Latest / What the Flux / Cettire’s controversy | Petstock's new competitor | TPG’s calls out tech giants

Transcript

Cettire’s controversy | Petstock's new competitor | TPG’s calls out tech giants · What the Flux

• 0:05
  Speaker 1: This is what the flux.
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  Speaker 2: I'm justin and I'm harsh Deep and it's Wednesday, the
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  Speaker 2: twenty ninth of May.
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  Speaker 1: A see a lot of Ossie's are watching Netflix right now.
• 0:13
  Speaker 1: And Netflix is benefiting from this big time. Get this,
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  Speaker 1: It made more than one point one billion dollars from
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  Speaker 1: Australian consumers last year.
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  Speaker 2: Wow.
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  Speaker 1: But he actually shifted more than one billion dollars of
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  Speaker 1: that revenue to its US parent company. So that means
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  Speaker 1: the Flicks pay tax on just eight percent of its
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  Speaker 1: Australian generated revenue. And I kind of feel like Assi's
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  Speaker 1: this gives us justification for password sharing.
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  Speaker 2: I agree. I think so too. As we often hear
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  Speaker 2: about journaling about your thoughts or your day or creativity.
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  Speaker 2: But have you ever reflected on where you're at with
• 0:42
  Speaker 2: your money? In the flux sapp, We've built a money
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  Speaker 2: check in which asks you five simple questions and shows
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  Speaker 2: you a score of where you're at with your money
• 0:50
  Speaker 2: this month, So make sure to download the Flux SAP
• 0:52
  Speaker 2: and do the money check in before the end of
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  Speaker 2: this month.
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  Speaker 1: Three reflective stories today, let's get into it. For our
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  Speaker 1: first set, the Australian Luxury Goods Marketplace has seen at
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  Speaker 1: share price jump more than ten percent early this week
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  Speaker 1: after it denied allegations that has fake products on its platform.
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  Speaker 2: Seems strange that a denial of something really bad has
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  Speaker 2: actually seen a share price jumper. Tell me more.
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  Speaker 1: Okay. So, Setire is the luxury goods marketplace that was
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  Speaker 1: founded back in twenty seventeen and listed on the ASEX
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  Speaker 1: in December twenty twenty, and just.
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  Speaker 2: Since those early days, Satire has grown to over one
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  Speaker 2: million orders per year.
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  Speaker 1: And they're not selling anchor or home brand products. We're
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  Speaker 1: talking high end brands like Louis Vuitton, Mike Prada, Valentino.
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  Speaker 2: But there has been a lot of controversy around set Tire,
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  Speaker 2: largely because it doesn't deal directly with the high end brands, and.
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  Speaker 1: That's raised some serious concerns about the quality as well
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  Speaker 1: as the origin of the products that are sold on
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  Speaker 1: their website.
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  Speaker 2: Am I getting a two thousand dollars discount on a
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  Speaker 2: genuine Balenciaga bag or am I paying a serious markup
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  Speaker 2: for a knockoff?
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  Speaker 1: So actually, a global due diligence firm, which has done
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  Speaker 1: more than one hundred thousand investigations, has now done a
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  Speaker 1: deep dive into and.
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  Speaker 2: They found a complex company structure, opaque supply and logistics network,
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  Speaker 2: and a poor complaints handling process.
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  Speaker 1: It's fair to say that is all major cause for concern.
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  Speaker 2: But then Satire released a report saying that they reject
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  Speaker 2: entirely the allegations, and.
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  Speaker 1: The story gets juhd because Setia also said this ju
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  Speaker 1: Diligence firm was commissioned to do the report by a short.
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  Speaker 2: Seller and the goal of this report was to dent
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  Speaker 2: the share price of Satire to the benefit of the
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  Speaker 2: short seller.
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  Speaker 1: Next thing you know, share price up ten percent.
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  Speaker 2: So tell me what is the key learning here.
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  Speaker 1: Short Selling is the process of selling shares to someone
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  Speaker 1: at current prices with the aim of buying them back
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  Speaker 1: later at a lower.
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  Speaker 2: Price, and it's done by borrowing shares of a company
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  Speaker 2: from a broker first. Often, short sellers will do a
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  Speaker 2: lot of investigative research on a.
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  Speaker 1: Company, understanding company structures, who their supplies, are, speaking to
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  Speaker 1: their customers.
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  Speaker 2: And once they have conviction that something is a little
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  Speaker 2: bit fishy, they'll take a short position in that company.
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  Speaker 1: And then often release the report to the mark highlighting
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  Speaker 1: all the fishy stuff going on. All in all, it's
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  Speaker 1: kind of hard to know right now whether the report
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  Speaker 1: inter Setire is accurate, but we do know.
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  Speaker 2: That it didn't seem to face satires investors.
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  Speaker 1: For our second story, Petstock, the pet food retailer backed
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  Speaker 1: by Woolworths, has been forced to sell over forty of
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  Speaker 1: its stores and has created a new major competitor in
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  Speaker 1: the process.
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  Speaker 2: Wall is really battling to become the top dog.
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  Speaker 1: Here.
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  Speaker 2: Tell me more about this one.
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  Speaker 1: Okay. So Petstock started back in nineteen ninety five in
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  Speaker 1: a regional town in Victoria called Ballarat.
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  Speaker 2: And since then it's grown to become Australia's second biggest
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  Speaker 2: pet retailer.
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  Speaker 1: We're talking two hundred and seventy six stores and a
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  Speaker 1: loyal path of more than two point four million members.
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  Speaker 2: Quick reminder. In December twenty twenty two, Woolworths acquired a
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  Speaker 2: fifty five percent steak in Petstock for five hundred and
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  Speaker 2: eighty six million dollars.
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  Speaker 1: But that was subject to the hubal Ce reviewing the deal.
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  Speaker 2: And review the deal they did. In order to get
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  Speaker 2: the deal done, Petstock was forced to sell forty one
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  Speaker 2: of its stores and twenty five co located vet clinics,
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  Speaker 2: and those stores and vet clinics have been sold to
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  Speaker 2: pet Oh for an undisclosed amount.
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  Speaker 1: But what we do know is that the sale of
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  Speaker 1: these stores will triple pet O's revenue into over two
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  Speaker 1: hundred million dollars perameter, and.
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  Speaker 2: This will mean pet O is marketing its territory as
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  Speaker 2: the third biggest pet retailer in Australia according to IBS
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  Speaker 2: welt Wow.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: Regulatory decisions aimed at creating market competition can sometimes lead
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  Speaker 2: to unintended consequences for companies.
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  Speaker 1: Or intended consequences for the Atria'll see you see JS.
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  Speaker 2: Woolwort's acquisition of pet Stock was all part of their
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  Speaker 2: plan to dominate the pet space.
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  Speaker 1: But because of concerns around competition force them to divest
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  Speaker 1: a number of the pet Stock.
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  Speaker 2: Assets that included the brand's best Friends, Our Vet, My
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  Speaker 2: pet Warehouse and pet City.
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  Speaker 1: The challenge from Woolworths was to find a buyer for
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  Speaker 1: those pet Stock assets without inadvertently creating a stronger competitor.
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  Speaker 2: So by selling these stores to pet O, a smaller
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  Speaker 2: chain at the time, Wilworts has effectively enabled Peto to
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  Speaker 2: triple its revenue.
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  Speaker 1: And contributed to the rise of a significant new player
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  Speaker 1: in the ten billion dollar pet sector.
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  Speaker 2: For our third and final story, TPG has come out
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  Speaker 2: and said that tech giants like Google and Meta should
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  Speaker 2: be made to pay for telco infrastructure.
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  Speaker 1: That is sure to grind the gears of tech CEOs.
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  Speaker 1: So what is the story here?
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  Speaker 2: TPG is the third largest telco company in Australia with
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  Speaker 2: over five point eight million subscribers, and.
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  Speaker 1: It's the parent company of other telco brands like Mootaphone,
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  Speaker 1: i Net and Labara.
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  Speaker 2: Now TPG has publicly come out against tech giants and
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  Speaker 2: said that they should be made to pay for the
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  Speaker 2: rollout of five G networks and telco infrastructure.
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  Speaker 1: Shots fired. TPG reckons that tech companies like Google and
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  Speaker 1: Netflix they make massive profit off the back of Australia's
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  Speaker 1: telco networks.
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  Speaker 2: And that they encourage people to consume more data by
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  Speaker 2: watching Bridgeton and Baby Reindeer marathons.
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  Speaker 1: But ah, these tech companies don't spend a single dollar
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  Speaker 1: on the internet infrastructure that they rely on. So tell me, H,
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  Speaker 1: what is the key learning here?
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  Speaker 2: When an industry is benefiting at the cost of another,
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  Speaker 2: sometimes regulators need to step in to create a fair outcome.
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  Speaker 1: Meanwhile, tech giants have started pushing back against this idea
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  Speaker 1: of paying for Internet access. They're even calling it the
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  Speaker 1: Internet Task.
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  Speaker 2: But TPGs not the first to take.
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  Speaker 1: This stance, Nope. In fact, regulatory bodies in the EU,
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  Speaker 1: in South Korea, and India have all started working on
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  Speaker 1: a solution as well.
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  Speaker 2: Because get this, Jazz, Google, Netflix, Meta, Apple, Amazon, and
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  Speaker 2: Microsoft together generate nearly half of all Internet.
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  Speaker 1: Traffic, and as the digital economy expands, so does the
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  Speaker 1: need for strong Internet infrastructure. Flex sam if you're looking
• 6:34
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• 6:38
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• 6:44
  Speaker 2: Thanks for listening and we'll see you on Friday.