The Houses of LVMH have had ties with the sport for a long time :
TAG Heuer & Red Bull Racing have been partners since 2016, before that the brand was a partner of McLaren, one of its most famous model is the Monaco watch inspired by the Monaco Grand Prix
Lewis Hamilton was named global brand ambassador for Dior this year and Zhou Guanyu is already a local brand ambassador
Lewis Hamilton is also a Rimowa brand ambassador
Louis Vuitton has been providing the trunk for the Monaco Grand Prix trophy since 2021
Hublot was a sponsor of the Scuderia Ferrari until 2021
Berlutti has been doing numerous activations with the Alpine drivers Pierre Gasly and Esteban Ocon
Louis Vuitton has invited Pierre Gasly to its shows several times
But why this collaboration, you may ask? Obviously LVMH and Formula 1 are no stranger to each other and have very similar values of striving for excellence, passion for innovation, transmission of their art to younger generations, and they are both the best at what they do.
LVMH and its brands knows that the Formula 1 audience is now "younger and more feminine" and has a big purchasing power (let's remind that the average Grand Prix ticket price is 488 USD, and that doesn't include transportation, accommodation, food and beverage and shopping on site.)
The sport is getting more and more popular in the US, where they have a big purchasing power. The US holds a big chunk of the LVMH revenue (25% as of their 2024 first half results)
LVMH has been investing more money on lifestyle and experiences, they are developing their luxury hotels like Cheval Blanc or Belmond across the globe, they concluded a deal with Accor to boost the development of the Orient Express, they launched 22 Montaigne Entertainment to step into cinema, TV shows etc. to promote their brands. They are seeing all the opportunities to bring awareness to their brands, and they are ceasing all of them.
LVMH has been exploring sports more and more with Dior dressing the PSG team, Louis Vuitton with their campaigns featuring Lionel Messi, Cristiano Ronaldo, Roger Federer or Rafael Nadal, and obviously all the activations around the Olympic Games so adding motorsport to the list only makes sense
For Formula 1, apart from the obvious huge financial benefit, having a long term contract with a luxury group is exactly what they needed to elevate their brand image and brand the sports as luxury. This partnership might lead to added partnerships with other brands from LVMH or opportunities facilitated by LVMH with luxury lifestyle brands (like jet companies Gulfstream, Bombardier etc., luxury hotels etc.)
So what does this mean really ? Most likely, TAG Heuer will be the official timekeeper, Moet Hennessy will be the official champagne sprayed on the podiums and Louis Vuitton will make the trunks for the trophies. But in reality, I think we should expect much more like :
Brand ambassadors or collaborations, I'm thinking a collaboration with Lewis Hamilton and Tiffany, a CNY capsule designed by Zhou Guanyu, Yuki Tsunoda announced as Kenzo brand ambassador, a famous artistic director could become the official F1 artistic director (so A$AP Rocky would be out).
Many more drivers invited to fashion week, expect to see more Pierre Gasly, Zhou Guanyu, Lewis Hamilton but also Bianca Bustamante, Lola Lovinfosse and other F1 academy drivers.
More partnerships/sponsorships, Stake, Williams and Alpine are currently without an official watchmaker, so a brand partnership could be announced. Moet Hennessy just invested in French Bloom, a wine company specializing in alcohol-free wine. I think they might fully acquire it in the next few years and turn the brand into the official drink on podiums, and if you think about it, it makes sense with "don't drink and drive".
If you ask me, I think this partnership is pure marketing genius and a very smart business move by the Arnault family. This is literally one of my dreams coming true and merging my passion for luxury, fashion and Motorsport. There's a big potential to tap on brand collaborations, partnerships but also business opportunities, the ones I listed above are just a few examples, I can't wait to tell you more about it in dedicated articles!
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