The Paris 2024 Olympics: why luxury is investing massively (Part 1)

With nearly 3 billion viewers and anticipated views, the Games are a prime moment for major brands seeking global recognition, a rendezvous that the most prestigious houses cannot afford to miss. Historically, brands engaged alongside the IOC or the Organizing Committees of the Games primarily sold beer and sneakers rather than luxury goods, with a few exceptions. Omega, part of the Swatch Group, has been the official timekeeper of the Olympics since 1932, tied by an agreement with the IOC until 2032. Armani has supplied official uniforms for the Italian team, notably in 2012 in London; Stella McCartney has collaborated with her national team and Ralph Lauren, the supplier of the American Olympic team for 25 years.

After over four years of negotiations, what changed, and why did LVMH just sign a €150 million check for the luxury group to become a "premium" partner of the Paris 2024 Olympics, alongside Accor or Carrefour? The contract negotiation extensively engaged Tony Estanguet, the President of Paris 2024, his teams, and those of LVMH. "Some claim that the luxury group sought to reduce the bill, but this is not the case at all," explains a group spokesperson. LVMH meticulously negotiated the counterparts, rights, and activations—what it is entitled to do, say, and communicate in exchange for its remarkable check. "The difficulty," admits a close associate of the organizing committee, "is that Paris 2024 cannot grant privileges to its partners, even prestigious ones like LVMH, that trespass into the historical sponsors of the IOC, notably Omega in timekeeping." The territory of expression for Olympic partners is strictly maintained by a corridor. To reassure LVMH, Thomas Bach, the all-powerful President of the IOC, even made several trips to Paris, including for the final signing of the agreement on July 26 last year. "What a great moment of success for Paris 2024! Today is a fundamental step," declared Tony Estanguet, who, with the luxury giant, ensured the closure of the private partnerships section of his budget.

According to insiders, this operation is mainly the work of Antoine Arnault. As the son of his father, in charge of the group's communication and image, he was the first to venture into the world of popular sports, starting with the FIFA World Cup in 2010, while in charge of Louis Vuitton's communication. For 15 years behind the scenes, he has worked towards bridging the gap between the world of sports and the family group, which was far from guaranteed. His father, though a tennis fan, always kept professionally away from sports, except for sailing for Louis Vuitton.

With this agreement, Sephora supports the torch relay, Chaumet, the jeweler from Place Vendôme, designs the Olympic and Paralympic medals, Moët Hennessy will refresh VIPs with its wines, champagnes, and cognacs, not to mention Louis Vuitton, which will wrap and present the medals. Dior will play a creative role in the opening ceremony, which was subject to intense negotiations. Berluti will also benefit by dressing athletes from the French Olympic team. Such a partnership is unprecedented for the luxury giant and the Olympics; it's unheard of. In fact, presenting his group's results at the end of January, Bernard Arnault announced "an exceptional year because of the 2024 Games."

Today, if groups like his are interested in the Olympics, it's because its colossal turnover of over €85 billion occurs 92% abroad. The fabulous audiences of the Olympics (where 1 in 2 humans will be exposed to TV or online content) attract its brands, which have become more global and international than ever. The Olympics are also the event of all superlatives. The world's largest TV audience across all sectors. "It will probably be the most-watched spectacle in the history of television, in the history of the Games," said Antoine Arnault. After conquering the farthest markets, the luxuryfication of the world now goes through sport. It promotes the aspirations, ideals, and lifestyles of all middle classes targeted by luxury brands.