Latest / What the Flux / Bunnings revs its engine | Prada acquires Versace | Hey Siri , turn off the tariffs

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Bunnings revs its engine | Prada acquires Versace | Hey Siri , turn off the tariffs · What the Flux

• 0:05
  Speaker 1: This excuse what the Flux Ti'm brand and are justin
• 0:07
  Speaker 1: and Wednesday, the sixteenth of April, Juzzy Boy. When it
• 0:10
  Speaker 1: comes to sporting goods in Australia, there's rebel and rebel
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  Speaker 1: and maybe a couple of strength fans at Kmar And
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  Speaker 1: now the London listed company sports Direct has entered the chat.
• 0:20
  Speaker 1: It's planning to open more than one hundred stores in
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  Speaker 1: Australia to take on Rebel. No surprises, the shares in
• 0:25
  Speaker 1: Rebel Zone are fell following this big news. The man
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  Speaker 1: heard over the last few weeks that gold has hit
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  Speaker 1: another all time line and it's interesting because gold is
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  Speaker 1: always a very popular investment during times of economic crisis.
• 0:36
  Speaker 1: The Flucks out this week we go through why gold
• 0:38
  Speaker 1: is considered a safe haven asset for investors and what
• 0:41
  Speaker 1: other major events have seen this happen as well. So
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  Speaker 1: if you want to learn more about gold and the
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  Speaker 1: impact on the economy, make sure to download the Flux
• 0:47
  Speaker 1: up and check it out. Three secure stories today, Juzzy Boy,
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  Speaker 1: Let's do it for our first. Bunnings is expanding into
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  Speaker 1: autoparts as it looks to tap into the one and
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  Speaker 1: a half billion dollar car market. After stepping out of
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  Speaker 1: the car market over two decades ago. Talk about getting
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  Speaker 1: back into the driver's seat, b Man. So what he's
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  Speaker 1: going on here? All right? So Bunnings is owned by
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  Speaker 1: West Farmers and is Australia's most beloved and only major
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  Speaker 1: hardware chain. In fact, Beman, I'll give you a sense
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  Speaker 1: of Bunning scale. It generated over nineteen billion dollars in
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  Speaker 1: annual sales just last year. That's a lot of snags
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  Speaker 1: and sledgehammers the Beman. Bunning's actually used to sell car
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  Speaker 1: parts back in the nineties and juzzy boy. Now it's
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  Speaker 1: circling back to its auto roots. Yeah, Bunnings is trialing
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  Speaker 1: a new range of four hundred car products. Think cool end, toebars,
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  Speaker 1: tire foam, all the words you've vaguely heard of but
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  Speaker 1: never even dared to use. So true. So why is
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  Speaker 1: Bunnings pivoting to become a petrol head again? It's part
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  Speaker 1: of their plan to diversify away just tools and timber
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  Speaker 1: and petrol head. Remember that Bunnings has done this product
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  Speaker 1: expansion before. Yeah. It entered into the cleaning and pet
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  Speaker 1: supplies market successfully cough about pet farm and more recently
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  Speaker 1: into age care and disability related products as well, and
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  Speaker 1: Juzzy Boy. It's believed the auto parts and lubricants industry
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  Speaker 1: is worth more than one and a half billion dollars
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  Speaker 1: per year. So be Man for Bunning, it will need
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  Speaker 1: to overcome the mote of its newfound competitors like Super
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  Speaker 1: Cheap Order and Autobart. So what is the key learning here?
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  Speaker 1: A competitive mote is what protects a business from its rivals.
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  Speaker 1: It's what keeps competitors from easily stealing market share. And
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  Speaker 1: be man specialists retailers like Super Cheap Auto and Autobarn.
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  Speaker 1: They've developed their moats based on their deep, deep product
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  Speaker 1: range and expert service. They stock thousands of products, have
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  Speaker 1: access to premium brands like Castrol or Penriight, and those
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  Speaker 1: brands are refusing to supply Bunnings because they're worried it
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  Speaker 1: may upset their existing relationship. And these auto retailers employ
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  Speaker 1: staff who live and breathe spark plugs. The Bannings has
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  Speaker 1: a different kind of mode. Yep, it's got insane scale,
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  Speaker 1: it's got a heap of foot traffic and of course
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  Speaker 1: pricing power. It might not stock everything, but what it
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  Speaker 1: does stock is easy to grab. While you're picking up
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  Speaker 1: plywood and a screwdriver. So the risk is that bannings
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  Speaker 1: will chip away slowly but surely and everyday purchases in
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  Speaker 1: this industry. For our second story, Prita has made the
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  Speaker 1: big acquisition of its Italian luxury competitor, Versaci for one
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  Speaker 1: point three eight billion US dollars. The devil wears Versacei
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  Speaker 1: Juzzy Boy. Everybody knows that. Tell me what's going on here? Okay?
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  Speaker 1: So Vasaci is the iconic Italian luxury brand was started
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  Speaker 1: by Gianni Versaci back in nineteen seventy eight and Jazi Boy.
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  Speaker 1: Since the eighties, Versacei's brand has really blown up with
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  Speaker 1: its maximalist prints. Think golden swirls and intricate floral kind
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  Speaker 1: of like it belongs on a palace ceiling, but instead
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  Speaker 1: it's on a silk shirt and jazzy boy. Since twenty eighteen,
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  Speaker 1: Capri Holdings bought Vasacei from the Versacei family for more
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  Speaker 1: than two point one billion US dollars. That's the US
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  Speaker 1: founded company behind Michael Kors and Jimmy Chew as well.
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  Speaker 1: They had a vision to double Versaci's revenue in one decade.
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  Speaker 1: They plan to tone down the glitz and the glamour
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  Speaker 1: and dial up the price tag. Think high quality fabrics
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  Speaker 1: and very neutral tone, quite the far cry from Versacei's
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  Speaker 1: usual loud designs and be man. It's been seven years
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  Speaker 1: since that acquisition and Versacei's revenue has dropped below its
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  Speaker 1: twenty twenty level. So now Versaci is coming back to
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  Speaker 1: Italian soil. Yep, it's been acquired by luxury brand Product
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  Speaker 1: for one point thirty eight billion US dollars. Or because
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  Speaker 1: Capri team underestimated the negative impact of a rapid brand reposition.
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  Speaker 1: So what is the key learning here? When brands try
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  Speaker 1: to pivot too hard, especially away from what made them iconic,
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  Speaker 1: they risk alienating their ride or dies. In Versachi's case,
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  Speaker 1: it had an over the top aesthetic and that was
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  Speaker 1: its signature. But Capri Holdings tried to modernize the Versati
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  Speaker 1: brand by jumping on the quiet luxury bandwagon and b
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  Speaker 1: man in the process, they raised what made Versaci Versaci
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  Speaker 1: and juzzy boy. We saw this with the British handbag
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  Speaker 1: label Mulberry, who tried to go upmarket in the early
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  Speaker 1: twenty tens. Yeah, they raised their price significantly, but in
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  Speaker 1: just a few years, share price dropped by seventy four percent,
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  Speaker 1: and of course it's CEO resigned, so juzzy boy. While
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  Speaker 1: brand evolution is necessary, if you shift too fast or
• 4:50
  Speaker 1: too far from what your audience expects, you risk losing
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  Speaker 1: everyone in the process. For our third and final story,
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  Speaker 1: Apple has dodged the tariff bullet as Donald Trump announces
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  Speaker 1: it tariff exemption on consumer electronic goods made in China. Geez,
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  Speaker 1: Apple breathing a very big cyb of relapb man, So
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  Speaker 1: tell me more, well, jazy boy. Remember when Donald Trump
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  Speaker 1: first announced ten percent tariffs on China, I do, and
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  Speaker 1: then he jacked them up to thirty four percent, and
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  Speaker 1: then fifty four percent, and then Trump jacked up his
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  Speaker 1: percent tariffs to one hundred and four percent and finally
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  Speaker 1: landed on one hundred and forty five percent tariffs in
• 5:22
  Speaker 1: response to China's tariff's back on the US. Every company
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  Speaker 1: making stuff in China collectively freaked out, of course, but
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  Speaker 1: none more than Apple. Yeah, that's because Apple assembles eighty
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  Speaker 1: seven percent of their iPhones in China, and that one
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  Speaker 1: hundred and forty five percent tariff felt like someone just
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  Speaker 1: added another zero to their retail price. In fact, there
• 5:37
  Speaker 1: was talk that iPhone prices could increase by more than
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  Speaker 1: forty percent if this tariff stuck. But now Donald Trump's
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  Speaker 1: announced that consumer electrics are exempt from this China tariff
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  Speaker 1: high so that includes iPhones and iPads and max Apple
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  Speaker 1: watches air tags. Next minute, Apple share price jumped over
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  Speaker 1: eleven percent. Trump claims he spoke to Apple CEO Tim
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  Speaker 1: Cook and decided to help him out. Very strange stuff.
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  Speaker 1: So what is the key learning here? Sometimes a company
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  Speaker 1: gets so powerful it becomes untouched. Yep. Apple isn't just
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  Speaker 1: a company, b man, It's a global economic force. Both
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  Speaker 1: the US and China rely on Apple for wealth and
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  Speaker 1: jobs and even power. Get this, be man. Apple currently
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  Speaker 1: supports around three million jobs in China. On the other hand,
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  Speaker 1: Apple shares have propped up American retirement fund through its
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  Speaker 1: near three trillion US dollar market cap because, b man,
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  Speaker 1: if Apple stumbles, everybody feels it. The stock market feels it,
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  Speaker 1: the global economy feels it, and the smartphone in your
• 6:30
  Speaker 1: hand definitely feels it too. Platsam. If you've seen everybody
• 6:34
  Speaker 1: high the goal right now? That is because if a
• 6:37
  Speaker 1: safe even asset for investors, you want to know more
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  Speaker 1: about why that is and what exactly sol purely about gold.
• 6:42
  Speaker 1: We have it all covered in the flux Cap this
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  Speaker 1: week a fluckdam. We're taking a break over the Good
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  Speaker 1: Friday and Easter Monday long weekend, but we'll be back
• 6:49
  Speaker 1: next Wednesday. Thanks for listening and we'll see you next
• 6:53
  Speaker 1: for Wednesday