So in the U.S. and China, we continue to retreat in terms of spend. That drives efficiency in our ability to deploy money elsewhere. And demand generation for Q2 just gone, you saw that number come down by $4 million on an absolute basis despite the fact that the GMV on the digital platform was up 7%. And for the rest of the year, we’re expecting this sort of 7.5% of GMV level, which is what we achieved in Q2 to carry on, which means a saving versus last year. Last year, the demand generation was 7.8% and of GMV. So we’re driving this 10% growth for the full year with a lower level of demand generation spend as a percentage of GMV, which is coming through from the efficiencies. The offset here, of course, Is the first-party gross margins.
Again, that’s under pressure year-on-year in Q2 as we clear through some inventory. We’re starting to see that improve towards the back end of the year, and it helps drive up our overall order contribution margin. And then lastly, as the clients on Farfetch platform solutions ramp up Ferragamo already live, Bergdorf Goodman coming later this year. Of course, that product, the business-to-business product runs at a higher gross margin, and a higher order contribution margin on the digital platform, driving that 33% to 35% overall for the full year. So very confident in those numbers.
Oliver Chen: Thanks so much, Elliot.
Operator: Our next question is from Ed Yruma at Piper Sandler. You may unmute and ask your question.
Edward Yruma: Yeah. Thanks for taking the question. Two for me first. I guess, on Off-White, kind of any comments on the performance of the brand, the health of the brand, now that we’re a couple of years past the untimely passing. And then just as a follow-up on YNAP. I know that there is a mechanism to reduce the dilution from the transaction? I guess given that the stock is at a very different point and when the transaction is announced, does that still hold? Is there a certain time that deal needs to be closed by to make sure that those mechanisms hold in place? Thanks.
Jose Neves: Yeah. I’ll take both questions. We don’t break out performance on the brand by brand, but the consumer demand around Off-White and Palm Angels remains very strong. What we see is two different pictures in terms of wholesale vessels, direct-to-consumer, so wholesale always overshoot in both directions. So we saw a very fast expansion of our wholesale business, as we said, 20% CAGR from ’18 to ’22. The brands are very popular in the U.S. and in the UK So we have great customers in the American department stores and also boutiques in the UK and Europe. And with the macro headwinds hitting U.S. department stores and UK, naturally, these customers are reducing their orders across the entire luxury spectrum. And you saw this in multiple commentary from practically all luxury players in terms of the health of the wholesale segment, especially in the U.S. but also in the UK.
So if you look at direct to consumer, the in aggregate, the NGG direct-to-consumer digital sales are up double-digits. And I think this shows that there are two stories here. There’s one story in terms of the consumer appetite for these brands, which remains strong. They continue to be in the list of top our rents. And also the new direction has been evolving with [indiscernible] now firmly installed as Creative Director activating his community, obviously Palm Angels nothing changes, we have Francesco Ragazzi and Stefano who created a brand really from scratch to what is one of the success stories in past years. So the portfolio is very strong. Reebok, we’re very excited with Reebok. We did a small preview of Reebok luxury collections to some luxury boutiques this summer and was extremely well received.
