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For the primary time a luxurious model is an Olympic sponsor. And it isn’t only one model, it is the empire of LVMH.
“We tried to discover a method with the Olympic Committee – to have the ability to present possibly one thing that has by no means been accomplished earlier than with the Olympics,” LVMH Chairman and CEO Bernard Arnault informed CNBC’s Andrew Ross Sorkin in an interview at Dior’s flagship retailer this week in Paris.
LVMH’s sponsorship deal took a yr of negotiations and finally landed at about $160 million of funding from the mother or father firm of manufacturers like Celine, Louis Vuitton, Loewe, Tiffany, TAG Heuer and Dom Perignon.
The partnership is on show all through the 2024 Paris Olympic Video games, which formally kicks off on Friday.
LVMH-owned Chaumet, whose Parisian roots date again to 1812, is the primary jeweler in Olympic and Paralympic Sport historical past to design the medals. Housing the medals are trunks made by LVMH model Louis Vuitton. Within the hospitality suites, the corporate’s Moët Hennessy wines and spirits will likely be served. French groups will put on uniforms designed by LVMH’s Berluti for the opening ceremony.
“It isn’t primarily to indicate the manufacturers. It is to indicate the spirit, the spirit of our group and the spirit of the nation,” stated Arnault. “We present the ability of this nation on this planet.”
Chairman & Chief Govt Officer of LVMH, Bernard Arnault attends the Viva Expertise present at Parc des Expositions Porte de Versailles on Could 23, 2024 in Paris, France.
Chesnot | Getty Pictures
Arnault says sports activities is and can proceed to be a key a part of the corporate’s future.
“Now we have been all the time near sport, as a result of sport has values that we share,” he stated.
Luxurious market beneath stress
LVMH’s Olympic sponsorship comes at a time when shoppers within the U.S. and Asia are beneath stress.
The weak spot of the Japanese Yen is sending coveted Chinese language luxurious buyers flocking to Japan to purchase LVMH items at a reduced value.
LVMH, seen as a bellwether for the luxurious sector general, led a selloff amongst international luxurious shares this week after its second-quarter gross sales got here in beneath analyst expectations.
In its half-year report, LVMH reported gross sales in Japan up 57% for the second quarter, whereas the remainder of Asia was down 14%.
“We’re in a interval the place there may be plenty of uncertainty on geopolitical grounds on this planet, with some wars, some financial issues with inflation, with rates of interest, and so forth. However I’m nonetheless fairly optimistic long run,” stated Arnault. “That development midterm, will proceed with ups and downs.”
Pre-Olympics lunch
On Thursday, French President Emmanuel Macron hosted a pre-Olympics lunch with executives from across the globe, together with Arnault, Tesla CEO Elon Musk and Airbnb CEO Brian Chesky.
On CNBC’s “Squawk Field” Friday morning, Chesky informed Sorkin one of many key subjects of dialog on the lunch was the “altering nature of the financial system most likely powered by AI and robotics and what that’s going to imply for the following era.”
The lunch, hosted someday earlier than the Opening Ceremony, is a part of a broader effort by the Elysee to encourage funding in France, in the meantime uncertainty stays over the ruling authorities following the snap election in July.
Forward of the lunch, Arnault informed Sorkin the final time he and Musk had spoken, it was about an thought to place Louis Vuitton inside a rocket.
“Now we have to assume,” stated Arnault. “I am afraid he’ll ask me to go along with him within the rocket.”
Disclosure: CNBC mother or father NBCUniversal owns NBC Sports activities and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer season and Winter Video games via 2032.
