For the first time, a luxury brand has become an official Olympic sponsor, and it’s none other than the extensive empire of LVMH. “We tried to find a way with the Olympic Committee to show something that has never been done before with the Olympics,” LVMH Chairman and CEO Bernard Arnault shared in an interview at Dior’s flagship store in Paris.
The sponsorship deal, which took a year of negotiations, involves approximately $160 million from LVMH, the parent company of prestigious brands such as Celine, Louis Vuitton, Loewe, Tiffany, TAG Heuer, and Dom Perignon. This partnership will be prominently featured throughout the 2024 Paris Olympic Games, which officially begin on Friday.
LVMH’s involvement includes unique contributions, like Chaumet, an LVMH-owned jeweler with Parisian roots dating back to 1812, designing the Olympic and Paralympic medals. These medals will be housed in trunks made by Louis Vuitton. In the hospitality suites, guests will enjoy Moët Hennessy wines and spirits. Additionally, the French teams will wear opening ceremony uniforms designed by LVMH’s Berluti.
Arnault emphasized that the sponsorship is not just about showcasing the brands but also the spirit of the LVMH group and the country. “We show the power of this country in the world,” he said, adding that sports will continue to play a crucial role in the company’s future. “We have always been close to sport because sport has values that we share,” he stated.
This Olympic sponsorship comes at a time when consumers in the U.S. and Asia are experiencing economic pressures. The weakened Japanese Yen has led Chinese luxury shoppers to Japan, where they can buy LVMH products at discounted prices. Despite some global economic uncertainties, Arnault remains optimistic about the long-term outlook for the luxury sector.
LVMH recently faced a selloff among global luxury stocks after second-quarter sales fell short of analyst expectations. While sales in Japan surged by 57% in the second quarter, the rest of Asia saw a decline of 14%. “We are in a period with a lot of uncertainty on geopolitical grounds, with wars, economic problems, inflation, and interest rates. But I am still quite optimistic long term,” Arnault commented.
French President Emmanuel Macron hosted a pre-Olympics lunch with global executives, including Arnault, Tesla CEO Elon Musk, and Airbnb CEO Brian Chesky. The discussion focused on the future economy driven by AI and robotics.
Ahead of the lunch, Arnault recalled a conversation with Musk about the idea of putting Louis Vuitton inside a rocket. “We have to think,” Arnault mused, joking, “I’m afraid he will ask me to go with him in the rocket.”
READ MORE: