Photo/Zhang Jian (NBD)

LVMH Group, as one of the premium partners of the Paris Olympics, has invested €150 million (approximately RMB 1.2 billion) into the event, a significant expenditure amidst the luxury industry's downturn.

Louis Vuitton and Dior of LVMH have particularly excelled in the Paris Olympic, showing the brands' diverse values. Louis Vuitton was responsible for designing the torch cases, medal trays, and volunteer uniforms, while Dior sponsored the attire for the opening ceremony performers. Additionally, other LVMH brands, such as Chaumet, Berluti, and Sephora, have increased brand exposure by participating in the Olympics in various ways.

The LVMH Group has recently strengthened its layout in the hard luxury sector, especially by acquiring the American jewellery brand Tiffany & Co. to compete with the Richemont Group. The group aims to attract high-net-worth individuals with products like jewellery and watches to navigate through unstable times. Brands like Chaumet and Berluti, despite their long history, face the issue of lacking popular goods.

LVMH Group's sponsorship strategy places more emphasis on the display of culture, craftsmanship, and creativity, rather than simple logo exposure. Antoine Arnault,  head of communication and image of LVMH, said in an interview with WWD: “We’re the leading French group, by far; the one that recruits the most employees, that pays the most taxes and so forth. We therefore felt it was our duty and our responsibility to fully engage with these Games...”. In fact, the public has not shown aversion to LVMH Group's sponsorship, likely because fashion and luxury are already seen as representative elements of France.

However, as the luxury industry cools down, whether LVMH Group's investment will yield sufficient returns remains a question. Although Antoine Arnault noted that the ultimate goal of sponsoring the Olympics is not to significantly boost sales, Louis Vuitton and Dior still attracted consumers with Olympic-themed window displays and limited-time marketing campaigns during the Olympics.

What is certain is that LVMH Group has successfully increased brand exposure and traffic through marketing strategies in large-scale events like the Olympics, which not only enhances brand influence but also paves the way for future cooperation with more top-tier events, allowing it to further explore the basketball and football markets, which have extremely high global attention and traffic.

In terms of short-term effects, LVMH Group's marketing success in sports events like Olympics may enhance its competitiveness in the battle with Rolex for the official partnership of Formula 1. According to Forbes, LVMH Group may become an official partner of F1 starting from January 2025, although this news has not been officially confirmed by Rolex and LVMH. If this partnership materializes, it will further consolidate LVMH Group's position in the luxury sector.