Why LVMH’s $1 billion Formula One bet is more than the average luxury partnership
When LVMH signed a billion dollar deal with Formula One in late last year, it was a turning point for the participation of the luxury company in sports.
F1 is the most elite sport, with 24 races around the world. The LVMH cooperation for 10 years includes three of its commercial brands participating in events, including Tag Heuer replacing Rolex as the official time guard and Tome Louis Vuitton Tophy Trunks talented winners.
At the end of last week, while the teams were preparing for the Great Monaco race, LVMH president Bernard Arnolt visited the Red Paul Rising field with his sons: Friederick, CEO of Lauro, a statement responsible for F1 partnership; Alexander, Executive Vice President of the Wine and Spirits Department; And Jean, the exit of the Louis Vuitton watch.
Tag Heuer has become the F1 time goalkeeper and the first patron of the Monaco race. The brand has a long relationship with the city’s country, as it designed a group of watches involved in the name “Monaco” in 1969. It also has a full range of watches bearing the F1 theme that can cost up to 4,750 pounds.
Her return to save time, after the last time the official time guard was in 2003, the LVMH owned monitoring mark was placed on the shopping radars.
“Since the beginning of 2025, traffic has risen in dual numbers in stores,” said Tag Heuer Antoine Pin. Dreamer. “We modified production slightly up to the models related to the car, such as Carrera and Monaco [to meet demand]. These models pull the works forward, which is also why I think that F1 works. “
V1 vision can also gain benefits over time. Although its events attracted a list A around the world, F1 races attracted a smaller and broader demography, which enhances their scenes and interest. Netflix Driving to survive The show also helped make the sport feel more access by giving a glimpse of what is happening behind the scenes.
This promises good for Tag Heuer, which was growing in traction. It will be prominent in F1 races (some, such as Monaco, more than others), which continues throughout the year and will be another way for the company to boast of its historical relations with the F1.
Tag Heuer’s position in the list of the best 20 Swiss brands jumped through sales from 15 in 2023 to 11 in 2024, according to a report published by Morgan Stanley and Luxunlt earlier this year.
“We are in a stage where we establish our role as a goalkeeper. In the future, we can focus [our message] On the amazing side of Formula One and the emotions you generate, everything that contributes to its continuous attractiveness. “
LVMH has achieved success in the world of sports with more than F1. The company held a partnership with the Paris Olympics last year, as Chaumet designed the winners and Louis Vuitton, which creates the medals trunks that it enveloped until it was granted.
Luis Vuitton was a partner for the American Cup title in Barcelona, a cooperation with the sailing championship dating back to 1983.
Last year, the group also bought the majority stake in the Paris FC football club, while Chanel became the official partner of the UK boat racing between Oxford and Cambridge.
LVMH and other other players can use excitement injection now, especially as luxurious decline continues while a global trade war leaves brands wrestling with uncertainty.
The intersection of luxury and sport allows luxury stickers to influence different groups of buyers through athletes and events. If they succeed, they can draw larger fans, whether for the sporting event or brands.
Actors at LVMH did not immediately re -request Fortune to comment.
This story was originally shown on Fortune.com
2025-05-27 12:50:00
