# Moonshot Plans IPO in Six Months After China AI Breakthrough

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 20 Jul 2026, 21 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/1b8f6f2a-0094-4665-ab17-b48d01137a75/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu -Bailey Lipschultz, Bloomberg News Senior Equities Reporter, discusses Moonshot AI telling investors it's preparing to list in as early as six months, seeking to tap capital markets after its latest model upended industry perceptions of China's artificial intelligence capabilities. -Seema Shah, Vice President of Research and Insights at Sensor Tower, discusses DeepSeek preparing for a IPO. DeepSeek has begun preparations for an initial public offering and may file as soon as this year, setting the stage for what could be a landmark debut for the country’s technology industry. -Surabhi Gupta, Chief Technology Officer of Klaviyo (NYSE: KVYO,) discusses AI. Generative AI is reshaping how companies build software and engage customers, and Klaviyo is putting that technology at the heart of its B2C CRM platform. Surabhi joins to discuss what that transformation looks like in practice. - Lindsay Dutch, Bloomberg Intelligence Consumer Hardlines Senior Analyst, discusses Bloomberg Intelligence’s latest beauty survey. According to BI: Gen Z stands out in the June beauty survey, with signs of strengthening demand and possibly expanding baskets for the cohort in 2H, in contrast to broader survey results. These young shoppers skew to using a lot of product and favor specialty retailers Ulta Beauty and Sephora rather than the dominant mass channels, likely reflecting unique, on-trend assortments and preference to shop in-store. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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[0:24] Speaker 2: Lots of IPOs. That's certainly been the score for much
[0:29] Speaker 2: of twenty twenty six. And we said the big investment
[0:31] Speaker 2: banks reporter earnings last week, and they were toouting how
[0:33] Speaker 2: much of the deals they're getting done and how good
[0:36] Speaker 2: their pipeline looks, and we got it work still coming here,
[0:39] Speaker 2: Let's keep it. Our next guest, very busy Belly Lipschualtz,
[0:42] Speaker 2: Senior equities reporter for Bloomberg News. Moonshot AI. Oh boy,
[0:46] Speaker 2: I'm afraid to ask, what is this thing? And when
[0:48] Speaker 2: is it coming?
[0:49] Speaker 3: You haven't heard of moonshot ami though I have not.
[0:51] Speaker 3: You are not what really?
[0:54] Speaker 4: Really?
[0:55] Speaker 3: Oh my gosh, I mean they moved markets on Friday.
[0:57] Speaker 3: They're the reason that Friday I was all that be
[1:00] Speaker 3: Oh you he that you got some sun Okay Moonshot
[1:02] Speaker 3: Moonshot runs. The Kimmi model Kimmy K three was the
[1:05] Speaker 3: latest kind of model Kimmy K three is a AI.
[1:09] Speaker 2: We'll have to put that next to Claude and well, they're.
[1:12] Speaker 3: A Chinese company, so I think I know your answer there.
[1:16] Speaker 3: But so this is a company that really burst onto
[1:18] Speaker 3: the scene while you were on a beach enjoying the
[1:21] Speaker 3: nice weather, that really kind of caught took the world
[1:24] Speaker 3: by storm, I guess you could say, and very quickly.
[1:26] Speaker 3: Bloomberg is reporting they are now eyeing a Hong Kong
[1:29] Speaker 3: ipo in the next six months, so that would be
[1:31] Speaker 3: a quick turnaround companies, according to our reporting, working to
[1:34] Speaker 3: close a thirty funny round at thirty billion dollar valuation.
[1:37] Speaker 3: So relatively small potatoes compared to the anthropics and open
[1:42] Speaker 3: aiyes of the world, but it is pretty interesting just
[1:44] Speaker 3: given how quickly the company again became for some household
[1:50] Speaker 3: name overnight, similar to that Deep Seek moment we had
[1:52] Speaker 3: a few years back.
[1:54] Speaker 5: Yeah, and trying to capitalize on that that excitement. It's
[1:57] Speaker 5: a Beijing based startup. It's held talks with China International
[2:00] Speaker 5: Capital Corp. And Goldman Sachs about working on an offering.
[2:04] Speaker 5: The one part of the deals market that's been kind
[2:06] Speaker 5: of sluggish is exits from private equity and you exiting
[2:12] Speaker 5: their investments and listing them on the public markets. Jersey
[2:16] Speaker 5: Mikes is kind of in defiance of that if it
[2:19] Speaker 5: actually does go through it with an IPO.
[2:20] Speaker 3: Yeah, and we've seen actually Blackstone try to live up
[2:23] Speaker 3: to their promises from Jonathan Gray that this was going
[2:25] Speaker 3: to be the year of an IPO. Of the IPO,
[2:27] Speaker 3: they did take out Blackstone Digital, which is kind of
[2:30] Speaker 3: an AI digit data center roll up firm, and they
[2:33] Speaker 3: also took out Liftoff, which is in the app space.
[2:36] Speaker 3: But Jersey Mike's more of a household name. I think
[2:39] Speaker 3: you've been to one of those, yes, Okay, so you know,
[2:41] Speaker 3: Jersey Mike's the company in their backers, including Blackstone, looking
[2:45] Speaker 3: to sell up to one point one billion dollars in
[2:47] Speaker 3: this IPO. What value the company about eight billion dollars,
[2:50] Speaker 3: So that is kind of a big valuation relative to
[2:52] Speaker 3: most kind of growing casual chains, if you will. The
[2:57] Speaker 3: big pitch, at least when I talk to investors is
[2:59] Speaker 3: they look at the success from Cava, they look at
[3:01] Speaker 3: Jersey Mike's Jersey Mike's Blackstone asset. But they brought in
[3:04] Speaker 3: the leadership team from Wing Stops, so you have season
[3:07] Speaker 3: vets running the show. You have Blackstone, which is going
[3:10] Speaker 3: to make a decent amount of money on this IPO,
[3:12] Speaker 3: and then you also have the international pitch. They partnered
[3:14] Speaker 3: with the Jersey Mike's founder to help lead an expansion
[3:17] Speaker 3: in the UK. So fast growing, pretty darn good franchise
[3:21] Speaker 3: model here in the US, international ambitions and private equity
[3:25] Speaker 3: sponsor is what kind of blackrockets own.
[3:27] Speaker 2: This for about a cup of coffee.
[3:29] Speaker 4: Let's be honest.
[3:29] Speaker 2: When they bought this just a few.
[3:30] Speaker 3: Years and Blackstone closed the deal in January of last year. Yes,
[3:33] Speaker 3: so in terms of the turn one and a half years,
[3:35] Speaker 3: this is fast.
[3:36] Speaker 2: Awesome for them. I mean, and there, IRR. I'll go
[3:39] Speaker 2: do the math on the train ride home, but I'm
[3:42] Speaker 2: going to guess, IRR, is monstrous.
[3:43] Speaker 3: Yeah, it's a big return, and it's a big again,
[3:45] Speaker 3: a quick return in a time when people, to Scarlett's point,
[3:50] Speaker 3: private equity hasn't been super active and getting these exits.
[3:52] Speaker 3: The interesting thing is you step back when that deal
[3:55] Speaker 3: was announced back in November of twenty twenty four and
[3:57] Speaker 3: consumer bankers were like, this is a company that have
[4:00] Speaker 3: gone public then, so then you bring in Blackstone. They
[4:04] Speaker 3: do a little bit of pre private equity magic. But
[4:06] Speaker 3: again they bring in an experienced management team, get the
[4:08] Speaker 3: operations where they want it in a quick turn, quick money,
[4:12] Speaker 3: and at least when I talk to folks on the
[4:14] Speaker 3: buy side, they.
[4:15] Speaker 2: Like it, and that is super important when they got
[4:18] Speaker 2: to raise the next fund, which is when I was
[4:20] Speaker 2: looking at private equity maybe twenty years ago, I was
[4:22] Speaker 2: told pretty easy to raise money, it's really easy to
[4:26] Speaker 2: invest money. It's really hard to sell to get a
[4:29] Speaker 2: good exit, and so the way you get raised money
[4:32] Speaker 2: is to say, hey, I'm generating returns, I'm getting exits
[4:36] Speaker 2: successful exits.
[4:37] Speaker 3: And they happen to be I mean, Blackstone obviously is huge,
[4:40] Speaker 3: but you're not over exposed to software, which is a
[4:44] Speaker 3: good timing because you talk to some of the folks
[4:46] Speaker 3: at the Toma Bravos of the world and it's like, okay,
[4:48] Speaker 3: well you're super bullsh on software. This is the opposite time.
[4:51] Speaker 5: Totally different narrative. Right, very quickly, Billy, is there anything
[4:55] Speaker 5: new with Anthropic or open AI going public?
[4:58] Speaker 1: This week?
[4:58] Speaker 3: Anthropic is meeting with some of the largest long only investors.
[5:01] Speaker 3: We put that out at the end of last week,
[5:03] Speaker 3: so that'll be the formal starting to my understanding of
[5:06] Speaker 3: testing the waters meetings, talking about what the size could
[5:08] Speaker 3: look like, what the company looks like. Again, a lot
[5:10] Speaker 3: of these funds own it, so they're meeting with Dario
[5:13] Speaker 3: and team that they know. But the big thing is
[5:15] Speaker 3: this seems to be indicating that that September October timeframe
[5:19] Speaker 3: is in play, whereas Open AI for all intents and
[5:21] Speaker 3: purposes is very much seen as a twenty twenty seven story.
[5:23] Speaker 2: And are we expecting activity to once a week gets
[5:27] Speaker 2: back in vacation September kickback in?
[5:28] Speaker 3: Is that kind of the Yeah, we got we get
[5:30] Speaker 3: a little burst with Jersey Mikes. People expect Cumberland Farms.
[5:33] Speaker 3: Cumberland Farms. Yeah, they grew up with cumber Yeah, you
[5:35] Speaker 3: g group. Yeah, that's that'll be another big.
[5:37] Speaker 2: One that's a competitor to Wall Wall John So, I
[5:40] Speaker 2: mean it's a person.
[5:43] Speaker 4: Remember that Farms is Now, I'm not going to characterize
[5:47] Speaker 4: it's good in trouble, but.
[5:48] Speaker 3: I've never been there. Stay with us.
[5:50] Speaker 5: More from Bloomberg Intelligence coming up after this.
[5:57] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[6:00] Speaker 1: weekdays at ten am. He's done on Apple, Cocklay and
[6:03] Speaker 1: Android Auto with the Blue Berg business app listen on
[6:06] Speaker 1: demand wherever you get your podcasts, or watch us live
[6:09] Speaker 1: on YouTube.
[6:11] Speaker 2: We heard another company, you know, Ipo deep Seek, just
[6:16] Speaker 2: about deep Sea because that rocked the AI world I
[6:19] Speaker 2: don't know a year ago, because they came out with
[6:21] Speaker 2: a pretty good AI product at a much lower cost
[6:25] Speaker 2: by deep Seek.
[6:25] Speaker 6: Yeah, so in January of twenty twenty five, deep deep
[6:29] Speaker 6: Seat came out to the Chinese owned Chinese based AI
[6:33] Speaker 6: chatbot and basically ramped up on downloads, about one hundred
[6:37] Speaker 6: and seventy million downloads in twenty twenty five alone, is
[6:40] Speaker 6: as you mentioned, significantly cheaper for many of the tasks
[6:45] Speaker 6: that people ask it to do. So one study I
[6:47] Speaker 6: read that for a basic intelligent task it would cost
[6:51] Speaker 6: two cents versus two seventy five for some of the
[6:54] Speaker 6: other models. So just to put that into perspective. But
[6:57] Speaker 6: what has happened since then is that download have subsequently
[7:01] Speaker 6: declined this year and year to date it's only been
[7:04] Speaker 6: downloaded thirty four million times and only two million times
[7:07] Speaker 6: within the US. So there could be a number of
[7:09] Speaker 6: reasons for that. One might be the fear of you know, security.
[7:12] Speaker 6: The servers are based in China, so there might be
[7:16] Speaker 6: questions about national security and the security of the information
[7:19] Speaker 6: if people use it, So that's one of the options,
[7:22] Speaker 6: as well as other products such as chat GBT and
[7:26] Speaker 6: Claude ramping up their features and functionality.
[7:29] Speaker 2: So it seems like on these AI tools here, whether
[7:33] Speaker 2: it's a claud or a Gemini, the iterates so often right, yes, yes,
[7:39] Speaker 2: and they make material jumps in quality and capabilities. How
[7:45] Speaker 2: do you guys track that? How do you guys track like?
[7:47] Speaker 2: Who are the big ones? Who are the good ones?
[7:48] Speaker 2: How do you guys do that?
[7:49] Speaker 6: So based on our data, we have a proprietary first
[7:52] Speaker 6: party panel, so we keep track of every time an
[7:55] Speaker 6: app is downloaded, every time someone opens an app, how
[7:59] Speaker 6: long they spend on the app, the number of sessions. Similarly,
[8:02] Speaker 6: we also have website data where we also track when
[8:06] Speaker 6: they go on these sites as well as we started
[8:10] Speaker 6: keeping track of the percentage of ads that are seen
[8:12] Speaker 6: by chat GPT users, so we also have advertising data.
[8:14] Speaker 6: So we have a wide breadth of different data sets
[8:17] Speaker 6: that we look at and combined to figure out what
[8:19] Speaker 6: we think is happening in the space, and so we
[8:22] Speaker 6: don't keep as much to figure out if you know,
[8:25] Speaker 6: version one is better than version three. It's just more
[8:27] Speaker 6: about are they getting more engagement, are they getting more users,
[8:30] Speaker 6: and what's driving those changes.
[8:32] Speaker 2: I think most tech companies, in my experience, they have
[8:35] Speaker 2: this fear in the back of their minds that a
[8:38] Speaker 2: couple of kids in some garage and Palo Altough are
[8:41] Speaker 2: a day away from putting me out of business coming
[8:43] Speaker 2: up with something better mousetrap. I know we feel that
[8:47] Speaker 2: way here at Bloomberg, and that's kind of what drives
[8:50] Speaker 2: you forward to continue to innovate in this space. It
[8:53] Speaker 2: really seems like it because it feels like we're on
[8:56] Speaker 2: a wild West of this. We don't know where this
[8:58] Speaker 2: technology is coming from. I don't It's come from everywhere, yes,
[9:02] Speaker 2: and it's going it's such a rapid pace. As an
[9:05] Speaker 2: IPO investor, I be like, you want me to invest
[9:07] Speaker 2: put all my eggs in your basket, knowing that tomorrow
[9:10] Speaker 2: there could be some kid who comes out of somewhere
[9:12] Speaker 2: in the middle of the world. That's kind of how
[9:15] Speaker 2: it is out there.
[9:15] Speaker 6: It seems like it is, but there are definitely leaders
[9:18] Speaker 6: in the space. So when you look at total active
[9:20] Speaker 6: users globally, chat gibt is over fifty five percent Gemini
[9:24] Speaker 6: is also I would say forty five to fifty percent
[9:27] Speaker 6: very high. The other players, while they are growing, are
[9:31] Speaker 6: significantly smaller. And the way you know, Gemini has a
[9:34] Speaker 6: lot of advantages, it's in your Android operating system. They
[9:38] Speaker 6: can connect to Gemini without going to the app, So
[9:40] Speaker 6: it's probably even understated versus them active users that we show.
[9:44] Speaker 6: Chat GBT is sort of the first mover advantage, first
[9:46] Speaker 6: app to reach a billion and mus and the shortest
[9:49] Speaker 6: amount of time. Chat GBT sort of become the Google word, right,
[9:54] Speaker 6: And so when you think about B two C customers,
[9:56] Speaker 6: I think a lot of people first start out using
[9:59] Speaker 6: chat GP and for an average user, they probably don't
[10:02] Speaker 6: see much difference between any of them, Whereas Claude has
[10:05] Speaker 6: rapidly grown and it seems to be more focused on enterprise.
[10:08] Speaker 6: Seventy percent of their user's time spent is on the web, right,
[10:12] Speaker 6: So maybe you get a split versus B to B
[10:14] Speaker 6: and B two C. But while the other players are growing,
[10:17] Speaker 6: they are very small.
[10:18] Speaker 2: And isn't the cost of it If I want to
[10:21] Speaker 2: in an enterprise and have Claude used by my employees,
[10:24] Speaker 2: I got to pay for that, right.
[10:26] Speaker 6: Yes, you get token, so when you when you ask
[10:29] Speaker 6: a task or when you have a task, it requires
[10:31] Speaker 6: some sort of payment in the token. And then also
[10:34] Speaker 6: in the back end of this is a lot of
[10:35] Speaker 6: energy to do these calculations. So it's an expensive endeavor
[10:39] Speaker 6: and that is the benefit that deep Sea has is
[10:42] Speaker 6: that it is much cheaper. And there are US companies
[10:46] Speaker 6: testing it. Again because of national security and whatnot, I mean,
[10:50] Speaker 6: you're allowed to use it here, but we'll see how
[10:52] Speaker 6: well it's adopted in certain Western countries.
[10:55] Speaker 2: So just in terms of the timing of potential IPOs,
[10:57] Speaker 2: I guess Anthropic is the first one we think we
[11:00] Speaker 2: might see.
[11:01] Speaker 5: They have mentioned it.
[11:02] Speaker 6: The Anthropic owns Claude Open AI for chat GPT, and
[11:06] Speaker 6: now deep Seek said maybe early twenty twenty seven. I
[11:08] Speaker 6: think a lot of that depends on how the market goes,
[11:12] Speaker 6: how we see SpaceX perform, just given its exposure to
[11:16] Speaker 6: AI and GROCK, so yep, I think that will be
[11:20] Speaker 6: market dependent. But I think they certainly would all like, yeah.
[11:24] Speaker 2: So I'm looking at space exploration SpaceX kind of a
[11:28] Speaker 2: quase AI played to say the least, that's certainly what
[11:30] Speaker 2: they pitched. Yeah, I don't know when public at one
[11:32] Speaker 2: hundred and thirty five bucks went over two hundred. We're
[11:36] Speaker 2: now back down. We're one twenty three, so we're below
[11:38] Speaker 2: the IPO price and blow the first print at one fifty.
[11:41] Speaker 2: So see how that plays at Michelle Vice.
[11:43] Speaker 3: Thank you, stay with us.
[11:45] Speaker 5: More from Bloomberg Intelligence coming up after this.
[11:50] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[11:54] Speaker 1: weekdays at ten am Eastern on Apple Coarclay and Android
[11:57] Speaker 1: Auto with the Bloomberg Business app on demand wherever you
[12:01] Speaker 1: get your podcasts, or watch us live on YouTube.
[12:05] Speaker 2: We're at the stage of this AI story in the
[12:07] Speaker 2: marketplace where the market is definitely trying to find winners
[12:10] Speaker 2: and losers. One of the areas that the market is
[12:13] Speaker 2: concerned about is software. Certain areas of software software is
[12:17] Speaker 2: a service, and that includes the next company here. The
[12:20] Speaker 2: company is called Clavio and the symbols KVYO. The stock
[12:25] Speaker 2: is down about forty five percent year to day. It's say, yep,
[12:29] Speaker 2: customer relationship management company using technology. There think something I
[12:34] Speaker 2: can to Salesforce dot com. We want to get the
[12:37] Speaker 2: latest on how AI is impacting this company this part
[12:39] Speaker 2: of the software space, and we're please to welcome Serby
[12:43] Speaker 2: Gupta Chief Technology Officer and the company's name is Clayvio. Again,
[12:48] Speaker 2: Kvyo is the tick or serby. Thanks so much for
[12:50] Speaker 2: joining us here talk to us about kind of what
[12:53] Speaker 2: you guys do at Clayvio and how you're integrating AI
[12:56] Speaker 2: into your business.
[12:58] Speaker 4: Yeah, thanks for having me. So Cleve is an autonomous
[13:01] Speaker 4: B two C CRM and we bring marketing, customer service
[13:05] Speaker 4: analytics AI all under one umbrella, and it's all powered
[13:11] Speaker 4: by a data and we are building products and features
[13:16] Speaker 4: to help our marketers be the best they can be.
[13:19] Speaker 4: And we actually just launched composer and Customer Agent to
[13:23] Speaker 4: help with this.
[13:24] Speaker 5: Okay, so let's bring it down to how a consumer
[13:27] Speaker 5: might interact interface with your technology, with your products, your
[13:32] Speaker 5: B two C platform, which means business to consumer. So
[13:35] Speaker 5: the consumer does have some exposure. How might Paul, when
[13:39] Speaker 5: he is, you know, buying something online, experience your work.
[13:45] Speaker 4: So we have two hundred thousand customers and let's say
[13:48] Speaker 4: there's Glossier, Away, Mattel, Toy, Birch. If you, as a
[13:54] Speaker 4: as a customer, go and interact with any of these brands,
[13:58] Speaker 4: you can get a very personalized experiens And the way
[14:00] Speaker 4: you do this is because these brands work with Clavio,
[14:03] Speaker 4: and we help with powering each of these relationships.
[14:08] Speaker 2: Is AI a friend or an enemy to you and
[14:11] Speaker 2: your company and your and your software.
[14:15] Speaker 4: Oh, we're all into AI. There's there's a lot that
[14:19] Speaker 4: we're using AI for. Even if we just take our
[14:22] Speaker 4: composer product, it's your marketer's right hand. The goal is
[14:27] Speaker 4: to help you be as effective as you can. You
[14:30] Speaker 4: have all these ideas of things that you want to
[14:32] Speaker 4: build and experiences that you want to create, and we
[14:37] Speaker 4: want to make that much easier for you. And AI
[14:39] Speaker 4: is at the forefront of helping make this a reality.
[14:44] Speaker 5: So talk a little bit about consumer behavior and how
[14:47] Speaker 5: that enables the use the application of a lot of
[14:51] Speaker 5: the AI tools that you are developing.
[14:56] Speaker 4: So, uh, you know, one thing that's really exciting about
[14:58] Speaker 4: this wave is that AI is not only helping with
[15:03] Speaker 4: what we build, but also how we build it. So
[15:06] Speaker 4: on when we think of what we build, we're able
[15:09] Speaker 4: to build out these experiences much faster, right, and we're
[15:13] Speaker 4: able to get out more ideas in the hands of
[15:16] Speaker 4: our customers. And I look at the entire build process
[15:20] Speaker 4: is significantly changing. We see the velocity going up a lot.
[15:24] Speaker 4: We see that our engineers are able to shift these
[15:28] Speaker 4: features much faster now. You know, you might say that, hey,
[15:32] Speaker 4: like software engineering, writing code has become so much easier
[15:36] Speaker 4: that you know, there's so many other parts of the
[15:38] Speaker 4: software development life cycle that we see that the bottlenecks
[15:42] Speaker 4: move to, and we're working through all of those and
[15:45] Speaker 4: AI is helping us with massive velocity increases.
[15:49] Speaker 2: Are your customers are they saying, hey, we need more
[15:53] Speaker 2: AI in our our more AI capabilities in our marketing
[15:57] Speaker 2: promotion campaigns. Are they pulling that from you? Are you
[16:01] Speaker 2: or are you more pushing that to them?
[16:04] Speaker 4: Our customers are driven by growing their business. They want
[16:08] Speaker 4: to help grow their brands. They want to help reach
[16:10] Speaker 4: their customers much better, and that's what we are focused on.
[16:13] Speaker 4: And when we create these products, when we show them
[16:16] Speaker 4: demos of the features that we've built, they want those features.
[16:20] Speaker 4: So the end goal for us is not that hey,
[16:23] Speaker 4: we're going to use AI in this way and convince
[16:25] Speaker 4: you why it's important. We are going to build the
[16:27] Speaker 4: best products that we can. And we believe that AI
[16:31] Speaker 4: and these these models have really unlocked the ability to
[16:35] Speaker 4: create a whole new set of features that we can
[16:38] Speaker 4: put in their hands and that's what we've seen with Composer.
[16:42] Speaker 4: We've put this in front of our customers. They've been
[16:45] Speaker 4: using this to create their campaigns and flows, and when
[16:48] Speaker 4: it works, it's magic. We've taken away so much work
[16:51] Speaker 4: from them and they can do the work that they're
[16:54] Speaker 4: best at, which is coming up with really good ideas,
[16:57] Speaker 4: and we can help make.
[16:58] Speaker 5: That a reality with us. More from Bloomberg Intelligence coming
[17:02] Speaker 5: up after this.
[17:06] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[17:10] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[17:13] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[17:17] Speaker 1: you get your podcasts, or watch us live on YouTube.
[17:20] Speaker 5: We talk a lot about this younger generation of consumers,
[17:24] Speaker 5: Gen Z, and how their spending is very different than
[17:27] Speaker 5: say Gen X or Boomers. They'd like to spend on experiences.
[17:31] Speaker 5: I mean, they do buy some hardcore products. They're rediscovering
[17:34] Speaker 5: things like landlines and Polaroid cameras. What does it look
[17:39] Speaker 5: like when it comes to beauty products, What does it
[17:43] Speaker 5: look like when it comes to that part of the
[17:45] Speaker 5: consumer market. Let's bring in Lindsay Dutch. She is our
[17:49] Speaker 5: BI senior industry analysts covering this sector. And she joins
[17:53] Speaker 5: us now and lindsay, you and your team put together
[17:55] Speaker 5: some research on what gen Z likes, what they don't like.
[17:59] Speaker 7: What did you mind? Yeah, hi, Scarlett, thanks for having me.
[18:04] Speaker 7: We ran our semi annual beauty survey and we just
[18:07] Speaker 7: got the results back. And in general, when you look
[18:09] Speaker 7: at the market, it's one hundred and twenty billion dollar
[18:11] Speaker 7: market in the US. Demand is relatively soft for beauty.
[18:15] Speaker 7: It kind of weakened a little bit over the past
[18:17] Speaker 7: six to twelve months. It's sitting near lows two year
[18:22] Speaker 7: lows based on our series of surveys. But one thing
[18:25] Speaker 7: that stood out was gen Z. Gen Z tends to
[18:29] Speaker 7: have more intensive beauty routines, a lot more of them,
[18:34] Speaker 7: use a lot of products compared to average on our survey,
[18:38] Speaker 7: and their demand signals that I look at, which is,
[18:41] Speaker 7: you know, would you cut back on other things before beauty?
[18:44] Speaker 7: You know, how important is continuing your beauty routine? Are
[18:48] Speaker 7: you trying new products? When I look at those types
[18:50] Speaker 7: of indicators, gen Z not only shows steady demand, but
[18:54] Speaker 7: it actually seems to be improving, which is a pretty
[18:57] Speaker 7: big contrast to what we're seeing in the broader market.
[19:00] Speaker 2: Kit So gen Z I mean, they're very, very comfortable
[19:05] Speaker 2: with buying pretty much anything and everything online.
[19:08] Speaker 7: How about beauty, Yeah, so gen Z does show a
[19:13] Speaker 7: high interest of shopping in store. Our survey show is
[19:17] Speaker 7: about seventy five percent of that cohort prefers to shop
[19:21] Speaker 7: in store for beauty. They like to see the product,
[19:23] Speaker 7: they like to test it out on their skin, so
[19:26] Speaker 7: they are interested in that. But they do use online
[19:29] Speaker 7: for discovery. So social media is very big for beauty
[19:33] Speaker 7: and discovering new product. You know, gen Z, a lot
[19:37] Speaker 7: of them do look there for inspiration. And one interesting fact,
[19:43] Speaker 7: you know, I ask a question about, you know, what
[19:45] Speaker 7: would inspire you to buy something that you were not
[19:48] Speaker 7: shopping for, and gen Z ranked seeing it on social
[19:51] Speaker 7: media ahead of a discount on a certain product. More
[19:56] Speaker 7: broader results were that, you know, a discounted product would
[19:59] Speaker 7: spur them to make that purchase decision.
[20:02] Speaker 5: So within your research you also find that gen Z
[20:05] Speaker 5: leans into fragrance. How do you discover fragrance online?
[20:10] Speaker 7: Yeah, fragrance discovery is hard online, but gen Z is
[20:14] Speaker 7: fueling sort of a pickup in the fragrance market and
[20:18] Speaker 7: with this trend called fragrance layering, which is basically buying
[20:22] Speaker 7: a lot of different products for scent. You know, you
[20:26] Speaker 7: can do lotion, you could do a spray, and sort
[20:28] Speaker 7: of they mix them all together to kind of create
[20:31] Speaker 7: their own personal scent. And this is driving demand in
[20:34] Speaker 7: the industry, and it's demand from mass brands all the
[20:39] Speaker 7: way up to luxury. So it's something that we're seeing
[20:42] Speaker 7: and the survey results really sort of validated that ALTA
[20:47] Speaker 7: who caters to the younger consumer, you know, they're really
[20:52] Speaker 7: looking to be a leader in fragrance, really expanding that
[20:55] Speaker 7: assortment and trying to capture that demand.
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