We are also building a long-term partnership with Palais Galliera as the exclusive sponsor, responsible for financing the construction of new exhibition rooms. The Palais Galliera will become the first permanent fashion museum in France and contribute to promoting both fashion and Paris by making its exceptional fashion archives accessible to all. In 2016, we launched La MONTRE MONSIEUR, the first CHANEL watch with a movement designed and manufactured completely in-house. Structured around a single circular bridge that connects all the elements of the movement, we created it through an artistic and investment haute horlogerie partnership with independent watchmaker Romain Gauthier. Downstream, we are investing significantly for the long term in the client experience, working out how best to embrace digital innovation in a way that maintains both the exclusivity and quality of the overall CHANEL experience. Our strategy is to increasingly personalize client service and experiences while maintaining our long-term commitment to physical retail boutiques, which are an integral part of how our clients interact with CHANEL. Our value chain is part of a much broader luxury system, which must continually be nourished, protected, and supported. For example, earlier this year, we announced sponsorship for two projects that will support Paris’ position as the home of fashion. First, we will invest €25 million in the restoration and renovation of the Grand Palais, a symbol of architectural innovation in Paris since its creation. CHANEL and the Grand Palais have developed a close bond, initiated by Karl Lagerfeld in 2005. The exceptional nave of the Grand Palais is the location of many elaborate Haute Couture runway shows, and an iconic building that truly represents Paris. THINKING LONG TERM THROUGH OUR PRICING STRATEGY In 2015, we were the first in our industry sector to introduce worldwide price harmonization for handbags. This decision was made in order to reduce price differentials that may have existed across markets and in order to offer our products to all of our clients at a harmonized price, regardless of location. Our strategy was a bold one initially, but it was a move in favor of our customers. For them, and purely out of fairness, it was no longer acceptable for us to allow significant price differentials to develop. We were courageous first-movers in this matter and are satisfied with how our strategy has played out: The resale market has decreased, the traffic in our boutiques is clearly more balanced, and we have the opportunity to better serve our clients and create an experience in line with our standards of excellence. A LONG-TERM PERSPECTIVE