This is what the Flux I'm brand and I'm justin as Friday, the sixth of September, Jesse boy, if you feel like getting insurance on your TV sometimes costs more than the TV itself, you, my friend, are not alone. There's a new data from Canstar that shows that and your premiums on home and contents insurance has gone up by about fifteen percent or a lazy two hundred and eighty six bucks in the past twelve month of.
Rooney's very exy. Speaking of insurance, b man, we have a brand spanking new academy course in the Flux app this month. It's eight rundown on everything, and I mean everything that you need to know about insurance. We're talking income protection insurance. We're of course talk a health insurance. To make sure to check out the academy in the Flux app this month to become an insurance guru.
Three protective stories today, Juzzy boy, let's do it for our first. Coles is cutting two of its liquor chain brands and it's going to fold them under the liquor Land banner to grow sales.
Down down to brand. Sit down, bee man, So what's going on? Here.
Well, Josie boy, have you ever noticed how right next to a coal supermarket you'll often see a liquor Land or a Vintage Sellers, or even even maybe a First Choice Liquor Market I have. Well, that's because these three brands are all owned by the one and only Coals.
And then man, when Coals release its annual profit of over one point one billion dollars last week, it had a little thorn in its.
Side, and that thorn is that its liquor earnings actually dropped six and a half percent.
So now Coals announced it will scrap Vintage Sellers and First Choice Liquor Market.
Apparently these two liquor brands have low brand awareness.
So now Vintage Sellers will now be known as Liquorland Sellers.
And First Choice Liquer Market will be known as Liquor Land Warehouse. Cop that chemist warehouse, cop that harehouse warehouse.
So for Goals, the goal is to simplify the message to consumers because right now they're run as three separate liquor businesses under the same parent company.
Interesting, Josie boy, so what is the warehouse?
Key?
Learning here?
Brand consolidation can be a powerful strategy for companies that own multiple brands within the same industry.
Rather than juggling multiple brand identities that compete for the same market share, consolidating brands can streamline the whole experience. We're talking Simplifying operations could be reducing costs from marketing and staff, as well as creating a more unified customer experience. Get this one. Currently, liquor Land, First Choice, and Vintage sellers might all be running separate promotions on the same six pack of Corona in the same darn week.
Or as they say, three different ways across three different brands now Dasboy.
In the early nineties, Colgate Palmoliv had acquired a heap of household products and then they cut twenty five percent of their product range.
It's saved in twenty million bucks a year, but also strengthened the market positions of the brands that remained.
So with this consolidation, Coles is aiming to strengthen its market position.
And ultimately drive better sales artcomes as well.
For our second story, Country Road Group has reported a sixty six percent drop in annual profit as it struggles to find its feet after breaking away from David Jones.
Jeez country Roads clearly not taking this breakup well be then, so what the story here, well.
Jose Wait. Country Road Group is the fashion retailer that owns the brands of Country Road and Mimco, Witchery, Tranery, Your Boys, Politics Man.
The group is owned by the South African company Woolworth's Holding, the company that also used to own David Jones.
Not the Aussie supermarket Wolworths, not.
The fresh food people of South Africa.
Country Road Group has just released its annual results and reported that sixty six percent drop inprofit to fifty one point three million bucks.
All while Country Road is in the middle of a major workplace behavior scattled right now, yaikeriddies, But.
Jose Wait Country Road reckons that a big part of its weak earnings was driven by Woolworth's selling off David Jones in December twenty twenty two.
They reckon they lost out on a number of shared services that they had with David Jones and as a result, they've lost out on economies of scale too.
And right before I sneeze, Josey, wait, what is the key learning here?
Economies of scale happen when a company is able to spread its costs across more products and services. Yep, it's kind of like buying in bulk. You end up paying less per unit.
You see, Jose Wait, When Woolwort's Holdings owned both Country Road and David Jones, the two companies benefited from economies of scale.
They shared certain costs, this out same infrastructure, and it reduced overall operating costs for both companies.
But since David Jones was sold, Country Road has been left to bear those production costs on its own.
So it's not a major surprise. The Country Road Group's operating profit margin fell from twelve point four percent last year to just four point six percent in this year, and b Man, we've seen economies of scale do wonders in the supermarket sector.
In fact, Colson Woolies have argued that if they lost their economies of scale, grocery prices would have to go up.
And clearly Country Road Group is finding out the hard way right now.
For our third and final story, Canvas has jacked up the prices on some of its product offerings by up to three hundred percent if you don't mind Josie boy As. Canvas plans for a potential listing in twenty twenty six.
What happened to Canva being Adobe's cheaper cousin? B Man tell me more?
Well, we all know the story of Canvas. The Ossie founded design software startup.
Started in Perth as a yearbook design platform and has grown to over one hundred and seventy million active users worldwide.
And Joe boite can has already grown its valuation to thirty nine billion bucks, which has made some Australian venture capitalists a lot of muller.
Yet, first it monetized individual designs on the platforms one buck per design.
Then it rolled out a premium account called Pro. Then came Teams where you could collaborate with colleagues. Then came a whole suite of products to compete with Microsoft.
And then of course the AI features, because are you even in tech these days if you don't have AI?
So fair? Now Canvas has announced that it's Canvas Teams product will jump in price by a wap in three hundred percent.
And they claim it's because of their growing suite of AI products they need to be paid for by somebody boy.
The incident has blown up with people threatening to defect to.
Adobe not Adobe.
These pricing changes will test Canvas price elasticity, So what is the key learning here? Price elasticity of demand is a concept that measures how sensitive buyers are to changes in price.
If a product is elastic, a small increase in price can lead to a significant drop in demand.
For example, airline tickets.
If the price goes up by five percent, but the demand falls by tempers, the product is elastic.
When your ticket to Europe is tipping three thousand bucks, you're starting to think about maybe mikinosk can wait until next year.
On the other hand, in elastic products see little change in demand despite price hikes.
For example, petrol, if the price goes up by fifty percent, we're not seeing fifty percent less purchases.
So aman it'll be interesting to see if Canvas users perceive the new generative AI tools as essential.
Which could see demand remain stable even with higher prices.
Fox amm Homan Contents, Insurance, TPD, life, insurance. All the sexy words you've never understood is all captured in a nice little package in the Flex Academy. This month, it's the Insurance Academy that we take you through everything you need to know about insurance. To make sure to check it out in the flex out this month.
Thanks for listening and we'll see you on Monday.