Latest / What the Flux / MCoBeauty hit in copycat lawsuit | IKEA cuts 365-day returns | Coachella brings in the bucks

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MCoBeauty hit in copycat lawsuit | IKEA cuts 365-day returns | Coachella brings in the bucks · What the Flux

• 0:05
  Speaker 1: This is what the flax.
• 0:06
  Speaker 2: I'm bred justin and it's Wednesday, the fifth of April.
• 0:09
  Speaker 1: Dozy Bight. While petrol prices are rising, electric vehicle makers
• 0:12
  Speaker 1: are having the last laugh, get this one. Sales of
• 0:15
  Speaker 1: evs in Australia have doubled in the past month, and
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  Speaker 1: Matt the second hand EV's is also flying as a
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  Speaker 1: cheaper entry point into the market.
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  Speaker 2: Talk about a one eighty three EV's be man, m
• 0:25
  Speaker 2: m am. Most people treat their super like the spare
• 0:27
  Speaker 2: ruvet home. Stuff gets thrown in the door closes and
• 0:30
  Speaker 2: you promise yourself you'll one day sort it out. When
• 0:32
  Speaker 2: the Flux App, we break down all the different investment
• 0:35
  Speaker 2: choices you actually have in your superannuation and whether it
• 0:37
  Speaker 2: actually matters. So if you've been avoiding your super like
• 0:40
  Speaker 2: the plague, make sure to download the Flux app and
• 0:42
  Speaker 2: learn more about all the different super options.
• 0:44
  Speaker 1: Three riveting stories today, Dozy boy, let's do it for
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  Speaker 1: our first m CO Beauty, The Australian dupe beauty Giant
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  Speaker 1: is facing US lawsuits overclaims it has copied its luxury competitor.
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  Speaker 2: Jeeps might say to you while to check out b Man,
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  Speaker 2: but apparently not in court, so tell me more.
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  Speaker 1: So Beauty is the Australian beauty giant that was founded
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  Speaker 1: in twenty twenty.
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  Speaker 2: Its goal was to sell luxury beauty products that looked
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  Speaker 2: and smelt like luxury brands at a non luxury price,
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  Speaker 2: and just.
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  Speaker 1: Boy, MCO Beauty grew so rapidly across roy tailor's in
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  Speaker 1: Australia and online. The founder sold mco Beauty at a
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  Speaker 1: one billion dollar valuation early last year.
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  Speaker 2: But now the Jube game might be catching up with them.
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  Speaker 1: Yep. Sold Dijaneiro, the Beach Body Missed brand, is alleging
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  Speaker 1: that MCO Beauty's Body Missed line directly copied its product
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  Speaker 1: and sold.
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  Speaker 2: Desgenio claims Emco Beauty has done.
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  Speaker 1: This on purpose, and it claims that MCO Beauty is
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  Speaker 1: leveraging Soldi Gennio's strong reputation and their trading off it.
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  Speaker 2: But MCO Beauty defense the target market is different.
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  Speaker 1: Yep. They reckon that people buying their twelve dollars Body
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  Speaker 1: Missed We're never going to spend forty five bucks on
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  Speaker 1: the original.
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  Speaker 2: So mco Beauty built a brand on smelling like luxury,
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  Speaker 2: but now it's starting to smell like an expensive lawsuit.
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  Speaker 1: So what's the key learning here?
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  Speaker 2: There's a fine line between inspiration and infringement.
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  Speaker 1: Jube brands walk that line on purpose. They tried to
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  Speaker 1: get as close as possible to the OG without ideally crossing.
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  Speaker 2: But clearly Soldier Shceennio and other luxury brands are now
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  Speaker 2: trying to protect.
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  Speaker 1: Their own terf especially because the demand for the cheaper
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  Speaker 1: alternative is definitely there. In fact, the man sixty one
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  Speaker 1: percent of Australians say they don't feel embarrassed by buying jupes,
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  Speaker 1: and seventy three percent say they'd feel neutral or even
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  Speaker 1: proud using a no name brand.
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  Speaker 2: So Soldier Ghennio is trying to protect its market share
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  Speaker 2: against the company selling a similar product for seventy five
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  Speaker 2: percent cheaper.
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  Speaker 1: And it's not the first legal battle when it comes
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  Speaker 1: to beauty jeops.
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  Speaker 2: Nope, Charlotte till Breeze sued the UK souper market sued
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  Speaker 2: Audi in the UKA. So sued Audi in the UK
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  Speaker 2: in twenty nineteen for a jupe and they won.
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  Speaker 1: But courts don't always rule in favor of the luxury brands.
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  Speaker 2: Yeah, like when Better Cosmetics actually lost its case against
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  Speaker 2: Alef are making a product they said was similar to
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  Speaker 2: their mascara.
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  Speaker 1: So the battle between lax and dupe brands continues to
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  Speaker 1: drag on.
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  Speaker 2: For our second story, Iikia is winding back it's famous
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  Speaker 2: three hundred and sixty five day refund policy as their
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  Speaker 2: returns are starting to eat into their flat pack margins.
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  Speaker 1: I Care flat pack assembly has been testing relationships since
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  Speaker 1: nineteen forty three, So tell me more, okay.
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  Speaker 2: So I Care is obviously the Swedish furniture giant known
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  Speaker 2: for their flat packs.
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  Speaker 1: Don't forget those Swedish mid balls.
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  Speaker 2: And the Swedish feature as well, Uha.
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  Speaker 1: And Juzzy Boy. Well. I Care has been famous for
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  Speaker 1: its frustratingly difficult furniture to assemble. It's also got a
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  Speaker 1: good rep for its super generous return policy.
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  Speaker 2: We're talking a full year to decide if that Billie
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  Speaker 2: book case really fix your vibe.
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  Speaker 1: But now I Care is tightening the allen Key screws
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  Speaker 1: on those returns.
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  Speaker 2: They've cut the return window from open to items from
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  Speaker 2: three hundred and sixty five days down to just sixty days.
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  Speaker 1: And items that are damaged or stained or modified will
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  Speaker 1: not be able to be returned at all.
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  Speaker 2: And the man. With higher inflation and increased logistics casts,
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  Speaker 2: IKEA is cutting back its generosity.
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  Speaker 1: So that half built desk may not be accepted and
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  Speaker 1: the Ikea returns counter anymore.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Generous return policies build customer loyalty and trust, but they've
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  Speaker 1: become way too expensive to maintain.
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  Speaker 2: You see the man. Generous returns policies became a key
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  Speaker 2: strategy to help I Care build consumer trust in the
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  Speaker 2: flat pack furniture model.
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  Speaker 1: But over time people started gaming the system.
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  Speaker 2: Yeah, customers started buying more items than they intended to keep.
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  Speaker 1: Like buying the same product in three different colors all
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  Speaker 1: sizes and returning too.
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  Speaker 2: Which has been called bracketing or wardrobe.
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  Speaker 1: And while it's great for indecisive shoppers, it's not great
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  Speaker 1: for business margins.
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  Speaker 2: Yeah, so instead of absorbing the cost, business is like
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  Speaker 2: Ikia are starting to pull back.
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  Speaker 1: And they're not alone. The number of retailers offering free
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  Speaker 1: returns dropped from forty nine percent to just fourteen percent
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  Speaker 1: between twenty eighteen and twenty twenty five.
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  Speaker 2: The problem is that sixty five per cent of Australian
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  Speaker 2: shoppers still expect what they call friction free returns.
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  Speaker 1: So retailers need to walk tightrope between cutting costs without
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  Speaker 1: damaging customer experience.
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  Speaker 2: For our third and final story, Coachella Week one is
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  Speaker 2: done and dusted and the Californian region is counting them aller.
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  Speaker 1: Coachella real money bags these days, jesy boy, So tell
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  Speaker 1: me more.
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  Speaker 2: Okay. So, Courchella's the music festival in the Californian desert
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  Speaker 2: that's been running since nineteen ninety.
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  Speaker 1: Nine, and by the twenty tens it really became one
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  Speaker 1: of the most profitable and influential music festivals in the world.
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  Speaker 2: Get this, be Man. Cochella twenty twenty six sold out
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  Speaker 2: within three days.
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  Speaker 1: We're talking around one hundred and twenty five thousand people
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  Speaker 1: per day across two weekends, and.
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  Speaker 2: Last weekend Coachella officially kicked off again with some big
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  Speaker 2: name artists. We're talking Justin Bieber.
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  Speaker 1: Or Bebacheller as you've been calling each boy.
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  Speaker 2: There's also Sabrina Carpenter, Addison, Ray Moby, your favorite, The Strokes,
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  Speaker 2: and many many more.
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  Speaker 1: And about three hundred thousand people collectively pretending they're not
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  Speaker 1: melting in forty degree heat.
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  Speaker 2: And be Man, it's expected that Coachella weekends one and
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  Speaker 2: two will contribute more than six hundred million US dollars
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  Speaker 2: towards the local Californian economy.
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  Speaker 1: I'm talking hotels being booked out in Airbnb's price gouge and.
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  Speaker 2: Every cafe within a fifty kilometer radius selling fifteen dollar
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  Speaker 2: ice matches.
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  Speaker 1: Not about return for just two weekends of Beba Fever
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  Speaker 1: and b Man.
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  Speaker 2: Coachella isn't just the music festival anymore. It's become one
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  Speaker 2: of the most powerful business models in entertainment, not just
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  Speaker 2: for musicians but also for content creators and brands. Yep.
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  Speaker 2: And while Justin Bieber reportedly earned ten million US dollars
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  Speaker 2: for his performance, it's even more money being made off
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  Speaker 2: the stage.
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  Speaker 1: So what's the key learning here?
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  Speaker 2: The best marketing isn't just about being visible, It's about
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  Speaker 2: being visible in the right setting. And jes It boy,
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  Speaker 2: today's marketers try to put their products in the most
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  Speaker 2: aspirational environments, and it seems like Coachella is aspirational one
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  Speaker 2: oh one.
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  Speaker 1: That's why creators are flown in. They're styled in specific
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  Speaker 1: outfits and gifted tons of products. And in twenty twenty five,
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  Speaker 1: the creator lead content at Coachella generated and estimated at
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  Speaker 1: seven hundred and fifty four million bucks in earned media value.
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  Speaker 2: So instead of running ads, brands are turning influencers into walking,
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  Speaker 2: talking billboards with better lighting and Coachella has become their
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  Speaker 2: real life content studio. Bucks am. We all know that
• 6:31
  Speaker 2: smart investments can compound over time into significant growth, and
• 6:35
  Speaker 2: none more than in your superannuation. In the Flex app,
• 6:37
  Speaker 2: we break down how having investment choices in your superannuation
• 6:40
  Speaker 2: can actually make massive differences to your future. So if
• 6:43
  Speaker 2: you want to learn more, make sure to download the
• 6:44
  Speaker 2: Flux app and check out our latest articles.
• 6:46
  Speaker 1: Thanks for listening and we'll see you on Friday