Latest / What the Flux / Aldi Australia grows market share | OpenAI launches the Google-killer | Hermes' sales up 13%

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Aldi Australia grows market share | OpenAI launches the Google-killer | Hermes' sales up 13% · What the Flux

• 0:05
  Speaker 1: This is what the flucks. I'm Brett and I'm Justin
• 0:08
  Speaker 1: and it's undated twenty ninth of July.
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  Speaker 2: Juzzy boy, if you've finally got your head around fourteen
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  Speaker 2: dollar pints of beer, you may need to sit down,
• 0:14
  Speaker 2: my friend, because beer prices are expected to go up
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  Speaker 2: once agge again. A new tax on beer will kick
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  Speaker 2: in this week, which puts more pressure on brewers and
• 0:24
  Speaker 2: pubs and more than likely consumers. So those pints they
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  Speaker 2: could be at twenty bukaroonis in absolutely no time.
• 0:32
  Speaker 1: It's official. There is no more shouting beers done, am.
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  Speaker 1: It's the very end of the month, which means if
• 0:37
  Speaker 1: you haven't chipped your credit score this month, now is
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  Speaker 1: the perfect time. Did it go up, you go down?
• 0:41
  Speaker 1: And white We've got it all covered in the Flux
• 0:43
  Speaker 1: app to make sure you check out your credit score
• 0:45
  Speaker 1: to learn more.
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  Speaker 2: Three revolutionary stories today, Juzzy boy, let's do it for
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  Speaker 2: our first. Aldi Australia has announced that it's abandoning its
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  Speaker 2: plan to offer online shopping because it's doing fine without it.
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  Speaker 1: It's a bit of a subtle flex fromality there, man.
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  Speaker 1: So how is the story here.
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  Speaker 2: Well, Jazzy boy, Audi is, of course, the German supermarket
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  Speaker 2: chain that's been in Australia since the year two thousand
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  Speaker 2: and it's since become the third largest supermarket chain in
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  Speaker 2: the whole wide country, with ten and a half percent
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  Speaker 2: market share behind Coals and Woolies. Must be thanks to
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  Speaker 2: those weekly special buy deals hard to pass up, jazzy boy. Now,
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  Speaker 2: Audi has just announced that it's ditching its plans to
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  Speaker 2: enter the online shopping space.
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  Speaker 1: Yep. Apparently Audi's kicking enough goals with its in store
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  Speaker 1: sales in the last three months.
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  Speaker 2: We're talking five point one percent growth in new households
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  Speaker 2: shopping at Audi, and.
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  Speaker 1: They reckon introducing online shopping will actually significantly impact its
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  Speaker 1: cost structures.
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  Speaker 2: Think warehouses, think distribution centers. So Audi's gone back on
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  Speaker 2: their plan for online and plans to stick to the
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  Speaker 2: in store experience in Australia, even if the supermarket top
• 1:48
  Speaker 2: dogs are doing things differently. I love this sort of stuff,
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  Speaker 2: juzzy boy. So tell me what is the key learning
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  Speaker 2: here to be a tough competitor. You've got a play
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  Speaker 2: to your strengths now, Josey boy. We know that the
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  Speaker 2: supermarket giants are expanding their online present yep.
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  Speaker 1: We saw Williz acquire milk Rund last year and bring
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  Speaker 1: the brand into their online delivery ecosystem.
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  Speaker 2: We've also seen Coles online sales up twenty nine percent
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  Speaker 2: in the first half of this year.
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  Speaker 1: But Audi is playing a very different game and they're
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  Speaker 1: sticking to their guns by focusing on in store sales only.
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  Speaker 2: And juzzy boy, if you don't mind me saying, it
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  Speaker 2: really seems to be working.
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  Speaker 1: Yep. Despite not offering online sales, Audi gained the most
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  Speaker 1: market share in the supermarket sect up for the last quarter.
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  Speaker 2: And it's not only the online grocery train that marches
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  Speaker 2: to the beat of its very own drum.
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  Speaker 1: Nope, we've got Costco sales, chip packets the size of
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  Speaker 1: small children. We're talking wholesale quantities for wholesale prices, and
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  Speaker 1: they saw their sales jump twenty percent in Australia from
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  Speaker 1: twenty twenty two to twenty twenty three.
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  Speaker 2: So perhaps Audi will continue winning over market share despite
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  Speaker 2: keeping things old school with just good old fashioned in
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  Speaker 2: store sales.
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  Speaker 1: For our second story, Chat GPT's creator open Ai is
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  Speaker 1: officially coming after Google Search after launching its new search
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  Speaker 1: feature Search GPT.
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  Speaker 2: Chat, GPT Search GPT what is next? Perhaps drive GPT
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  Speaker 2: tell me more about this one, juzzy boy.
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  Speaker 1: Okay, So back in November twenty twenty two, open ai
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  Speaker 1: released their first publicly available AI product that was Chad
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  Speaker 1: GPT three.
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  Speaker 2: And this was the first product that really really brought
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  Speaker 2: public awareness to the power of AI.
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  Speaker 1: Who new AI could write your university essay for you?
• 3:19
  Speaker 2: Who knew AI could help you write a breakup text
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  Speaker 2: to your ex?
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  Speaker 1: Who new AI could pretty much do your whole job
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  Speaker 1: for you? Looking at you, young lawyers? Huh?
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  Speaker 2: But now open ai has hit Google directly where it
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  Speaker 2: hurts in its cash cow business search.
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  Speaker 1: That's because it just released search GPT, which is a
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  Speaker 1: search feature that gives you timely answers to your question
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  Speaker 1: and be man. People are already starting to call this
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  Speaker 1: the Google killer bang.
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  Speaker 2: But juzzy Boy, Search GPT is going to have to
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  Speaker 2: do more than just compete with Google. It also needs
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  Speaker 2: to compete with its public perception of killing media businesses.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: Business success requires conquering market competition, but also juzzy boy
• 3:57
  Speaker 2: also public opinion.
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  Speaker 1: The idea behind AI s is that it doesn't just
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  Speaker 1: provide a list of hyperlinks to websites like Google Search
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  Speaker 1: does today no no, no, no new.
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  Speaker 2: It captures results from thousands, if not hundreds of thousands,
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  Speaker 2: if not millions, of sites, provides a written overview with
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  Speaker 2: their short description.
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  Speaker 1: As well as maybe a link to that site down
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  Speaker 1: the track.
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  Speaker 2: But many websites and publishers are concerned about the change
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  Speaker 2: to the way search has been done. That's because AI
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  Speaker 2: generated overviews can significantly cannibalize traffic to their websites. In fact,
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  Speaker 2: one study found that some AI generated overviews could negatively
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  Speaker 2: affect about twenty five percent of publisher traffic.
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  Speaker 1: Because they emphasize the descriptions and de emphasize the article links.
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  Speaker 2: So, juzzy Boy, not only does search GBT need to
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  Speaker 2: battle with competitors like Google, but also needs to wage
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  Speaker 2: a pr battle for consumers.
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  Speaker 1: For our third and final story, and there's the luxury
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  Speaker 1: retailer has bucked the trend of other luxury brand by
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  Speaker 1: reporting a thirteen percent rise in second quarter sales.
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  Speaker 2: Wesell, Burke and Market also going berserk. I'm told, juzzy boy,
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  Speaker 2: what is it about these things?
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  Speaker 1: Tell me more? And Meez is the French luxury design
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  Speaker 1: house founded way back in eighteen thirty seven by Tieri Ermez.
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  Speaker 2: It started by selling high quality saddles for horses if
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  Speaker 2: you don't mind, and then moved onto bags for those
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  Speaker 2: horse riders.
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  Speaker 1: But over the years and Mez grew into one of
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  Speaker 1: the most luxurious fashion houses in the whole wide universe.
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  Speaker 1: In particular, and Mez is known for its luggage and
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  Speaker 1: handbags like the Broken Handbag, the Kelly Handbag and Josie Boy.
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  Speaker 2: These handbags they don't come cheap, they're handmade and take
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  Speaker 2: about twenty four hours to produce and.
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  Speaker 1: Be man they'll cost you at least twenty thousand dollars
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  Speaker 1: for one of the most basic bags and Jusie Boy.
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  Speaker 2: While Elvier Mahe and Kirring both missed their earnings forecast,
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  Speaker 2: Omez just keeps steaming ahead.
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  Speaker 1: It's quarterly sales jumped thirteen percent to three point seven
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  Speaker 1: billion euros.
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  Speaker 2: But that doesn't tell the whole story because it's fashion
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  Speaker 2: accessories business actually.
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  Speaker 1: Dropped, but the leather goods like bags grew just under
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  Speaker 1: eighteen percent.
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  Speaker 2: So what is the Tieri key learning here?
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  Speaker 1: In the world of high end fashion, luxury goods often
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  Speaker 1: hold their value over time, making them a type of
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  Speaker 1: alternative In.
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  Speaker 2: Luxury brands like Ermez, they have products that are inconsistent
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  Speaker 2: that are in constant high demand.
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  Speaker 1: In fact, they man Vestier, which is the secondhand marketplace,
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  Speaker 1: so the Ermez's bags are the most in demand bags
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  Speaker 1: on the whole platform for Josie.
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  Speaker 2: Boy There's a method behind this mad success, yep.
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  Speaker 1: Ermez intentionally maintains a low supply, particularly for bags like
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  Speaker 1: the Birkin and Josie Boyd.
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  Speaker 2: This scarcity often results in their products appreciating in value
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  Speaker 2: over time.
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  Speaker 1: Get this, Birken bags have appreciated and an annual growth
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  Speaker 1: rate of fourteen point two percent over the past thirty
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  Speaker 1: five years according to Vesta.
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  Speaker 2: That means it's outperformed the S and B five hundred,
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  Speaker 2: the ASX two hundred, and even Gold.
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  Speaker 1: So Flax Fam, and next time you're shopping for a
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  Speaker 1: luxury handbag, remember that it might actually be adding to
• 6:41
  Speaker 1: your investment portfolio as well. Fox Fam. Did you know
• 6:43
  Speaker 1: that banks can see a whole lot about you and
• 6:45
  Speaker 1: your credit report before even you do? And if you
• 6:48
  Speaker 1: want to know what the banks can see about you,
• 6:49
  Speaker 1: all you've got to do is head to the Flux
• 6:51
  Speaker 1: app and check your credit score, what's changed
• 6:53
  Speaker 2: Thanks for listening, and we'll see you on Wednesday.