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tv   Best of Bloomberg Technology  Bloomberg  September 23, 2018 5:00pm-6:00pm EDT

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emily: i am emily chang, and this is "best of bloomberg technology," where we bring you all of our top interviews from this week in technology. coming up, gaps online play for men. we speak exclusively to the gap ceo on the outfitter's newest brand. plus, visa spent 60 years building to be the world's largest payment network. its shares are soaring. but facing more disruption than ever, alfred kelly lays out his strategy. the retail industry also battling tech changes. hear more from crate & barrel.
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-- crate & barrel ceo on how brick-and-mortar and absent a new shopping era. over the last 46 years, gap has grown from a single store to a global business. with 3300 brick and mortar stores in its back pocket, gap is betting even bigger on the future of e-commerce. this week, it introduced its six brand hill city as an online exclusive. i sat down with the gap ceo to talk about the new men's leisure brand, and get an update on brands like old navy as well as his strategy for a gap come back. >> we have been fairly forthright in saying the importance of old navy in our portfolio today. if you look at size and profitability, it has already surpassed gap brand. gap brand is, and we know this, -- this because we have done the research, not just because i want to believe it, it is so
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very relevant to our consumers. it is 50 years old. brands morph and evolve. we are trying to position gap brand back to its core. i love every brand and our portfolio. we have been very forthright with the investment portfolio saying we will be responsible management in the portfolio. our job is to do many things not just create value for our shareholders. emily: what about banana republic? you are in the middle of a turnaround there. what are you doing differently and what is working? art: what we are doing differently as what we have done when banana was at its best. we went through a tortured fashion phase, especially for women, but banana at its core is about neutrals, amazing fabrics, incredible hand feel and versatile pieces at a slightly higher price point.
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it is not a work brand but a life brand. as we have put product back in our stores, great fabrics, neutrals, on trend but not tortured fashion, we have seen the customer respond almost overnight. emily: when do you see banana back at its best? two years, three years? i think best is always something you are aiming towards, it is always something you are going towards. but i expect to see a long run of banana continuing to grow and grow market share. i am really excited about it. what banana is at its best it is an extraordinarily high quality, well made and fairly well priced alternative to contemporary brands. that's when banana is really chugging along, that's what it's doing the best. emily: i am all about safari banana. that is my preference. art: we have a flight suit in the assortment right now that is very cute. i showed it to my nephew's fiancee, who is a f-18 pilot and -- pilot in the navy and she looked amazing in it. emily: athleta, another bright
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spot. how big does it get? and big enough to break out its own metrics like old navy and banana? art: eventually we will break it all out. that is something we talk about because we want people to understand the powerhouse that we have in that brand. i see nothing that will slow the brand down. it continues to be 50-50 stores and online. it is truly a brand. our customers shop seamlessly across the online business, the catalog, and in our stores. i am not going to call an end in sight because there is no end in sight. we feel this is a brand with significant growth potential. emily: part of what you've been struggling through is inventory issues. how is that working out, when will those be completely behind you? it has been completely in line with the entire company with the exception that we took product out of cap brand. left because we had inventory
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issues but more because we did not feel it was on brand. we took that product out. it is one of the reasons why the stores feel cleaner and tighter because there is not as much breadth of assortment. we are missing the color and pop inside the brand. we said quarter over quarter improvement, i am looking forward to the holiday. we have a new president there. that's when you see his fingerprints on the brand. emily: what does next gen gap , the parent company, look like to you? and how does it appeal to today's company? art: we are going to continue to grow our digital business at an accelerated pace. we have had excellent performance, and we will continue to grow the business across the entire portfolio. we are adding a new brand with hill city, and we're looking at other places where we feel there are whitespace opportunities for us to participate as well. i am not previewing a slew of brands coming but i do believe we have a new opportunity to add
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new brands on the platform , either organically, doing it inside or through acquisition. we are continuing to look at what acquisitions might be for us. emily: what does gap look like in five years? art: gap looks like in five years, we have additional black -- additional brands in our portfolio. we have an amazing digital business. maybe 50% or 60% of the company. we probably have the same number of stores but different. and maybe stores that are not quite as big and stores that have more technology in them. we have a full suite of digital capabilities that our customer uses for their shopping, buying, and fulfillment experience. and we have an exceptional experience that is omni-channel across all of our brands. it allows the customer to engage in a high touch friction way. emily: the gap ceo speaking exclusively to "bloomberg technology."
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coming up, visa shares are up over 40% as the company faces an onslaught of new competitors. we will check in with the visas ceo, next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app and in the u.s. on sirius xm. this is bloomberg. ♪
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emily: over the last 60 years, visa has become the biggest payment network in the world. 3.2 billion cards driving $10 trillion in payments. shares are up over 40% in the last year as visa faces a backlash against the interchange fees that are charged every time a card is swiped or inserted. retailers are coming up with new ways to reduce the fees that they pay. as technology is disrupting the payments industry more now than ever. the ceo joined us to discuss visa's approach and the future of the company.
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>> the exciting thing for us is that 60 years is just the beginning. i think the payment space is getting more exciting every day. number one, we have the ability to continue to displace cash and check which is still $17 trillion spent last year. we have the ability to open new segments. it is not just about consumers to go buying it, or businesses, but now governments are disturbing funds to their citizens. we have b2b space. in fact, the cash and check displacement opportunity there is larger than the consumer space. we are working on having our network rail's work in the other direction. rather than necessarily pulling funds when somebody buys goods and services, we are pushing money to people's bank accounts and creating new use cases there. and we continue to partner with a lot of new and exciting players coming into the space. i think the future is bright. i look at it as 60 years very
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young. emily: the payment business is very interesting because it involves a lot of frenemies. you have partnerships with companies that you compete with, including paypal and stripe. how do you plan to use technology to compete with technology? alfred: it is a community of lots of frenemies. the ecosystem is very interesting, it requires a lot of players to come together and make it work. people that look to cooperate and work together make all of the difference in the world. you mentioned paypal. i spent a couple of hours on friday with dan shulman. we have a wonderful relationship with them. we are together and trying to grow the payments ecosystem space. we are working with a lot of other players to do just the same. my view at visa is that we should be open to talk to anyone about anything. and we should assume everyone can be a friend until they prove otherwise. that is the only way you figure out about how to move ahead. make sure you have wonderful engagement with as many people
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as you possibly can. emily: on that note, we know that the online checkout experience has become a little cluttered. you see so many icons when you do that checkout. visa is partnering with mastercard and amex and discover to come up with this unified button. what have you learned since you announced that decision? alfred: this is a standard coming out of this. it is the standard-setting body that all of those companies participate in. i think we are all united in the fact that there is a nascarization of the checkout experiences. all these labels. the reality is that the e-commerce experience is still lousy. too many people shop and don't get to the point of actually buying. consumers get confused when they get to the situation where they have to pay for whatever it is they bought. this is the lost volume. lost volume to retailers, lost volume two networks, lost volume two banks. we are simply trying to make the experience for the consumer that much better which makes it better for everyone. we are in a lot of discussions
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in the standard-setting group about making sure the technology is ready and we are excited about the prospect of having it come to market probably sometime in early to mid 2019. emily: there is still a war for dominance. whether it is paypal or amazon. you mentioned paypal as a frenemy. could paypal be included in this unified button in the future? we open to anybody being involved. we are open to anybody who makes the payment ecosystem better. the reality is that paypal started with it being the button in the e-commerce space. whether they would look to the second button, i don't know. you would have to ask paypal. i think the reality is that our goal is to make the payment ecosystem as easy as it can be. it is most important for the buying consumers around the
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world. emily: does this button have a name? how have retailers responded to it? alfred: there is a technical term, but it is a lousy term. we will have to do a much better job marketing as we come to think about what it actually is one we decide to come to market. that is still tbd. we are still working to explain to merchants how it works. most merchants actually want a better experience at the point of check out. they want to make sure their consumers are enabled to buy as much as possible. that's everything from a great website, to great navigation to having a great checkout experience. as we learn and have more discussions with merchants, they will understand that our goal is to make the experience better. -- the experience for the user that much better when they go to check out and buy whatever goods or services they are looking to buy. emily: multiple payments have been fairly slow to take off in the united states. less than half a percent of volume on your network comes from mobile.
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how quickly and how much do you see that growing? alfred: as you probably know we are on a bit of a crusade around the world to promote contactless payments. many countries, they've been taking off. one of the countries that is behind much of the rest of the world, particularly to develop world, is the united states. the reality is the infrastructure is plumbed to facilitate contact with payments. many of the terminals are ready. the reality is that this embedded set of cards, 3.3 billion visa cards, only fairly recently have people started putting chips on the cards. most issuers are committed that as we move toward replacing cards over time, they will embed the near field communication capability that enables contactless payments. i think as contactless payments take off, the formfactor of both the card and the mobile phone where the tap experience is simply better will both be aided
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by the reality of the contactless payments in the united states. emily: will this further hinder the adoption context of card with apple pay or samsung pay? apple seemed to be the declared leader in contactless pay. alfred: i don't see that. the reality is that they are partners as well as many others in the space. many of the samsung phones and apple phones have embedded in their wallets visa cards. to agree that this helps facilitate mobile payments that have visa cards stored in their wallets. that's perfectly good for us and good for the ecosystem. emily: amazon has shown no lack of ambition of getting into new markets. they will be a huge player in the payment space. what threat are you preparing for from amazon? alfred: amazon is a wonderful partner of visa's. we have a terrific relationship with them.
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they are also very customer focused. they want the customer to use whatever product they are most comfortable with. i think it remains to be seen exactly what amazon does in the payment space. you would have to ask them. emily: wouldn't they use their muscle to muscle you out? alfred: the reality is i think that they want what is best for their customer and if their customer wants to use visa or the visa card issued by our banks around the world, their customer centric approach to business i think facilitates them to make sure they want to work with us and work with others to make sure they offer the widest array of options to their customers so they do not turn anyone away. that is central to their strategy. emily: you're working with car companies load payments onto their dashboard. can you give us more specifics? alfred: thank you for the
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question. when i talked about some of the future being bright, i did not talk about the internet of things. connected offices, connect it cars, connected homes are an incredible growth opportunity for us. we are the largest network in the world, 46 million merchants around the world accept visa cards, but we think it should be 10 times that and the internet of things will be one of the things that does that. we are speaking to manufacturers in the automotive space as well as manufacturers of home appliances, and our task is to make sure we are creating an on ramp for payments so payment facilitation happens as the manufacturers build the next generation of cars, equipment, and appliances. payments are enabled so that when you are at your refrigerator and realize your out of milk and butter, you can make a payment without going to your desk, jotting down a note to purchase these things at the
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physical store or online. at this stage, we are not prepared to talk about who we are talking to but i can say that we are talking to a wide array of manufacturers. this is around all of the disconnected space that transcends consumers lives. emily: visas ceo, alfred kelly. coming up, the electric car wars have begun. audi takes aim at tesla unveiling a brand-new all electric suv. event --line ticketing eventbright raised $240 million in his ipo this week. we will hear from the ceo. this is bloomberg. ♪
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emily: tesla has rival carmakers on its tail. as companies like jaguar, bmw, and mercedes are racing their own electric cars into development. at a launch event in san francisco this week audi joined
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, the fray. take a look. >> tesla customers are getting anxious. >> i notice it is popping up on twitter quite a lot. where is my model 3. emily: as elon musk promises to deliver. >> we are building cars as fast as we can. emily: the company is facing new competition in the luxury electric car race. and it is not just from within silicon valley. instead, a wrath of traditional manufacturers are targeting tesla. one of them is in its own backyard. audi used san francisco to launch its battery-powered crossover that is due to hit showrooms by the end of the year. with a price tag of $75,000 it gives a model x a run for its money. >> we want to merge the new world of electric mobility together with 100 years of experience. emily: bmw is also designed for a slice of the market. they showed off its concept car for the month. while the world's largest maker of luxury cars, mercedes, has a
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range of vehicles with its electric run with more than $12 billion already invested in the project. >> we are investing in electric mobility. we believe the times of technology are now ready for the very first all electric suv for mercedes-benz. emily: we can expect to see more high and rivals enter the market. some say the ev industry could be worth $560 billion by the year 2025. carmakers do not just need to meet shifting consumer taste, they also need to meet increasingly stringent emission standards. some countries like the u.k. and france are working to ban combustion engines altogether in coming decades. bloomberg's david westin caught up with the president of audi for an interview around the launch of that new all electric suv. he started by asking, why now? >> i think we have had the perfect time.
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three things have come together. the market acceptance is building each and every day. secondly, we wanted to launch with what we call a proper audi. not a quirky car. not a kind of car. a full stop audi. and the third thing is the cost situation. with the cost of batteries and technology we can put ourselves in a position to make a profit. those three things came together and that's only want to hit the market. what is the price point on this vehicle and why did you pick that price point? t: we want to sell this vehicle, that is why we picked this price point and we want to make a profit. the car is $74,800. they compete in the sea suv segment, which is cars like the q eight. that is where the market is. the largest chunk of vehicles. we wanted to make sure we put one in the sweet spot where the consumer is. david: this is not the last audi
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electric, you have a plan to ramp up several in the next few years. are you going to go after directly the more inexpensive models question the model three. scott: i think our first three vehicles are going to compete on the higher end. we would like to establish ourselves as the premium player in electric before moving downstream. so the three vehicles we will launch in the next year or two. the one you see behind me, and then we will launch a sport back, and then a magnificent gt. it is not a pure play volume game. we want to get the prestige and the brand and the recognition. and then we will work our way downstream like a model three. david: are you worried you are late into the marketplace? scott: i do not. there is a lot of hype about people saying there are cars but physical, luxury, premium cars on the ground, the air is quite thin. there is tesla and nothing else has hit the ground. the jaguar hasn't come yet. there is a lot of hype but on
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the market, we will be the second car on the market. i think we are timed perfectly. and the market is growing. we anticipate 300,000 plus electric vehicles by 2023. we want to get a big chunk of that and i think we can, frankly. david: this is costing companies a fair amount of money. you saw the softbank investment into cruise for gm. you saw the saudi investment fund yesterday announced an investment in a different electric vehicle. do you have the resources where you can make a huge investment in electric vehicles? scott: we do. if you look at our plan, audi has 12 electric vehicles funded by ourselves. the key thing is to be a successful company. if you are successful, you generate the revenues to invest. that are huge technologies
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cost a lot of money from autonomous to electrocution. we believe we can fund it. the reason we want to find it is these are technologies we want to have in-house that we want to be able to support. you have to have them under your wing. -- support. these are going to be future technology so you have to have them under your wing. we feel we have the capital to develop this with a properly scaled business improperly scaled company. david: what about the autonomous part? what is this neutron have that goes towards economist? when will you be autonomous? scott: this vehicle is a level two. it has tremendous amounts of safety systems, safe assists. it allows you to cruise hands-free. this is dramatically different from autonomous. autonomous means technically there is no steering wheel, no pedals. you could sit in the back seat and that is economist. frankly, it will be awhile -- that is autonomous. frankly, it will be awhile before that is happening on american roads. emily: bloomberg's david westin
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with the audi ceo. coming up, amazon's refreshed product line was unveiled this week. we have all of the details coming up next. this is bloomberg. ♪
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emily: welcome back to best of "bloomberg technology." i'm emily chang. amazon held another surprise product launch this week and what is looking like now an annual affair. the senior vice president joined me immediately after the new lineup was revealed. david: the new echo dot was a great product for us. it's been the best-selling speaker ever. now we've improved it a lot of different dimensions, and we think people will love the formfactor and better sound. also, the new echo show has a bigger screen brighter display , and it continues on our past -- our path to have alexa show you things.
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i would be remiss to talk about alexa auto. it's a new product that brings alexa into your car. emily: we have to talk about the microwave, perhaps the most unexpected product you unveiled today. how does it work? and why do you think this is a good opportunity for amazon? amazon basic microwave was about building a reference design to show you can connect just about anything to the internet and make it smarter. i mentioned earlier today that the interface on your microwave has kind of been stuck in the late 1970's for a long time. we think with alexa, we can make it more convenient and super easy to cook. and in addition to that, you know, we have added data replenishment services. if you run low on popcorn, the microwave will automatically reorder. emily: there are so many products. are you concerned that customers will get confused or overwhelmed? david: i don't think so.
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you know one thing we have , strived for amazon is giving customers a lot of choice. when we offer more selection, customers are really good about identifying what they want to buy and what they want to use. that the add on top of reviewer system at amazon, and that lets customers tell people what they may like about them. it helps people choose. we think the breadth of product is a benefit for customers. emily: you unveiled a new speaker sound accessory to make sound richer, what is the potential in the high-end speaker market where you do have entrenched competitors? david: yeah, first of all i would consider sonos a great partner. i am a big customer of their products. i love them. sonos customers are passionate about really really great sound , around the house and the convenience that they offer. now sonos has a line of products
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including beam that integrate alexa into them. our customers have more breadth in terms of mainstream products, but we know the level of sound that customers are expecting is going to continue to improve over time. we need to improve on behalf of customers and certainly sonos does as well. i know they will. emily: you also played up your partnership with spotify. you have your own music service. amazon music. do you have concerns about cannibalizing your own product line? david: we really don't think about it that way. what we think about is we want to give choice to customers. the nice thing about alexa is that the service is open to developers of all types. so spotify has been a great partner of ours. there are millions of spotify customers on echo and alexa. it is still growing. we think that's great if customers want to go that way. we are also super proud of amazon music, that there's not going to be just one winner in music.
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the headline that there is going to be one music service that wins it all will be unlikely. i'm sure spotify and amazon music are going to be on that list. emily: when it comes to the smart speaker business, amazon had an advantage. google home is rapidly encroaching on your territory. do you think this is a space where there are multiple competitors? or will there be one competitor -- amazon, or google, or someone else that takes the greatest , share? david: we really don't think about it in that aspect. we don't focus at amazon on competition. instead, we take a step back and say what do customers want? if we think of all the inputs like making great products and great services and a great developer platform, customers will come. the fact that we sell x or y, we have x market segment share --y segment share, that is
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there is no question that we think alexa and echo is the leading assistant in the home today. we will have to continue to work hard on behalf of customers as we move forward. emily: amazon senior vice president for devices and services david limp. they went public on the new york stock exchange, selling shares at the high-end. ultimately raising $230 million. i spoke to the ceo and cofounder julia hart shortly after the listing. julia: what we have been able to outline is the market experience of live experiences is still very underserved. we see 40% of our new event creators coming onto the platform after not using a technology platform. and so i think that alone tells us we've been able to uniquely aggregate many different types of creators who before that point have not been served with
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eventbrite technology. emily: it seems like everyone is pushing into this experiences is airbnbwhether it or spotify. how does eventbrite differentiate itself? julia: i think event brite has been able to the in the market because of our self services approach, 97% of our event creators use the service. that natural behavior allows us to continue to grow our business model and strength. when we focus on really being able to allow event creators to get to the core of the problems they are trying to solve and growing their businesses. we have been able to do that consistently. that really has grown our strength in the market. we have seen a lot of competitors in the vast middle market. we are not devoid of competition, but we see opportunities to drive partnership. we have a distribution partnership with spotify and we help artists sell tickets to their own shows.
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emily: you have done a great job building the platform, but investors always want to know what's next. how do you make sure you're not a one-stop product shop? julia: absolutely. our transactional business is about 95% of our revenue today. we are really proud of the traction we've been able to achieve in the market. but that scale and efficiency of the transaction space is not nearly tapped out for us. when we look at our market, we see 4 billion paid tickets in terms of addressable opportunity for us. we want to aggregate tickets on our platform because that means the event creators are succeeding. we succeed when they succeed. beyond that, we look at other areas where we can develop the event brite run their -- platform for these creators as they run their businesses. pushing further into those problem areas and helping to create solutions is what we are focused on in addition to the transactional volume. emily: revenue growth
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accelerated in the first half of the year, but losses widened. when do you see losses narrow? when do you see profitability? julia: we had a net loss in 2017. ,e also reported a positive continuing to strengthen in the first half of 2018. that really is the match of this scale. we have 700,000 event creators using the product in 2017, and the efficiency will continue to make inroads toward profitability. we have been great stewards of capital historically. and we think about really reinvesting in the future to drive a positive but also for the accelerated growth. emily: you talked about expanding internationally and developing revenue streams to better serve certain countries. can you give us some examples geographically where you intend to do that? julia: absolutely. our core global markets have a lot of room for us to grow.
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when we look at that addressable market opportunity, we are only 7% penetrated. that gets me excited to continue to push into those growth opportunities whether it's the , u.k., or germany, or latin america and australia. beyond there, we look toward areas like asia and see an expansion opportunity in the future. in our core global markets, we still have a lot of headway to grow. emily: event brite ceo julia hart speaking from the new york stock exchange. coming up, our conversation with the ceo of crate & barrel. how neil of montgomery is leveraging tech to keep the home wares company relevant. it's been eight years since google left china over censorship issues. now plans to go back have caused one research scientist to quit. will others follow? this is bloomberg. ♪
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emily: apple may have gotten a endorsement in their ongoing patent dispute with qualcomm. they won the opinion of the court. the court took apple's side saying it did not infringe on qualcomm patents. this doesn't mean the judge presiding will follow that recommendation. regardless the qualcomm ceo told us on an upcoming episode of studio 1.0 he think there is a chance this case will be settled this year. steve: we have a dispute over the price of ip. we think that's moving into a time where our strategy is unfolding, and the environment is such that i think you are in a position where a deal could get done. at the same time i think there is probably no better opportunity and partner for qualcomm than to work with apple. it makes sense the partner --
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they should be partnered. those things tend to work out. the way we think about the business is you get the disputes figured on any move on to a different time. emily: you believe apple over the customer? steve: if you have leadership technology that your roadmap will eventually dominate the business relationship between companies. there is no reason that should not be the case. emily: you are taking on the world's most valuable company. they stopped putting the your patents in their phone. they say the patents they are paying you for are invalid. how does something so bitter get resolved favorably for qualcomm? steve: i think bitter might be the wrong term. we have had disputes with licensees in the past over the price of ip. it is no different than that here. we are both big companies. they are a very large company, but we are not a small company in terms of executing the
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strategy we have. those things will get resolved. i think sometimes they get resolved on the courtroom steps, sometimes they don't. we don't know which way they will go here. the strategy is playing the way we always thought. emily: qualcomm ceo steve malakoff. as more retail shifts online, a fast-growing segment is home wares. says the e-commerce growing market is 15% annually. traditional retailers like crate and barrel have to adapt. in a new interview, emma chandra spoke with the ceo neela montgomery and began asking how social media is changing the way customers engage with the brand. i think all retailers at the older, especially ones, have to transform with the digital era. we know our customers are increasingly interacting with us
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across different channels, social media, etc. one of the things i have driven as an agenda is ensuring we are delivering consistently, whether it is on instagram or through pinterest for digital services such as one that offers online design services and 3-d visualization. so our customers are changing. and so technology has been a big driver since i have been here. emma: social media, sounds like you embraced it. neela: yes. we know that home is a category that customers love. there is more interest in design and interior design, and our customers, everyone is an amateur designer these days. that's great. we can embrace that for the new era. emma: let's stick with your consumer moving online. you are trying to reach them in terms of advertising. and then how are you serving them online? has your e-commerce business grown in the same way as your advertising? neela: it has. over 50% of advertising is online, the shift from two years
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ago. also, our e-commerce sales are 47% which typically surprises people. it is not bad. emma: you wouldn't expect that for large goods like furniture. neela: exactly. it shows how comfortable customers have become. that tends to be higher with established brands. they trust crate & barrel. they know us for our quality. 47% as a high-growth number. emma: are you expecting it to go higher? neela: i do. i don't really know where it will top out, maybe 50% or 60%. i expect it will not go higher than that, because there will always be a customer who either has a convenience purchase they are making the store or really wants something today. emma: you mentioned a little bit about leveraging technology, how go through areas of the business. how are they helping you make these decisions with crate & barrel? neela: good question. i think that is probably the
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most exciting part of our business right now. it sounds geeky, but the reality is we are able to leverage customer data in a way that we were never able to do before. one of the things we talk about is one customer view being able to really map all of the interactions we have with customers and offer them a highly personalized experience, whether it's online or by email. and i think customers increasingly expect that from us. or including an design studio, hour when someone comes in for expertations, our design can see what they have bought before, what is their browsing behavior. that is hugely important for us to offer the pinnacle of customer service. emily: that was the currency -- the crate & barrel ceo with emma chandra. coming up, in a race around the moon, will it be the hare or the tortoise that comes out on top. we will speak to a retired astronaut who knows a thing or two about going into orbit. this is bloomberg. ♪
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emily: in early it was revealed august that google wants back into china. and according to reports the search engine was willing to work with the chinese government to censor search results, one of the things that led google to pack up and leave china eight years earlier. a research scientist has left the company in protests, saying i cherished working at google and hold colleagues in high regard professionally and ethically. i can't work in a company that will not internally clarify its ethical red line in areas where it is actively engaging. those are the words from jack paulson. he joined us from toronto to explain his decision. foundike most employees out about this through the intersect reporting on august 1. i will say it was a very vocal three weeks following that. within that week i was trying to raise concerns internally.
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there was a lot of pushback and talking about it. it was a very exploratory project, not many managers knew anything about it. so as an employee when you try and raise a concern, you are essentially told, wait for a companywide discussion and your concerns will eventually be handled. a few days of this i submitted a , conditional resignation saying if this turns out to be true, i am forced to resign for ethical reasons. still even after submitting that still inal resignation, received no clarification on what the red lines might be crossed. after another week passed, i submitted a formal resignation. i wrote a five page, very well cited document explaining my reasons, some of which you quoted at the very end. and then circulated that throughout the company. emily: another part of that document, jack, that he wrote,
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you say, i am forced to resign in order to avoid profiting from the erosion of protections for dissidence. there is a possibility that other nations will try to leverage us in china. meantime what google has said about this, they say we have been investing for many years to help chinese users. many apps. but our work on search has been exploratory, and we are not close to launching a search product in china. you know what are your concerns , about google going back into china and potentially censoring results according to chinese law? jack: yeah, so i would defer to the human rights coalition letter that was written on august 28 from 14 organizations including amnesty international, human rights watch, human rights in china, the list goes on. they laid out their concerns clearly.
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they can say it much more with authority and eloquence than i can. i would call on everyone to read that. part of the reason i ended up resigning is before i left, that letter came out. and i tried to raise it as a point as to why the human rights concerns you know are an issue. that letter was still not responded to either internally or publicly. emily: former google research scientist jack polson. now to some positive news for elon musk, spacex has announced that a japanese billionaire will be the private customer to hitch first a ride around the moon and back on the big falcon rocket. the mission is scheduled for 2023 and will take four or five days to complete. he won't be going alone. he plans to take six to eight of his favorite artists with him. it is a project he is calling #dearmoon. take a listen. >> i choose to go to the moon.
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[applause] >> yeah, finally i can pay. i am very glad to be here. i am really excited. really honored. really appreciate to be able to announcement with you and people all over the world. emily: one man who knows a thing about is retired astronaut charles bolden who spoke with me from north carolina. he shared his view on spacex and his own experience in space. charles: the biggest challenge and risk for anything that involves human spaceflight is the life support system. and elon musk talked a little bit about it in his announcement when he talked about closed loop on the water systems and others, when you are going somewhere as far as the moon. although it is only days, but you can't go in and take a
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couple of bottles of water along with them. they have got to be able to either recycle water or produce it on the shuttle. we used fuel cells with oxygen and hydrogen and one of the byproducts was water. so you are looking at closed loop life support systems for air, water, filtering waste. or at least taking care of waste and the like. you actually want to make sure that your systems are as reliable as possible. that, that is the biggest challenge. emily: you have had the opportunity to visit spacex's competitors like google origin and virgin galactic. how do you compare spacex to what you see at blue origin and elsewhere? charles: i will tell you, i think everybody is doing their utmost. everybody is working at breakneck speed. we were talking before hand i referred to spacex and blue origin as the tortoise and the hare.
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spacex is very visible and vocal. they have great goals. you have a company like blue origin that has many of the same goals and aspirations, but they are very quiet. don't talk about it, just following a measured schedule of activities. and i think you are going to see that they are going to be side-by-side when we finally start talking about humans routinely in space on a commercial space craft. my expectation is blue origin and spacex will be right out front, right along side each other. that's why i refer to them as the tortoise and the hare. emily: you've been up in space. was it worth it? it?les: a man, was it worth i got in free. all i had to do was be a marine. that was easy for me. it is incredibly worth it for anybody. the opportunity to see this planet from that vantage point is unlike anything else a human can or will experience. i am really excited about seeing
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that man decide he wants to take some artists. astronauts, people like me, we are not really good at storytelling. i work on it really hard, but i always still use the term on some first, you know, the view of the earth from space. awesome is an overused word. i think artists, writers, they will probably help us understand this incredible planet on which we live far better than any scientist or engineer or some -- somebody like me can do. emily: that was a former nasa administrator talking to me about the spacex mission to the moon and back. and that does it for this edition of best of "bloomberg technology." we will bring you all the latest in technology throughout the week. you can tune in every day. 5:00 in new york, 2:00 in san francisco. we are live streaming on twitter. check us out. be sure to follow our global breaking news network tic-toc on twitter.
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