Whether it’s the Moët champagne served at celebrations or the specially crafted trunks Louis Vuitton made for the medal ceremonies, luxury was on full display at the 2024 Olympic and Paralympic Games in Paris.
For Carly Duguid, the creative director of tennis and fashion star Naomi Osaka, luxury and sports ‘is the perfect combination.’
‘There is a strong parallel between athletes and brands in terms of their commitment to quality and excellence,’ Duguid told CNBC.
In the age of influencers, fashion has quickly embraced the sports world and elevated athletes as ‘fashion tastemakers.’ These global stars help connect brands with a whole new market of fans and potential new buyers.
Osaka was the first athlete to collaborate with Louis Vuitton, followed by Victor Wembanyama, Carlos Alcaraz, and many French Olympians and Paralympians.
LVMH is not the only one. Gucci has a contract with British footballer Jack Grealish. So, it placed billboards in all cities with Italian tennis champion Jannik Sinner. In the 2024 WNBA, Caitlin Clark was the first professional basketball player to wear Prada and continues to wear the designer’s classic clothes throughout the season.
Dozens of luxury designers dressed national teams for the first time for the opening ceremony, marking not only new ties between sports and fashion but also between sports and the Olympics.
LVMH sought to take a big step beyond athlete collaborations, becoming the first luxury brand to sponsor the Olympic Games.
The investment of about $160 million, which represents almost 1% of LVMH’s profits for 2023 as the parent company of brands like Celine, Louis Vuitton, Loewe, Sephora, and Dom Perignon, added an extra touch of luxury to the Games. From the medals designed by Chaumet to the French athletes wearing outfits designed by Berluti at the opening ceremony and the medal carriers dressed in vintage-style uniforms, everything was carefully crafted.
Luxury markets and LVMH’s growth from the Olympic Games
The connection with the world’s top sporting events can give LVMH a boost as overall luxury spending slows down.
LVMH missed its targets for sales and revenue in the second quarter of 2024. In general, the luxury sector is in crisis due to declining global demand. This is mainly due to increased economic instability and the shrinking market of first-time designer buyers.
Milton Pedraza, CEO of the luxury industry consultancy The Luxury Institute, said that new potential buyers, instead of buying a ‘simple belt without a logo,’ will see athletes at the Olympics surrounded by the LVMH brand ‘and will seek out these luxury items.’
Luxury brands were once mainly involved in the most expensive and exclusive sports, such as tennis and sailing, but now they are expanding.
‘Today, because many of the emerging wealthy are athletes, actors, and social media influencers, there is much more of an idea that regardless of race, religion, gender, or any other background you happen to have, you can also participate in luxury if you have the financial… capability,’ Pedraza said.
A new era of sports
LVMH has brought classic French glamour to the global games since the opening ceremony, but the brand’s reach goes far beyond French culture.
‘Sports, luxury, and fashion bring us together… The shared culture is the goal to ensure that luxury brands… expand,’ Pedraza said.
The night before the opening ceremony, Osaka attended a star-studded party at the ‘Fondation Louis Vuitton’ in the heart of Paris alongside LeBron James and Serena Williams, as well as actors, artists, and other business moguls dressed in LVMH.
Duguid called it ‘the perfect opportunity for athlete ambassadors to show up and support their partnerships with LVMH while also celebrating the start of the Games.’
As every medal tray brought to the champion’s podium features the checkered pattern long defined by the brand, ‘LVMH’s presence will be felt in every aspect of the Games,’ Duguid said.”
