French luxury company LVMH has signed a 10-year sponsorship deal with Formula 1, which will cover its Louis Vuitton, Moet Hennessy, and TAG Heuer brands starting in 2025. This move marks LVMH’s entry into the world of sports sponsorship, following their investment in the Paris Olympics as the premium sponsor. The company, led by Bernard Arnault, one of the richest men in the world, paid around €150 million to be a part of the Paris Olympics.
Replacing long-time sponsor Rolex, LVMH’s sponsorship of Formula 1 signifies a new direction for the company in terms of brand exposure and marketing strategies. High-end Swiss watchmaker Rolex had been affiliated with Formula 1 since 2013, showing a shift in luxury brands seeking partnerships in sports events to enhance their visibility and reach. This move is in line with the trend of luxury players seeking to expand their presence through events that offer a mix of hospitality, travel, and entertainment.
At the Paris Olympics, LVMH and other companies went beyond traditional sponsorship roles, participating in various aspects of the event such as the medals ceremonies. This demonstrated a more immersive approach to brand sponsorship, with LVMH’s jeweler Chaumet even designing unique medals for the event, each containing an original piece of the Eiffel Tower. LVMH’s involvement in Formula 1 is expected to further enhance the experiential dimension that the sport offers globally, as mentioned by LVMH Watches CEO Frederic Arnault.
Although financial details of the Formula 1 sponsorship deal were not disclosed, LVMH’s investment in major sports events and partnerships underscores its commitment to expanding its presence in the sports world. With the rise of experiential marketing, luxury brands like LVMH are looking to create unique and memorable experiences for consumers through their participation in prestigious events. By aligning themselves with Formula 1, LVMH aims to leverage the global appeal and excitement of the sport to connect with a broader audience and strengthen its brand visibility.
Overall, LVMH’s partnership with Formula 1 represents a strategic move to enhance brand exposure and engagement through sports sponsorship. With a focus on creating unique experiences for consumers, LVMH is tapping into the global reach and emotional connection that sports events like Formula 1 offer. By diversifying its marketing efforts and extending its presence into new territories, LVMH is positioning itself as a prominent player in the luxury industry, leveraging the power of sports to connect with audiences worldwide.
