Happy Monday Flux fam!

Well done to all our brilliant Flux daily 1 min quiz players!

Aulia took out the crown AGAIN this week. Can anybody stop this force of nature?! Don't stress, this week's prize is a $100 Amazon voucher. May the best Fluxxer win.

Here's everything you need to know today - in under 3 minutes.

Today's big stories:

😲 CBA pleads guilty over old dodgy insurance-selling practices

☀️ Bondi Sands decides to stay in co-founders hands

💰 Crocs expects US$5 billion in revenue by 2026

Oh and get this...

The unemployment rate was released last week, and would ya believe it?! Despite almost half the country in lockdown, the unemployment actually decreased to 4.5%. Have no idea what we're on about it? Read about it on our Learn page here. 

YIKES: CommBank will plead guilty over criminal charges for dodgy insurance-selling practices

Background: The corporate watchdog - aka the big, bad ASIC - filed 30 criminal charges against CommBank. And with 16 million customers...this ain't a good look for them.

What happened: Between 2011 and 2015, when some people took out a CBA credit card, personal loan or mortgage, they were offered insurance. The bank claimed the insurance would help borrowers meet their repayments if they lost their job, suffered a major injury or died.

What else: The problem was, many of the people who took out the insurance didn't meet the eligibility criteria. But CBA will be pleading guilty to the charges, which means they could face up to $51 million in fines.

So what's the key learning?

💡In 2018, the Aussie Government took on the big banks and insurers in the country with the Banking Royal Commission. And this was like one massive hurricane for these industries...one we're still seeing the fallout from today.

💡The Banking RC planned to investigate dodgy practices in the banking and finance industry, but it uncovered a lot more than it bargained for. We're talkin'

• Dodgy commission structures
• Fees for no service (aka customers being charged fees but not receiving anything in return, and
• Bad leadership.

💡In fact, 3 of the Big 4 Bank CEOs stepped down, AMP was completely shattered, everyone copped fines and they all sold out of their wealth management (financial advice) arms. 

Bondi Sands won't be sold - cos if ya want something done right, ya gotta do it yourself

Background: Bondi Sands is one of the most famous DIY tanning companies in the country. And contrary to the name, this crew actually started in Melbourne back in 2012. Now, it's the top-selling self-tanning brand in Oz.

What happened: Bondi Sands have a whopping 60% of the self-tanning market in Australia, and around 65% of it in NZ. And they're growing at around 50% year-on-year, so it's not surprising they started fielding acquisition offers.

What else: There was talk the deal could be around the $500 million-mark, but now it's been revealed they only received offers of around $320 million. And with a massive 18-month expansion plan on the cards, Bondi Sand's co-founders reckon the company's better off with them in the driver's seat.

So what's the key learning?

💡When companies want to engage in a merger or acquisition, they conduct an investigation or an audit - called due diligence - before they make a move.

💡Due diligence can involve looking through a company's records, balance sheets, stockholder info or history of litigation (aka if they've been in any law suits).

💡Just like how you and your mates go on a social media deep dive of a potential partner before you meet up, due diligence is a company's way of doing its homework. In this case, nobody needs to bother 'cos Bondi Sands is staying put.

Crocs expects to hit US$5 billion in revenue by 2026 and dear God, who is buying these?!

Background: If you've been living under a rock, Crocs are those coloured plastic clog-looking shoes with holes where you can put little accessories. The company launched back in 2002, and since then, has sold more than 720 million pairs of shoes. 

What happened: Love 'em or hate 'em, Crocs have been killing it. And they're forecasting a sales of a whopping US$2.27 billion this year alone. By 2025, they expect sales to grow to US$5 billion. 

What else: Crocs reckon there's a few things at play here:

1. A pandemic that's forced everyone to stay at home and look for comfy, at-home footwear
2. It seems to be the shoe of choice for healthcare workers, who spend hours on their feet each day
3. A series of high-profile collabs with celebs like Justin Bieber and Bad Bunny.

So what's the key learning?

💡Celebrity endorsements are a dime a dozen, and these endorsements are lucrative. In fact, they can increase a company's sales by an average of 4% compared to competition. 

💡But celebrity collaborations - aka, where the celeb has a hand in designing the product - are bringing out massive dollars for the brands behind them.

💡Kanye West's Yeezy collab with Adidas saw a whopping 14% increase in earnings for the sneaker brand. And Michael Jordan's Nike Air Jordan collab is now valued at a huge US$3 billion. So you can see how having a celeb as big as Justin Bieber (who has a massive 196 million Insta followers) is a big power play for Crocs.