LVMH and Formula 1 have recently announced a groundbreaking partnership, marking one of the largest deals in motorsport history, valued at 1 billion USD over ten years. This collaboration highlights the popularity of Formula 1, which attracts over 1.5 billion viewers annually, making it one of the most-watched sporting events worldwide.
Recognizing this viewership, LVMH – the global luxury group, owning brands in fashion, jewelry and cosmetics – has integrated several of its brands into the Formula 1 family. Specifically, TAG Heuer will take over as the official timekeeper, replacing Rolex. Louis Vuitton will be responsible for trophy presentations, providing custom-made cases. Additionally, Moët & Chandon will return as the official champagne for the podium celebrations.
Over the years, Formula 1 has evolved into a cultural phenomenon, where racing cars have become symbols of lifestyle, art and culture. This partnership with Formula 1 allows LVMH to maintain its premium luxury image while connecting with new audiences. Together, they can create unique experiences that blend sport with elegant art-de-vivre.
In addition to F1, LVMH has already entered the sports market by sponsoring the 2024 Paris Summer Olympics and acquiring Paris F.C, showcasing the company’s commitment to leveraging sports as a powerful marketing platform. By tapping into the global audience of the Olympics, estimated at over 3 billion viewers, for example, LVMH has created lasting impressions for the brand that extends far beyond the event itself.
The sports industry, valued at over $500 billion globally, presents luxury brands with a platform to connect with consumers and sports enthusiasts alike and create powerful narratives that resonate with their target audience. It offers a unique opportunity for brand visibility, by providing a global stage to showcase products to engaged audiences. And an opportunity to enhance consumer engagement as well, since sports create deep emotional connections with fans, allowing luxury brands to associate themselves with passion, excellence, and aspiration. It is likely that other luxury brands will follow in LVMH’s footsteps and establish similar partnerships that go beyond traditional sponsorships.
In conclusion, the LVMH-Formula 1 collaboration signifies more than just marketing; it marks the beginning of a new era where sports and luxury merge to create mutual benefits.
By Benjamine Daniau-Fricotteau
BOCCONI STUDENTS FOR SPORT MANAGEMENT 
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