4.5 • 705 Ratings
🗓️ 21 November 2019
⏱️ 10 minutes
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| 0:00.0 | Welcome to Access ProRata, where we take just 10 minutes to get you smarter on the collision of tech, business, and politics. |
| 0:13.0 | Brought to you by America's beverage companies. I'm Dan Permac. On today's show, Google changes up its rules for political ads, |
| 0:18.9 | and President Trump thinks he opened a factory that actually opened six years ago. |
| 0:23.0 | But first, algorithmically inspired shoes. |
| 0:25.9 | That's the term being used this week by Joey Zwillinger, co-founder and CEO of wool sneaker maker Allbirds. |
| 0:31.6 | And it's not a compliment. |
| 0:32.9 | Instead, it's what he's calling a line of knockoff wool sneakers that Amazon just started offering |
| 0:38.0 | under a brand called 206 Collective. |
| 0:40.4 | So what is 206 Collective? |
| 0:42.1 | Well, it's new. |
| 0:42.9 | It's one of more than 70 so-called private label brands owned by Amazon, which tracks |
| 0:47.7 | what other retail products are selling well, both on its platform and elsewhere, and then |
| 0:51.9 | basically copies them and sells them at a very discounted price. |
| 0:55.4 | But again, not under the actual Amazon brand, probably because owning a 206 collective shoe is more pleasing to the ego than owning an Amazon shoe. |
| 1:04.0 | Now, you might think Amazon would be a little bit embarrassed by this practice, but you'd be wrong. |
| 1:08.0 | In fact, company executives seem pretty proud. Amazon consumer business boss Jeff Wilkie told CNN over the summer |
| 1:14.2 | that this is just common retail and it's good business to, quote, |
| 1:17.7 | save customers money and improve quality by offering a private label equivalent, end quote. |
| 1:22.5 | But for companies like Allbirds, it can be like a Goliath coming and stomping on their heads. Yes, Albird has gained |
| 1:28.9 | a loyal following, it's got some retail stores now, and a $1.4 billion valuation from venture |
| 1:34.3 | capitalists. But none of that comes even close to comparing with Amazon's wealth or reach. |
| 1:39.5 | The bottom line here, there is a boom right now in direct-to-consumer products, from apparel to food to personal |
... |
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