LVMH’s high profile and highly visible product placement in the Paris Games opening ceremony surprised marketing experts and raises the possibility it could cause problems for the International Olympic Committee with their long-term sponsors.
The world’s largest luxury group has eked everything possible out of a partnership with the IOC which cost LVMH a reported 150 million euros ($163 million) when it was agreed in 2023.
What sets the Olympics apart from other events is that its stadia are free from advertising.
The uniforms worn by the French team at Friday’s opening ceremony were designed by LVMH, although due to the heavy rain they were largely covered by ponchos.
However, their branding was clearly on display on their trademark trunks and suitcases in one segment of the ceremony.
Aside from that, at this Olympics LVMH made the trunk for the torches, the medal bearers will be dressed in outfits designed by the group and both the medals and their presentation trays are created by them.
The global exposure could not come at a better time for the group after they announced earlier this week their half-year net profit slid 14 percent.
Michael Payne, a former head of IOC marketing who was credited with overhauling its brand and finances through sponsorship, says that while 커뮤니티 LVMH’s partnership with the IOC for the Paris Olympics has been “brilliant,” he thinks they got a “massive free ad” at the opening ceremony.
Payne says it could upset the IOC’s 15 TOP partners — who unlike LVMH are tied in for several Games at great expense. He himself helped found the programme and he advises several of the TOP partners.
During the last quadrennial, they accounted for approximately 30 percent of the IOC’s $7.6 billion revenue.
“I thought the ceremony was spectacular,” Payne told AFP on Saturday.
“The direction of stylish sponsor product placement may not be wrong but needs exceptionally careful management.
“LVMH got a massive free global ad last night and other partners are all going to be asking, how did that work?”