José Neves: Yes. I’ll take the China question. Look, I think China is an amazing opportunity. It’s second largest luxury goods market in the world, around 30% of the luxury industry is expected to be as much as half in years to come. Here, we have a tremendous opportunity as we have a very unique competitive advantage. We’re really the only Western player that has invested many years and has a fully localized presence in the market, local apps driving the majority of our business there, an incredible team on the ground, incredible consumer proposition, both cross-border and domestic. And that’s very unique in the Western landscape. And then a partnership with the other game in town, which is Alibaba’s Luxury Pavilion. So really the two platforms that are driving the online luxury story in China.
Very happy with the Luxury Pavilion. It’s growing ahead of our marketplace and hitting the milestones and the goals that we had set with Alibaba and Richemont, when we did the joint venture. And overall, we’re very bullish about the long-term. We think this is a current situation. Consumer sentiment is temporary. We’re vigilant on the situation and monitoring, but this is not a reason to retreat at all from that market. We will continue to invest in an incredibly localized experience for our customers and capitalize on our unique competitive position in that market.
Operator: Our next question is from Lauren Schenk from Morgan Stanley. Please unmute your audio and ask your question.
Lauren Schenk: Great. Thanks. I wanted to ask about the reorganization and expense discipline. When do you expect the full effects of that to be seen? And is there any quantification around the gross savings that you’re expecting there? And then are there any sort of further actions that you think can be taken, or are all the changes are behind us and now it’s just about them flowing through the P&L? Thank you.
Elliot Jordan: Hi, Lauren, Yes. I mean we’ve — as José said earlier on, we’ve done a top to bottom review of the overall structure of the business. And the first output of that is effectively the new reporting structure, the new ownership of the various aspects of the platform. So we have clear ownership over FPAs, the marketplaces and the brand platform. And then in terms of the supporting platforms to deliver against those profitable and growing units, we have arranged ourselves around the operations, the technology and our business services, all again with clear ownerships. And what that’s delivered is significant opportunities for cost savings, particularly around streamlining those various aspects of the business globally.
Some of those are already in you’ve seen a decline in terms of spend quarter-on-quarter of $8 million. Risks continue to flow through over the next few quarters as we work through the continued changes across the business and aligning ourselves around those structures. I think what’s important is if you look at our numbers, we are driving a leverage in some areas of the business again this quarter. And as we move into next year, we will be driving leverage across all areas of our spend through 2023. So if you look at technology year-on-year for Q3, including the capitalized element, only up 1.6% in terms of spend, driving operating leverage. Platform operations, spend was down quarter-on-quarter at driving operating leverage year-on-year. Our brand spend came down year-on-year — sorry — it came down quarter-on-quarter, and again, driving operating leverage year-on-year.
