Let's focus now a little bit more on channels and formats in wholesale and retail. When a fashion and luxury company has to manage its distribution strategy, the key issue is how to build and to maintain a certain brand identity image through a variety, a mix of formats. This is really important nowadays in this business. What are these channels and formats? Usually we identify three main channels for these companies. As I said, the first is the retail channel, so the directly operated channel that might be operated through directly operated stores or franchising but it’s a sell-out kind of logic, so B2C. The company is managing the retail directly to the consumer. A second channel is the wholesale channel where you have your trade partners that are managing the distribution and retail strategy for you. In this case the logic is sell-in and it's a sort of a business to business kind of logic. The third channel is the transnational channel. This is a channel where geography is not so relevant because here, as we will see in a while, we will have formats that are global such as the travel retail. All duty free stores, and the internet, so online sales. Within these three channels, now let's try to identify what are the formats, what are the retail formats? Actually, this is the size and structure of the physical store. In the directly operated channel in retail, you usually identify four formats. Starting in terms of size, dimension, and also possibility to deliver the right brand identity. The so-called flagship. What is a flagship? Is the flag of the brand, It’s the place where the brand can put into action the brand strategy. Usually it is a huge space in fashion capitals, There aren’t so many, but it's really the theater of the brand. managed, of course by the company as said with also a lot of people, a lot of selections, spaces that are devoted to coffee shop expositions, art expositions. So, really it’s a “theater” of the brand. A second format is the self standing store. So again it’s a boutique of the brand but it’s on the main streets. A little bit smaller but not so small compared to the flagship where you have the full assortment of the brand in place. A third format is that of the shop-in-shop. In this case, the store is within another retail environment. Might be your boutique within a shopping mall, typically, or even within a department store. The shop you have is really a shop with a door, with sales associates that are managed by you, but of course the selection is smaller and even the size. Within directly operated formats, we also have factory outlets. Because outlets now are directly managed by fashion and luxury brands, and so they enter into this channel. Let's move on to the wholesale channels. So the B2B logic. What are the formats in here? We have the tradition corner: an area in a department store or in a multi-brand store, that is not managed by the company but the assortment and the brand image is recognizable. You can see that it is a space devoted to the company but actually the management is in the hands of the retailer. We also have within the wholesale business the wall units. The wall units are where you can find shoes usually, or leather goods, or accessories. You might recognize the name of the brand but actually again these are managed by the retailer. Then you have also the brand present in factory outlets or online platforms that are managed by the wholesaler not by the brand. If we go through the third channel within this channel the formats are, as said, travel retail where we have duty free stores, that is a booming business. Airports are Becoming the new shopping destination. The brands are investing a lot in travel retail, also because travel and traveling for shopping its now great entertainment for many nationalities. Here you have the big e-commerce challenge. Company websites or amended by someone else, but this is again a booming business. In Europe it’s around 3-4% of total sales. The value of this channel and format but it will increase a lot in the future.