Latest / What the Flux / Zip's brand gets zapped | Googles gaming partnership | Class action against Estée Lauder

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Zip's brand gets zapped | Googles gaming partnership | Class action against Estée Lauder · What the Flux

• 0:05
  Speaker 1: This is what the flux.
• 0:06
  Speaker 2: I'm Brettan, I'm justin as Friday, the.
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  Speaker 3: Fourth of April Juzzy Boy, who said memestock mania was over.
• 0:12
  Speaker 3: A conservative media outlet named Newsmax listed on the Nasdaq
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  Speaker 3: earlier this week and its shares jumped two two hundred percent.
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  Speaker 1: If you don't mind, that was just in the first
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  Speaker 1: two days.
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  Speaker 2: Very juicy stuff. And speaking of juicy stuff being man,
• 0:24
  Speaker 2: it was officially Liberation Day yesterday, which means Donald Trump
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  Speaker 2: has released a list of roughly one hundred countries that
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  Speaker 2: will be hit with a tariff from the US. Some
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  Speaker 2: countries like India have been hit with fifty two percent tariffs,
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  Speaker 2: Australia have been hit with ten percent tariffs. But my
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  Speaker 2: personal favorite are the Herd Island and McDonald Islands, which
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  Speaker 2: will hit with ten percent tariff on goods. There only
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  Speaker 2: problem there. The only beings on these islands are key penguins.
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  Speaker 3: Three riveting stories today, Juzzy Boy, let's do it for
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  Speaker 3: our first. The share price of Zipco has fallen more
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  Speaker 3: than six percent earlier this week after zip lost a
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  Speaker 3: court case over its very own name.
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  Speaker 2: Who is zip about to go on a full on
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  Speaker 2: rebrand b man, what is going on here?
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  Speaker 1: Well, juzy boys and background.
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  Speaker 3: Zip Co was founded in twenty thirteen as one of
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  Speaker 3: the og buy now, pay later companies in Australia.
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  Speaker 2: Even slightly before after pay.
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  Speaker 3: And since then it's grown to over six million customers globally.
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  Speaker 2: The man it hasn't all been daffodils and rainbowster zip nw.
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  Speaker 3: It's share price hit a high of twelve bucks thirty
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  Speaker 3: five in feb twenty twenty one, but as interest rates
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  Speaker 3: shut up, its business became a whole lot moretal challenging.
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  Speaker 2: Yeap, zip share price dropped harder than your phone on concrete,
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  Speaker 2: from twelve dollars thirty five all the way down to
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  Speaker 2: twenty seven cents.
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  Speaker 3: In other words, a drop of ninety eight percent. But
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  Speaker 3: now Zip has just suffered another major curve bar because
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  Speaker 3: it actually lost a court case on the use of
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  Speaker 3: its trading name is zip Yeah.
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  Speaker 2: This fight started back in twenty nineteen when first Mac
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  Speaker 2: and non bank lender claimed the Zip had been using
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  Speaker 2: a trademark of THEIRS, which was registered in two thousand and.
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  Speaker 3: Four, well before Zip, the buy now, pay later company
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  Speaker 3: started to exist. Now Zip might have to change its
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  Speaker 3: name in Australia.
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  Speaker 2: Next minute, investor's panic and ZIP share price dropped over
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  Speaker 2: six percent.
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  Speaker 3: Now, thankfully for Zip, this trademark matter only relates to
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  Speaker 3: its Australian operation.
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  Speaker 1: So what's the key learning here?
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  Speaker 2: A company's name isn't just a label, it's a key
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  Speaker 2: asset for a consumer business.
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  Speaker 3: You see j Z boy. The buying now pay later
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  Speaker 3: space is very very competitive and as.
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  Speaker 2: A result, brand recognition and trust are key differentiators between
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  Speaker 2: afterpay and Zip and Klana and a firm.
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  Speaker 3: So when a company is forced to change its name
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  Speaker 3: due to a trademark dispute, it can become a massive distraction.
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  Speaker 2: Ye we know the Zip spent years and millions of
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  Speaker 2: dollars building its brand in Australia and globally.
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  Speaker 3: And a rebrand would basically force Zip to spend more
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  Speaker 3: in marketing and technology updates and communications as well. And
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  Speaker 3: Zipp beat the first company to be potentially forced to
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  Speaker 3: rebrand as a result of a trademark issue. Well remember
• 2:43
  Speaker 3: all the way back in two thousand and two when
• 2:45
  Speaker 3: the World Wrestling Federation then the WWF lost a legal
• 2:49
  Speaker 3: bill against the World Wildlife Fund also known as the WWF.
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  Speaker 2: I do the wrestling company was forced to change its
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  Speaker 2: name with.
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  Speaker 1: Its big campaign Get the f out.
• 2:59
  Speaker 2: For our second story. Google has teamed up with Roadblocks
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  Speaker 2: to launch new video ads and give traditional marketers a
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  Speaker 2: new way to reach gen Z customers.
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  Speaker 3: Sounds like we're about to get a whole lot more
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  Speaker 3: branded virtual sneakers.
• 3:12
  Speaker 1: Jugsey Boy, tell me more.
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  Speaker 2: Okay. So Roadblocks is the online gaming platform. It was
• 3:16
  Speaker 2: released back in two thousand and six.
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  Speaker 3: But the digital lego looking people in that game, they
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  Speaker 3: really took the world by storm during COVID.
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  Speaker 2: That's when other tweens and teens and quite a few
• 3:25
  Speaker 2: adults logged into Escape Reality.
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  Speaker 3: In fact, it grew from twenty three million daily active
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  Speaker 3: users which was in early twenty twenty, to now having
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  Speaker 3: more than eighty five million daily active users.
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  Speaker 2: But the man, here's the thing. Roadbox doesn't actually produce
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  Speaker 2: its own game. It's essentially a marketplace for developers to build.
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  Speaker 3: Games, and there are over forty million games within Roadblocks,
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  Speaker 3: kind of like a gaming app store, and.
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  Speaker 2: These developers can monetize their games.
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  Speaker 3: And now juzzy Boy Roadblocks has partnered with Google to
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  Speaker 3: bring ads into the metaverse.
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  Speaker 2: Ye. This gives game creators more ways to actually monetize
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  Speaker 2: their games within roadblocks.
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  Speaker 3: And it means that brand can now choose to advertise
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  Speaker 3: on roadblocks via Google.
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  Speaker 2: But be man, it's not a banner ad or a
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  Speaker 2: search ad like on Google.
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  Speaker 3: No, no, no, we'd be talking rewarded video ads.
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  Speaker 2: So what is the key learning here?
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  Speaker 3: Rewarded video ads are a type of ad format where
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  Speaker 3: users watch a short video in exchange for an in
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  Speaker 3: game reward.
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  Speaker 2: So you watch a thirty second trailer on a new
• 4:21
  Speaker 2: Spicy Hungry.
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  Speaker 3: Jacks burger, and as a user, if you sit there
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  Speaker 3: watching the crunch of that burger, you'll earn an in
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  Speaker 3: game reward. It might be a virtual currency to buy
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  Speaker 3: more armor, or it might be the ability to unlock
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  Speaker 3: an extra life in a game.
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  Speaker 2: And be man. This format is becoming very popular, especially
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  Speaker 2: in mobile gaming.
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  Speaker 1: The reason is apparently it actually works.
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  Speaker 2: Yeah, get this. Roadblock says over eighty percent of users
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  Speaker 2: complete these ads when they're tested, So be man. This
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  Speaker 2: is basically the modern equivalent of bribing kids with GANDHY.
• 4:50
  Speaker 1: And Welcome to gaming.
• 4:51
  Speaker 2: In twenty twenty five, for our third and final story essay,
• 4:55
  Speaker 2: Lauder is facing a lawsuit from investors for allegedly hiding
• 4:58
  Speaker 2: their alliance on raymarket sales in China. Is the beauty
• 5:02
  Speaker 2: industry facing some illegal pain here? Juzzy boy, tell me
• 5:05
  Speaker 2: everything you know about this story. Well, I take it,
• 5:07
  Speaker 2: b man. You've heard of the brand's clinique, the Ordinary,
• 5:09
  Speaker 2: map dom Alone, tom Ford.
• 5:11
  Speaker 1: I've heard of some of them, Juzzy boy.
• 5:13
  Speaker 2: Those are just a few of the brands owned by
• 5:14
  Speaker 2: essay Lorder, which is the world's second largest cosmetic company.
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  Speaker 3: Now, Jazzy boy, you might remember that back in twenty
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  Speaker 3: twenty three, Estate lorders shares plummeted over twenty percent.
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  Speaker 2: That was when they released their twenty twenty three forecast
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  Speaker 2: and their sales numbers flopped hard.
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  Speaker 3: The execs said the decline in sales was because of
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  Speaker 3: a slow recovery of consumer spending after the pandemic, and
• 5:33
  Speaker 3: the man.
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  Speaker 2: That wasn't entirely lie. But it wasn't entirely the truth either.
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  Speaker 3: You see, earlier in twenty twenty three, the Chinese government
• 5:39
  Speaker 3: began cracking down on what's known as digu merchants, and
• 5:43
  Speaker 3: this was actually a key reason why estay Lorder's revenue
• 5:46
  Speaker 3: was below FORCA.
• 5:47
  Speaker 2: As a result, Esstay Lord's investors are running a class
• 5:50
  Speaker 2: action lawsuit against them for telling half truths on their
• 5:53
  Speaker 2: financial performance.
• 5:54
  Speaker 3: All because of their over alliance on Diego market sales.
• 5:58
  Speaker 2: So what is the key learning here?
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  Speaker 3: Doug whose are individuals or agents who purchase goods from
• 6:02
  Speaker 3: overseas and then resell them in the Chinese market.
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  Speaker 2: Generally products are sold by Daigo's when Chinese consumers have
• 6:08
  Speaker 2: lost trust in the local alternative.
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  Speaker 3: Or they just can't buy these overseas brands directly.
• 6:13
  Speaker 2: And they man. It ain't just in the beauty industry.
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  Speaker 3: Now, remember when Australian baby formula was flying off supermarket
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  Speaker 3: shelves during COVID do the Diagu market has been massive
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  Speaker 3: and can make up to sixty percent of sales for
• 6:24
  Speaker 3: some businesses.
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  Speaker 2: And that's why the crackdown on the Dagu market is
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  Speaker 2: actually more serious. And estay Lords execs were letting on because.
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  Speaker 3: A crackdown is actually a structural change to esday Lorder's
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  Speaker 3: revenue stream, but.
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  Speaker 2: The execs tried to play it off as a short
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  Speaker 2: term loss due to COVID.
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  Speaker 3: And now investors are looking to get the bag from
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  Speaker 3: esday Lauder through a class action lawsuit instead.
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  Speaker 2: Blockdam if you want to kick off the weekend on
• 6:45
  Speaker 2: a high. Fifty bucks in your pocket to start the
• 6:48
  Speaker 2: weekend is only one place to go. It's in the
• 6:50
  Speaker 2: Flux app with your notifications on to make sure to
• 6:52
  Speaker 2: download the Flux app.
• 6:53
  Speaker 3: Thanks for listening, and we'll see you on Monday.