Zip's brand gets zapped | Googles gaming partnership | Class action against Estée Lauder

Published Apr 3, 2025, 6:00 PM

The share price of Zip Co has fallen more than 6% after it lost a court case over its own name

Google has teamed up with Roblox to launch new video ads to give traditional marketers a new way to reach Gen Z

Estee Lauder faces a lawsuit from investors for allegedly hiding their reliance on ‘gray market’ sales in China 

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This is what the flux.

I'm Brettan, I'm justin as Friday, the.

Fourth of April Juzzy Boy, who said memestock mania was over. A conservative media outlet named Newsmax listed on the Nasdaq earlier this week and its shares jumped two two hundred percent.

If you don't mind, that was just in the first two days.

Very juicy stuff. And speaking of juicy stuff being man, it was officially Liberation Day yesterday, which means Donald Trump has released a list of roughly one hundred countries that will be hit with a tariff from the US. Some countries like India have been hit with fifty two percent tariffs, Australia have been hit with ten percent tariffs. But my personal favorite are the Herd Island and McDonald Islands, which will hit with ten percent tariff on goods. There only problem there. The only beings on these islands are key penguins.

Three riveting stories today, Juzzy Boy, let's do it for our first. The share price of Zipco has fallen more than six percent earlier this week after zip lost a court case over its very own name.

Who is zip about to go on a full on rebrand b man, what is going on here?

Well, juzy boys and background.

Zip Co was founded in twenty thirteen as one of the og buy now, pay later companies in Australia.

Even slightly before after pay.

And since then it's grown to over six million customers globally.

The man it hasn't all been daffodils and rainbowster zip nw.

It's share price hit a high of twelve bucks thirty five in feb twenty twenty one, but as interest rates shut up, its business became a whole lot moretal challenging.

Yeap, zip share price dropped harder than your phone on concrete, from twelve dollars thirty five all the way down to twenty seven cents.

In other words, a drop of ninety eight percent. But now Zip has just suffered another major curve bar because it actually lost a court case on the use of its trading name is zip Yeah.

This fight started back in twenty nineteen when first Mac and non bank lender claimed the Zip had been using a trademark of THEIRS, which was registered in two thousand and.

Four, well before Zip, the buy now, pay later company started to exist. Now Zip might have to change its name in Australia.

Next minute, investor's panic and ZIP share price dropped over six percent.

Now, thankfully for Zip, this trademark matter only relates to its Australian operation.

So what's the key learning here?

A company's name isn't just a label, it's a key asset for a consumer business.

You see j Z boy. The buying now pay later space is very very competitive and as.

A result, brand recognition and trust are key differentiators between afterpay and Zip and Klana and a firm.

So when a company is forced to change its name due to a trademark dispute, it can become a massive distraction.

Ye we know the Zip spent years and millions of dollars building its brand in Australia and globally.

And a rebrand would basically force Zip to spend more in marketing and technology updates and communications as well. And Zipp beat the first company to be potentially forced to rebrand as a result of a trademark issue. Well remember all the way back in two thousand and two when the World Wrestling Federation then the WWF lost a legal bill against the World Wildlife Fund also known as the WWF.

I do the wrestling company was forced to change its name with.

Its big campaign Get the f out.

For our second story. Google has teamed up with Roadblocks to launch new video ads and give traditional marketers a new way to reach gen Z customers.

Sounds like we're about to get a whole lot more branded virtual sneakers.

Jugsey Boy, tell me more.

Okay. So Roadblocks is the online gaming platform. It was released back in two thousand and six.

But the digital lego looking people in that game, they really took the world by storm during COVID.

That's when other tweens and teens and quite a few adults logged into Escape Reality.

In fact, it grew from twenty three million daily active users which was in early twenty twenty, to now having more than eighty five million daily active users.

But the man, here's the thing. Roadbox doesn't actually produce its own game. It's essentially a marketplace for developers to build.

Games, and there are over forty million games within Roadblocks, kind of like a gaming app store, and.

These developers can monetize their games.

And now juzzy Boy Roadblocks has partnered with Google to bring ads into the metaverse.

Ye. This gives game creators more ways to actually monetize their games within roadblocks.

And it means that brand can now choose to advertise on roadblocks via Google.

But be man, it's not a banner ad or a search ad like on Google.

No, no, no, we'd be talking rewarded video ads.

So what is the key learning here?

Rewarded video ads are a type of ad format where users watch a short video in exchange for an in game reward.

So you watch a thirty second trailer on a new Spicy Hungry.

Jacks burger, and as a user, if you sit there watching the crunch of that burger, you'll earn an in game reward. It might be a virtual currency to buy more armor, or it might be the ability to unlock an extra life in a game.

And be man. This format is becoming very popular, especially in mobile gaming.

The reason is apparently it actually works.

Yeah, get this. Roadblock says over eighty percent of users complete these ads when they're tested, So be man. This is basically the modern equivalent of bribing kids with GANDHY.

And Welcome to gaming.

In twenty twenty five, for our third and final story essay, Lauder is facing a lawsuit from investors for allegedly hiding their alliance on raymarket sales in China. Is the beauty industry facing some illegal pain here? Juzzy boy, tell me everything you know about this story. Well, I take it, b man. You've heard of the brand's clinique, the Ordinary, map dom Alone, tom Ford.

I've heard of some of them, Juzzy boy.

Those are just a few of the brands owned by essay Lorder, which is the world's second largest cosmetic company.

Now, Jazzy boy, you might remember that back in twenty twenty three, Estate lorders shares plummeted over twenty percent.

That was when they released their twenty twenty three forecast and their sales numbers flopped hard.

The execs said the decline in sales was because of a slow recovery of consumer spending after the pandemic, and the man.

That wasn't entirely lie. But it wasn't entirely the truth either.

You see, earlier in twenty twenty three, the Chinese government began cracking down on what's known as digu merchants, and this was actually a key reason why estay Lorder's revenue was below FORCA.

As a result, Esstay Lord's investors are running a class action lawsuit against them for telling half truths on their financial performance.

All because of their over alliance on Diego market sales.

So what is the key learning here?

Doug whose are individuals or agents who purchase goods from overseas and then resell them in the Chinese market.

Generally products are sold by Daigo's when Chinese consumers have lost trust in the local alternative.

Or they just can't buy these overseas brands directly.

And they man. It ain't just in the beauty industry.

Now, remember when Australian baby formula was flying off supermarket shelves during COVID do the Diagu market has been massive and can make up to sixty percent of sales for some businesses.

And that's why the crackdown on the Dagu market is actually more serious. And estay Lords execs were letting on because.

A crackdown is actually a structural change to esday Lorder's revenue stream, but.

The execs tried to play it off as a short term loss due to COVID.

And now investors are looking to get the bag from esday Lauder through a class action lawsuit instead.

Blockdam if you want to kick off the weekend on a high. Fifty bucks in your pocket to start the weekend is only one place to go. It's in the Flux app with your notifications on to make sure to download the Flux app.

Thanks for listening, and we'll see you on Monday.