Bunnings revs its engine | Prada acquires Versace | Hey Siri , turn off the tariffs - podcast episode cover

Bunnings revs its engine | Prada acquires Versace | Hey Siri , turn off the tariffs

Apr 15, 20257 min
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Episode description

Bunnings expands into auto parts as it looks to tap into the $1.5 billion car market… after stepping out of the car market over 2 decades ago.

Prada has made the big acquisition of its Italian luxury competitor Versace for $1.38 billion USD.

Apple has dodged the tariff-bullet as Donald Trump announces a tariff exemption on consumer electronic goods made in China.

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Transcript

Speaker 1

This excuse what the Flux Ti'm brand and are justin and Wednesday, the sixteenth of April, Juzzy Boy. When it comes to sporting goods in Australia, there's rebel and rebel and maybe a couple of strength fans at Kmar And now the London listed company sports Direct has entered the chat. It's planning to open more than one hundred stores in Australia to take on Rebel. No surprises, the shares in

Rebel Zone are fell following this big news. The man heard over the last few weeks that gold has hit another all time line and it's interesting because gold is always a very popular investment during times of economic crisis. The Flucks out this week we go through why gold is considered a safe haven asset for investors and what other major events have seen this happen as well. So if you want to learn more about gold and the impact on the economy, make sure to download the Flux

up and check it out. Three secure stories today, Juzzy Boy, Let's do it for our first. Bunnings is expanding into autoparts as it looks to tap into the one and a half billion dollar car market. After stepping out of the car market over two decades ago. Talk about getting back into the driver's seat, b Man. So what he's going on here? All right? So Bunnings is owned by West Farmers and is Australia's most beloved and only major hardware chain. In fact, Beman, I'll give you a sense

of Bunning scale. It generated over nineteen billion dollars in annual sales just last year. That's a lot of snags and sledgehammers the Beman. Bunning's actually used to sell car parts back in the nineties and juzzy boy. Now it's circling back to its auto roots. Yeah, Bunnings is trialing a new range of four hundred car products. Think cool end, toebars, tire foam, all the words you've vaguely heard of but never even dared to use. So true. So why is

Bunnings pivoting to become a petrol head again? It's part of their plan to diversify away just tools and timber and petrol head. Remember that Bunnings has done this product expansion before. Yeah. It entered into the cleaning and pet supplies market successfully cough about pet farm and more recently into age care and disability related products as well, and Juzzy Boy. It's believed the auto parts and lubricants industry is worth more than one and a half billion dollars

per year. So be Man for Bunning, it will need to overcome the mote of its newfound competitors like Super Cheap Order and Autobart. So what is the key learning here? A competitive mote is what protects a business from its rivals. It's what keeps competitors from easily stealing market share. And be man specialists retailers like Super Cheap Auto and Autobarn. They've developed their moats based on their deep, deep product

range and expert service. They stock thousands of products, have access to premium brands like Castrol or Penriight, and those brands are refusing to supply Bunnings because they're worried it may upset their existing relationship. And these auto retailers employ staff who live and breathe spark plugs. The Bannings has a different kind of mode. Yep, it's got insane scale, it's got a heap of foot traffic and of course pricing power. It might not stock everything, but what it

does stock is easy to grab. While you're picking up plywood and a screwdriver. So the risk is that bannings will chip away slowly but surely and everyday purchases in this industry. For our second story, Prita has made the big acquisition of its Italian luxury competitor, Versaci for one point three eight billion US dollars. The devil wears Versacei Juzzy Boy. Everybody knows that. Tell me what's going on here? Okay?

So Vasaci is the iconic Italian luxury brand was started by Gianni Versaci back in nineteen seventy eight and Jazi Boy. Since the eighties, Versacei's brand has really blown up with its maximalist prints. Think golden swirls and intricate floral kind of like it belongs on a palace ceiling, but instead it's on a silk shirt and jazzy boy. Since twenty eighteen, Capri Holdings bought Vasacei from the Versacei family for more

than two point one billion US dollars. That's the US founded company behind Michael Kors and Jimmy Chew as well. They had a vision to double Versaci's revenue in one decade. They plan to tone down the glitz and the glamour and dial up the price tag. Think high quality fabrics and very neutral tone, quite the far cry from Versacei's usual loud designs and be man. It's been seven years since that acquisition and Versacei's revenue has dropped below its

twenty twenty level. So now Versaci is coming back to Italian soil. Yep, it's been acquired by luxury brand Product for one point thirty eight billion US dollars. Or because Capri team underestimated the negative impact of a rapid brand reposition. So what is the key learning here? When brands try to pivot too hard, especially away from what made them iconic, they risk alienating their ride or dies. In Versachi's case, it had an over the top aesthetic and that was

its signature. But Capri Holdings tried to modernize the Versati brand by jumping on the quiet luxury bandwagon and b man in the process, they raised what made Versaci Versaci and juzzy boy. We saw this with the British handbag label Mulberry, who tried to go upmarket in the early twenty tens. Yeah, they raised their price significantly, but in just a few years, share price dropped by seventy four percent,

and of course it's CEO resigned, so juzzy boy. While brand evolution is necessary, if you shift too fast or too far from what your audience expects, you risk losing everyone in the process. For our third and final story, Apple has dodged the tariff bullet as Donald Trump announces it tariff exemption on consumer electronic goods made in China. Geez, Apple breathing a very big cyb of relapb man, So

tell me more, well, jazy boy. Remember when Donald Trump first announced ten percent tariffs on China, I do, and then he jacked them up to thirty four percent, and then fifty four percent, and then Trump jacked up his percent tariffs to one hundred and four percent and finally landed on one hundred and forty five percent tariffs in response to China's tariff's back on the US. Every company making stuff in China collectively freaked out, of course, but

none more than Apple. Yeah, that's because Apple assembles eighty seven percent of their iPhones in China, and that one hundred and forty five percent tariff felt like someone just added another zero to their retail price. In fact, there was talk that iPhone prices could increase by more than forty percent if this tariff stuck. But now Donald Trump's announced that consumer electrics are exempt from this China tariff high so that includes iPhones and iPads and max Apple

watches air tags. Next minute, Apple share price jumped over eleven percent. Trump claims he spoke to Apple CEO Tim Cook and decided to help him out. Very strange stuff. So what is the key learning here? Sometimes a company gets so powerful it becomes untouched. Yep. Apple isn't just a company, b man, It's a global economic force. Both the US and China rely on Apple for wealth and jobs and even power. Get this, be man. Apple currently

supports around three million jobs in China. On the other hand, Apple shares have propped up American retirement fund through its near three trillion US dollar market cap because, b man, if Apple stumbles, everybody feels it. The stock market feels it, the global economy feels it, and the smartphone in your hand definitely feels it too. Platsam. If you've seen everybody

high the goal right now? That is because if a safe even asset for investors, you want to know more about why that is and what exactly sol purely about gold. We have it all covered in the flux Cap this week a fluckdam. We're taking a break over the Good Friday and Easter Monday long weekend, but we'll be back next Wednesday. Thanks for listening and we'll see you next for Wednesday

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