Within our FASHION activity, we have built a team of dedicated couturiers who are working to bring the creations of our designers to life. In addition, our FASHION activity maintains close creative partnerships with the Maisons d’Art: workshops practicing traditional crafts such as embroidery, millinery, and shoemaking. Some of CHANEL’s most iconic FASHION pieces, such as the two-tone shoe and the tweed jacket, were created though Gabrielle Chanel’s personal collaborations with historic Parisian maisons, such as the shoemaker Massaro and the embroiderer Lesage. By entering CHANEL’s circle of creativity, the artisans bring the intelligence and spirit of craftsmanship, magnifying CHANEL’s creations by Karl Lagerfeld. SAFEGUARDING SKILLS, PRESERVING INDEPENDENCE Changing market forces — such as the relocation of manufacturing to emerging markets, and a dwindling pool of talent — pose a major threat to the Maisons d’Art and to the irreplaceable skills and knowledge they possess. CHANEL was the first company to recognize the importance of acquiring and investing in businesses that possess these rare capabilities, while maintaining their independence and ability to work with other brands. Through the Maisons d’Art, CHANEL ensures that our entire industry has access to the fine craft skills on which our business depends. For the past 15 years, we have invested steadily in the Maisons d’Art, building a portfolio of companies, under Paraffection, which means “for the love of.” By acquiring and investing in businesses in this way, both sides benefit. The investment provides the cash flow and professional managerial support for the workshops and houses to innovate new techniques, as Causse Gantier, Tanneries Bodin- Joyeux, Mégisserie Richard, and Tanneries Haas have done in tanning. It also enables them to recruit and train skilled artisans. The workshops and houses retain full creative independence and the ability to supply other luxury houses and/or create their own product line (as is the case with Maison Michel and Goossens). At the same time, CHANEL is directly connected to the source of inspiration and craftsmanship that fuels creativity. maison LESAGE EMBROIDERer SAVOIR FAIRE