The $162 Million Dollar Olympic Partner: LVMH Moët Hennessy Louis Vuitton
The single largest local partner, LVMH, will play a significant role in sharing its creativity and craftsmanship for the Olympics, including Chaumet’s medal design.
Highlights
LVMH will bring luxury to the Olympics with unique designs and exclusive offerings.
Athlete Support and Social Impact: The company will support athletes and contribute to societal causes, going beyond sponsorship.
Public opinion varies, with some praising LVMH's alignment with Olympic values and others questioning its luxury focus.
LVMH, the luxury powerhouse, is more than just fashion, and this is evident in its premium partnership with the upcoming Olympic and Paralympic Games 2024, which will take place this summer. In fact, it is speculated that the company is investing heavily, roughly $162M, to make it the “single largest local sponsor of Paris 2024.” That’s quite a commitment, isn’t it?
This article will delve into LVMH’s preparation for the year's most anticipated sports event, from concept to execution. So, are you ready to unveil what the company has crafted for the Olympics? Spoiler: the event’s scope might surprise you!
Aligning with the Olympic Spirit
First things first, the LVMH initiative towards the Olympics perfectly aligns with the Group’s mission, “The Art of Crafting Dreams.” This bold and inspirational slogan seems to echo the vision of Paris 2024, which allows the company to contribute its creativity, exceptional craftsmanship, and a unique sense of French art de vivre. Whether it is a coincidence or the smart work of a marketing team – the execution looks promising.
Plus, LVMH will play a significant role in sharing its creativity and craftsmanship for the Olympics, including Chaumet’s medal design that symbolizes the quest for victory and self-surpassing. Mathieu Lehanneur says, “Each medal is uniquely forged using the original iron from the Eiffel Tower in Paris.” The medal’s hexagon shape pays homage to the tower's arches and slopes, a reminder that this year's Olympic and Paralympic Games are staged in the French capital. All gold, silver, and bronze medals include these design elements, resulting in a two-tone side and a complementary shade between the iron and the medal material.
And if you thought that medal design is the only thing LVMH does for the Olympics, you are not on the right track. In addition to the medal design, Moët Hennessy wines and spirits will offer exceptional products as part of hospitality programs during the Olympic and Paralympic Games. As one close source noted, “Moët Champagne and Hennessy cognac will “flow through every VIP suite,” and Louis Vuitton leather goods will be "impossible to miss at the Games.” Furthermore, Sephora will partner with the Olympic Torch Relay, proposing activations for the public along the relay route and at group locations.
During the Games, LVMH will also support certain athletes, known as 'Artisans of All Victories,' whose journeys have been exemplary. The first is swimmer Léon Marchand, a three-time world champion and world record holder of the 400-meter individual medley, a leading medal hope for the French Olympic team. It's reported that Berluti — the luxury leather manufacturer for men — will dress the French delegation for the various ceremonies.
Lastly, as part of its partnership with Paris 2024, LVMH will extend its societal commitments, specifically to sports, which inspire dreams and drive positive impact. To kick start this initiative, LVMH will join the French charity Secours Populaire français, a longstanding partner, to facilitate access to sports for 1,000 children and young people aged 4 to 25 living in vulnerable situations.
Public Perception: A Mixed Bag
The LVMH sponsorship has generated considerable buzz. Here are some of the opinions about the event:
"As a French group, we felt it was our duty to contribute to an event destined to leave its mark on an entire generation. For us, and I'm sure for many others, this partnership is a no-brainer," said Antoine Arnault, who oversees all of the group’s communications and environmental issues and was the chief negotiator for the sponsorship.
In the age of social media, where athletes "seamlessly cross into the global influence market alongside pop stars and Hollywood actors," their "reach -- and universal appeal -- has become too significant to pass up," shared a source with the Wall Street Journal.
Ahead of the Games, Louis Vuitton sponsored a fencer and a swimmer. At the same time, LVMH’s Dior has backed a gymnast and a wheelchair tennis player. LVMH’s deal "represents a delicate trade-off" as the company’s brands "cultivate a high-end image that’s potentially at odds with the idea of a toned-down Olympics," underscored another source.
What can we learn from LVMH's success?
Well, first, if throw $100+ million at a partnership, there’s nothing really you can’t do. So when you’re the largest luxury brand in the world, you might as well be as opulent as can be.
Align your brand with a cause: LVMH's mission is "The Art of Crafting Dreams," which perfectly aligns with the Olympics' vision. This allows them to leverage the Olympics to promote their brand message.
Create a unique and memorable experience: LVMH designed the Olympic medals using iron from the Eiffel Tower, making them a memorable keepsake for the athletes.
Think beyond the obvious: LVMH is not just sponsoring the Olympics but also supporting athletes and providing underprivileged youth with access to sports. This shows that they are thinking about the bigger picture.
While LVMH's extensive sponsorship promises high brand exposure, several questions still need to be answered. The $162 million investment raises the question of ROI. At the same time, LVMH's focus on luxury goods and VIP experiences might conflict with the Olympics' ideals of accessibility and inclusivity. Plus, LVMH's sponsorship of individual athletes whose image may not perfectly align with the brand's high-end image raises questions about maintaining a cohesive brand identity throughout the Games.
Financial Outlook
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury goods group, recorded revenue of €86.2 billion in 2023 (+13% YoY).
By business group, total profit generated at year end was Wine & Spirits €2.1 billion (-2% YoY), Fashion & Leather Goods €16.8 billion (+7% YoY), Perfumes & Cosmetics €713 million (+8% YoY), Watches & Jewelry €2.1 billion (+7% YoY), and Selective Retailing €1.3 billion (+76% YoY).
Double-digit organic revenue growth in Europe, Japan and the rest of Asia.
As France’s largest private-sector recruiter, LVMH boasts more than 213,000 employees worldwide as of year-end 2023 (including nearly 40,000 employees in France).
Read full year 2023 and Q4 result here.
