David Rosenthal: belief

Transcript context

…It’s amazing that because in many ways they are their own customer acquisition channel with the catalog, that they never turned into a customer acquisition channel for other businesses. They should sell advertising. It’s the Amazon play of once you reach scale and you have enough customer eyeballs, you can staple on a near 100% margin advertising business for free. I flipped through decades worth of IKEA catalogs. Unless I miss something, I’d never noticed an emergent advertising business in there. Yeah, it’s interesting. But that doesn’t actually surprise me. I think Ingvar probably viewed that as a short-term optimization and that is antithetical to how he wants to run the business. Now, what’s also interesting, though, is this element that I was just saying of they control the whole demand and supply chain is no longer true in the Internet world. In the catalog world, absolutely was true. In the Internet world, no. The company— Whoa, whoa, whoa. No spoilers.…

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