A luxurious model turns into an Olympic sponsor for the primary time. It isn’t only a model, it is an empire LVMH.
“We’re looking for an answer with the Olympic committee,” LVMH Chairman and CEO Bernard Arnault advised CNBC’s Andrew Ross Sorkin in an interview on the Dior flagship retailer this week. approach to have the ability to present one thing that has by no means been performed on the Olympics earlier than.
After a yr of negotiation, LVMH’s sponsorship settlement lastly obtained an funding of roughly US$160 million from model mum or dad firms reminiscent of Celine, Louis Vuitton, Loewe, Tiffany, TAG Heuer and Dom Perignon.
The partnership shall be on show through the 2024 Paris Olympics, which formally opens on Friday.
LVMH-owned Chaumet, whose Parisian roots date again to 1812, was the primary jeweler to design medals within the historical past of the Olympic and Paralympic Video games. The medal incorporates a suitcase made by LVMH model Louis Vuitton. Within the reception suite, the corporate’s Moët Hennessy wines and spirits shall be out there. The French crew will put on uniforms designed by LVMH’s Berluti on the opening ceremony.
“This isn’t primarily about exhibiting the model. It is about exhibiting the spirit, the spirit of our group and the spirit of the nation,” Arnaud stated. “We confirmed the world the ability of this nation.”
LVMH Chairman and CEO Bernard Arnault attended the Viva Know-how exhibition held on the Porte de Versailles Exhibition Heart in Paris, France on Could 23, 2024.
Chesnot | Getty Photos
Arnott stated sports activities is and can proceed to be an essential a part of the corporate’s future.
“Now we have at all times been near sports activities as a result of sports activities share our widespread values,” he stated.
Luxurious items market beneath strain
LVMH’s Olympic sponsorship comes at a time when customers in the US and Asia are beneath strain.
The weak yen has triggered Chinese language luxurious items customers to flock to Japan to purchase LVMH items at discounted costs.
LVMH Moët Hennessy Louis Vuitton, seen as a pacesetter within the general luxurious items trade, triggered a worldwide sell-off in luxurious items shares this week after second-quarter gross sales fell in need of analysts’ expectations.
LVMH stated in its “Semi-Annual Report” that gross sales in Japan elevated by 57% within the second quarter, whereas gross sales in different components of Asia fell by 14%.
“We’re in a interval the place there’s quite a lot of uncertainty geopolitically on the planet, there’s some wars, there’s some financial points like inflation, rates of interest. However in the long run, I am nonetheless fairly optimistic,” Arnold stated. “This pattern will proceed to ebb and circulation within the medium time period.”
Pre-Olympic lunch
French President Emmanuel Macron held a pre-Olympic lunch on Thursday with executives from world wide, together with Arnault, Tesla CEO Musk and Airbnb CEO Brian Chesky.
Talking on CNBC’s “Squawk Field” Friday morning, Chesky advised Sorkin that one of many key matters mentioned through the lunch was “the modifications within the nature of the economic system that could be pushed by synthetic intelligence and robotics and what meaning for the subsequent era.” means nothing.
The lunch, held a day earlier than the opening ceremony, is a part of a wider effort by the Elysee Palace to encourage funding in France, amid continued uncertainty over the ruling authorities after snap elections in July.
Earlier than lunch, Arnott advised Sorkin that the final time he and Musk talked, it was in regards to the thought of placing Louis Vuitton in a rocket.
“Now we have to assume,” Arnold stated. “I used to be nervous that he would ask me to trip on the rocket with him.”
Revealed: CNBC mum or dad firm NBCUniversal owns NBC Sports activities and NBC Olympics. NBC Olympics is the U.S. rights holder for all summer time and winter Olympics by 2032.
