This is what the flucks. I'm Brett and I'm Justin and it's undated twenty ninth of July.
Juzzy boy, if you've finally got your head around fourteen dollar pints of beer, you may need to sit down, my friend, because beer prices are expected to go up once agge again. A new tax on beer will kick in this week, which puts more pressure on brewers and pubs and more than likely consumers. So those pints they could be at twenty bukaroonis in absolutely no time.
It's official. There is no more shouting beers done, am. It's the very end of the month, which means if you haven't chipped your credit score this month, now is the perfect time. Did it go up, you go down? And white We've got it all covered in the Flux app to make sure you check out your credit score to learn more.
Three revolutionary stories today, Juzzy boy, let's do it for our first. Aldi Australia has announced that it's abandoning its plan to offer online shopping because it's doing fine without it.
It's a bit of a subtle flex fromality there, man. So how is the story here.
Well, Jazzy boy, Audi is, of course, the German supermarket chain that's been in Australia since the year two thousand and it's since become the third largest supermarket chain in the whole wide country, with ten and a half percent market share behind Coals and Woolies. Must be thanks to those weekly special buy deals hard to pass up, jazzy boy. Now, Audi has just announced that it's ditching its plans to enter the online shopping space.
Yep. Apparently Audi's kicking enough goals with its in store sales in the last three months.
We're talking five point one percent growth in new households shopping at Audi, and.
They reckon introducing online shopping will actually significantly impact its cost structures.
Think warehouses, think distribution centers. So Audi's gone back on their plan for online and plans to stick to the in store experience in Australia, even if the supermarket top dogs are doing things differently. I love this sort of stuff, juzzy boy. So tell me what is the key learning here to be a tough competitor. You've got a play to your strengths now, Josey boy. We know that the supermarket giants are expanding their online present yep.
We saw Williz acquire milk Rund last year and bring the brand into their online delivery ecosystem.
We've also seen Coles online sales up twenty nine percent in the first half of this year.
But Audi is playing a very different game and they're sticking to their guns by focusing on in store sales only.
And juzzy boy, if you don't mind me saying, it really seems to be working.
Yep. Despite not offering online sales, Audi gained the most market share in the supermarket sect up for the last quarter.
And it's not only the online grocery train that marches to the beat of its very own drum.
Nope, we've got Costco sales, chip packets the size of small children. We're talking wholesale quantities for wholesale prices, and they saw their sales jump twenty percent in Australia from twenty twenty two to twenty twenty three.
So perhaps Audi will continue winning over market share despite keeping things old school with just good old fashioned in store sales.
For our second story, Chat GPT's creator open Ai is officially coming after Google Search after launching its new search feature Search GPT.
Chat, GPT Search GPT what is next? Perhaps drive GPT tell me more about this one, juzzy boy.
Okay, So back in November twenty twenty two, open ai released their first publicly available AI product that was Chad GPT three.
And this was the first product that really really brought public awareness to the power of AI.
Who new AI could write your university essay for you?
Who knew AI could help you write a breakup text to your ex?
Who new AI could pretty much do your whole job for you? Looking at you, young lawyers? Huh?
But now open ai has hit Google directly where it hurts in its cash cow business search.
That's because it just released search GPT, which is a search feature that gives you timely answers to your question and be man. People are already starting to call this the Google killer bang.
But juzzy Boy, Search GPT is going to have to do more than just compete with Google. It also needs to compete with its public perception of killing media businesses.
So what is the key learning here?
Business success requires conquering market competition, but also juzzy boy also public opinion.
The idea behind AI s is that it doesn't just provide a list of hyperlinks to websites like Google Search does today no no, no, no new.
It captures results from thousands, if not hundreds of thousands, if not millions, of sites, provides a written overview with their short description.
As well as maybe a link to that site down the track.
But many websites and publishers are concerned about the change to the way search has been done. That's because AI generated overviews can significantly cannibalize traffic to their websites. In fact, one study found that some AI generated overviews could negatively affect about twenty five percent of publisher traffic.
Because they emphasize the descriptions and de emphasize the article links.
So, juzzy Boy, not only does search GBT need to battle with competitors like Google, but also needs to wage a pr battle for consumers.
For our third and final story, and there's the luxury retailer has bucked the trend of other luxury brand by reporting a thirteen percent rise in second quarter sales.
Wesell, Burke and Market also going berserk. I'm told, juzzy boy, what is it about these things?
Tell me more? And Meez is the French luxury design house founded way back in eighteen thirty seven by Tieri Ermez.
It started by selling high quality saddles for horses if you don't mind, and then moved onto bags for those horse riders.
But over the years and Mez grew into one of the most luxurious fashion houses in the whole wide universe. In particular, and Mez is known for its luggage and handbags like the Broken Handbag, the Kelly Handbag and Josie Boy.
These handbags they don't come cheap, they're handmade and take about twenty four hours to produce and.
Be man they'll cost you at least twenty thousand dollars for one of the most basic bags and Jusie Boy.
While Elvier Mahe and Kirring both missed their earnings forecast, Omez just keeps steaming ahead.
It's quarterly sales jumped thirteen percent to three point seven billion euros.
But that doesn't tell the whole story because it's fashion accessories business actually.
Dropped, but the leather goods like bags grew just under eighteen percent.
So what is the Tieri key learning here?
In the world of high end fashion, luxury goods often hold their value over time, making them a type of alternative In.
Luxury brands like Ermez, they have products that are inconsistent that are in constant high demand.
In fact, they man Vestier, which is the secondhand marketplace, so the Ermez's bags are the most in demand bags on the whole platform for Josie.
Boy There's a method behind this mad success, yep.
Ermez intentionally maintains a low supply, particularly for bags like the Birkin and Josie Boyd.
This scarcity often results in their products appreciating in value over time.
Get this, Birken bags have appreciated and an annual growth rate of fourteen point two percent over the past thirty five years according to Vesta.
That means it's outperformed the S and B five hundred, the ASX two hundred, and even Gold.
So Flax Fam, and next time you're shopping for a luxury handbag, remember that it might actually be adding to your investment portfolio as well. Fox Fam. Did you know that banks can see a whole lot about you and your credit report before even you do? And if you want to know what the banks can see about you, all you've got to do is head to the Flux app and check your credit score, what's changed
Thanks for listening, and we'll see you on Wednesday.