.920 --> 0:00:24.239 people who, according to Bloomberg Business Week and we can 0:00:24.320 --> 0:00:27.080 measure it, yes, they defined twenty nineteen. And it was 0:00:27.080 --> 0:00:29.040 so cool because we were actually Monday. It was a 0:00:29.080 --> 0:00:31.840 big dinner, big celebration of those folks that are featured 0:00:31.880 --> 0:00:34.959 in the Bloomberg fifty list and in the magazine. We 0:00:34.960 --> 0:00:37.200 were live on the red carpet at the Morgan Library 0:00:37.320 --> 0:00:40.519 Museum in Manhattan. It was the third annual Bloomberg fifty 0:00:40.600 --> 0:00:42.720 and it really was a celebration. And what I loved 0:00:42.760 --> 0:00:45.400 in terms of the conversations of the evening, it was 0:00:45.600 --> 0:00:48.040 people from all walks of life, and it was just 0:00:48.080 --> 0:00:52.080 this great representation of our world and truly from around 0:00:52.120 --> 0:00:54.560 the globe well and coming up in this special edition, 0:00:54.560 --> 0:00:56.080 we're going to hear from some of those folks we 0:00:56.120 --> 0:00:59.240 caught up with on the red carpet. The Gimblet Media 0:00:59.320 --> 0:01:02.760 co founders Matt Lieber and Alex Bloomberg. I've got a 0:01:02.760 --> 0:01:06.440 little bit of like a bro probrush on them. A 0:01:06.560 --> 0:01:10.959 love podcast. Plus, we will hear my conversation with Joey Levin, 0:01:11.080 --> 0:01:13.120 the CEO over at I A C. I got to 0:01:13.120 --> 0:01:16.280 catch up with him before the event get his view 0:01:16.400 --> 0:01:19.200 of what's going on in the world of media. First up, though, 0:01:19.240 --> 0:01:21.280 we caught up with Joel Weber. He's the editor of 0:01:21.280 --> 0:01:23.520 Bloomberg Business Week. Of course, he told us how the 0:01:23.520 --> 0:01:26.399 Bloomberg fifty issue gets put together. There's a guy named 0:01:26.400 --> 0:01:28.640 Brett Began who actually slaves away at this thing for 0:01:28.760 --> 0:01:31.400 weeks after week after a week to get to a 0:01:31.440 --> 0:01:34.520 point where we can actually have people that we can celebrate. 0:01:34.600 --> 0:01:36.920 So it's big ten team sport, and it's even bigger 0:01:36.920 --> 0:01:39.640 than Brett because we reach out throughout the newsroom to 0:01:39.920 --> 0:01:43.800 all of the journalists and analysts within Bloomberg to make 0:01:43.840 --> 0:01:45.360 sure that we can have a list that actually really 0:01:45.400 --> 0:01:47.960 represents sort of the zeitgeist of the year. What's really 0:01:47.960 --> 0:01:49.880 cool too, is you guys start early in the year, 0:01:49.960 --> 0:01:52.520 right from what I understand, like back in the spring, Yeah, well, 0:01:52.560 --> 0:01:54.320 I mean, and we try and account for the whole year. 0:01:54.360 --> 0:01:56.960 So it's really a chance to recognize even things that 0:01:57.000 --> 0:01:59.880 happened in January and February we're kind of taking into account. 0:02:00.640 --> 0:02:04.520 And so when you sort of set this in motion 0:02:05.160 --> 0:02:08.320 in a year like this, how do you pick out 0:02:08.520 --> 0:02:10.400 the themes? I mean, how do you sort of break 0:02:10.440 --> 0:02:14.960 it down? So it's a it's an evolving process um 0:02:15.000 --> 0:02:16.880 and it goes up until the last minute, right, but 0:02:17.000 --> 0:02:19.919 things start to stand out over the course of the year, 0:02:20.000 --> 0:02:24.440 whether it's a deal that especially in the oil m 0:02:24.480 --> 0:02:26.160 and A was one that really jumped out of us 0:02:26.200 --> 0:02:29.000 this year like that. That that kind of distinguishes stuff, 0:02:29.040 --> 0:02:30.320 and then you kind of like give it a little 0:02:30.360 --> 0:02:32.079 time and you come back to it and say, did 0:02:32.120 --> 0:02:34.240 that thing hold up or was it an anomaly right? 0:02:34.360 --> 0:02:36.760 Or did something else happen that got bigger than that, right? 0:02:37.440 --> 0:02:39.160 Or was it just like you know, we we have 0:02:39.600 --> 0:02:40.959 we have a lot of people in the list. We 0:02:41.000 --> 0:02:44.120 also have a chicken sandwich and it broke. You know, 0:02:44.200 --> 0:02:47.480 this is a Popeye's chicken sandwich that broke the internet? 0:02:47.520 --> 0:02:50.200 Is what what we realized. They had a three month 0:02:50.280 --> 0:02:54.000 supply run out in a matter of days, and you know, 0:02:54.200 --> 0:02:57.160 like something like that, it's just like even if you're 0:02:57.200 --> 0:03:01.120 like business business dreams this up, you have no idea 0:03:01.200 --> 0:03:03.400 that it's gonna like take off quite like that, right, 0:03:03.680 --> 0:03:06.280 And so we build into the process that there's opportunities 0:03:06.320 --> 0:03:09.640 to just embrace things that are slightly outside of our 0:03:09.680 --> 0:03:12.760 our usual place. And I love folks like Kylie Jenner, right, 0:03:12.800 --> 0:03:14.639 who are on the list for a couple of things 0:03:14.639 --> 0:03:16.560 that they did a couple of things, and you know 0:03:16.639 --> 0:03:20.200 that's it's. Uh, it's a big money the self made 0:03:20.200 --> 0:03:25.680 billionaire gym Z's first building. Um, it's it's an amazing accomplishment. 0:03:25.960 --> 0:03:27.880 And that's why we do this and be able to 0:03:27.919 --> 0:03:29.720 recognize some of these people. It's gonna be very exciting. 0:03:29.760 --> 0:03:32.919 Joe Webber, editor of Bloomberg business Week, Thank you so much. 0:03:32.960 --> 0:03:36.080 Thank you great. We want to talk about the cannabis industry, 0:03:36.120 --> 0:03:39.280 which was a big story, in no doubt about it, 0:03:39.320 --> 0:03:40.920 but there was a lot more focused, I felt like 0:03:41.080 --> 0:03:44.640 on some of the Canadian cannabis companies, and now we're 0:03:44.680 --> 0:03:47.200 really focusing a lot more on the US company because 0:03:47.240 --> 0:03:50.160 our next guest is from pure Leaf and he turned 0:03:50.160 --> 0:03:52.680 this into one of the world's most valuable cannabis companies. 0:03:52.720 --> 0:03:55.200 It's the biggest U S marijuana company by market value. 0:03:55.400 --> 0:03:57.960 We're talking about two point eight billion dollars, right, he 0:03:58.240 --> 0:04:02.360 is Boris Jordan's congratulated sans on Bloomberg fifty. It seems 0:04:02.400 --> 0:04:05.240 like just a few weeks ago you're with us UH 0:04:05.240 --> 0:04:07.840 in studio. It's great to catch this is a nic 0:04:08.320 --> 0:04:10.200 I mean, our studio is nice, but this is a 0:04:10.240 --> 0:04:13.000 lot nicer. We generally don't serve booz but you know 0:04:13.240 --> 0:04:14.840 here we are. So why do you think you made 0:04:14.840 --> 0:04:17.040 this list? You know, I was surprised. I'll be very 0:04:17.040 --> 0:04:19.640 honest with you. I've in the past made some lists. 0:04:20.200 --> 0:04:23.520 I opened up the Russian privatization market, and uh I 0:04:23.600 --> 0:04:25.440 was on the Global Leaders of Tomorrow. But the last 0:04:25.440 --> 0:04:28.159 thing I thought I'd make as a cannabis UH company. 0:04:28.200 --> 0:04:32.000 Listening to Bloomberg fifty for cannabis UM, I think what's 0:04:32.040 --> 0:04:35.039 great about it is that it sort of reflects the 0:04:35.080 --> 0:04:37.440 fact that people are starting to accept the fact that 0:04:37.520 --> 0:04:39.200 cannabis is going to be a part of our lives. 0:04:39.240 --> 0:04:41.000 In the United States, we have thirty three states that 0:04:41.040 --> 0:04:44.040 are that that have legalized cannabis in one form or another. 0:04:44.600 --> 0:04:46.520 More and more people are using it, and the fact 0:04:46.600 --> 0:04:48.920 that Bloomberg has recognized that. I think it is a 0:04:48.960 --> 0:04:52.719 big deal and it shows that it's becoming mainstream. Well, Burson, 0:04:52.760 --> 0:04:54.200 I do think about you know, for a while, we 0:04:54.240 --> 0:04:56.359 just talked about the Canadian cannabis companies, and I do 0:04:56.440 --> 0:04:58.560 feel like nine was a lot more about the US 0:04:58.640 --> 0:05:01.760 companies and yours included, Um, what do you think is 0:05:01.760 --> 0:05:03.480 going to be when it comes to the cannabis story. 0:05:03.520 --> 0:05:06.760 We we're waiting for, you know, regulations to come out 0:05:06.760 --> 0:05:09.400 from the government, you know, so I'm just curious what 0:05:09.480 --> 0:05:11.840 you think. I think it's gonna be a continuation of 0:05:11.880 --> 0:05:13.640 the U s story. And that's not to say anything 0:05:13.680 --> 0:05:16.400 negative about Canada, but it's just a bigger market. The 0:05:16.480 --> 0:05:19.840 US companies are alterning profitable. Um, you're starting to see 0:05:19.880 --> 0:05:21.320 more and more of them. I think the numbers that 0:05:21.320 --> 0:05:23.000 are gonna be put up by US companies next year 0:05:23.000 --> 0:05:25.200 are gonna be quite big and staggering, and I think 0:05:25.320 --> 0:05:29.359 that will get recognized not only, uh, you know, by Washington, 0:05:29.400 --> 0:05:31.359 but I think also by the markets at large. And 0:05:31.400 --> 0:05:33.880 I think, you know, large the mainstream investors have largely 0:05:33.920 --> 0:05:37.440 avoided cannabis until this to today, and I think you're 0:05:37.480 --> 0:05:39.200 gonna start seeing a lot more of them get involved 0:05:39.200 --> 0:05:42.000 as they see these companies start to put up significant numbers. Well, 0:05:42.080 --> 0:05:44.160 and talk to us about sort of the big companies 0:05:44.200 --> 0:05:47.880 getting involved, because there have been some twists and turns, 0:05:47.920 --> 0:05:50.440 shall we say, with some of the bigger US companies 0:05:50.600 --> 0:05:53.280 sort of dipping their toe in some making some investments. 0:05:53.279 --> 0:05:57.280 I'm thinking of consolation obviously, how does this sort of 0:05:57.640 --> 0:06:01.600 consumer package goods market more involved in this? How important 0:06:01.640 --> 0:06:04.120 is it that they get involved in order to grow 0:06:04.160 --> 0:06:06.360 this business in a meaningful way. I think they're all 0:06:06.400 --> 0:06:08.560 going to get involved with for instance, purely on Bloomberg 0:06:08.600 --> 0:06:11.880 announced that we we hired um Joe Byrne, who ran 0:06:12.200 --> 0:06:17.080 uh DR Pepper Snapple. He built Voss Water. Before that, 0:06:17.120 --> 0:06:21.520 he was at uh um uh Seagram's company. So he's 0:06:21.520 --> 0:06:24.160 a real guy. These are guys that are built and 0:06:24.240 --> 0:06:27.760 run very big CpG businesses, that understand brands and understand 0:06:27.760 --> 0:06:30.000 supply chain. And you're starting to see more and more 0:06:30.040 --> 0:06:31.960 of those people enter this market. And I think that's 0:06:32.000 --> 0:06:34.719 the first sign, and that's Cure Leaf chairman Boris Jordan. 0:06:34.720 --> 0:06:36.720 We've been hanging out with that guy a lot lately. 0:06:36.800 --> 0:06:39.960 He's so influential right now because as you have said 0:06:40.000 --> 0:06:42.240 a number of times Cannabis it was the story of 0:06:43.560 --> 0:06:45.599 nineteen and it's going to be the story of in 0:06:45.600 --> 0:06:46.919 many ways too well. And they made a bunch of 0:06:46.920 --> 0:06:50.520 acquisitions in twenty nineteen that's really changed their company, made 0:06:50.520 --> 0:06:53.760 them such a bigger player in the industry. There's still 0:06:53.800 --> 0:06:56.080 a few hurdles which he got into, but he sounds 0:06:56.080 --> 0:06:59.119 like could be a big year for this industry. Jason. 0:06:59.160 --> 0:07:00.880 It was a big week, and we did kick off 0:07:00.920 --> 0:07:05.240 the week on Monday celebrating the Bloomberg fifty, the folks 0:07:05.279 --> 0:07:09.000 in the magazine, these individuals who stand out in measurable ways, 0:07:09.040 --> 0:07:10.760 and there was a dinner, a celebration, and we got 0:07:10.800 --> 0:07:13.000 to do a red carpet. The red carpet obviously was 0:07:13.040 --> 0:07:15.840 the thing. We were perched right there, grabbing guests as 0:07:15.880 --> 0:07:18.119 they came in. They're stopping to get their photo taken 0:07:18.160 --> 0:07:21.760 and then sitting down with us. They all looked really great, 0:07:21.840 --> 0:07:25.240 So fashion clearly front of mind. Yes, we did talk 0:07:25.280 --> 0:07:27.920 fashion with on Katie Bow. She's the CEO of ze 0:07:28.000 --> 0:07:30.600 Lingo and this is a startup. It's now got about 0:07:30.600 --> 0:07:33.520 a billion dollar valuation, but it's all about the supply 0:07:33.600 --> 0:07:36.760 chain in retail. Man talk about disruption. She's doing it 0:07:36.800 --> 0:07:38.880 and this is a story we've been talking about in 0:07:39.120 --> 0:07:42.480 some form or wait for it, fashion all year long. 0:07:42.600 --> 0:07:46.800 You think back to Danta Thomas's fantastic book fashion Opolis, 0:07:46.840 --> 0:07:50.760 about the fast fashion world the effects that it's had 0:07:50.800 --> 0:07:54.360 on the environment and on labor. That is really very 0:07:54.400 --> 0:07:57.280 much at the heart of what a Keti is doing. 0:07:57.360 --> 0:07:59.640 We started by asking her to tell us a little 0:07:59.640 --> 0:08:04.320 bit about So, you know, everybody wears clothes and u 0:08:05.520 --> 0:08:08.720 UM the apparel industry. The apparel in textile industry is 0:08:08.720 --> 0:08:12.040 almost five percent of global GDP, so it's huge. But 0:08:12.240 --> 0:08:16.200 despite that, very little digitization, very little technology is really 0:08:16.240 --> 0:08:19.960 touched the entire industry, which is which is remarkable exactly 0:08:20.160 --> 0:08:23.800 so unlike pharmaceuticals, industrials, h the way your iPhone is made, 0:08:23.880 --> 0:08:28.000 unlike any of that. Uh, there is very little traceability, um, 0:08:28.040 --> 0:08:31.640 sustainability technology, or really any amount of transparency in the 0:08:31.680 --> 0:08:34.679 supply chain in apparel, and that leads to all these 0:08:34.720 --> 0:08:37.400 problems that you hear often that fashion is accused of, 0:08:37.400 --> 0:08:39.400 which are all true. By the way that we're filling 0:08:39.480 --> 0:08:41.680 up the landfills, there may be little children working in 0:08:41.679 --> 0:08:44.680 factories in Vietnam or in Indonesia or in Bangladesh making 0:08:44.679 --> 0:08:48.360 clothes for you that you're buying here um or that 0:08:48.760 --> 0:08:51.600 the clothes are not sustainable, people are buying too much. 0:08:51.640 --> 0:08:53.920 All of that is true, and all of that can 0:08:54.040 --> 0:08:57.000 be solved with technology by creating a lot of transparency 0:08:57.000 --> 0:08:59.360 across the supply chain. So that's where we come in. 0:08:59.480 --> 0:09:04.600 We we've provide a technology platform for mills, factories literally 0:09:04.640 --> 0:09:06.959 as upstream as the farmers to interact with the brands 0:09:07.280 --> 0:09:10.520 that want products made by these people and make sure 0:09:10.559 --> 0:09:12.800 that it's done in a sustainable, transparent But that part 0:09:12.800 --> 0:09:15.800 of it, I have to think that lack of transparency 0:09:15.840 --> 0:09:18.839 though existed for a reason people don't want you know 0:09:18.840 --> 0:09:21.079 know how hard was it to sort of crack into that? 0:09:21.480 --> 0:09:24.719 So you're exactly right. Today the fashion supply chain has 0:09:24.720 --> 0:09:28.000 about twenty players, uh, and you only need five of them, 0:09:28.280 --> 0:09:31.280 which means that about fourteen or fifteen of those guys 0:09:31.400 --> 0:09:36.840 or girls are just there because they are agents. Their 0:09:36.920 --> 0:09:39.400 agents there traders. They're not adding a lot of value 0:09:39.400 --> 0:09:42.280 in the value chain, so they're really either holding inventory 0:09:42.280 --> 0:09:46.640 health the amazing it's like they're there are twenty and 0:09:46.640 --> 0:09:50.160 there need to be five. Incredible, So about fifteen of 0:09:50.240 --> 0:09:51.800 them don't like us a lot. But the five that 0:09:51.840 --> 0:09:54.800 are adding value, we are adding an immense amount of 0:09:54.880 --> 0:09:57.680 value to their business and just economics and then making 0:09:57.760 --> 0:10:01.000 sure that they're held account able if they're not following 0:10:01.000 --> 0:10:03.199 the right. But to Jason's point, like, how tough was 0:10:03.280 --> 0:10:05.439 it like making your in roads and so on and 0:10:05.520 --> 0:10:07.560 so forth, because I feel like it's such an established 0:10:07.920 --> 0:10:10.480 the supply chain or supply you know that was out there. 0:10:10.559 --> 0:10:12.959 How tough was it to do this? Actually, once you 0:10:13.080 --> 0:10:16.680 go beyond the big manufacturers and you really go into 0:10:17.200 --> 0:10:21.439 the world of Asian manufacturing or South American manufacturing, or 0:10:21.480 --> 0:10:24.920 even right here in the US, it's quite fragmented. So uh, 0:10:25.160 --> 0:10:27.360 you know, most of fast fashion is made within a 0:10:27.640 --> 0:10:31.000 very fragmented manufacturer base. And then once you start giving 0:10:31.040 --> 0:10:34.160 them technology and bringing them online, it becomes much more 0:10:34.280 --> 0:10:37.000 easy for them to find their suppliers and their buyers 0:10:37.040 --> 0:10:39.599 and you know, transact without agents in the little So 0:10:40.200 --> 0:10:42.560 it's it's maybe it's hard in the beginning to get 0:10:42.679 --> 0:10:45.439 a critical mass in the new country or in a 0:10:45.520 --> 0:10:48.640 new area or in a new in you know, subcategory 0:10:48.720 --> 0:10:51.599 like Denim's or or something, but once you do it, 0:10:51.720 --> 0:10:54.560 there's so much of a network effect that it spreads 0:10:54.640 --> 0:10:57.199 quite fast because businesses see the value very quickly. I 0:10:57.320 --> 0:11:00.160 wonder about the trade wars, specifically the US on a 0:11:00.240 --> 0:11:02.280 trade war, and what that has done for your business. 0:11:02.480 --> 0:11:06.040 So what's interesting is that I think there has been 0:11:06.120 --> 0:11:09.160 definitely a lot of volatility, or at least the fear 0:11:09.600 --> 0:11:11.640 of what might happen in the minds of brands the 0:11:11.720 --> 0:11:15.760 world over, and many of whom that sourced a majority 0:11:15.800 --> 0:11:18.880 of their products from China did they wanted to oversify 0:11:19.000 --> 0:11:21.480 that portfolio a lot. So they want us to um, 0:11:21.800 --> 0:11:24.319 you know, they're not saying no China, They're saying, hey, 0:11:24.440 --> 0:11:27.199 can you de risk my business right by helping me 0:11:27.360 --> 0:11:30.120 understand how I should source and from where and making 0:11:30.160 --> 0:11:32.040 that transparent along the way. We're hearing that from a 0:11:32.080 --> 0:11:33.840 lot of the Stadio as we talked about that they 0:11:33.920 --> 0:11:36.640 want to be having kind of manufacturing in the markets 0:11:36.679 --> 0:11:38.800 that they sell. They want to, as you said, deleverage 0:11:38.840 --> 0:11:42.920 that risk exactly, some optionality. Absolutely. So if you build 0:11:42.960 --> 0:11:46.240 your business, where are you now, fresh infusion of capital, 0:11:46.360 --> 0:11:51.040 you're growing like crazy. Look like I think twenty twenty 0:11:51.120 --> 0:11:53.520 is going to be super exciting for us. We recently 0:11:53.600 --> 0:11:56.480 launched in the United States, we started working with brands 0:11:56.960 --> 0:11:59.920 over here where now just recently started working with manufacturer 0:12:00.040 --> 0:12:03.000 in the U S as well. Um, so it's it's 0:12:03.280 --> 0:12:06.079 looking like is going to be very, very busy because 0:12:06.120 --> 0:12:08.480 we do have a business in eight countries in Asia 0:12:08.520 --> 0:12:11.520 as well. And uh. While I spend most of my 0:12:11.559 --> 0:12:13.079 time in the Green Singapore in New York, now we 0:12:13.160 --> 0:12:15.079 have an office in l A, uh and we have 0:12:15.200 --> 0:12:17.360 lots of customers there. So it looks like it's going 0:12:17.400 --> 0:12:20.800 to be a crazy exciting I was just gonna say, 0:12:20.840 --> 0:12:23.480 it is interesting sort of this idea of an American 0:12:23.600 --> 0:12:25.960 manufacturing l A does seem to be a little bit 0:12:26.040 --> 0:12:29.160 of the center of that. And yet even the American 0:12:29.240 --> 0:12:33.040 manufacturing is not immune to some of the issues that 0:12:33.480 --> 0:12:37.839 we've run into overseas exactly. So in fact, it's a 0:12:37.920 --> 0:12:41.760 myth that those problems don't exist in the US as well. Um, 0:12:42.200 --> 0:12:46.720 maybe maybe the practices are better, but they're not exactly optimized. 0:12:47.160 --> 0:12:49.600 We can use a lot more technology here as well. 0:12:49.679 --> 0:12:53.120 We can use a lot more transparency, digitization, uh, you know, 0:12:53.320 --> 0:12:57.600 QC and line efficiency tools can be automated. So there's 0:12:57.600 --> 0:12:59.719 a lot that can be done. And it was a 0:12:59.760 --> 0:13:01.520 bit of was a price to me personally when I 0:13:01.880 --> 0:13:03.959 came in and saw that there was just there was 0:13:04.040 --> 0:13:06.160 just so much to be done, even domestically here in 0:13:06.200 --> 0:13:09.640 the US. But now it seems like develop and developed. 0:13:10.679 --> 0:13:12.599 I have to ask you, because I love talking to 0:13:12.679 --> 0:13:14.959 folks like you, because I feel like you're traveling the world, 0:13:15.360 --> 0:13:18.600 You're seeing smaller business, midsized businesses, all kinds of businesses. 0:13:18.920 --> 0:13:22.599 What's the global economy looks like? I think, you know, 0:13:22.760 --> 0:13:27.600 despite despite every fear that people have in their minds 0:13:27.720 --> 0:13:30.800 right now about where the economies are going, where the 0:13:30.840 --> 0:13:33.920 economy is going, UM, I think there's a lot of 0:13:34.040 --> 0:13:37.319 opportunity in the adversities that we're seeing as well. So 0:13:37.480 --> 0:13:39.800 of course this is a very colored view from my 0:13:40.000 --> 0:13:42.920 viewpoint where you know, Um, on the one hand, we're 0:13:42.960 --> 0:13:46.480 saying we've hit peak apparel and really people should be 0:13:46.559 --> 0:13:50.360 consuming less and consuming better. All of that seems like 0:13:50.559 --> 0:13:54.720 such a huge opportunity to us because consumers is starting 0:13:54.760 --> 0:13:58.920 to ask questions and whole brands and businesses responsive conversations, 0:13:59.600 --> 0:14:01.920 which is exactly where we come in and say into 0:14:01.960 --> 0:14:03.920 the brand that listen, you don't know how to do this. 0:14:04.080 --> 0:14:06.880 That's okay because We're gonna help you. We're gonna help you. 0:14:07.280 --> 0:14:09.760 That's a lingo CEO on Key Ti Bows and Jason. 0:14:09.800 --> 0:14:11.800 I feel like our conversation with her about the supply 0:14:11.960 --> 0:14:14.720 chain when it comes to retail in the fashion industry. 0:14:14.880 --> 0:14:16.719 This is something we've been really tackling a lot in 0:14:16.760 --> 0:14:19.000 our daily radio show. Well and they'll be fascinating to 0:14:19.040 --> 0:14:21.680 see where this company goes, because, as she pointed out, 0:14:21.800 --> 0:14:25.040 this is a supply chain that is actually too long 0:14:25.280 --> 0:14:27.960 and really needs to be shrunk down. You have to 0:14:28.080 --> 0:14:31.360 think that is not an easy task. So, Carol was 0:14:31.400 --> 0:14:33.320 a rainy night in New York. I feel like I'm 0:14:33.320 --> 0:14:35.360 setting up a novel here. But we were there at 0:14:35.480 --> 0:14:39.920 the Morgan Library on the red carpet, and despite the 0:14:39.960 --> 0:14:43.440 bad weather outside, people were pouring in really excited to 0:14:43.480 --> 0:14:48.120 be there because it was just buzzing with big ideas, innovation, 0:14:48.400 --> 0:14:51.479 and it wasn't just about the people who were accomplished 0:14:51.840 --> 0:14:54.280 in nine. There was a bit of a look ahead 0:14:54.320 --> 0:14:58.160 to Yeah, and that's important. I mean it's innovators, entrepreneurs, 0:14:58.320 --> 0:15:00.760 leaders who have changed the global business landscape and as 0:15:00.800 --> 0:15:03.160 we said, it's measurable ways. But we didn't only just 0:15:03.240 --> 0:15:06.600 think about twenty nineteen, we did think also about and 0:15:06.720 --> 0:15:08.720 one of those individuals, one of those that we're gonna 0:15:08.720 --> 0:15:12.200 be watching for is Sema Hungarani. She's the founder of 0:15:12.280 --> 0:15:15.160 Girls Who Invest. This is about getting more women to 0:15:15.560 --> 0:15:17.920 be managing money in the future. Well, and she knows 0:15:18.000 --> 0:15:19.560 what she's talking about. She was in the c i 0:15:19.680 --> 0:15:22.560 O for New York City's pension plan. She's now shifted 0:15:22.640 --> 0:15:25.840 to the not for profit world to really change not 0:15:26.040 --> 0:15:29.760 just the pipeline, but the decision makers and really adding 0:15:29.880 --> 0:15:32.560 some diversity to the mix. Yeah, it's been fantastic. In 0:15:32.720 --> 0:15:35.440 four years we have put through three d and fifty 0:15:35.520 --> 0:15:38.480 college when we were through our ten week on campus 0:15:38.560 --> 0:15:42.080 summer program where that's four weeks training in the classroom 0:15:42.120 --> 0:15:44.000 and then a six week paid internship at one of 0:15:44.080 --> 0:15:46.320 the leading asset maniti firms in the world. It's been 0:15:46.360 --> 0:15:48.640 incredible and eight of those women are staying in the 0:15:48.720 --> 0:15:51.000 investment business there staying. Are they moving up the ladder? 0:15:51.280 --> 0:15:54.080 They are. It's fantastic. Well and seem one of the 0:15:54.200 --> 0:15:57.560 things that I love talking to you about is the 0:15:57.640 --> 0:15:59.640 fact you were on the other side of the table 0:15:59.680 --> 0:16:03.080 you were or you were distributing money and the ways 0:16:03.120 --> 0:16:06.000 you were picking a manager. So you saw that from 0:16:06.040 --> 0:16:08.720 the other side of the table. Why is it taken 0:16:08.840 --> 0:16:10.560 so long for the rest of the world to sort 0:16:10.600 --> 0:16:12.480 of get on board with this. I think it's just 0:16:13.000 --> 0:16:15.720 coming up and saying, you know, maybe we had to 0:16:15.760 --> 0:16:20.359 rethink this. We've been having trouble recruiting women in particular 0:16:20.520 --> 0:16:23.520 into our business. Uh, and yet we do the same 0:16:23.600 --> 0:16:25.720 thing over and over again. So when I talked to 0:16:25.800 --> 0:16:28.080 a lot of the large investment firms around the world, 0:16:28.520 --> 0:16:30.440 I would ask them, so, what do you do when 0:16:30.480 --> 0:16:32.080 you recruit And they would say to me, oh, we 0:16:32.120 --> 0:16:34.680 go to these four colleges and we go to these 0:16:34.720 --> 0:16:37.560 investment banking programs. And I thought, well, you guys, I 0:16:37.680 --> 0:16:40.880 wonder how we're having a problem with diversity. Let's go bigger, 0:16:41.000 --> 0:16:43.440 broader and so find I'll do the work. I'll go 0:16:43.560 --> 0:16:47.200 find women across the entire country, from colleges all across 0:16:47.240 --> 0:16:50.480 the US, the different majors of study, different ethic backgrounds, 0:16:50.480 --> 0:16:53.280 different socio economic backgrounds, and I'll run a program through 0:16:53.320 --> 0:16:55.520 the summer and we'll train them up so that when 0:16:55.560 --> 0:16:57.800 we send them to you to these internships, they hit 0:16:57.880 --> 0:16:59.800 the ground running the same. I do wonder, though, if 0:16:59.800 --> 0:17:01.840 they're something different because I feel like there's been a 0:17:01.880 --> 0:17:05.359 lot of talk for years about getting more women into 0:17:05.520 --> 0:17:07.800 kind of the financial industry. Is there something that's changed 0:17:07.840 --> 0:17:10.720 in the last couple of years. Is it finally understanding 0:17:10.760 --> 0:17:13.280 that the studies and the importance of diversification that it 0:17:13.400 --> 0:17:16.040 makes a difference in terms of financial difference, that all 0:17:16.040 --> 0:17:19.239 of a sudden everybody's awakened. Yes, I think that's right. 0:17:19.400 --> 0:17:21.840 I think, um, while the research has been out there, 0:17:21.880 --> 0:17:26.119 there's more research that shows and proves that more gender 0:17:26.160 --> 0:17:29.320 diverse teams get better outcomes. There's actually research now that 0:17:29.440 --> 0:17:34.480 shows that more mixed gender investment teams get better investment results, 0:17:34.800 --> 0:17:37.000 which goes to the heart of girls who invest in 0:17:37.080 --> 0:17:39.520 what we're trying to do. And I think honestly, in 0:17:39.600 --> 0:17:42.520 this country now, with movements such as Time's Up and 0:17:42.600 --> 0:17:46.960 hashtag me Too, it's certainly raised uh, you know, more 0:17:47.040 --> 0:17:50.479 attention on this issue and more firms are paying attention. 0:17:50.560 --> 0:17:53.600 And I think the final push has really come from 0:17:53.640 --> 0:17:56.680 the big institutional investors, so you know, have big public 0:17:56.760 --> 0:18:00.879 pension plans in particular, saying to these investment managers, you know, 0:18:01.400 --> 0:18:03.840 if you don't have more diversity on your investment team. 0:18:04.200 --> 0:18:06.400 I've read the research too, and I believe the research. 0:18:06.680 --> 0:18:10.240 I don't believe you will get long term consistent investment returns, 0:18:10.480 --> 0:18:12.560 so I might pull my money from you and put 0:18:12.600 --> 0:18:14.600 it across the shoe. I'm so glad you brought that 0:18:14.680 --> 0:18:17.359 up because it feels like that's what has to happen. 0:18:17.400 --> 0:18:20.280 And again going back to uh your time in New 0:18:20.359 --> 0:18:23.159 York City, like the money has to speak here like 0:18:23.280 --> 0:18:26.480 that nothing's going to change. I mean we talked about 0:18:26.520 --> 0:18:28.600 this with the s G as well, you know, and 0:18:28.840 --> 0:18:32.399 start ups. The source of the money essentially says no 0:18:33.160 --> 0:18:35.760 or change, nothing's going to happen. So you think that 0:18:35.920 --> 0:18:38.600 that is starting to happen. Yes, And it's certainly it's 0:18:38.600 --> 0:18:41.399 a combination. I mean, there are amazing leaders in our 0:18:41.480 --> 0:18:44.040 industry who do get it, and I've been trying to 0:18:44.119 --> 0:18:46.760 push to get it as broad based as we needed 0:18:46.800 --> 0:18:48.480 to get. Yes, we're going to have to have the 0:18:48.560 --> 0:18:51.920 big investors out there saying this isn't gonna work and 0:18:52.080 --> 0:18:55.360 standing up and actually pulling their capital and putting it elsewhere. 0:18:55.440 --> 0:18:57.360 So much of what you're doing is creating that pipeline, 0:18:57.359 --> 0:18:59.359 and I do think that's so important. But we've got 0:18:59.480 --> 0:19:01.400 to make sure that there's the support along the way, 0:19:01.560 --> 0:19:04.639 and that really speaks to a company's culture and making 0:19:04.720 --> 0:19:07.920 sure that there's those folks to do that. So how 0:19:08.000 --> 0:19:11.000 do we get to that? Is it just by getting 0:19:11.040 --> 0:19:13.360 more and more women into the industry or what? Well, 0:19:13.440 --> 0:19:15.680 so that's part of it. UM. You know, back when 0:19:15.720 --> 0:19:17.320 I was at the City of New York and I 0:19:17.440 --> 0:19:19.520 was the c I O, and I had these conversations 0:19:19.720 --> 0:19:22.400 with the leaders of the business UM and I looked 0:19:22.400 --> 0:19:24.399 down at their organizational charts and say, you guys, were 0:19:24.400 --> 0:19:26.159 all the women on your investment team. And so what 0:19:26.200 --> 0:19:27.760 they would say to me is, well, we don't get 0:19:27.800 --> 0:19:30.800 resumes from women, so clearly a pipeline issue, which I agreed, 0:19:30.880 --> 0:19:33.040 maybe we do have that and let's fix that. But 0:19:33.119 --> 0:19:34.879