Latest / What the Flux / Zip's US biz takes off | Myer revamps its beauty program | Football Australia's pricey playbook

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Zip's US biz takes off | Myer revamps its beauty program | Football Australia's pricey playbook · What the Flux

• 0:05
  Speaker 1: This is What the Flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Friday, the twenty
• 0:09
  Speaker 2: fourth of October.
• 0:10
  Speaker 1: Jasey Boy. The NRL's Penrith Panthers have taken over as
• 0:13
  Speaker 1: the most valuable sports club in Australia despite missing the
• 0:16
  Speaker 1: Grand Final this year, and that is according to consultancy
• 0:18
  Speaker 1: Brand Finance Australia. They've even out ranked Premiership winning Brisbane Broncos.
• 0:24
  Speaker 1: Now the Panthers are worth one hundred and twenty nine meal,
• 0:26
  Speaker 1: ahead of the Broncos at one hundred and nineteens and
• 0:28
  Speaker 1: for the AFL, Collingwood is still the most valuable brand
• 0:31
  Speaker 1: at one hundred and twenty seven mil plus.
• 0:33
  Speaker 2: Am. We are very excited that next week we're gonna
• 0:35
  Speaker 2: be kicking off What the Flux in Conversation. It's a
• 0:38
  Speaker 2: deep dive series with a range of business leaders from
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  Speaker 2: around Australia talk about how they built their businesses, how
• 0:44
  Speaker 2: they lead and what gets them motivated to continue growing
• 0:47
  Speaker 2: day after days. To cracker of a series and you'll
• 0:50
  Speaker 2: be hearing from a special part of the Flux team,
• 0:52
  Speaker 2: the who will be joining us on that series. So
• 0:54
  Speaker 2: if you want to learn more about our business leaders, lead.
• 0:56
  Speaker 2: Make sure you keep your ears peeled. What the flux
• 0:58
  Speaker 2: in conversation started next week?
• 1:00
  Speaker 1: Three magnificent stories Today juzzy boy, let's do it for
• 1:03
  Speaker 1: our first Zip co, the asxis buy now pay lata company,
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  Speaker 1: has seen its total transaction volume jump thirty four percent
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  Speaker 1: for the last quarter as its US business really takes off. Gee.
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  Speaker 2: Zip's been on that up and down roller coaster for years.
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  Speaker 2: Be man, so tell me.
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  Speaker 1: More so bit aboutground. Zip was founded in twenty thirteen
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  Speaker 1: is one of the og buy now pay lata companies
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  Speaker 1: in Australia, even slightly before after pay and Juzy Boy.
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  Speaker 1: Since then, it's grown to over six million customers globally.
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  Speaker 2: But it hasn't all been smooth sailing for Zip now.
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  Speaker 1: At its peak in twenty twenty one, it had a
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  Speaker 1: market cap of over nine billion dollars.
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  Speaker 2: Wow, but today it's worth less than half of that.
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  Speaker 2: But with its latest results, it's US business is giving
• 1:39
  Speaker 2: it a serious revival.
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  Speaker 1: Arc yep, Get this. Zip reported total transaction volume or
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  Speaker 1: TTV of almost four billion dollars for the quarter, which
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  Speaker 1: is an increase of thirty four percent, and of.
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  Speaker 2: That, two point nine billion came from the US which
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  Speaker 2: grew fifty one percent year on year.
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  Speaker 1: Now the Australia and New Zealand business for Zip only
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  Speaker 1: grew nine percent.
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  Speaker 2: And b Man Zip says the US business now contributes
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  Speaker 2: over seventy percent of its total transaction volume.
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  Speaker 1: And this is a massive shift for a company that
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  Speaker 1: was once a purely Australian startup.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: When the local markets tapped out, you've got to find
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  Speaker 1: a new one to continue that growth.
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  Speaker 2: Zip and after Pay both grew like wildfire in Australia.
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  Speaker 1: But the truth is Australia's just too small to sustain
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  Speaker 1: that kind of growth forever.
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  Speaker 2: Yeah, we're talking twenty seven million people, so you'll eventually
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  Speaker 2: run out of new shoppers. Zip went on a global
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  Speaker 2: acquisition spree between twenty sixteen and twenty twenty two.
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  Speaker 1: YEP. They bought buy Now pa La to provider Spotty
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  Speaker 1: in the Middle East for twenty one million dollars and
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  Speaker 1: Twist in Europe for one hundred and forty mil And
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  Speaker 1: while some of Zip's overseas moves didn't exactly pay off,
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  Speaker 1: they've managed to make it work in the US and.
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  Speaker 2: The recent results show the US isn't just a side
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  Speaker 2: hustle anymore.
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  Speaker 1: No, it's basically the bulk of the business.
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  Speaker 2: For our second story, Maya has redamped its loyalty program
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  Speaker 2: to try and lure younger shoppers back to its stores. Yes,
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  Speaker 2: Meyer is very gen x. So what's the story. Okay,
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  Speaker 2: So Mayo's founded back in nineteen hundred and everything from
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  Speaker 2: beauty and apparel to.
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  Speaker 1: Tech and toys and homewere. But be man, it's been
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  Speaker 1: a bit of a rough year for Maya. Yeah. After
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  Speaker 1: announcing a major falling profit last financial year, Maya's share
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  Speaker 1: price dropped thirty percent.
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  Speaker 2: Through On top of that, it's acquisition of apparel brands,
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  Speaker 2: which hasn't had the best start.
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  Speaker 1: But now Maya is launching a completely revamped version of
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  Speaker 1: the Maya One loyalty program.
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  Speaker 2: Which already has over four point seven million active users
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  Speaker 2: by Bla Baye yep.
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  Speaker 1: The new program will have a tiered membership system.
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  Speaker 2: And be man MEAs introducing their very own beauty reward
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  Speaker 2: box as well.
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  Speaker 1: And it's really all about enticing more loyalty from younger customers.
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  Speaker 2: And I think I know another brand that's done that
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  Speaker 2: pretty successfully, do you.
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  Speaker 1: Juzzi boy? So I'm wondering what is the key learning here.
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  Speaker 2: Loyalty programs drive higher shopping frequency and more spending from customers,
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  Speaker 2: and that's why retailers need to get it right.
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  Speaker 1: Get this one, Juzzi Boy. Meya's existing Maya one members
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  Speaker 1: spend on average two point eight times more than non members.
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  Speaker 2: So you can bet this loyalty program revamp is part
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  Speaker 2: of their strategic move to keep new customers engage and
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  Speaker 2: coming back for more and more and more now.
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  Speaker 1: Maya says they're especially focus on customers under forty who
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  Speaker 1: are quote very engaged in the beauty category and be man.
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  Speaker 2: This beauty loyalty concept. It's not exactly stolen, but it's
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  Speaker 2: maybe borrowed from someone else.
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  Speaker 1: Yep. It does sound a little like Mecha's Beauty Loop
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  Speaker 1: loyalty program, doesn't it. Juzzy Boy.
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  Speaker 2: Yep, that's the one that gives customers a collection of
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  Speaker 2: free beauty samples as well as experience based perks based
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  Speaker 2: on their members loyalty tiers.
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  Speaker 1: So instead of just buying a product, the loyalty program
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  Speaker 1: makes members feel like VIPs and Nekka recently shared their
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  Speaker 1: Beauty Loop program delivers an extra one point six million
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  Speaker 1: visits to their stores and website each year, so it's
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  Speaker 1: hardly a surprise that Maya wants a slice of those
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  Speaker 1: sales to boost their shrinking profits.
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  Speaker 2: For our third and final story, Football Australia has a
• 4:39
  Speaker 2: plan that would allegedly make it the most expensive sport
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  Speaker 2: the gambling companies in Australia.
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  Speaker 1: Would not have guessed that soccer could rank number one
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  Speaker 1: in this department, Juzzy boy, So what is going on here?
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  Speaker 2: It's a bit of background. The governing body of the
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  Speaker 2: Matilda's and Soccer us is Football Australia YEAP, and recently
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  Speaker 2: Football Australia has been negotiating behind the scenes with betting
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  Speaker 2: companies in Australia. It's add corpse your sports bets, your
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  Speaker 2: Enti which owns Ladbrokes and Neds brands as well.
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  Speaker 1: Yep, they've been negotiating an agreement that allows gambling companies
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  Speaker 1: to offer betting in exchange for a cut of betting proceeds.
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  Speaker 1: The long story short, Juzzy Boy thinks of really dragged
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  Speaker 1: and now it's understood that a dispute has emerged.
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  Speaker 2: So now bookmakers including Ladbrokes, sports Bet and Tabcorp, are
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  Speaker 2: removing the ability for some of their customers to gamble
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  Speaker 2: on state based soccer competitions.
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  Speaker 1: All right, So what is so controversial about the new
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  Speaker 1: potential model here, jussy boy.
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  Speaker 2: Well, under this new model, gambling companies will be required
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  Speaker 2: to handle at one percent of turnover and up to
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  Speaker 2: fifteen percent of gross products of gross profit, whichever is higher,
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  Speaker 2: and that would be for each match or event that
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  Speaker 2: involves an Australian soccer team. In fact, some betting companies
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  Speaker 2: are allegedly threatening to pull a league gambling products all
• 5:43
  Speaker 2: together if this isn't resolved.
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  Speaker 1: Well, so what is the key learning here?
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  Speaker 2: The money that's sporting organizations make from betting companies is
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  Speaker 2: called product fee.
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  Speaker 1: That's a fee that betting companies pay and gives them
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  Speaker 1: the license to offer betting to consumers on these sports.
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  Speaker 2: And these product fees are common across all major Australian
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  Speaker 2: sports tho.
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  Speaker 1: Yeah, bookmakers have similar agreements with the NRL, the AFL,
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  Speaker 1: the Australian Open.
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  Speaker 2: For Context b Man. The AFL makes more than forty
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  Speaker 2: million bucks a year in product fees from bookmakers.
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  Speaker 1: And the NRL receives more than fifty million bucks annually.
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  Speaker 2: And gambling sources reckon football Australia makes up to nine
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  Speaker 2: million dollars over three years from bookmakers under the current model,
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  Speaker 2: a number that could actually double under the new proposed changes.
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  Speaker 2: But if this deal is adopted, it would make Football
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  Speaker 2: Australia's product fees the highest in the country, much higher
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  Speaker 2: than the percentage per dollar of turnover for the AFL
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  Speaker 2: and NRL bucks. AM just a final reminder. On Monday,
• 6:32
  Speaker 2: we're can be kicking of our brand new series, What
• 6:34
  Speaker 2: the Flux in Conversation. We're gonna have three business stories
• 6:37
  Speaker 2: at the top and then a deep dive conversation with
• 6:39
  Speaker 2: business leaders, CEOs and major investors from across Australia. So
• 6:43
  Speaker 2: if you want to learn more about how the business
• 6:45
  Speaker 2: leaders in Australia think, act and feel, make sure to
• 6:48
  Speaker 2: listen to What the Flux in Conversation on Monday.
• 6:50
  Speaker 1: Thanks for listening and we'll see you on Monday.