WEBVTT - Kering CEO Luca de Meo Talks Iran War, ICCF

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>Look, Abela, thank you so much for being with Bloomberg

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<v Speaker 2>a tivty today right here in Florence, where Gucci was

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<v Speaker 2>born in nineteen twenty one, more than a century ago.

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<v Speaker 2>Do you think that today's a capital markets day and

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<v Speaker 2>strategic plan is kind of a rebirth for Gucci?

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<v Speaker 3>I should be.

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<v Speaker 4>I think the idea of coming back to the source

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<v Speaker 4>of the brand is probably the most important in our group.

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<v Speaker 3>And also to show that this is the.

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<v Speaker 4>Beating heart of caring right as well, because we have

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<v Speaker 4>plans producing all the brands, et cetera.

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<v Speaker 3>So the heart of the system is here. I think

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<v Speaker 3>it's very symbolic.

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<v Speaker 2>Over the past few years, however, we've seen this loss,

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<v Speaker 2>Guccie losing a bit of desirability.

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<v Speaker 1>How do you plan to really revive this? This morning?

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<v Speaker 2>And Lissa a little bit saying your plan is a

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<v Speaker 2>little bit cautious.

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<v Speaker 1>What's your reaction to.

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<v Speaker 3>This think I think you need.

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<v Speaker 4>It's not a calcious plans, it's a it's a common

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<v Speaker 4>sense thing because I think at a certain point in

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<v Speaker 4>time that we probably made a few let's.

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<v Speaker 3>Say, mistakes on the brand, so we know what we

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<v Speaker 3>have to do.

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<v Speaker 4>We know what Gucci is about, we know what the

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<v Speaker 4>customer wants I expect from Gucci, and we're going to

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<v Speaker 4>be very very quick and decisive on providing people what

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<v Speaker 4>they want, maybe also things that they have, you know,

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<v Speaker 4>they don't know that they want, but Gucci will kind

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<v Speaker 4>of improve it to the mark.

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<v Speaker 2>So well, let's see what they don't know what they want. Obviously,

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<v Speaker 2>you on X who c you a X car ceo.

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<v Speaker 2>You launched a very shiny new models, such as a

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<v Speaker 2>very successful five.

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<v Speaker 1>What is the new R five iconic product of.

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<v Speaker 3>Which I don't know? It must probably be.

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<v Speaker 4>I mean, I think that what make defines in business terms,

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<v Speaker 4>the success of luxury brand normally is into the letter

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<v Speaker 4>goods space. So probably, you know, I think it's a

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<v Speaker 4>long time that Gouchi is not, for example, launching an

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<v Speaker 4>iconic bag or something that stays into the thing. So

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<v Speaker 4>probably that would be where you know, I would give

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<v Speaker 4>the challenge to the team to come up with something

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<v Speaker 4>that you know, blows the market away and hopefully we

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<v Speaker 4>can make it.

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<v Speaker 3>But yeah, I think it's.

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<v Speaker 4>The whole idea of developing Gucci on many categories.

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<v Speaker 3>We actually stated that we want to.

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<v Speaker 4>Go back to jewelry and watches, some of them with

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<v Speaker 4>very iconic products, So I think, you know, there's a

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<v Speaker 4>lot of potentially it's a great brand. Is the second

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<v Speaker 4>most known brand on the planet in the luxury space.

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<v Speaker 4>One of the most famous Italian brands is still you

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<v Speaker 4>say desirability when dumb, and still in the top five

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<v Speaker 4>in the market.

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<v Speaker 3>So it's a big, good platform.

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<v Speaker 2>Of course, we cannot ignore that the short term situation

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<v Speaker 2>is difficult. We've seen this week the Middle East fears

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<v Speaker 2>be causing luxuries talks to plunge all across the board.

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<v Speaker 1>Do you think this short term uncertainty geopolitical.

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<v Speaker 2>Fears is making your plan much more difficult than your predicted.

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<v Speaker 4>I think it's already many years where you know, even

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<v Speaker 4>the industry is is you know, impacted by strong volatilty

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<v Speaker 4>also geopolitically everywhere. So this volatility is factor into the

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<v Speaker 4>plan because we're trying to build a company that is

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<v Speaker 4>more agile, that's is lighter ex exactly to.

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<v Speaker 3>Master this volatility.

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<v Speaker 4>We believe in the region in the long term potenttion

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<v Speaker 4>of Middle East. I think long term it will continue

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<v Speaker 4>to grow, so we have no hesitation to you know,

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<v Speaker 4>continue to invest as a very important customer, et cetera. So,

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<v Speaker 4>you know, I think unfortunately this I hope that the

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<v Speaker 4>thing will you know, come down very quickly, hopefully, but

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<v Speaker 4>we believe in the long term that the Middle East

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<v Speaker 4>would be a key region.

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<v Speaker 2>For actually even if the aspirational consumer might not be

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<v Speaker 2>here right now.

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<v Speaker 4>In the Middle East, I think you have a lot

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<v Speaker 4>of people that are in the core category and in

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<v Speaker 4>the vac category.

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<v Speaker 3>This is the heart of the business there.

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<v Speaker 2>Obviously Gucci is sixty percent of profit, but you have

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<v Speaker 2>other brands. If Bouvina, Balanceaga, obviously Boutigavinita, you're looking for

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<v Speaker 2>a new CEO. You come from the k industry, You've

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<v Speaker 2>brought a lot of people in. Would you perhaps be

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<v Speaker 2>looking at an external candidate for Boutiguavinita, someone perhaps from

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<v Speaker 2>the industry.

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<v Speaker 4>No, I don't think, you know, I don't go you know,

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<v Speaker 4>I didn't go to extreme. I think we are looking

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<v Speaker 4>at people in adjacent the industry, of people that are.

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<v Speaker 3>You know, proved professional in the in the luxury world.

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<v Speaker 4>I think Botega is a very attractive brand, so we

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<v Speaker 4>don't have really probably issue of you know, attracting people.

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<v Speaker 4>But I also want to take, let's say, the time

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<v Speaker 4>to make the right decision, because leadership at Bootega in.

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<v Speaker 3>Our system is very relevant role.

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<v Speaker 4>So but it's not going to last very long before

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<v Speaker 4>we you know, kind of communicate about this movement. In

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<v Speaker 4>the meantime, I don't know if it's reassuring for you,

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<v Speaker 4>but I'm taking care of the Bodegatta team and you know,

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<v Speaker 4>I love that brand and so I'm trying to support

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<v Speaker 4>them in the face. But it's a good team that

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<v Speaker 4>is working together pretty swiftly.

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<v Speaker 2>Obviously at Gucci we also have them who came as

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<v Speaker 2>a creative director, did the first fashion show in Milan

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<v Speaker 2>in February. George Channel also have new creative directors, which

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<v Speaker 2>is making.

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<v Speaker 1>The market very competitive. How long are you giving them

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<v Speaker 1>a Gucci?

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<v Speaker 4>I think, you know, I think one of the issues

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<v Speaker 4>why Gucci has been you know, more recently in traubles

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<v Speaker 4>was the lack of stability you know, in the management

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<v Speaker 4>team on the creative side, with you know, many changes,

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<v Speaker 4>and I think it's very important for me that we,

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<v Speaker 4>you know, I can assure stability for the team both

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<v Speaker 4>on the managing side on the creative site. So no,

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<v Speaker 4>it's not about this, you know, it's not about you know,

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<v Speaker 4>giving time or except that, I think we just have

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<v Speaker 4>to all work together to make sure that them, I

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<v Speaker 4>can express this all full potentially is one of the

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<v Speaker 4>greatest of this generation. And yes, and now in his

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<v Speaker 4>hands one of the most beautiful brand you know in

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<v Speaker 4>this sector. So I'm pretty optimistic that everything will work

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<v Speaker 4>and things well done require time, right, and we want

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<v Speaker 4>to do good.

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<v Speaker 3>Things with Gooch.

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<v Speaker 2>This morning you also announced this new deal with the

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<v Speaker 2>I C c F, which is very presently in China.

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<v Speaker 1>There's this debate at this moment that Chinese consumer becoming more.

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<v Speaker 2>Nationalistic buying Chinese products at least made in China.

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<v Speaker 1>Is that the rational behind.

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<v Speaker 4>This, the rational is to open a door, you know,

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<v Speaker 4>in the Chinese market, in the in the in the

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<v Speaker 4>system itself, having you know, partners and friends that can

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<v Speaker 4>let us understand and what's going on there, even you know,

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<v Speaker 4>behind the curtain and you know the old supply chain,

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<v Speaker 4>the old industrial thing, etc. So I think I'm very

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<v Speaker 4>well placed as an ex you know, automotive executive to

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<v Speaker 4>understand how important is to understand what's going on in China,

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<v Speaker 4>not only on the business side, but also on the

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<v Speaker 4>innovation side on every single sector. So I think it's

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<v Speaker 4>a fantastic opportunity to exchange, open up and support them

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<v Speaker 4>in their development. But also we feeling more at home

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<v Speaker 4>in China and be perceived as some company that contributes

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<v Speaker 4>to know the development of the industry there. We also

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<v Speaker 4>did craft you know, this kind of residents for creative

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<v Speaker 4>people with very very good residents. We're participating and cooperating

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<v Speaker 4>with the High Fashion Week to do things. That's part

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<v Speaker 4>of the story of kind of localizing, you know, our

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<v Speaker 4>presence everywhere in the world where we are good citizens.

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<v Speaker 3>Of each one of the market.

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<v Speaker 4>I think China give us a lot in terms of

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<v Speaker 4>market and so we also need to give back.

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<v Speaker 3>And that's that's rational.

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<v Speaker 2>Band very quickly because we were running out of time. Obviously,

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<v Speaker 2>you sold the king Bouty to Loyal four billion. Urous

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<v Speaker 2>is it just for catching that or are you still

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<v Speaker 2>sticking to the kind of increasing your stake in Valentino

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<v Speaker 2>in twenty eight twenty nine.

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<v Speaker 4>I think to two things are independent. I mean, we

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<v Speaker 4>have realities that we are you know, we have a

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<v Speaker 4>deal for a put called option in twenty and twenty

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<v Speaker 4>nine which we postpone. Let's say a couple of thisis

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<v Speaker 4>because it was actually practical for both. We had to

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<v Speaker 4>you know, we didn't have the probably the resources to

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<v Speaker 4>handle you know, the lending of a new brand if

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<v Speaker 4>it would come in twenty six twenty seven.

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<v Speaker 3>They needed time to develop the thing. So it was

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<v Speaker 3>good for both.

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<v Speaker 4>And I think with this postponed and I can concentrate on,

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<v Speaker 4>you know, fixing all the things they have to fix,

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<v Speaker 4>and probably that Arizona will be stronger even from a

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<v Speaker 4>management bandwidth point of view, to potentially accommodate. So this

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<v Speaker 4>is the deal on Loreal. I think it was partly

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<v Speaker 4>motivated by the fact that we have to deleverage caring.

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<v Speaker 4>But honestly, if I think about it, this kind of

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<v Speaker 4>construction will help us to boost the development of our

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<v Speaker 4>brands because Loreal is a.

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<v Speaker 3>It is a fantastic machine.

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<v Speaker 4>And so I'm sure that you know, what they've done

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<v Speaker 4>in if Slauran can be repeated on other brands. And

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<v Speaker 4>finally we will get you know, a certain amount of

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<v Speaker 4>royalties which will help. But also I think we can

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<v Speaker 4>benefit of the marketing power machine of let's say, of

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<v Speaker 4>Loreal that will enable us to give, you know, to

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<v Speaker 4>create awareness reach for all our brands, even the one

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<v Speaker 4>that that are a little bit more niche like Balenciaga

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<v Speaker 4>or Botega, anything in cosmetics.

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<v Speaker 3>So so I think it's a good deal.

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<v Speaker 2>Very Finally, how is your relationship from some ip know

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<v Speaker 2>now that the two roles are split, What advice is

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<v Speaker 2>he giving you?

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<v Speaker 4>No, I think a lot of advice because he has

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<v Speaker 4>been twenty years at the Helm doing my job, so

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<v Speaker 4>he has seen a lot of situations. So it helped

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<v Speaker 4>me also to decode based on the information gives me,

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<v Speaker 4>let's say, where this thing happened, what is the origin

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<v Speaker 4>of this or that. It's very very helpful. So we

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<v Speaker 4>have a very smooth relation, very fluid. And you know,

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<v Speaker 4>I think I speak with him like at least a

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<v Speaker 4>couple of.

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<v Speaker 3>Times a week.

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<v Speaker 4>And you know, now we're flying, you know, together to

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<v Speaker 4>a place which I don't want to say, but but

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<v Speaker 4>you know, yeah, it's it's a very very good two workin.

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<v Speaker 4>You know, he's doing the chairman. It's right to do that,

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<v Speaker 4>and you know I'm the oppressional guy and I try

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<v Speaker 4>to run the machine.

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<v Speaker 2>Thank you so much for Kemi, Thank you so much

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<v Speaker 2>for welcoming us here in Fluence.

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<v Speaker 3>Thank you, thank you