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00:00:00 Speaker 1
We’re really excited to have Claire with us.
00:00:02 Speaker 1
Come on, Claire.
00:00:03 Speaker 2
Here, right.
00:00:05 Speaker 2
What are we welcome, Sir?
00:00:07 Speaker 2
What will?
00:00:07 Speaker 3
We be talking about today.
00:00:10 Speaker 4
We’re going to be.
00:00:10 Speaker 4
Talking about China?
00:00:12 Speaker 4
You know how this is everything?
00:00:13 Speaker 4
It’s been all spicy well, yeah.
00:00:15 Speaker 1
Well let’s just again we’re we’re trying to make today about just easy breezy topics so you know the most easiest things to manage so.
00:00:23 Speaker 1
Farm in Ukraine, let’s.
00:00:25 Speaker 1
Go to China. Sure.
00:00:27 Speaker 1
Please welcome Sir.
00:00:32 Speaker 5
Just let your winners slide.
00:00:40 Speaker 1
Yeah, we open source.
00:00:43 Speaker 5
That’s why I.
00:00:49 Speaker 4
We are going to actually keep it pretty apolitical today and maybe talk a bit about the parts about China that are less discussed in the highlight in the headline.
00:01:00 Speaker 4
And he should reach out and said he wanted to really understand what were some problems and I wanted to see salt that we wanted to be solved.
00:01:09 Speaker 4
So I’m a property developer run Greater China for Heinz, or the largest private real estate firm in the world.
00:01:18 Speaker 4
And we have an incredible Greater China.
00:01:22 Speaker 4
I know.
00:01:22 Speaker 4
I see this folks in the front, they’re like, where is she?
00:01:24 Speaker 4
I can’t possibly fought her in there.
00:01:28 Speaker 4
Uh, so we have this team that is working across Beijing, Shanghai and Jindong line and hung.
00:01:39 Speaker 4
And we get to work really across the real estate spectrum.
00:01:43 Speaker 4
So we built the greenest skyscraper in in China, we built from the first International Service apartments in the country and are doing some really interesting innovative projects like in Hong Kong.
00:01:58 Speaker 4
We’ve got a distressed hotel that we’re turning into a new kind of living, collaborative living.
00:02:05 Speaker 4
This super technology enabled for a young population there where the average white collar young person, it takes them 20 years of salary to be able to buy and apart.
00:02:15 Speaker 4
So we get to approach these problems that are not unique to our part of the world, but often the solution is a combination of East meets West.
00:02:26 Speaker 4
So back to kind of, what’s the problem?
00:02:30 Speaker 4
Now we’re sitting right now in Miami, a place that is super exciting thanks to a lot of the things that are happening right here that have been hyped by a pretty awesome mayor, right?
00:02:41 Speaker 4
It’s what we do.
00:02:42 Speaker 4
We got on Twitter and he talked to all of us about what this city had to offer.
00:02:48 Speaker 4
It had she ingredients, it had universities that had an upward trajectory.
00:02:51 Speaker 4
It had young people looking to collaborate.
00:02:54 Speaker 4
And at the other day, that’s where we want to be, right?
00:02:55 Speaker 4
We want to be sitting together in awesome spaces like this.
00:03:00 Speaker 4
Exchanging ideas with other interesting people, that’s.
00:03:03 Speaker 4
How you do cool.
00:03:05 Speaker 4
And so, as property developers, we think, you know how do you create spaces where people want to be their best, right?
00:03:13 Speaker 4
Collaborate with others and build a better future.
00:03:17 Speaker 4
So that’s a lot of jargon.
00:03:19 Speaker 4
But what does that actually mean?
00:03:20 Speaker 4
Back to the problem.
00:03:21 Speaker 4
Well, first, these ingredients are pretty clear.
00:03:24 Speaker 3
I think your.
00:03:25 Speaker 4
Class at Stanford on this called who owns your city?
00:03:28 Speaker 4
And the students usually pick it up in the.
00:03:29 Speaker 4
1st 10 minutes.
00:03:30 Speaker 4
It’s just a place that has pretty good infrastructure.
00:03:34 Speaker 4
Can I get a job?
00:03:36 Speaker 4
Can I afford to live here?
00:03:37 Speaker 4
And is there cool cultural stuff that keeps it from being too bland?
00:03:43 Speaker 4
But then, you know, you say, OK, well, cities can learn from each other, right?
00:03:47 Speaker 4
You can just take those ingredients and apply it.
00:03:49 Speaker 4
And that’s what far it’s a great job of here, but we are living in a time where the East and West has.
00:03:55 Speaker 4
Never been more divided.
00:03:58 Speaker 4
Right.
00:03:58 Speaker 4
And building a city building double duty hard.
00:04:01 Speaker 4
It’s it’s like the.
00:04:02 Speaker 1
Most extreme version of hardware.
00:04:04 Speaker 4
So as a property developer, if we spend our time really thinking about what are the big macro trends, what are startups focused on?
00:04:14 Speaker 4
Where do they want to be because our spaces need to be relevant for 5070 a 100 years and we can’t pick up our building and move it somewhere else?
00:04:24 Speaker 4
And so you try to take the arbitrage of what’s working in one part of the world and try to apply that to another in solve problems.
00:04:31 Speaker 4
And that’s where you find great returns.
00:04:33 Speaker 4
But it’s also where you build places that are going to be relevant for.
00:04:36 Speaker 4
And so there’s a couple examples up here behind me.
00:04:41 Speaker 4
So you know we talked about the living challenges so for folks to be able to be able to afford a place to buy, but the concept of rental apartments, so like multi families and lives in a multi family building with one landlord.
00:04:55 Speaker 4
That isn’t totally a thing in Greater China.
00:04:59 Speaker 4
Often people are left to rent from an individual landlord, pay a deposit that’s enormous across the hidden cost prohibitive, and get no quality of products that that really is not up to what they would expect.
00:05:12 Speaker 4
And so taking a very similar kind of Western concept and applying it in a place that technologically.
00:05:18 Speaker 4
Is probably about.
00:05:19 Speaker 4
10 to 15 years.
00:05:20 Speaker 4
Head in terms of what that average user is used to.
00:05:24 Speaker 4
OK, they’re used to unlocking a door with their phone.
00:05:27 Speaker 4
Their V chat is their ID.
00:05:29 Speaker 4
It’s the way they meet new people they can physically shake hands on.
00:05:33 Speaker 4
We chat to introduce themselves to a friend.
00:05:35 Speaker 4
It’s where they keep their coupons, it’s how they pay their rent, it’s how they pay their taxes in some regards.
00:05:41 Speaker 4
Right.
00:05:41 Speaker 4
You don’t have that in America, but you’re like me and you wouldn’t Greater China you do.
00:05:47 Speaker 4
And so how do you combine those things together to create something that doesn’t exist?
00:05:52 Speaker 4
You see up behind me, a logistics building.
00:05:55 Speaker 4
But it’s actually 6 storeys high, something we’re developing.
00:05:58 Speaker 4
It is a giant, almost like a refrigerator, but a high rise supertech enabled.
00:06:05 Speaker 4
And that’s because, you know, they got a lot of people. That building will be sitting within a 45 minute driving radius to 45 million people.
00:06:15 Speaker 4
And yet China only has a quarter of the cold storage capacity per capita that the US does. OK.
00:06:18 Speaker 6
Make it happen.
00:06:22 Speaker 4
It doesn’t take a genius to see that this trajectory is, you know, lower left to upper right. And so again, you’re taking this concept of East meets East West building up here. Just behind me is is in Shanghai, but 1,000,000 foot.
00:06:35 Speaker 4
Tower and you have a lot of those here in the United States.
00:06:39 Speaker 4
Big fancy office buildings, you know, where people used to go to sit at their computers.
00:06:42 Speaker 4
And do work.
00:06:45 Speaker 4
But this one is very different from one that you may have walked into earlier this week.
00:06:50 Speaker 4
This entire building is on we chat.
00:06:55 Speaker 4
You can interact with the building on we chat, you can interact with the landlord, can interact with your other tenants.
00:07:01 Speaker 4
You can have chance encounters or organize a yoga trip in the afternoon with the people with the space.
00:07:11 Speaker 4
Using this digital interface.
00:07:13 Speaker 4
So in a way, it’s really combining the way we live right now.
00:07:16 Speaker 4
We live in a physical world, but so much of our ideas sharing our collaboration is happening in the air, right, and a digital experience that we can’t see.
00:07:24 Speaker 4
And so it’s another combination of this East, West and.
00:07:27 Speaker 4
So what becomes a problem and an opportunity problem when you sit in the middle of this world like my team is being honored to do, is you see that there are all of these opportunities for us to be able to share this really the best of what the West has to offer.
00:07:47 Speaker 4
With the innovation that’s happening on the ground in China, but it is so hard to talk about in this very divided world.
00:07:56 Speaker 4
And so we like to take the positive side and say, you know, we’re living in this world of like magic and Larry and how can we make each other better?
00:08:05 Speaker 4
So I thought I’d use just a few minutes and then we’ll hang out with the best things to to maybe share a story that video haven’t read so much about, so that you get the benefit of knowing a little bit about what’s happening over there and you can see an example of where sort of East meets West and that collaboration can make us all.
00:08:27 Speaker 4
So up here that Germany will probably recognize some shopping is famous for the opening up of China, and he was an experimenter.
00:08:38 Speaker 4
You know, you had this vision of what China could be, and we saw it with the importance of the physical world, of physical infrastructure.
00:08:47 Speaker 4
What a role that could play and to enable the economy to jump further.
00:08:53 Speaker 4
And so the picture to the other side is Shenzhen, which in 1980 was barely a fishing village that had about 58,000 people, very few paved roads and Deng Xiaoping’s.
00:09:08 Speaker 4
There was some stitch lines.
00:09:09 Speaker 4
We really understood what it was like to.
00:09:10 Speaker 4
Not be from the big city and.
00:09:13 Speaker 4
So he declared it a special.
00:09:14 Speaker 4
Economic zones, special economic zones, so in utility.
00:09:19 Speaker 4
And that meant that it would be this place, experiment with fits of capitalism, free trade, etc.
00:09:28 Speaker 4
So what is it today?
00:09:29 Speaker 4
Well, first there’s that same Rd along progression just a few years after it’s declared its own.
00:09:35 Speaker 4
And then up here behind me is what it looks like now. Shenzhen is over 12 million people. The average age is 29.
00:09:44 Speaker 4
Actually the tech hub of China.
00:09:49 Speaker 4
So companies like DJI, which makes 70% of the world’s drones, they call this area homes. And and just within this area, if you were to go shortly from where this picture is taken, you’ll have two of the world’s five biggest ports by tonnage.
00:10:08 Speaker 5
OK.
00:10:09 Speaker 4
So how do you take that head start and turn it into something further?
00:10:14 Speaker 4
Well, they took a lesson out of the book of the.
00:10:17 Speaker 4
And they created something called the Greater Bay Area.
00:10:24 Speaker 4
You guys get it.
00:10:25 Speaker 4
And So what is the Greater Bay Area?
00:10:28 Speaker 4
Well, it is a collection of nine cities on the mainland side, some of which may be familiar with you guys search engine as mentioned in Guangzhou.
00:10:38 Speaker 4
Guangzhou, about 18 million people, places like too high you’ll remember and several years ago.
00:10:44 Speaker 4
There was this thing about China building belong this.
00:10:46 Speaker 4
The fridge in the world and I’m like, where is that?
00:10:49 Speaker 4
Cuz in Shanghai and then so nice cities on the China side and in Hong Kong and Macau and together this, this area it’s about the size of called West Virginia today as a GDP that’s sitting right around Canada and South Korea.
00:11:09 Speaker 4
OK.
00:11:09 Speaker 4
About 1.7 trillion.
00:11:12 Speaker 4
In 2017, they declared this great Greater Bay Area naming and it was there to really back up a lot of the investment funds that had already started to join these cities together to create a super region. So within that super region they spent about 300 billions to build infrastructures.
00:11:33 Speaker 4
Further connected. So within just four years they built 2000 miles of speed rail.
00:11:40 Speaker 4
Like high speed.
00:11:42 Speaker 4
And we have like a little, you know, one from here that goes to Fort Lauderdale. You know, Texas is going to get one in the year 2019.
00:11:50 Speaker 4
2nd that mean that means that I can walk out of my office with my teammates in Hong Kong, which is right next to the big Ferris wheel thing that everybody recognizes.
00:12:03 Speaker 4
I can take one stop onto Metro in 13 minutes on a speed train.
00:12:07 Speaker 4
I could be in Shenzhen or I could.
00:12:10 Speaker 4
Keep on going and I could access about 23,000 miles of high speed train.
00:12:17 Speaker 4
And get through Beijing just you know further than Guangzhou get to Western China. It is amazing and it is happening so quickly and that number will soon be 40,000 as they continue to build. But it’s not just speed trains, these are interconnected nodes with further metro right with transit oriented.
00:12:37 Speaker 4
Development on top of the meetings of these trains.
00:12:43 Speaker 4
Back to the So what?
00:12:45 Speaker 4
So we know that if you take cool people and put them in cool places and give them an opportunity to interact, well, what can you do?
00:12:54 Speaker 4
So this area again the size of West Virginia, now with 70 million people who are all quite young and get back to the ingredients.
00:13:05 Speaker 4
We talked about what sort of fosters innovation.
00:13:07 Speaker 4
Well, they’ve incentivized university to put additional campuses here, and these are the best universities in China.
00:13:14 Speaker 4
So Xinhua, Sudan, etc.
00:13:17 Speaker 4
They funded further life science.
00:13:21 Speaker 4
They funded further tax increment zones to encourage businesses to common set up nodes of activity focused on areas of excellence. Remember we talked earlier about 1980, there are 58,000 people and all of Shenzhen.
00:13:40 Speaker 4
So just between 2010 and 2020 and one small neighborhood on the Western side extension, they filed 58,000 patents.
00:13:53 Speaker 4
It’s pretty amazing.
00:13:55 Speaker 4
And that shouldn’t be scary.
00:13:57 Speaker 4
That could be exciting.
00:13:59 Speaker 4
Guys, this is where we get innovations is how we get better back to the magic.
00:14:03 Speaker 4
And Larry, right?
00:14:06 Speaker 4
Thank you.
00:14:06 Speaker 4
Yes, you can clap for that.
00:14:07 Speaker 4
And glad for that.
00:14:12 Speaker 4
So what does that mean for us?
00:14:15 Speaker 4
What does that mean for folks who are sort of getting to work in this interstitial space in between getting to live within it?
00:14:24 Speaker 4
You know, if you’re, you know, behind me, I have.
00:14:27 Speaker 4
I’ll clear the visual for you.
00:14:29 Speaker 4
It’s further disconnecting, showing these.
00:14:31 Speaker 4
Natural lanes, these trams, buses, etc.
00:14:37 Speaker 4
Leading to these speed trains got down to about Hong Kong Island and then this takes you through a bit of the Bay Area before you get out to the rest of China.
00:14:47 Speaker 4
Why does it matter? It’s because these things layers together. OK, so China’s e-commerce percentage is about 25% of their overall retail.
00:14:59 Speaker 4
Here it’s about 14%. Again, knowledge smart. We can see where this is going, so you can take some notes on the preview.
00:15:07 Speaker 4
To see what things and trends may be coming here in China, about 85 ish percent their transactions are mobile.
00:15:17 Speaker 4
Here, that’s barely 30%. Where is that going? How does that work? And you can see what’s happening. Another is you can look at trends that are just.
00:15:25 Speaker 4
Part of the.
00:15:26 Speaker 4
World there that haven’t made it here.
00:15:28 Speaker 4
And you sit there and you’re like, wow, what a chance to iterate.
00:15:34 Speaker 4
So the example there are going to stick with shopping and.
00:15:37 Speaker 4
In retail is social shopping.
00:15:40 Speaker 4
So this idea of streaming while shopping, that’s layered with the full experience and imagine what it can do.
00:15:46 Speaker 4
And again, if you layer that on top of this key chat platform, we’re just talking about the place where I can go and I could make a new friend right now you by looking at you, showing my something to you, putting them together so we can.
00:15:59 Speaker 4
Introduce a product.
00:16:00 Speaker 4
Introduce a lecture, a concept together.
00:16:03 Speaker 4
Imagine what we can do.
00:16:06 Speaker 4
Even like we chat and was just talking about it yesterday.
00:16:10 Speaker 4
So the point is.
00:16:13 Speaker 4
That we all have this.
00:16:15 Speaker 4
It’s really, you know, again, the headlines can be exciting, they can be crispy.
00:16:22 Speaker 4
But to look Venetian and to take an opportunity to further connect with the people, because again, those folks were hopping on these trains for, you know, five equivalent to about $0.45 and to get on the public transit here, going around and exchanging.
00:16:41 Speaker 4
Ideas these people are not politicians.
00:16:45 Speaker 4
Right.
00:16:45 Speaker 4
Most of them are not big world global leaders.
00:16:48 Speaker 4
There are folks who were trying to to create something for themselves, to create something for their children, to build a better world, right?
00:16:57 Speaker 4
So we’re really all on the same team.
00:17:01 Speaker 4
So with that I guess.
00:17:03 Speaker 4
2nd I have to get some spicy, all right?
00:17:08 Speaker 3
That is saved for you right here.
00:17:10 Speaker 3
Right there in.
00:17:11 Speaker 3
The middle seat. Oh, baby.
00:17:12 Speaker 1
Well done. Well done.
00:17:13 Speaker 4
A nice guy.
00:17:16 Speaker 5
Of course.
00:17:18 Speaker 1
Well factored in here, so of.
00:17:19 Speaker 3
Course will be nice.
00:17:21 Speaker 1
It’s kind of.
00:17:21 Speaker 1
By default and meets a are Ryan Peterson from Flexport proud maybe.
00:17:29 Speaker 1
Ryan, Ryan.
00:17:30 Speaker 1
I’m introducing you guys.
00:17:31 Speaker 1
So, Ryan.
00:17:37 Speaker 4
We follow each other so.
00:17:40 Speaker 1
What do we as Americans?
00:17:43 Speaker 1
Not understand about arrival and what does arrival most not understand about us, the newer institute destinations having operated in both countries for so long?
00:17:57 Speaker 4
Umm yeah.
00:17:59 Speaker 4
There’s certain rivals and interesting artists that love sports analogies and came from the track and field world myself.
00:18:06 Speaker 2
There was a new Memphis guys.
00:18:09 Speaker 1
Things are closing, so running sometimes.
00:18:12 Speaker 3
With fast trying to solve this fast acting Olympics.
00:18:16 Speaker 4
But you know your job in the sport is can find the person who is better than you in some ways.
00:18:26 Speaker 4
And maybe they’re strong.
00:18:28 Speaker 4
Where you’re weak, you’re weak.
00:18:29 Speaker 4
Where they’re strong, you find each other and you before up together and.
00:18:36 Speaker 4
I think that is what becomes so.
00:18:38 Speaker 4
Clear when you.
00:18:40 Speaker 4
You know, live there when you live on.
00:18:42 Speaker 4
The other side.
00:18:43 Speaker 4
Of the world.
00:18:44 Speaker 4
But maybe we’re born here or, you know, I I’m a minority, so I’ve maybe always lived in that interstitial space personally, or in our team.
00:18:55 Speaker 4
Our team is very representative of modern China we have.
00:18:58 Speaker 4
People from nearly every province they really across the education bracket, highly trained engineers that we might be quite young to folks in their.
00:19:09 Speaker 4
60s who really?
00:19:10 Speaker 4
In China, evolve.
00:19:12 Speaker 4
And so I do think the thing that can get miss is almost that concept, like we talked about fit as well, rivals, you know, they’re not monolithic, just as America is not a monolith.
00:19:24 Speaker 4
Right.
00:19:25 Speaker 4
And we could take the.
00:19:25 Speaker 4
Best of each other so we’re we’re best with.
00:19:27 Speaker 1
Rivals in the window.
00:19:28 Speaker 1
Here we go.
00:19:29 Speaker 1
But is there a model for this century, for cooperation between the two nations, that’s enhancing to both?
00:19:29 Speaker 6
It is.
00:19:37 Speaker 4
I think it’s happening in enterprise.
00:19:39 Speaker 4
I really think it is.
00:19:40 Speaker 4
So when I look at again younger people, the products that they use or the things that the young tech, you know, entrepreneurs in China are working on versus years are proposing a lot of the same problems.
00:19:56 Speaker 4
Right, so on the social side, you know, looking at Dorian and what made it so catching, right?
00:20:05 Speaker 1
Or what it is for us.
00:20:06 Speaker 4
It’s tick tock. It’s.
00:20:08 Speaker 4
We got and that’s about one about you know cheat codes and enter preview.
00:20:12 Speaker 4
You know Gorgun was popular years ago and and so you know, I remember first looking at the at the app and being like wow this is very catchy and there’s there’s actually no difference between going.
00:20:25 Speaker 2
But you read and write in Mandarin fluently as well as he could or.
00:20:29 Speaker 4
Well, you will never confuse me for a local or you’ll go home.
00:20:31 Speaker 2
Performing a plan.
00:20:33 Speaker 4
Sorry also.
00:20:34 Speaker 4
But you know enough to get by.
00:20:37 Speaker 2
And so when.
00:20:38 Speaker 2
You do business in China.
00:20:39 Speaker 2
Deals conducted in English or destructive in Mandarin.
00:20:42 Speaker 4
So with the team, we work fully across what’s appropriate.
00:20:44 Speaker 4
’cause he also worked in Hong Kong, where it’s Cantonese was all my communications.
00:20:49 Speaker 4
They go out with our full team, everything in full teams in Mandarin.
00:20:52 Speaker 4
We do have a large part of our team that only functions within Member and so.
00:20:57 Speaker 2
So when you’re for example, like, you know, you showed some of these buildings and the.
00:21:01 Speaker 2
Idea that came.
00:21:01 Speaker 2
To me is this is a massive coordination problem that’s almost impossible in the United States, which is if you have this idea of like this living, breathing, monolithic building that is connected via the Internet.
00:21:12 Speaker 2
It probably would be 50 organizations in the United States that would have to have a say or want to say.
00:21:18 Speaker 2
The perception that we get is there is 8 individual that can effectively make that right decision in China, whether it’s at the city level or at the.
00:21:27 Speaker 2
State level is.
00:21:28 Speaker 2
That how it’s really like.
00:21:29 Speaker 2
Like when you guys have super ambitious ideas.
00:21:32 Speaker 2
Is there one place you go to and then it just kind of all gets decided?
00:21:37 Speaker 2
Or is it just like here where it’s messy?
00:21:41 Speaker 4
So it’s kind of neither actually.
00:21:44 Speaker 4
And and this is where I think it takes to the best dispose, which is at a local level.
00:21:51 Speaker 4
So you have, you know, local leave a party secretary, you have a block leader and and ultimately it goes all the way up to, you know, the big guy.
00:21:59 Speaker 4
Yeah, but China does this amazing thing.
00:22:02 Speaker 4
They have a 5 year plan.
00:22:04 Speaker 4
They call it the five year plan.
00:22:06 Speaker 4
Last year was the 14th 5 year plan, and it sets kepis and areas of focus for the entire country.
00:22:13 Speaker 4
And those are things around carbon neutrality, education, health care for seniors, agriculture, industry.
00:22:21 Speaker 4
And it’s a lot like, you know, for you guys who are running companies, setting goals and how are you going to get there, what’s the road map?
00:22:27 Speaker 4
But that filters all the way down and so at a local level, those QQ for the local.
00:22:34 Speaker 4
Neither are you know.
00:22:36 Speaker 4
How did you make your district greener?
00:22:39 Speaker 4
How did you increase revenue from higher quality services and technologically advanced comes out after?
00:22:45 Speaker 2
But this is really like what?
00:22:46 Speaker 2
Is you.
00:22:47 Speaker 2
Don’t know, she’s like, you get fired, you get kicked out of the party.
00:22:50 Speaker 2
Like, what is the?
00:22:51 Speaker 2
The mechanism of reward or.
00:22:55 Speaker 4
Well, it’s quite high accountability and so if you perform very well within that system as a leader and you can move to higher and more advanced posts.
00:23:04 Speaker 4
Sitting right.
00:23:05 Speaker 2
Becomes a.
00:23:06 Speaker 4
So yeah, so from a block to a bigger city to a higher, you know, up to a uh.
00:23:11 Speaker 1
Or if you’re stalled out if you don’t hit them, but again, it’s getting more ridiculous.
00:23:14 Speaker 4
Oh, right. And so that.
00:23:17 Speaker 4
Take a very interesting set of opportunities.
00:23:21 Speaker 4
And so to put it to maybe a tangible example is sort of the things that you know are really great for me to use like park space or building a building that’s green.
00:23:33 Speaker 4
The last building that I showed up there is right, it’s just right on top of the metro.
00:23:38 Speaker 4
This is next to a Natural History Museum.
00:23:41 Speaker 4
And we needed to work with the local government to ensure that we were relating to the area properly, creating immediate better than we found it.
00:23:50 Speaker 4
We look at projects where you can’t do the project unless you show that it’s going to be green and additive or restore historic buildings in the area.
00:24:00 Speaker 4
There’s a real handshake there that I firmly believe creates better outcomes in our team.
00:24:07 Speaker 1
Claire, what’s going to happen with the capital markets for your business with ever Grande and like some of these big kind of property developers that have had major debt problems?
00:24:16 Speaker 1
And so as you seen that already flowing over and you want to send the market very well, you probably are able.
00:24:21 Speaker 1
To navigate.
00:24:21 Speaker 1
This, but the foreign capital and other investors like might group everybody into the same block.
00:24:27 Speaker 1
Get scared off.
00:24:28 Speaker 4
Sure, sure.
00:24:29 Speaker 4
So certainly we get a lot of questions, but it’s another one where the headlines out versus you know inside the country certainly.
00:24:38 Speaker 4
The the, the built environment, construction and real estate industries. If you combined Seattle together, we got about 27% of the economy.
00:24:45 Speaker 4
If you include the full integrated stack when it’s things in five year plan is to diversify away from from math in a way.
00:24:54 Speaker 4
Uh, but is you?
00:24:57 Speaker 4
Evergrande and the other developers.
00:25:00 Speaker 4
The real focus that’s the local in the higher level is to help the regular people.
00:25:07 Speaker 5
Right.
00:25:08 Speaker 4
Get good on their deposits and obviously get the homes that they were promised.
00:25:12 Speaker 4
So it’s very interesting for developers like us and acquisitions people As for some of those smaller developers who got into trouble.
00:25:19 Speaker 2
After dinner, Bella is it? Is that? Is that the wrong word, the way that it’s been characterized in the US media that the Chinese government had to step in and shore up the balance sheet to make sure Evergrande wouldn’t default on?
00:25:28 Speaker 2
So there, there, long.
00:25:29 Speaker 4
I think there was a concern that there would be an entire meltdown of the full Chinese economy, which is not what we feel on the ground.
00:25:37 Speaker 4
And I think if anything, it’s created a set of opportunities to really level set.
00:25:42 Speaker 4
This is especially on the living sector.
00:25:44 Speaker 4
It’s really accelerated some policies to make it easier.
00:25:49 Speaker 4
To build and create rental.
00:25:51 Speaker 4
Holding up which gives more access, which therefore maybe takes away some of the pressure on the condominium system there, there for the debt market to create a space that is.
00:26:05 Speaker 4
Maybe taking on projects that are appropriate for the system a little bit again, more diversification and developing the right places in the right.
00:26:14 Speaker 1
When we looked at the relationship between the United States and China, we’ve had three, four, 500 million people come out of abject poverty on the planet because of this great engagement.
00:26:26 Speaker 1
I don’t know if that’s a term, but I’ll call it a great engagement.
00:26:29 Speaker 1
We started using their factories, we started making iPhones there this.
00:26:33 Speaker 4
Has created despite all of the.
00:26:36 Speaker 1
Hand wringing about the relationship and all the various issues on both sides.
00:26:41
All the.
00:26:42 Speaker 1
Suffering in the world.
00:26:44 Speaker 1
And so there is something that I think we don’t recognize sometimes is.
00:26:47 Speaker 1
That people who are living.
00:26:48 Speaker 1
For under a dollar a day.
00:26:49 Speaker 1
Three or four, 500 million of them are now gone and that leaves some areas in Africa and Southeast Asia that we still need to do that work.
00:26:58 Speaker 1
Paradoxically or ironically, it seems like China is doing in Africa.
00:27:03 Speaker 1
What I’m curious about is what you’re seeing on the ground with their middle class, which to me seems analogous to what we went through in the Thirties, 40s and 50s, is established in our middle class, has been established, you know, education and in prosperity for decades to come and and specifically for the Boomers and Gen X.
00:27:22 Speaker 3
So tell us.
00:27:23 Speaker 1
About that middle class that’s emerging, we hear about it.
00:27:28 Speaker 1
But how many of them are there at and qualitatively, what do they want from life?
00:27:33 Speaker 4
Yeah, well, you know, heard it’s incredible, right? Like, again, I talk about infrastructure so much because you see it up there, right? China is only as urbanized as the US was in about 1950.
00:27:48 Speaker 4
So we read a lot about.
00:27:49 Speaker 1
This today.
00:27:50 Speaker 5
Today we.
00:27:51 Speaker 4
Read a lot.
00:27:52 Speaker 3
About these bullet trains.
00:27:54 Speaker 4
Right.
00:27:54 Speaker 4
And so that makes this incredible consolidation of people to cities and younger, younger people to cities.
00:28:01 Speaker 4
It’s a demographic, you know spark that that maybe to talk about a little bit less, but also if you look at the change that that person you’re talking about.
00:28:10 Speaker 4
Being in their life.
00:28:12 Speaker 4
So they went from a rural lifestyle, ugly motors and.
00:28:18 Speaker 4
And then something of a village setting that had not changed in decades since the future world that in many ways can only be imagined in in movies.
00:28:28 Speaker 4
And so I think you know, I.
00:28:30 Speaker 4
I sort of struggle.
00:28:31 Speaker 4
To put it in terms of you asking.
00:28:32 Speaker 4
What? What do?
00:28:33 Speaker 4
They want.
00:28:34 Speaker 4
What are they looking forwards?
00:28:35 Speaker 4
And I send you a personal example, right?
00:28:39 Speaker 4
I’m the luckiest girl in the world.
00:28:40 Speaker 4
I get to live in this amazing place and work with this incredible team and, you know, yet in my path.
00:28:47 Speaker 4
First, we graduated a fully segregated world.
00:28:51 Speaker 4
The elder people, when they were growing up, we’re not just saying they were the slaves that we talked about on Juneteenth, the ones in Galveston who walked across the bridge and followed railroad tracks in Houston, TX, right?
00:29:07 Speaker 4
That’s amazing.
00:29:09 Speaker 4
That is amazing.
00:29:11 Speaker 4
And so I think.
00:29:13 Speaker 4
In a generation or collection of generations sees that amount of change, what they want is fertilizer grateful.
00:29:22 Speaker 4
But what do they want?
00:29:23 Speaker 4
They want to be able to build and create and be people themselves, yeah?
00:29:27 Speaker 2
I have a question Japan in.
00:29:29 Speaker 2
The 80s had a.
00:29:30 Speaker 2
Moment where everything came together to that country.
00:29:34 Speaker 2
Great population growth, great economic growth, great systems like Kaizen and all of this other stuff that they would export.
00:29:40 Speaker 2
And the headlines in the 80s was Japan was taking over the United States or Japan wouldn’t allow the United States.
00:29:48 Speaker 2
But really one of the biggest things that it had working against it was a demographic wave, right?
00:29:53 Speaker 2
And you had massive negative growth rate that has really compounded Japan stagnation.
00:30:00 Speaker 2
China is on the precipice, precipice of this, because this one China policy, I think there’s the step that I saw, which is stunning, is there’s 1.2 billion people in China.
00:30:08 Speaker 2
1.4 by 2100 it’s going to be around 600 million.
00:30:15 Speaker 2
If that’s true, the point is this fixed, there’s just there’s a real issue, yeah.
00:30:20 Speaker 2
Is there something in these five year plans around how to become sort of more culturally integrated with the rest of the world, you know, meaning how do you use immigration as an example to subsidize some of the negative growth rates?
00:30:33 Speaker 2
Do you teach English more so that you’re more integrated?
00:30:35 Speaker 2
Into the world economy, all of these things, can you just?
00:30:37 Speaker 2
Talk about that.
00:30:40 Speaker 4
So first, I think the the urbanization trend of folks consolidate into the cities really can’t be overstated just in the way that it shifts sort of how how the country will work and what’s happening on the ground.
00:30:54 Speaker 4
You know, it’s still relatively early days, but when we look at things like belt and road, you know, if I walk around Beijing and I compare it to, you know, when we first started though, we were working with Capital Partners there.
00:31:09 Speaker 4
It’s a lot more brown faces.
00:31:12 Speaker 4
Going to the universities around Beijing now.
00:31:14 Speaker 4
These are still.
00:31:14 Speaker 1
It only works open Rd is for folks who maybe haven’t heard the term here.
00:31:17 Speaker 4
Yeah, yeah.
00:31:18 Speaker 4
So many places you guys can read about it.
00:31:20 Speaker 4
And before I forget, talking about sort of just, you know, everybody loves recommendations here.
00:31:26 Speaker 4
So if you haven’t read dollars latest book on changing World Order or there’s actually a great.
00:31:32 Speaker 5
You got it.
00:31:33 Speaker 3
Free Bird made a strong leader.
00:31:34 Speaker 5
See whether you actually.
00:31:35 Speaker 3
Rebirth, Rebirth, Rebirth talks about it every podcast for the last.
00:31:38 Speaker 3
20 years.
00:31:39 Speaker 4
You gotta read it with real best.
00:31:41 Speaker 1
Use. There’s also very good.
00:31:44 Speaker 4
Version illustration of it as soon.
00:31:46 Speaker 5
As you have to.
00:31:46 Speaker 4
Talk about it.
00:31:47 Speaker 1
Try this.
00:31:49 Speaker 4
But you do you read that because you’re trying to fit a major participant in the global S so, you know, short version of Belton Rd is working really across the setup countries from SE Southeast Asia and Africa, bringing infrastructure and kind of what it sounds like roads, roads, ports.
00:32:09 Speaker 4
Airports and it’s better really building out this network for that part of part of the world.
00:32:16 Speaker 4
But I think what gets sort of slumped over on that is as in things like like this.
00:32:21 Speaker 4
So folks coming to China to be educated, the number of folks on the African continent now learning Chinese.
00:32:29 Speaker 4
And again, I think this is something that is exciting at the end of the day, the opportunity.
00:32:36 Speaker 4
To to further exchange, to list more.
00:32:39 Speaker 4
People out of poverty to create further.
00:32:42 Speaker 1
Infrastructure and programs would stay with us and do a Bessie for Ryan who’s the next speaker.
00:32:48 Speaker 1
Would you be willing to help?
00:32:49 Speaker 1
Us and everyone would be.
00:32:55
OK.
00:32:57 Speaker 3
Get into your guitar chords and you’re the guest.
00:33:01 Speaker 3
2nd so give it up for Claire.
00:33:07 Speaker 1
Now, Ryan, congratulations, mbed.
00:33:10 Speaker 1
Does their top innovator or private company awards every year and you made it to the top 50 list today?
00:33:18 Speaker 1
I didn’t check which ranking you got, but being on the list in and of itself is a is a big win.
00:33:22 Speaker 1
What do they call it?
00:33:23 Speaker 1
With the Disruptor 50.
00:33:25 Speaker 1
And my view of these listings you.
00:33:27 Speaker 1
Should never share any lists.
00:33:28 Speaker 1
About your company, unless you’re #1 and we were #1 this morning.
00:33:31 Speaker 1
Second, he truly helped us navigate, I think the the challenge of US asbestos in the audience understanding supply chain.
00:33:44 Speaker 1
We appreciate that.
00:33:45 Speaker 1
You’ve been on the show twice I think, or just once so far, many years this is.
00:33:48 Speaker 2
For me week.
00:33:49 Speaker 1
Second time though.
00:33:51 Speaker 1
Apologies, I was filming the interview for that during our farmers talk this morning.
00:33:56
Give me some.
00:33:56 Speaker 3
I nothing much happened.
00:33:59 Speaker 1
But when I woke up this morning, we’re writing our speeches together and deciding, you know what?
00:33:59 Speaker 6
I would like to share with the class.
00:34:03 Speaker 1
We were going to say.
00:34:05 Speaker 3
Do you have some feelings?
00:34:13 Speaker 1
I don’t have any.
00:34:14 Speaker 3
No one is bad.
00:34:15 Speaker 1
I got, I got.
00:34:15 Speaker 3
He just does.
00:34:16 Speaker 1
Nice things about people.
00:34:17 Speaker 1
I got home late.
00:34:18 Speaker 1
I couldn’t think of a single person.
00:34:19 Speaker 1
Who do I want?
00:34:19 Speaker 1
To give this to I was like, I like everybody.
00:34:21 Speaker 1
I don’t know.
00:34:24 Speaker 3
He’s going to do a talk.
00:34:26 Speaker 3
But are you going to talk for a couple minutes we get.
00:34:27 Speaker 1
Stuff from there, yeah.
00:34:28 Speaker 1
Let me share a little bit about.
00:34:29 Speaker 1
The first word is word.
00:34:32 Speaker 1
Global logistics platform.
00:34:33 Speaker 1
We help businesses of all sizes ship products all over the world from anywhere in the world to anywhere else in the world.
00:34:38 Speaker 1
We do a.
00:34:39 Speaker 1
Lot of business in China, probably about half of all of.
00:34:41 Speaker 1
Our volumes come.
00:34:43 Speaker 1
Out of trying to post in their factory.
00:34:43 Speaker 4
I know a landlord if you’re looking for one, right?
00:34:48 Speaker 4
Right.
00:34:50 Speaker 1
We’ll do some.
00:34:50 Speaker 1
Business after this.
00:34:52 Speaker 1
And so we see a lot we we sort.
00:34:54 Speaker 1
Of like a front.
00:34:54 Speaker 1
Row backstage pass to the world economy of what’s really happening and unfolding, and it’s.
00:35:00 Speaker 1
Been a crazy few years.
00:35:02 Speaker 1
We, to give you context, so Flexport started in 2013, first revenue was in 2014. We did $2,000,000 in revenue that year. We’re on track.
00:35:12 Speaker 1
This year to do $5 billion.
00:35:14 Speaker 1
In revenue also from.
00:35:17 Speaker 1
Very talking and.
00:35:22 Speaker 1
This time period is, I assume it’s always like this in this industry. I have only been in the business for about 8 or 10 years here, but just to take you through that timeline, in 2015 there was a port strike on the West Coast and we couldn’t import.
00:35:35 Speaker 1
Anything into the?
00:35:36 Speaker 1
United States so like 3 months.
00:35:38 Speaker 1
Total pandemonium.
00:35:39 Speaker 1
By the way, that might happen again.
00:35:40 Speaker 1
July 1st, their contract that they negotiated back them is up for renewal.
00:35:44 Speaker 1
On July 1st, we might talk.
00:35:45 Speaker 1
About that 2016.
00:35:47 Speaker 1
There was so much excess capacity of ocean shipping.
00:35:50 Speaker 1
Oh, so many extra ships were.
00:35:51 Speaker 1
Purchased that the price of ocean freight hit the lowest in all of human history was like $600 to ship a container this past year was 20,000 bucks from 26.
00:36:01 Speaker 1
So we go through these boom and bust cycles.
00:36:03 Speaker 1
It’s an asset business.
00:36:04 Speaker 1
That will happen 201718 and 19.
00:36:07 Speaker 1
Our President would launch a new tariff war every couple of months.
00:36:10 Speaker 1
And you couldn’t predict anything 2020 pandemic hits.
00:36:14 Speaker 1
You couldn’t ship anything for a couple of months out of China where like they were really hard 0.
00:36:19 Speaker 1
COVID shut down.
00:36:20 Speaker 1
Factories shut down all this purchase order.
00:36:22 Speaker 1
He went up.
00:36:22 Speaker 1
The Great Depression was coming.
00:36:24 Speaker 1
Cancel the purchase order.
00:36:26 Speaker 1
Dennis or not the opposite?
00:36:27 Speaker 1
Happened was this crazy boom and you couldn’t import anything because the ports were overcrowded.
00:36:32 Speaker 1
It went from 2019. It took about 50 days to ship a container from like when the goods are ready, when the factory raises their hand and says, hey, come and pick up.
00:36:41 Speaker 1
These goods, too. Right now it’s about 120 days.
00:36:45 Speaker 1
She’s doubling or more than doubling the transit.
00:36:49 Speaker 1
And it is just incredibly hard to operate in this environment if you’re trying to run a business.
00:36:54 Speaker 1
And so we’ve had to learn how to navigate through chaos as Chrysler.
00:36:58 Speaker 1
It’s like we kind of welcome it at this point.
00:37:01 Speaker 1
We found that probably it might actually be good for our business.
00:37:04 Speaker 1
We try not to talk.
00:37:05 Speaker 1
About that ’cause it looked.
00:37:05 Speaker 1
Bad for our customers and it’s been hard to fulfill that.
00:37:08 Speaker 1
Customer promises, but if you put yourself in.
00:37:10 Speaker 6
The shoes of those.
00:37:11 Speaker 1
Customers so like a direct to consumer ecommerce.
00:37:13 Speaker 1
Business and we shipped for probably 80 or 90% of the hot new GT brands. A lot of IPO’s recently, a lot of lot of very cool hot new brands they’re going through.
00:37:24 Speaker 1
It’s almost a perfect storm right now.
00:37:27 Speaker 1
Uh, in in like a really, really bad way.
00:37:30 Speaker 1
Like the movie The perfect Storm.
00:37:32 Speaker 1
Because ocean freight rates are shy, I mentioned there’s ten $20,000 in shipping container. Rule of thumb long term is like 2 grand.
00:37:40 Speaker 1
So really, really elevated costs. Walmart announced really high costs this morning and it’s so it’s not just more companies, but Walmart announced their costs were through the roof from supply chain in their stock fell 10%.
00:37:51 Speaker 1
That wiping off $40 billion in market cap.
00:37:55 Speaker 1
So so it hits companies of.
00:37:57 Speaker 1
All sizes but.
00:37:58 Speaker 1
These DTC brands got a double whammy because Apple last what it was last year when they changed their privacy rules and their customer acquisition models or in Instagram, Facebook, Facebook, all these things stopped working.
00:38:10 Speaker 1
And so you’re at the same moment you’re tapped, it stops working, you can’t acquire.
00:38:14 Speaker 1
Customers do the right thing that’s in through the roof and then add to the chat that consumers are now starting to come back to conferences.
00:38:20 Speaker 1
Like this?
00:38:21 Speaker 1
Go back to the restaurants and the clubs and doing the travel and during the pandemic.
00:38:26 Speaker 1
Everybody just bought stuff.
00:38:28 Speaker 1
You gotta get your dopamine from somewhere.
00:38:30 Speaker 1
And everybody was fine.
00:38:32 Speaker 1
So that is like a triple whammy for these companies.
00:38:37 Speaker 1
I’m incredibly worried about the Holdiness team brands, the whole DC space, the GVC spaces are using physical.
00:38:44 Speaker 2
You saw it in like the I think it was flashier that just announced. They’re laying off 25% of your clothes.
00:38:49 Speaker 1
Pressure. We can find the question of those Amazon GT brands and putting this together and trying to have some economies of scale, but when your supply enjer demands both get 10X.
00:38:52 Speaker 3
He’d be businesses.
00:39:00 Speaker 1
In the wrong direction, it’s game over.
00:39:02 Speaker 1
I don’t know if it’s game over, but it’s definitely changes the rules.
00:39:05 Speaker 1
Of the game of.
00:39:05 Speaker 1
Reality is what?
00:39:06 Speaker 1
People signifies us there are going to be successful.
00:39:08 Speaker 1
There are gonna be some limit or new branches desires.
00:39:10 Speaker 1
So at what time?
00:39:12 Speaker 1
What you’re saying that your thesis that you’re making, the statement that you’re making today is that we’re seeing real significant risk to DTC companies because of this confluence of issues, right?
00:39:23 Speaker 1
Now, and this could be a big threat to a lot of businesses, particularly in an environment where venture funding.
00:39:30 Speaker 1
Oh my God.
00:39:33 Speaker 1
Market investors like you.
00:39:33 Speaker 3
Public and private.
00:39:35 Speaker 1
All will look at this and then maybe I.
00:39:36 Speaker 1
You know, put more in this app or something.
00:39:37 Speaker 2
But he said it’s it’s easier to not do.
00:39:39 Speaker 1
Anything it might be easier to.
00:39:40 Speaker 1
Not do anything.
00:39:41 Speaker 1
So what does that mean?
00:39:42 Speaker 1
How you manage this and probably one of the?
00:39:45 Speaker 1
Problems that that.
00:39:47 Speaker 1
That comes about in office supply chains.
00:39:49 Speaker 1
It’s been written about the same as PhD paper from like the 60s or something called the Bullwhip Effect.
00:39:54 Speaker 1
And the bullwhip reviews are you.
00:39:56 Speaker 1
Like, Crackle whip the end of that, which is really incredibly fast.
00:40:00 Speaker 1
And it’s it’s a bit like that in supply chains because you have imperfect information and so the people doing demand.
00:40:07 Speaker 1
Planning Illumining 1 system they’re selling goods are looking at this data set.
00:40:12 Speaker 1
The people producing soft.
00:40:13 Speaker 1
So the different system, how, how long is it taking to produce things that’s getting longer, the transit times getting longer?
00:40:20 Speaker 1
This data is living across all these different domains and becoming very, very hard for a brand to make a decision.
00:40:26 Speaker 1
How many foods should we?
00:40:26 Speaker 1
Buy when should we buy them?
00:40:29 Speaker 1
So how much we want to have inside?
00:40:29 Speaker 4
Right, what?
00:40:30 Speaker 1
How do we avoid?
00:40:31 Speaker 1
Jingwei overstock, yeah.
00:40:32 Speaker 1
And then and what?
00:40:33 Speaker 1
What we’re seeing right now.
00:40:34 Speaker 1
Is these routes are overflowing and people came.
00:40:37 Speaker 4
So what change is that? Like, what breaks it open? So, you know, like in China, Hindu Adora didn’t exist in 2015, now 800 million.
00:40:45 Speaker 4
Right users, but it was technology that broke it open.
00:40:49 Speaker 4
Like, what’s the breakout moment to solve this is that problem?
00:40:51 Speaker 1
You’re talking about right.
00:40:52 Speaker 1
It’s not one of the companies to watch is changing.
00:40:56 Speaker 1
SHIN is this kind.
00:40:59 Speaker 1
Of like the new Sarah.
00:41:00 Speaker 1
That is dictation over the world. I think they’re going to be $20 billion in.
00:41:04 Speaker 1
Revenue this year.
00:41:05 Speaker 3
Fast fashion, fast fashion.
00:41:06 Speaker 1
They’re launching 1000 SKUs of days.
00:41:09 Speaker 1
1000 excuses they always say I generated and then the people order enough that they produce it and it’s like really incredible.
00:41:16 Speaker 2
But you’re saying a robot says make genius QS?
00:41:20 Speaker 4
This is where this shirt is from.
00:41:30 Speaker 5
I understand.
00:41:31 Speaker 2
Yes, tell us to insert Victor.
00:41:34 Speaker 2
You bought.
00:41:34 Speaker 4
So it’s literally a shirt from CN, but but yes, so if Zorro, Zorro is seeing something on our runway.
00:41:40 Speaker 4
They determining that that trend will hit and then they can have it in stores, I think within like 8 or 9 days something, you know, pretty wild.
00:41:48 Speaker 4
She ends up found.
00:41:49 Speaker 4
This close to instantaneous as you can get for very fast moving to different hyper speed fashions.
00:41:55 Speaker 4
They can have kind of like.
00:41:56 Speaker 3
Free palms of big day.
00:41:57 Speaker 1
Like per minority, but they’re predicting that this puppy shirt.
00:42:01 Speaker 3
Is going to be like.
00:42:03 Speaker 3
Where did I go?
00:42:03 Speaker 3
I want.
00:42:04 Speaker 2
To go for privacy right now.
00:42:05 Speaker 3
It’s fairly quiet part time.
00:42:06 Speaker 1
And so I agree and I think one of the key things here is, is the transit time of how long does it take you from when The thing is made, when it gets to the customer because it could, it stretches out the way it has right now in ocean freight market we’re taking for.
00:42:19 Speaker 1
Ever if that takes.
00:42:20 Speaker 1
Three months, four months, five months we flying them.
00:42:23 Speaker 1
Six months.
00:42:23 Speaker 1
All the things you place these orders, and then the demand went away.
00:42:26 Speaker 1
’cause people started going to nightclubs instead of buying their gardening equipment.
00:42:29 Speaker 1
So so the title you can make guys.
00:42:32 Speaker 1
And it does speak.
00:42:32 Speaker 1
Of spending a little bit more.
00:42:33 Speaker 1
On logistics, where where you?
00:42:35 Speaker 1
Know traditional procurement person and logistics only.
00:42:39 Speaker 1
Thinks about like, I’m just going to buy the cheapest rate I can ever buy because they don’t understand that your goods in transit are just money that’s taking a different form for a period.
00:42:48 Speaker 1
God and money has a cost to it.
00:42:51 Speaker 1
And if you’re sitting there in six months, it’s already expensive because if you know you gotta pay interest on that, there’s opportunity costs.
00:42:57 Speaker 1
What else can you do with the money?
00:42:58 Speaker 1
But now that costs?
00:42:58 Speaker 5
I had it.
00:42:59 Speaker 1
It’s gotten much worse because by the time the goods arrive, maybe nobody wants them.
00:43:02 Speaker 1
You saw that?
00:43:03 Speaker 1
With Christmas where you know you import Christmas this classic and you import Christmas stuff and in January.
00:43:09 Speaker 1
About price.
00:43:11 Speaker 2
Do people just find alternate ways, whether it’s you establish domestic 3D printing or you buy a fleet of planes or like, there’s got to be a work ’cause like I saw this image.
00:43:20 Speaker 2
I think maybe.
00:43:21 Speaker 2
You tweeted it of this entire massive traffic jam, basically trying to get the shifts team and into China because the COVID-19 lockdowns are so.
00:43:29 Speaker 2
Strict, but that’s.
00:43:31 Speaker 2
Also exacerbated Oliver.
00:43:32 Speaker 1
And last year, Walmart today announced spending $10 billion radicalizing their supply chain and building out their own.
00:43:38 Speaker 2
Infrastructure for moving goods.
00:43:41 Speaker 1
You’re seeing a lot of companies do this.
00:43:43 Speaker 1
Much easier said than done.
00:43:45 Speaker 1
Using at least a few of the big box retailers, Walmart wants a Home Depot or Costco number.
00:43:50 Speaker 1
Of Sessions said.
00:43:50 Speaker 1
Hey, we’re the other one.
00:43:51 Speaker 1
Our target target, Amazon, of course, you know go to their own shares, so solve the problem their way up.
00:43:58 Speaker 1
It’s really hard to do.
00:43:59 Speaker 1
Run these things at scale and operate.
00:44:00 Speaker 1
It looks good at the PowerPoint slide hits.
00:44:03 Speaker 1
You know when you have to get?
00:44:05 Speaker 1
Down to it.
00:44:05 Speaker 1
It’s really hard for.
00:44:06 Speaker 1
A big cap ex play here, Ryan, for the next decade.
00:44:09 Speaker 1
I think like a big capital equipment hard outside play so.
00:44:15 Speaker 1
The Wolf Ocean carriers, that’s what we call the people on the ships, had actually ordered 25% more ships to increase the fleet by 25% over the next few years.
00:44:25 Speaker 1
Wow, so it could be also the other way real quick and you have too many ships in.
00:44:29 Speaker 1
The way you know.
00:44:30 Speaker 1
It’s things happening in mining.
00:44:31 Speaker 1
I mean, just like it’s a similar sort of anyway, why Ryan said it best.
00:44:35 Speaker 2
The problem is you can’t forecast demand accurately for these long lead time categories that are highly CapEx intensive. So it’s mining or whether it’s shipping. How do you make a $500 million cap ex decision?
00:44:46 Speaker 2
Business demand cycle, that’s five years into the system.
00:44:49 Speaker 1
But they’re all taken through all taking profits and saying we have to make this investment because we need the security, we need to redundancy.
00:44:54 Speaker 3
I mean one more tenant, right?
00:44:56 Speaker 3
They will.
00:44:56 Speaker 1
Optimize to a key and then all of a sudden it’s like, hey that often my.
00:45:00 Speaker 1
System doesn’t work.
00:45:01 Speaker 2
But the way that mining, for example, deals with this, which is really interesting, is they get these companies.
00:45:05 Speaker 2
To sign up.
00:45:06 Speaker 2
What’s called take or pay agreements, right?
00:45:08 Speaker 2
And so?
00:45:08 Speaker 2
They can, actually.
00:45:09 Speaker 2
Smooth out the demand curve.
00:45:11 Speaker 2
Five or six in the system are favorites.
00:45:13 Speaker 2
Take or pay me.
00:45:13 Speaker 2
I’ll do a deal that says OK, I’m going to rip the lithium out.
00:45:16 Speaker 2
Of the ground.
00:45:17 Speaker 2
You take it or.
00:45:18 Speaker 2
You pay for it.
00:45:19 Speaker 2
I don’t care what you do, but I’m going to get the revenue assurance I need to go to.
00:45:20 Speaker 3
Right, right.
00:45:23 Speaker 2
Wall Street to get the money.
00:45:24 Speaker 1
We started to see their sign for the first time, so we’ve found three-year contracts where was the first ever to sign a multi year contract.
00:45:29 Speaker 1
We commit, we.
00:45:30 Speaker 1
Will pay for this rate, whether or.
00:45:32 Speaker 1
Whether or not we ship anything, we’re going to pay up, right?
00:45:35 Speaker 1
Yeah, OK.
00:45:35 Speaker 1
Perfect.
00:45:37 Speaker 1
And you ask a little bit airfreight what’s gonna.
00:45:39 Speaker 1
Happen there, we.
00:45:40 Speaker 1
Remember, 50% of all the world’s airfreight flies in the belly of passenger planes.
00:45:44 Speaker 1
There’s way less people traveling to and from Asia than there were.
00:45:47 Speaker 1
That right?
00:45:48 Speaker 1
Yeah, this is a general purpose, which is a little scary when you think about like, what’s.
00:45:51 Speaker 1
Under the belly of that and it.
00:45:52 Speaker 3
Yeah, it’s not getting scanned.
00:45:54 Speaker 1
Is it is there’s.
00:45:55 Speaker 1
There’s good controls on that, but.
00:45:56 Speaker 1
But you never.
00:45:56 Speaker 1
Know it’s already asked in.
00:45:57 Speaker 3
Or start.
00:45:58 Speaker 2
This channel, right?
00:45:58 Speaker 4
Rolling over.
00:46:00 Speaker 3
So not not so sure.
00:46:03 Speaker 1
You know, you work in any industry long enough, you start there.
00:46:05 Speaker 1
Questions, there’s other everything perfect.
00:46:07 Speaker 2
It doesn’t.
00:46:08 Speaker 1
So we’ve actually got 10 passenger planes that we’ve leased and we’ll keep doing more that are not flying any passengers, we’re just filling them with great.
00:46:17 Speaker 1
We started doing this in the pandemic, flying them, flying mass leather seats at the top, Crucible seats and some of them have ripped.
00:46:18 Speaker 6
They keep buying that.
00:46:23 Speaker 1
Out, the seeds passed away.
00:46:25 Speaker 4
Yeah, you got the big plane or?
00:46:27 Speaker 1
Yeah, if you want to go to Asia, I’ve got 787. Nobody on there could be.
00:46:28 Speaker 5
Yeah, yeah.
00:46:32 Speaker 1
A private flight with you.
00:46:34 Speaker 4
But exactly what This is why you’ve seen the rise of logistics real estate as a deeply institutional asset.
00:46:40 Speaker 4
That class because that math that you talk about, the algorithms determining what is ordered, how long will it fit, and how fast do people want it.
00:46:47 Speaker 4
That takes an infrastructure on land to be able.
00:46:50 Speaker 4
To get it.
00:46:51 Speaker 1
And how we get to the question of our assets is or play here probably just because most of Wall Street has been trained, it’s on all those same business schools and everybody been.
00:46:59 Speaker 1
Trained that like assets.
00:47:00 Speaker 1
Get them all through books.
00:47:01 Speaker 1
Don’t carry them.
00:47:02 Speaker 3
So this is.
00:47:03 Speaker 1
What happened with oil and gas, you know going into last year and?
00:47:05 Speaker 6
After after.
00:47:07 Speaker 3
Then everyone missed it.
00:47:08 Speaker 5
You want to be.
00:47:08 Speaker 1
At that, like, it’s still the trend, and almost everywhere. Until somebody like comes along and says, you know what? You don’t want access Intel. Like, fine, we’ll build the fabs, another $400 billion company ’cause they’re willing to have that totally on the books. But it’s.
00:47:20 Speaker 1
A different investor.
00:47:22 Speaker 1
They have power equation and they can they can get a better shared values.
00:47:26 Speaker 1
And I didn’t realize that they put a slot.
00:47:26 Speaker 3
I’ve been answering the question.
00:47:28 Speaker 3
Gate around it was.
00:47:28 Speaker 1
Necessarily the hardest question for me to.
00:47:29 Speaker 6
Personal coach.
00:47:31 Speaker 1
Answer and I.
00:47:31 Speaker 1
Know that there’s so much crews out there who have the same question.
00:47:34 Speaker 1
Anytime someone asks.
00:47:34 Speaker 1
Me to switch for the software company or logistic.
00:47:37 Speaker 1
Company or you can own assets or not own assets, yes.
00:47:41 Speaker 1
And you know, I think that the correct answer is to ask the investor which one they’ll give you a higher multiple for and then just say that.
00:47:48 Speaker 1
Right, I’m trying to figure out who you’re talking.
00:47:50 Speaker 1
To but it is.
00:47:51 Speaker 1
On some level, you know.
00:47:53 Speaker 1
Maybe another answer is, I kind of grew this dualism, but you can’t do logistics without the text, you can’t do that.
00:47:57 Speaker 1
Without the window space.
00:47:58 Speaker 2
But I think you’re bringing up something which is that today the problem with the capital markets is actually that it.
00:48:03 Speaker 2
Is very balkanized, so mean.
00:48:04 Speaker 2
I think, you know, let’s say you take a company public like yours.
00:48:08 Speaker 2
The problem that you’ll have in the public markets is that there are folks that will go to in that room that understands fast software, understand margin structure of a software business, etc.
00:48:18 Speaker 2
And then there’s folks over here to run the industrial business and folks over here who run consumer.
00:48:23 Speaker 2
The problem is those three folks don’t.
00:48:25 Speaker 5
Yeah, right.
00:48:25 Speaker 2
They have three completely different conceptions of what is business.
00:48:29 Speaker 2
And the problem for you will be.
00:48:31 Speaker 2
And I’m not forecasting this for you to.
00:48:32 Speaker 1
Are correct.
00:48:32 Speaker 3
Build from this is that.
00:48:34 Speaker 2
You can get orphaned in any one of these groups and now all of a sudden the capital markets could be totally shut for you.
00:48:39 Speaker 2
This is a very important point that you’re bringing up the the thing that I think we need to change is like the capital people that control the money flows do need to have a little bit.
00:48:48 Speaker 2
More of an open.
00:48:48 Speaker 2
Mind sure, it’s true that you’ve got a.
00:48:50 Speaker 2
90% gross margin business, but it is.
00:48:52 Speaker 2
Also true in the.
00:48:54
You’d rather have.
00:48:55 Speaker 1
A business doing 20% on $500 billion. Well, and if we look tomorrow, we also have some examples of Amazon.
00:48:59 Speaker 3
In order.
00:49:04 Speaker 1
The market seems to have worked out this is this very factory and asset heavy in delivering goods.
00:49:09 Speaker 1
To us and.
00:49:11 Speaker 3
You know the.
00:49:11 Speaker 2
Clouds or even even Amazon. Like what’s Amazon’s that escaped?
00:49:14 Speaker 2
Glossy unless and, you know, a billion dollars of invested capital.
00:49:17 Speaker 2
The problem is, you know, if Ryan, for example, decides, hey, I’m going to go and actually vertically integrate and buy an entire fleet of ships.
00:49:24 Speaker 2
That’s probably a 10 to $20 billion cap ex cycle over 10 years and you think about replacement costs.
00:49:31 Speaker 2
It may make a ton of sense actually, but.
00:49:33 Speaker 1
I wonder when Amazon’s cap expenses?
00:49:34 Speaker 5
Don’t do that.
00:49:36 Speaker 1
For those servers, storage ahead.
00:49:41 Speaker 1
Capital market, the little boy, and he definitely wants to do that.
00:49:45 Speaker 3
Don’t afraid except.
00:49:46 Speaker 1
You already own about, you have a bunch of these players, but no, we’re not going to do that.
00:49:47 Speaker 3
Who knows?
00:49:49 Speaker 1
I don’t think I, you know, there’s two players, you know.
00:49:52 Speaker 1
Fundamentally, you’re bullwhip effect means the data can’t.
00:49:54 Speaker 1
Flow and people.
00:49:55 Speaker 1
Can’t make decisions optimally because the data is.
00:49:57 Speaker 1
Trapped in multiple places you don’t know.
00:49:59 Speaker 1
How to run an efficient supply chain because you don’t know how many drops like when the.
00:50:03 Speaker 1
Ship arrives. Like, actually even.
00:50:06 Speaker 1
Not even like long term demand for forecasting how many ships, but like literally.
00:50:09 Speaker 1
That trip is.
00:50:09 Speaker 1
Going to arrive, how many trucks are they dispatch?
00:50:11 Speaker 1
When should I dispatch them like there’s two ways to solve this problem.
00:50:14 Speaker 1
Wanted to own the asset and the other is to create a data network effect such that the asset.
00:50:19 Speaker 1
Owner benefits enough from putting it on your platform, your machine learning, your offer, your algorithms are helping them make more money from their asset they want.
00:50:27 Speaker 4
Well, you or you can invest further.
00:50:28 Speaker 3
What’s going on?
00:50:29 Speaker 4
Down hopefully into the chain, I mean.
00:50:29 Speaker 3
It says one of.
00:50:31 Speaker 1
Them a lot, hopefully simpler and don’t need to manage as many people.
00:50:34 Speaker 1
And life is easier if you can solve the data machine learning problem.
00:50:37 Speaker 4
So Alibaba and Alibaba investing down into China like there is a middle Rd of being able.
00:50:42 Speaker 5
In that.
00:50:42 Speaker 4
To go to China.
00:50:44 Speaker 4
So let’s just fix warehouse.
00:50:45 Speaker 6
I mean.
00:50:46 Speaker 4
Right, so we’ve got some.
00:50:47 Speaker 1
As it stands, you have.
00:50:49 Speaker 1
Being purchased a shipping company and putting it over here to your point Cloud Bank, here’s the little thing we bought as a bunch of ships is his own balance sheet and then here’s some really great business.
00:51:00 Speaker 1
But we have this little subsidiary over here is a potential middle ground what makes play sports run business.
00:51:05 Speaker 1
There’s like a million strategies and ways to play out, and I’m not a big believer in like predicting the future and.
00:51:10 Speaker 1
You know, you want to have a vision to know where you’re going, but I.
00:51:12 Speaker 1
Think being sort of flexible.
00:51:14 Speaker 1
Yeah, you.
00:51:14 Speaker 6
We’re not.
00:51:15 Speaker 1
Know it’s in the name are we talk about.
00:51:17 Speaker 1
Our cultural lives.
00:51:18 Speaker 1
What’s the goal of?
00:51:19 Speaker 1
What’s the goal of a company culture and and you want to talk about the.
00:51:23 Speaker 1
Goal of a company.
00:51:23 Speaker 1
The purpose is like.
00:51:24 Speaker 1
Hey, we’ve got to create valuable.
00:51:26 Speaker 1
Products and services for fellow humans, right?
00:51:28 Speaker 1
But the goal of your culture is how do you maximize?
00:51:30 Speaker 1
You’re velocity in that direction and velocity is a really important word because.
00:51:35 Speaker 1
We forget a lot.
00:51:36 Speaker 1
Like normal people forget that velocity is different from speed.
00:51:39 Speaker 1
Yeah, if you remember your physics, velocity has a direction.
00:51:41 Speaker 1
You gotta know where.
00:51:42 Speaker 1
Sorry, and sometimes going really, really fast is actually negative velocity.
00:51:46 Speaker 1
’cause you’re going the wrong way.
00:51:47 Speaker 1
And so how do you say as well?
00:51:48 Speaker 1
That was going through all kinds of chaos at.
00:51:49 Speaker 1
UV nimble.
00:51:50 Speaker 1
Be able to change like we we don’t.
00:51:52 Speaker 1
Know exactly the strategy.
00:51:53 Speaker 1
I don’t have everything.
00:51:54 Speaker 1
That’s every wrap here question for both you and Claire, which is China has two gaps.
00:52:00 Speaker 2
Hey, before you.
00:52:01 Speaker 2
Before you rap question, can I just, can I ask him to?
00:52:03 Speaker 2
Can you tell?
00:52:04 Speaker 2
Us the audience about.
00:52:05 Speaker 2
What you did during the Ukraine crisis?
00:52:08 Speaker 1
This is beautiful.
00:52:08 Speaker 5
I don’t know.
00:52:09 Speaker 1
It’s just this is 30.
00:52:10 Speaker 2
Seconds about, you know, I didn’t go.
00:52:11 Speaker 1
There, like San Antonio.
00:52:13 Speaker 1
Really crazy, man.
00:52:14 Speaker 1
But what?
00:52:16 Speaker 1
So we started this trip in 2017 called freshcourt.org to do humanitarian relief. Shipping really at that time of the crisis with Syria and trying to help refugees and was really a simple idea, is priceless.
00:52:27 Speaker 1
We got all this stuff here.
00:52:28 Speaker 1
We know that new.
00:52:28 Speaker 1
Stuff that.
00:52:29 Speaker 1
The refugee camps?
00:52:30 Speaker 5
If we shift it.
00:52:31 Speaker 1
There seemed like a radical idea.
00:52:34 Speaker 1
We we we maintain a database.
00:52:35 Speaker 1
Of partners that we have, agents that work and operate on behalf reflects board in over 120 countries.
00:52:39 Speaker 1
And at that time, I simply emailed our serial partner that we’ve lowered based in Aleppo, where a lot of this destruction was happening in that e-mail that said, hey, we’d.
00:52:46 Speaker 1
Like to ship a container for this refugee?
00:52:48 Speaker 1
Camp down there and he’s like, sure, what’s the?
00:52:50 Speaker 1
Address where you.
00:52:51 Speaker 1
Want to ship?
00:52:51 Speaker 1
It alright wait but he like I thought this was like and as well as you could do that and we didn’t ship industries we don’t know who’s going to end up in.
00:52:57 Speaker 1
So we shipped to refugee.
00:52:58 Speaker 1
Camps in Turkey and Jordan, so we’ve been doing this now for five years shipping.
00:53:02 Speaker 1
To over 50 different countries any.
00:53:04 Speaker 1
Kind anytime they’re hurricane earthquake, but we’re.
00:53:08 Speaker 1
World War I mean. So when he saw this happening in Ukraine, we immediately kicked into highgeartheplaysports.org team has about 12 full time people and then we have a model where employees that Facebook can surge onto that.
00:53:19 Speaker 1
We’ve had about 60 people working on this.
00:53:22 Speaker 1
In this case, you know you could be offered pro bono shipping ’cause we shipping expenses.
00:53:26 Speaker 1
We can’t just eat the full cost.
00:53:28 Speaker 1
We are.
00:53:28 Speaker 1
Profitable, but not enough to.
00:53:30 Speaker 1
Really solve the world problems all by herself.
00:53:32 Speaker 1
So we created a go Fund Me campaign, partnered with Ashton Kutcher and Mila Kunis actions, an early investor in Westport, and we raised 25 million bucks.
00:53:42 Speaker 1
To pay for shipping to delivery.
00:53:46 Speaker 3
But the way we did, we grow asking.
00:53:47 Speaker 1
As business.
00:53:48 Speaker 1
And all of our investors, a lot of great people stepped up.
00:53:50 Speaker 3
So you involved the?
00:53:52 Speaker 1
Best seasons that, hey, it’s $4400 a container without the number 42 or 44.
00:53:58 Speaker 1
It depends on recovering Ukraine recent decorated.
00:54:00 Speaker 1
I mean, for example, we took nine ambulances from Gibraltar into Ukraine.
00:54:04 Speaker 1
I thought we wouldn’t be able to shift into Ukraine, says it’s a war zone.
00:54:07 Speaker 1
It turns out most.
00:54:09 Speaker 1
I don’t know.
00:54:10 Speaker 1
These percentage of European truck drivers are.
00:54:12 Speaker 1
And they were just like stuff to go and.
00:54:14 Speaker 1
Do this so.
00:54:15 Speaker 1
Like, so we delivered 9 ambulances that cost like around 10 grand.
00:54:19 Speaker 1
The person I replied back to him and I said no problem and he mentioned on the podcast I said no problem I donated at $4400 container and then she said oh I donated.
00:54:19 Speaker 6
Sorry everyone.
00:54:28 Speaker 1
The plane like.
00:54:29 Speaker 3
Well, containers went on.
00:54:31 Speaker 3
It is.
00:54:32 Speaker 3
So it’s a fact.
00:54:38 Speaker 1
And then.
00:54:39 Speaker 1
Just snowballed and it hasn’t got.
00:54:40 Speaker 1
Much attention, but really, no matter who’s in early flashboard investors just donated 100.
00:54:45 Speaker 1
$1,000,000.
00:54:46 Speaker 4
Wow, dude, you’re really putting pressure on their side.
00:54:50 Speaker 1
Second, everybody knows it again and it is amazing model where, but by the way, over 60,000 people donated a little bit and I’m almost as just as proud of that. It’s like getting involved, stepping up.
00:55:08
Right.
00:55:08 Speaker 5
Oh yeah.
00:55:09 Speaker 1
Another in support.
00:55:09 Speaker 1
How about for daughter?
00:55:11 Speaker 1
Final, final question for you too.
00:55:13 Speaker 1
We had this great moment where, you know, we engaged China.
00:55:17 Speaker 1
We built a.
00:55:17 Speaker 1
Bunch iPhones, Amazon basics.
00:55:19 Speaker 1
You know, whatever it is, make issues and it raises the you know, the standard of living for a lot of people.
00:55:25 Speaker 1
We understand China is doing.
00:55:26 Speaker 1
This now and they’re doing it in Africa and some other places.
00:55:30 Speaker 1
What are you seeing in terms of that relationship, how China?
00:55:33 Speaker 1
Isn’t it towards other countries to become producers of goods and they’re kind of now becoming incredibly influential?
00:55:42 Speaker 1
What’s their intent and how is that going?
00:55:44 Speaker 1
Crime, you can start.
00:55:46 Speaker 4
It’s a big question, but I think it’s.
00:55:51 Speaker 4
This is a long term play.
00:55:53 Speaker 4
We’re all in this for long terms, right play and whether you take maybe the spicier view around your resources and protectionism versus one that’s launched around progress and as we may have been increasingly vulcanizing East and West.
00:56:10 Speaker 4
The ability, so there’s, there’s a control that’s a bigger piece of their own supply chain.
00:56:15 Speaker 4
But the end result as you’re sort of saying is you look at places like new chair, right, the average mother there is having six.
00:56:23 Speaker 4
We have a very young global self and the important thing is that they’re fed, they’re closed and that they have an upward trajectory.
00:56:32 Speaker 4
And so that’s the audience.
00:56:32 Speaker 1
As people living in abject poverty will probably end in our lifetime, you know, the only places it would end is in places with dictators.
00:56:40 Speaker 1
What are you seeing in terms of the shipping containers?
00:56:43 Speaker 1
You must see shipping containers increasingly leaving certain ports.
00:56:49 Speaker 1
Where is China sort of exporting production too and in reality up incoming production areas more, some really interesting trends running.
00:56:57 Speaker 1
Around around labor costs in China.
00:56:59 Speaker 1
The reason people went there over the last 40 years, be honest, is like cheap labor and but overtime they became quite sophisticated.
00:57:05 Speaker 1
They really learned how to manufacture, saying special electronics, they’re going to make electronics.
00:57:10 Speaker 1
Pretty much have to make them insurance at the Greater Bay Area, as she called it.
00:57:14 Speaker 2
And that’s.
00:57:15 Speaker 1
But stuff.
00:57:16 Speaker 1
It’s just for cheap labor ’cause that’s no longer about cheap flavor.
00:57:19 Speaker 1
This is a whole supply.
00:57:20 Speaker 1
Chain ecosystem of components and other.
00:57:21 Speaker 1
Things this jerky flavor.
00:57:23 Speaker 1
Two years ago, Mexico became cheaper than China in labor costs.
00:57:27 Speaker 1
The new shift?
00:57:29 Speaker 1
And now Mexico doesn’t have the manufacturing capacity. They don’t have this skill sets. They don’t, but don’t build it, you know, and and people will respond to that trend as long as it takes 120 days to ship stuff from China to the US and we can’t get this sorted out.
00:57:43 Speaker 1
Brands are going to respond to shipping closer to home.
00:57:46 Speaker 1
So you know that is a trend that you’re going.
00:57:47 Speaker 1
To see more and more of.
00:57:50 Speaker 1
The delays stay.
00:57:50 Speaker 1
The way they are, I think China.
00:57:53 Speaker 1
‘s big challenges.
00:57:54 Speaker 1
If if they become labor costs are expensive, how do they keep moving up the value chain and is what they’re made in the made in China 2025 saying is like we’ve gotta they’ve got to make more.
00:58:03 Speaker 1
And more sophisticated products.
00:58:04 Speaker 1
Because it can’t.
00:58:05 Speaker 1
Just be about those Beyblade.
00:58:06 Speaker 1
Language services and yeah and that that’s a huge challenge and in very few, if anyone really done it at no one at that scale.
00:58:14 Speaker 1
So the biggest country?
00:58:15 Speaker 1
In the world, but Japan, Korea, kind of done.
00:58:17 Speaker 1
That, but not.
00:58:18 Speaker 1
Andy as well with this moving fluid services based economy in India with it come in mind and then will become entitled and want to retire at.
00:58:20 Speaker 2
Or probably shared space.
00:58:25 Speaker 3
55 restaurants.
00:58:27 Speaker 1
By the way, my favorite answer is someone who.
00:58:30 Speaker 1
I think was drunk.
00:58:31 Speaker 1
Although to diversify told me he lifted this line his employees were asking him about the four day.
00:58:36 Speaker 1
Work week.
00:58:37 Speaker 1
And he was like, well, you know, I do think we should do some experimentation around how many days a week we worked.
00:58:41 Speaker 1
So but we’re going to start with.
00:58:43 Speaker 1
The six day work week like dinosaurs and we’ll.
00:58:46 Speaker 1
Try the four.
00:58:46 Speaker 3
Day work week later, ladies and gentlemen.
00:58:51 Speaker 3
Thank you.
00:58:51
I am.
00:58:52 Speaker 5
Well done.
00:58:55
Your winner is live.
00:58:58 Speaker 3
Raymond James.
00:59:03 Speaker 1
Open source.
00:59:06 Speaker 5
But when I put.
00:59:15 Speaker 4
That is our plan.
00:59:26 Speaker 1
Get a room and just have 123 doors because they’re all just pushing like this, like sexual tension that they just need.
00:59:31 Speaker 5
To release them then.
00:59:39 Speaker 3
Merchants are bad.