Latest / What the Flux / Coles accused of 'utterly misleading' customers | SEEK exits Employment Hero | Sushi Sushi has a new owner

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Coles accused of 'utterly misleading' customers | SEEK exits Employment Hero | Sushi Sushi has a new owner · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brett and a Justin. It's Wednesday, eighteenth February.
• 0:09
  Speaker 1: Well, well, well, judgy boy, the government's been sprooking its
• 0:12
  Speaker 1: five percent deposit plan as the golden ticket into housing,
• 0:15
  Speaker 1: but the International Monetary Fund has taken its own shot
• 0:18
  Speaker 1: at the government. They reckon that this policy will drive
• 0:21
  Speaker 1: up house prices big time. That is a very different
• 0:24
  Speaker 1: sales pitch to the government's.
• 0:25
  Speaker 2: One, very very different b man. Only time will tell
• 0:28
  Speaker 2: Fox Sam. If you're feeling stuck at the starting line
• 0:30
  Speaker 2: of your investment journey, we have got you because this
• 0:33
  Speaker 2: month's Academy course Share Market Basics from zero to Investor
• 0:36
  Speaker 2: cuts through all the clutup. We're breaking down share buying,
• 0:39
  Speaker 2: decoding your risk tolerance, and unlocking the secrets of ETFs.
• 0:42
  Speaker 2: So if you want to learn more, make sure you
• 0:43
  Speaker 2: download the Flux app and check out the academy this month.
• 0:46
  Speaker 1: Three riveting stories Today Juzzy Boy, Let's do it for
• 0:48
  Speaker 1: our first Colds has been taken to court by the
• 0:51
  Speaker 1: AH Triple C for utterly misleading consumers on grocery prices.
• 0:56
  Speaker 2: So you're telling me downdown deals were actually prices going
• 0:58
  Speaker 2: up up a man, tell me more so.
• 1:00
  Speaker 1: Coals is one of Australia's biggest supermarket chains, neck and
• 1:04
  Speaker 1: or neck with Woolies or a weekly trolley victory.
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  Speaker 2: Yeah, and now the A Triple C has dragged Coals
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  Speaker 2: into the Federal court over its discount promotions.
• 1:12
  Speaker 1: And Coals Radio You mean the radio station that plays
• 1:14
  Speaker 1: nineties absolute banger ni.
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  Speaker 2: Correct, But they also run a lot of Coal's ads
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  Speaker 2: in between those Backstreet boys bangers.
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  Speaker 1: You see. The A Triple C alleges that Coals briefly
• 1:24
  Speaker 1: raised prices, then advertised a discount that was still higher
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  Speaker 1: than the original price. Go on, well, For example, a
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  Speaker 1: bag of dog food was four bucks for two hundred
• 1:32
  Speaker 1: and ninety six days, then it jumped to six bucks
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  Speaker 1: for a week, then discounted to four dollars fifty.
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  Speaker 2: That does not smell like a discount to meb man.
• 1:39
  Speaker 1: The regulator argues that Coals new customers would switch products
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  Speaker 1: if they realized prices were rising, so they framed increases
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  Speaker 1: as discounts.
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  Speaker 2: The old price anchoring in play well and truly, Yeah,
• 1:50
  Speaker 2: So what's the key learning here? Price anchoring is a
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  Speaker 2: behavioral economics principle. The consumers rather heavily on the first
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  Speaker 2: reference price they see when judging value. Anchoring works because
• 1:59
  Speaker 2: shoppers don't crack price history across hundreds of items. Nope,
• 2:02
  Speaker 2: they use shortcuts to sniff out a bargain.
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  Speaker 1: Think special tags or yellow stickers that act as mental
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  Speaker 1: signals that value exists right here.
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  Speaker 2: Yep, and be man. This tactic is pretty common across
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  Speaker 2: industries like fashion or airline.
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  Speaker 1: But regulators step in when the anchor becomes misleading rather
• 2:16
  Speaker 1: than informative calls.
• 2:18
  Speaker 2: Aren't the first to be under the firing line for
• 2:20
  Speaker 2: misleading pricing?
• 2:21
  Speaker 1: Now? Remember when Michael Hill, the Jeweler, and my house
• 2:24
  Speaker 1: round Black Friday discounts that exaggerated the real savings.
• 2:27
  Speaker 2: I do, and they receive some pretty stern infringement notices
• 2:30
  Speaker 2: from the atriple Ce. So josey boy, it's pretty clear
• 2:32
  Speaker 2: that a discount is misleading if the reference price is artificial,
• 2:35
  Speaker 2: and the atrible c will come after you hard.
• 2:38
  Speaker 1: For our second story, Seek is putting its stake in
• 2:41
  Speaker 1: Employment Hero up for sale, ending an eight year startup
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  Speaker 1: partnership right after their courtroom.
• 2:47
  Speaker 2: Drama closure achieved and cap table wiped clean. So what
• 2:51
  Speaker 2: is going on here?
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  Speaker 1: So Seek's Australia's biggest online jobs marketplace, with job marketplaces
• 2:56
  Speaker 1: across the world as well.
• 2:57
  Speaker 2: We're talking China, South America, Southeast Asia.
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  Speaker 1: And it has also been investing in startups since the
• 3:02
  Speaker 1: mid twenty tens, first through Seek itself, then through its
• 3:04
  Speaker 1: VC Seek Investments.
• 3:07
  Speaker 2: Man here's where it starts. Seek first invested in Employment
• 3:09
  Speaker 2: Hero back in twenty seventeen and has helped invest in
• 3:12
  Speaker 2: multiple rounds as Employment Heroes continues to expand.
• 3:15
  Speaker 1: Since then, Employment Hero has grown to more than three
• 3:17
  Speaker 1: hundred million bucks in annual recurring revenue and.
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  Speaker 2: A more than two billion dollar valuation.
• 3:21
  Speaker 1: In January last year, Seeks VC sold ninety five million
• 3:25
  Speaker 1: bucks worth of Employment Hero shares. It's still kept at
• 3:28
  Speaker 1: chunky steak.
• 3:29
  Speaker 2: Then July last year the drama started because Employment Hero
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  Speaker 2: took Seek to court or the access to one of
• 3:34
  Speaker 2: their APIs.
• 3:35
  Speaker 1: They ended up settling out of court, but clearly the
• 3:37
  Speaker 1: dust hasn't really settled.
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  Speaker 2: No, no, no, because Seek has just announced it plans
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  Speaker 2: to sell down its remaining stake in Employment Hero.
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  Speaker 1: So basically all forgiven but nothing forgotten.
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  Speaker 2: See claims This is all part of their typical exit
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  Speaker 2: strategy for the stage in its investment life cycle, So
• 3:52
  Speaker 2: what's the key learning here? An exit strategy is the
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  Speaker 2: plan that investors used to realize the value of their investment.
• 3:58
  Speaker 1: Venture capital and corporate venture funds. They don't make money
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  Speaker 1: just because startup.
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  Speaker 2: Grows, Nope, they only profit when they sell their shares
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  Speaker 2: and jus boy.
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  Speaker 1: There are typically three main strategies to exit an investment.
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  Speaker 1: Strategy one the company IPOs on the stock exchange. For example,
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  Speaker 1: Google Ventures invested in uber back in twenty thirteen, made
• 4:16
  Speaker 1: billions when an ipoid in twenty nineteen.
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  Speaker 2: Strategy two as a trade sale of the business where
• 4:21
  Speaker 2: they sell the shares of the company to another company
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  Speaker 2: or private equity firm.
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  Speaker 1: Or strategy three is a secondary sale like sikhs move,
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  Speaker 1: where investors sell a stake to other investors while the
• 4:29
  Speaker 1: business remains private.
• 4:30
  Speaker 2: And the man. Exits are critical for investors because startup
• 4:33
  Speaker 2: investing is very illiquid.
• 4:35
  Speaker 1: And since Stek first invested in Employment Hero back in
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  Speaker 1: twenty seventeen, it's been more than nine years and time
• 4:41
  Speaker 1: to get some cashiola out of there, so be man.
• 4:43
  Speaker 2: It might be part of the investment life cycle, but
• 4:45
  Speaker 2: it's also part of Siek's healing process.
• 4:47
  Speaker 1: For our third and final story, Sushi Sushi has been
• 4:50
  Speaker 1: snapped up by Japan's Ganke for one hundred and sixty
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  Speaker 1: million bucks, taking the humble Aussie hand roll global.
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  Speaker 2: Weale Theauzzi hand roll making moves around the world. So
• 5:00
  Speaker 2: tell me what's going on here.
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  Speaker 1: So Sushi Sushi started almost thirty years ago in Melbourne
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  Speaker 1: selling non traditionally Japanese grab and go sushi roll and.
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  Speaker 2: Since then this grab and go sushi roll concept has
• 5:09
  Speaker 2: blown up, and so has Sushi Sushi.
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  Speaker 1: In fact, it's grown to one hundred ninety stores nationwide
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  Speaker 1: with a whole range of different Japanese inspired snaky's.
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  Speaker 2: You want kariaki Chicken, they've rolled it.
• 5:19
  Speaker 1: You want Avo Tuna, Oh, they've definitely rolled that one out.
• 5:24
  Speaker 2: And bi Man. Sushi Sushi was first sold to private
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  Speaker 2: equity owner Odyssey back in twenty nineteen, and now.
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  Speaker 1: Odyssey has sold Sushi Sushi to a Japanese dining giant,
• 5:31
  Speaker 1: Gyanke Global Dining Concepts for a reported one hundred and
• 5:35
  Speaker 1: sixty million bucks.
• 5:36
  Speaker 2: And who is this Yankee Global Dining Concepts that you
• 5:38
  Speaker 2: speak of?
• 5:39
  Speaker 1: Well? Does it?
• 5:39
  Speaker 2: Boy?
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  Speaker 1: They started back in the nineteen sixties with sushi trained
• 5:42
  Speaker 1: stores that obviously have grown to introduce Japanese fast food
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  Speaker 1: to over thirteen countries, and biman Gyank plans to keep
• 5:49
  Speaker 1: the Sushi Sushi strategy the same, but once to use
• 5:51
  Speaker 1: its global supply chain and tech to speed up their
• 5:54
  Speaker 1: growth even more. We're talking four hundred and fifty Ozzie
• 5:57
  Speaker 1: stores and international expansion into markets like the Middle East.
• 6:00
  Speaker 2: It's a very different approach to private equity.
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  Speaker 1: So what's the key learning here?
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  Speaker 2: Not all buyers what the same thing. When acquiring a company.
• 6:05
  Speaker 1: A financial buyer like private equity, focuses on improving profitability
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  Speaker 1: and valuation with the.
• 6:10
  Speaker 2: Goal of selling later, just like Odyssey.
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  Speaker 1: Did hear they bought Sushi Sushi for fifty to sixty
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  Speaker 1: million bucks when it had around sixty.
• 6:17
  Speaker 2: Stores, and they sold it for roughly one hundred and
• 6:19
  Speaker 2: sixty mel once it had grown to one hundred and
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  Speaker 2: ninety stores.
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  Speaker 1: That is the private equity playbook. Improved the business and
• 6:24
  Speaker 1: prepare to sell it to the next owner.
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  Speaker 2: But they man a strategic buyer like Yankee is different.
• 6:28
  Speaker 2: They're looking for synergy and yes, the buzzword actually fits here.
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  Speaker 1: So Sushi Sushi gets faster growth and Yankee expands its
• 6:34
  Speaker 1: international footprint at the same.
• 6:36
  Speaker 2: Time, win win. If you want to know how to
• 6:39
  Speaker 2: buy and sell shares, a little bit of technical, fundamental analysis,
• 6:42
  Speaker 2: and some investing strategies, we have it all covered in
• 6:45
  Speaker 2: the Flux Academy this month. You do not want to
• 6:47
  Speaker 2: miss out on this one. We're talking leaderboards and verses
• 6:50
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• 6:51
  Speaker 2: out the Academy.
• 6:52
  Speaker 1: Thanks for listening and we'll see you on for write
• 6:54
  Speaker 1: a