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Earlier this week, French conglomerate LVMH entered into a multi-faceted commercial agreement with the organizers of the Paris 2024 Olympic and Paralympic Games in the country’s capital.
As part of the partnership, LVMH’s watch company Chaumet will design the Olympic and Paralympic medals, while its wine and spirits brand Moët Hennessy will offer products as part of hospitality packages during the Games.
In addition, the French delegation will be dressed by one of LVMH’s “maison” luxury fashion houses.
The Paris 2024 Olympics are scheduled to start on July 26 next year and will run until August 11.
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Why it matters
It is understood LVMH is pouring €150 million ($166 million) into the Games, the biggest financial sponsorship commitment of any company.
LVMH becomes the sixth top-tier domestic sponsor alongside communications firm Orange, electricity provider EDF, banking group BPCE, pharmaceuticals company Sanofi, and retail giant Carrefour.
Jake Kemp, an analyst at GlobalData Sport, comments on the importance of the tie-up: “This is a huge partnership which highlights the appeal of the Games in France.
“The Games organizers have been pushing the notion of the 2024 event being the ‘Games of France’ and bringing on board the biggest French companies helps emphasize this notion. It helps cement the idea in people’s minds that this is a truly French event being staged; France is globally known as the high-end fashion capital of the world and so there is a strong sense of synergy in the tie-up.
“As well as this, having LVMH brands such as Louis Vuitton and Dior onboard offers the Games a sense of unparalleled prestige that is perfectly in keeping with the biggest global sporting event.
“For Olympic organizers, the partnership ensures adherence to creating a truly French Olympic Game feel, whilst its reported €150 million commitment offers serious financial rewards. It means, across these six premium partnerships alone, that the Olympic Games is set to generate $769.87 million – GlobalData has estimated – over the course of the current cycle.
“From an LVMH Group perspective, meanwhile, the partnership with the Games offers a unique opportunity to promote and showcase all of its brands. It ensures it will not miss out on the biggest global event being hosted in its home market, for the first time in a century, when Paris last hosted the Summer Olympics in 1924.”
Other elements of the Paris 2024-LVMH partnership include LVMH providing direct support to French athletes, while its beauty retailer Sephora will sponsor the Olympic torch relay.
Paris 2024 has been ramping up its commercial activity around the one-year-to-go milestone for the start of the Olympics, which came yesterday (July 26).
Last week, national carrier Air France became the 13th official partner of the Games alongside Caisse des Dépôts, Accor Live Limitless, Groupe ADP, ArcelorMittal, Cisco, Danone, CMA CGM, Decathlon, FDJ, GL Events, Le Coq Sportif, and PwC.
Organizers also recently announced Arena Group, the UK-based events company that provides temporary structures and seating at major sporting events, as an official supporter.
LVMH, meanwhile, recorded revenue of €79.2 billion in 2022, and profit from recurring operations of €21.1 billion.
Image: Chesnot/Getty Images