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We hear the South of France is lovely this time of year, which is perhaps why Chanel presented its Cruise 2012 show in Cannes, France yesterday ahead of the famed film festival. Among the attendees were Blake Lively, Alexa Chung, Rachel Bilson and Vanessa Paradis.

“This is a modern version of sophisticated dressing,” explained Chanel’s creative director Karl Lagerfeld, telling WWD, “Cruise is always about going away…It’s about dressing down these very sumptuous looks, about easy elegance. This is about the women of Cannes, women who mix bathing suits with real pearls and diamonds. After all, you can’t wear fakes into the water.”

After the break, check out “The Tale of a Fairy,” a short film directed by Lagerfeld about two bickering sisters, which accompanied the collection.

Above: Blake Lively in Chanel.

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Blake Lively in Chanel.

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Blake Lively and Clemence Posey in Chanel.

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Alexa Chung in Chanel.

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Actress Vanessa Paradis in Chanel.

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Looks from the Chanel Cruise Collection 2012.

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Looks from the Chanel Cruise Collection 2012.

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“The Tale of a Fairy” by Karl Lagerfeld.