Kara Swisher · 27:32
Then came up with this idea and sent me an email about it in 2011. And I thought it was a brilliant idea at the time given Yeah. You know, how many clothes there were. But she's really... They've really taken it at this idea, and and you're right, fallowed things. Even more so, besides reusing these, these are beautiful clothing. This is often very high level jewelry and clothing, is I just was with a bunch of millennial women, and they all rent their clothes now, especially the nice ones, but all of them. And they're very getting into the idea of renting their... Like, they get four or five outfits. I think it's Rent the Runway, has this new thing where you can pay for it. I think that's fascinating. The renting of everything, pretty much.
Scott Galloway · 28:08
Yeah. It is. And it's overcoming this traditional kind of... You know, it used to be sort of robotin or out of fat, you know, the notion of wearing someone else's clothes. So people are getting over that. And you get about 60%, I think, or maybe it's a little bit more if you take store credit. The stock popped 40% on the first day. And also, thank you for bringing up Julie, because, and I think there's a lesson here, and that is if you have a failure like pets.com, it's pretty easy to get stuck and never recover from that. Mhmm. And she kinda... Success is really your, you know, your perseverance over your failure or another way, your resilience. And clearly, this woman individual has a lot of resilience because she must have been laughed out of a lot of
Kara Swisher · 28:46
Yep.
Scott Galloway · 28:46
Venture capital offices showing up and saying, hi. I'm the former CEO of pets.com. Mhmm. So good for her because that that... It's an incredible company. Revolve, the other one, does a really interesting job with private label at the high end. Their price point is really high, and they've great margins. What's interesting about them is they figured out a way to make money despite the fact that their return rate is 52%, which I thought was the most staggering statistic in their prospectus. But that's an interesting company that's launched a lot of their own private label brands. They have incredible dataset, and this is what I would call just behind the curve. So most high end fashion brands try to be ahead of the curve and say our merchant is a visionary in setting the tone. And then Amazon is well behind the curve looking at what's sold best for the last seven or eight years and then propping that up to the top of the recommendation. The... Revolve has done a great job of taking data and being just behind the curve, and that is they break down the components of an item that's being purchased, whether it's large buttons or a certain color, and then use that to inform the merchandising strategy. And they have a very flexible, agile supply chain, including manufacturing in Los Angeles and in China, and they're able to bring forward really sort of trend on merchandise that could translate to private label.
Kara Swisher · 29:56
They buy this stuff six months in advance and then lose them. You know what I mean? Like, lose if they pick... Make the wrong choice.
Scott Galloway · 30:02
Yeah. They do. So two companies breaking through at the high end, the place that Amazon has not been able to dominate. So those are my wins, Revolve and The RealReal.
Kara Swisher · 30:11
Fantastic. I do think clothing is gonna be really interesting going forward. I'm... I'm I'm feeling... I I feel like it's... There... It it really does start to begin to be like an Uber, like a rental. Lot lot of rental things. I had the CEO of Pearson talking about how there's no textbooks. Everything's gonna be rented. Like, not... And not actual textbooks, but digital things. It was interesting. I think my win was the Wayfair Walkout, which employees walked out of Wayfair. Yeah. They... When when selling beds to immigrant detention camps on the border in the response, the company donated a 100 k to charity, everyone was still mad. And so now I like the idea that millennials are fighting back. I don't know if it'll be effective or if it'll get traction, but I like the concept of it, that this this CEO was caught completely unaware. And these people, we don't wanna sell to this... What's going on there. And, obviously, the fail is the customs and border patrol Facebook page that is so vile. It's disgusting. It's disgusting, and I can't believe I'm paying the salaries of the people who were posting on this site because they don't deserve to work. They don't deserve my money, and they don't deserve taxpayers' money for having these opinions. You can't hate the people that you're charged with with protecting. You really are dealing with the things they said about immigrants were disgusting. And then, of course, the attacks on congresspeople were scary and violent and strange even if it's just sort of blowing off steam on Facebook. And I think Facebook should dump this group. Like, it's just... It's a hate group is what it is.
Scott Galloway · 31:29
Yeah. Not just labeling. It's not
Kara Swisher · 31:30
meant to, you know, talk about problems at work, which everybody has. Everyone has gripes at work. But these gripe... The stuff that that ProPublica, which did this story, put out, it's it's just appalling. And it's appalling that it's not taken down immediately, I think. So I thought that was... And and I think if the Republicans don't look into this, it'll just be... You you know what has happened to this party because it's really... No government employee should be able to express these opinions about the people that they're charged with dealing with. It just is not. And and especially congress people too. Anyway, those are my wins and fails. Do you have a fail?
Scott Galloway · 32:03
Yeah. You covered a lot there, but the detention facilities... I mean, some people have compared them to concentration camps, and I don't think that's fair. What happened to Treblinka and Sobibor and Auschwitz was a different ballgame, but they are detention centers. And I feel as if we're in the land of frequent spills right now, and that is this beautiful carpet called capitalism and democracy in America is... We're constantly creating new stains on this thing, and one of those stains is happening right now. Those detention facilities down at the border are shameful, and our kids are gonna be really embarrassed.
Kara Swisher · 32:32
Would you call them internment camps? It's just... These words are fascinating.
Scott Galloway · 32:36
Yeah. Is it internment? Is it a a detention? I mean, it does feel... They do feel like internment camps, right, where they are holding people against their will. The conditions are a lot of their basic dignity and human freedoms. And this comes down to resources and a certain level of humanity that we are not demonstrating at the border. It's really... It's just one of those things you know in in three, five, ten years, twenty years, we're gonna just be really ashamed that we let this happen.
Kara Swisher · 33:02
You know, ironically enough, went to the... I took my son to the Anne Frank house this week in Amsterdam, which
Scott Galloway · 33:08
I've been there.
Kara Swisher · 33:08
Really... It really affected him. I... It was great. I took
Scott Galloway · 33:11
It's very powerful.
Kara Swisher · 33:12
Who... He was coming back from a European trip, and I I think I was really glad to... For them to see this. This small story of, obviously, Anne Frank is a small story of one person, but she really has touched people all over the globe Yeah. With the books and and what happened to her in Amsterdam. And so it was really interesting. I was... What was fascinating to me when I was there is they don't allow photography in it in the place because it's still the same house where these people were hiding for two years before the Nazis found them and took them away, and they died at concentration camps. But not one person around the whole place. And all over Europe, everyone's with the phones. It's the same the same disease they have in The United States. But in this one area of Amsterdam, nothing. Not one phone. Not one... You know, it was really wonderful, actually, that people could pick their heads up for a minute and pay attention to a very serious problem that we have today and have always had, and it was it was kinda cool. That was a win.
Scott Galloway · 34:06
Yeah. So my fail? My fail is the Democratic Party. I think the debates were great great spectator sport. Obviously, winners, senator Harris and senator Warren. But I think the Democratic Party actually became less appealing to the majority of the voters we need in the middle to get, Trump out of office, and that is, so as a a progressive who considers themselves, you know, a lifelong Democrat, but who's also a white heterosexual male that doesn't speak Spanish and doesn't believe that illegal immigrants should all have a path to citizenship, I felt like, basically, the debate said, we're not your party. And I think when they all raised their hand and said, should every undocumented worker have a path to citizenship? I just thought that was ridiculous. There are so many people, including my parents, who figured out a way to get here legally. And I'm not saying that someone who's been here for ten or twenty years who has been a a decent contributor who has kids here should be deported. But the notion that we're gonna say anybody who figures out a way to get here should have a path to citizenship is just an invitation to the billion or 2,000,000,000 people who would like to live in The US. And it also says to Americans and people who have immigrated here legally that, you know, we don't represent you anymore. And I think that they're heading down a dangerous path, and there needs to be some nuance here. We invited 10 or 11,000,000 undocumented workers. It was basically a flexible, inexpensive workforce for us. We knew they were coming over. They should be treated differently. But to basically say anybody who figures out a way to get here is gonna be a citizen, that's just dumb and inviting an immigration crisis, the likes of which we can't even imagine. So it felt to me like they were basically saying to the people in the middle, we don't represent you. And I think it's... They're headed down a very dangerous path.
— Predictions segment begins —
Kara Swisher · 35:55
Alright. Well, we'll see what happens with that. So let's get to predictions or your forecast, the Scotts one zero one forecast. So is that your prediction? Is that that's gonna be a problem, or did did they have an ability to recover?
Scott Galloway · 36:06
Oh, it's still early. And they, you know, they all go hard left or hard right in the primaries, then they all pivot to the center in the general election. But they've gotta realize that the folks in the middle... And it's not Twitter. I don't think it's the people who are best on Twitter at the far left that are gonna win this election. Now granted, they need to energize the base, but the majority of Americans are somewhere in the middle. Mhmm. And what we saw the Democratic debate was that, in my view, again, the people that they need to win over, they're saying, we don't really represent you any longer. So I I hope we see some centrist candidates emerge with a voice that's more indicative of where the majority of Americans are. So, anyways, two predictions. My prediction is political. Basically, Sanders, I tweeted that what are the two consumer brands that are gonna lose the most share over the next thirty days? It's gonna be La Croix. The sparkling water's gonna get its butt kicked by Bubly, a Pepsi brand, which is kind of... I realize it's little bit esoteric. But this is the way my mind works,
Kara Swisher · 37:02
Laqua. Don't talk. I love coconut.
Scott Galloway · 37:04
Laqua? Oh, no. Laqua's hemorrhaging market share. But also Joe Biden and Bernie Sanders. I think that America is gonna decide we wanna... Don't wanna replace, and this is a terrible identity politics and aegis, but I do think that, America's decided that Bernie's time has kind of come and gone in my view. And I don't think that Joe Biden... The third term of Obama is gonna have a ton of appeal. I think that their combined share of 50 or 60 points is gonna decline 20 or 30 points, and we're gonna see a new crop of nominees or contenders emerge. And it's already happening with standards.
— Predictions segment ends —
Kara Swisher · 37:38
It's interesting. My boyfriend, George Conway, as you know, he's my boyfriend, was saying that the Democrats tend win.
Scott Galloway · 37:45
That's an image. Oh my god. Okay. I'd pay good money to watch watch that relationship unfold.
Kara Swisher · 37:53
He was saying, and I think he made a very salient point, that Democrats tend to win when it's a young fresh person versus an older person. All the older people lose, which is interesting. I know that's ages. That's when his point was correct.
Scott Galloway · 38:03
If you kick out a president after only one term in a good economy, it's gotta be for something totally different on almost every dimension. And
Kara Swisher · 38:11
So Marianne Williamson is efficiency.
Scott Galloway · 38:14
There we go. I love... I thought she... By the way, most
Kara Swisher · 38:17
searched person problem with Marianne Williamson. I don't got no
Scott Galloway · 38:20
Most searched person on Google during the debate. She got more search volume than anybody. Everyone's like, wait. Who who is this? Who's this? What is going on here? What did she just say?
Kara Swisher · 38:30
Yeah. Exactly. You know,
Scott Galloway · 38:32
the DNC has decided after trying to railroad or jam Hillary Clinton down everyone's throat that, basically, the the primary was nothing but an attempt to kinda pretend that they weren't supporting Hillary Clinton, they've decided they've gone the other way, and they're letting total whack jobs on the debate stage. I mean, there's just no reason for her to be on the debate stage.
Kara Swisher · 38:49
I don't know. I'm gonna put her podcast. I'm trying to get her for my podcast. I totally wanna know.
Scott Galloway · 38:53
I can see that. I can see that. I think Conway's a better grab, though.
Kara Swisher · 38:56
I know. I'm trying. I keep
Scott Galloway · 38:57
I'm trying to find what I what I find more disturbing. You and a romantic relationship
Kara Swisher · 39:02
does because I think he's really funny. I know I shouldn't. I know all my left wing friends are like, how dare you? But I just think he's very sharp, but I think he's sharp. I can like it.
Scott Galloway · 39:09
I'm trying to I'm trying to decide what's more disturbing, the image of you in a romantic relationship with George Conway or or him in a romantic relationship with Kellyanne Conway, his wife. I find both of those things really rattling.
Kara Swisher · 39:20
Let's go. As usual, you bring it down to sex when Oh, I know. About That's
Scott Galloway · 39:25
our C SPAN channel. In great position. Making out.
Kara Swisher · 39:28
Those those on romantic relationships. It's just
Scott Galloway · 39:31
I would pay good money for that. And if you cancel, you have to watch Mitch McConnell and Michelle Bachman make out. If you cancel, that's what happens to you.
Kara Swisher · 39:39
Scott, don't go all London on me. This is very British. You're going down the British lane of, like, crazy
Scott Galloway · 39:45
stuff behind us. So excited you're in London during world class soccer. That is an amazing time to be there. Life is so rich, Kara. Enjoy it. Have some dinner.
Kara Swisher · 39:55
Boston then. I'm going to Vermont. I'm going to Vermont for the July 4. What are you doing for the July 4? Because you're you're not
Scott Galloway · 40:00
Vermont for the fourth.
Kara Swisher · 40:02
Presumably nobody is except for the base.
Scott Galloway · 40:04
I am, as always, embarrassingly without plans. I don't have any plans I'm gonna
Kara Swisher · 40:08
probably work. I've been away, so I need to work this entire week. The July 4? You should... You really should able to jump things. You need to see some tanks. I can't believe he's ringing.
Scott Galloway · 40:16
Oh, we're having a military parade. That's right.
Kara Swisher · 40:18
That's right. Hell. Tanks. I just... I don't even want to.
Scott Galloway · 40:21
I just... Whatever. Anyway Eisenhower, one of my heroes, said you should never have a military parade. We should celebrate our independence and our
Kara Swisher · 40:27
our courage, but not not with the Industrial Military Complex. Well, I'll be in DC next week after it's all over. In any case, Scott, I will see you soon because you'll be in DC. You're coming down to DC. Wait a second. We're gonna see each other in a week.
Scott Galloway · 40:39
Yeah. I'm a little bit intimidated, and I appreciate you and your fabulous friends hosting, I think, for me. But they called me and said, who do you wanna invite? I don't have a single friend in DC. My invitation was to zero.
Kara Swisher · 40:49
Bring you the people. And if George Conway is listening, you are totally invited. Leave Callaghan at home, but you are invited. We'll actually bring Callaghan.
Scott Galloway · 40:56
I like it.
Kara Swisher · 40:57
What the hell?
Scott Galloway · 40:58
Bring the Corgis, George.
Kara Swisher · 40:59
Bring the Conways. Come on over, Conways. Anyway, it's a party for Scott. I'm not inviting anybody else online. But we're having a book party for Scott, and then we're gonna tape our show. And I actually... I also have a podcast with your friend, Michael Bennett.
Scott Galloway · 41:10
Senator Bennett.
Kara Swisher · 41:12
Yeah. Nice guy. I'm counting on you. He's the man. He's the man.
Scott Galloway · 41:16
Make him look good care. Actually, he'll make himself look good.
Kara Swisher · 41:18
He's smart. He's... He... I thought he'd to do it for my dad is what I'm doing. Anyway, we Well,
Scott Galloway · 41:23
hold on. Quick moment of the debate. What about his moment where he said a medieval wall isn't a symbol that immigrants should see? It should be the Statue Of Liberty, and he talked to eloquently about his
Kara Swisher · 41:31
He's fantastic.
Scott Galloway · 41:32
His mother-in-law who was separated from her parents during the Holocaust. I thought that was the most powerful moment of the debate.
Kara Swisher · 41:38
He also had a very powerful moment with Joe Biden saying your deal with Mitch McConnell sucked. It was... And it was so smart. He did it so smart. Huge error. Smart president. Should have some cabinet position in a Democratic administration. He would be an asset to The United States Of America as... In any kind of leadership capacity.
Scott Galloway · 41:52
Word, my sister. Now you're speaking my language.
Kara Swisher · 41:54
I still don't have the man crush you do. Anyway, Scott, I'll see you next week in DC. We're gonna go around. We're gonna do some things. Maybe we'll go wander by the White House. I don't know. We'll Anyway, Camilla Salazar produced our show today. Nishad Kerwa is Pivot's executive producer. Thanks also to Eric Johnson and Eric Anderson. Thanks for listening to Pivot from Vox Media. We'll be back next week from DC with another breakdown of all things tech and business. Make sure you subscribe to the show on Apple Podcasts, tune in, or wherever you listen to podcasts. And if you like this week's episode, which you already do, leave us a review.
