Pier 1 Import Transaction - What We Can learn From It

Automatic TRANSCRIPT

Super committed to your success online. We've worked with them to a special offer just remarking school listeners. All you have to do is go to dream host dot com slash marking school to learn more and get your website online today. Welcome to another episode of Marketing School. I'm Eric Su and Neil Patel, and today we are going to talk about something really interesting. That's happening right now while we're GonNa talk about the pure one import transaction and what we can learn from it but we. A little context here as to when recording this. This is July twenty, second twenty twenty where still in the midst of Covid, and so what's going on as a lot of these companies retailers are going bankrupt. They were already shaky, and this was basically nail in the coffin for them. So they've had to basically liquidate. Neil. I'm sure you've looked into this deal a little bit. What do you know about it? Can you kind of pay some white as to WHO's kind of spearheading this as well? Sure. So there's a guy named Alex, ooh Zeus Anti Lopez. Many guys know about the guy has a. Car. Garage union, it's at. Times really smart. So ty ended up techno was but a lot of people look at Thai Guy who's pushing Lamborghini, and there's not much more to. What ty analysis decided to do was leverage on leverage. Our audience gets a ton of investors in go out there in go leverage their audience and going by these struggling e-commerce. First one they did was dressed farm about her pennies on the dollar. Now, the buying pure one, and then from there, they turn around the company's make him grow at the fat. And you got a really solid business in part, audience built brand lowliest do the bat and off. Yeah I mean, if you think about it, it's it was initially, they agreed on a twenty one, million dollar deal in the pure one came back and said, we want thirty million. So I think it's a thirty million dollar deal now, but to Neal's point, it's pennies on the dollar, the work de Sweat equity that's been put in over the years and years. They don't necessarily need all the retail shops anywhere. You take the brand, make everything. Go Onto ECOMMERCE. You'RE GONNA go. So, you're going to print money what turns action. It's super simple. It's effective and I wish more people thought about things that way a lot of people want to build businesses from scratch. The hardest part is building easier. Part is growing muscle were marketers cutting back in grown company has already a billion dollars revenue. They're not fall role while. Is it okay by for pennies on the dollar, you cut the fat and made two billion anymore, but they slew one, hundred, million. So that really amazing business, right? I was listening to that yesterday. So Nike originally, they were slated for their online revenue to be about thirty percent for twenty, twenty three. I at the target now is fifty percent. So the already shot past that. So a lot of stuff is accelerated. Yes. We know that they're not getting a lot of offline transactions, but would this basically means if you look at shop advice stock a lot of stuff ECOMMERCE which is accelerating. Yet, and before this year roughly percent of online transact commerce transaction rebound online that. And sure after cheers Emmy going down a little bit, but it's still gonNA. Be Way higher than where started. Yeah I think at least one of the lessons from me here is you have to look at the Times what are people used to right now, and is it just a business model? tweak where you remove the retail component? The you know the in store component and you just switch it to online and boom. You're you're good to go. 'cause people are tied to the original kind of appear one management team might be tied to hey, we should keep the stores people stuck with doing things the old way by once you remove the emotion from it wants you just be used a objective and you think about it from a business perspective everything changes anything else. Let's it in the last thing you should take away from pure wants to Techn- idea something as donor to book by its cover. A lot of people a judge tyler. This guy is in smart steam

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