A luxury brand becomes an Olympic sponsor for the first time. It’s not just a brand, it’s an empire LVMH.
“We’re trying to find a solution with the Olympic committee,” LVMH Chairman and CEO Bernard Arnault told CNBC’s Andrew Ross Sorkin in an interview at the Dior flagship store this week. way to be able to show something that has never been done at the Olympics before.
After a year of negotiation, LVMH’s sponsorship agreement finally received an investment of approximately US$160 million from brand parent companies such as Celine, Louis Vuitton, Loewe, Tiffany, TAG Heuer and Dom Perignon.
The partnership will be on display during the 2024 Paris Olympics, which officially opens on Friday.
LVMH-owned Chaumet, whose Parisian roots date back to 1812, was the first jeweler to design medals in the history of the Olympic and Paralympic Games. The medal contains a suitcase made by LVMH brand Louis Vuitton. In the hospitality suite, the company’s Moët Hennessy wines and spirits will be available. The French team will wear uniforms designed by LVMH’s Berluti at the opening ceremony.
“This is not primarily about showing the brand. It’s about showing the spirit, the spirit of our group and the spirit of the country,” Arnaud said. “We showed the world the power of this country.”
LVMH Chairman and CEO Bernard Arnault attended the Viva Technology exhibition held at the Porte de Versailles Exhibition Center in Paris, France on May 23, 2024.
Chesnot | Getty Images
Arnott said sports is and will continue to be an important part of the company’s future.
“We have always been close to sports because sports share our common values,” he said.
Luxury goods market under pressure
LVMH’s Olympic sponsorship comes at a time when consumers in the United States and Asia are under pressure.
A weak yen is prompting Chinese luxury goods consumers to flock to Japan to buy LVMH goods at discount prices.
LVMH Moët Hennessy Louis Vuitton, seen as a leader in the overall luxury goods industry, triggered a global sell-off in luxury goods stocks this week after second-quarter sales fell short of analysts’ expectations.
In its semi-annual report, LVMH reported that sales in Japan grew 57% in the second quarter, while sales in other parts of Asia fell 14%.
“We’re in a period where there’s a lot of uncertainty geopolitically in the world, there’s some wars, there’s some economic issues like inflation, interest rates. But in the long term, I’m still pretty optimistic,” Arnold said. “This trend will continue to ebb and flow in the medium term.”
Pre-Olympic lunch
French President Emmanuel Macron held a pre-Olympic lunch on Thursday with executives from around the world, including Arnault, Tesla CEO Musk and Airbnb CEO Brian Chesky.
Speaking on CNBC’s “Squawk Box” Friday morning, Chesky told Sorkin that one of the key topics at lunch was “the changing nature of the economy that may be driven by artificial intelligence and robotics and what that means for the next generation.” What are you wearing?
A luncheon is held the day before the opening ceremony and is part of the event Wider Elysee Palace Efforts to encourage investment in France while uncertainty remains about the government in power after July’s election.
Before lunch, Arnott told Sorkin that the last time he and Musk talked, it was about the idea of putting Louis Vuitton in a rocket.
“We have to think,” Arnold said. “I was worried that he would ask me to ride on the rocket with him.”
Revealed: CNBC parent company NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. rights holder for all summer and winter Olympics through 2032.
