Why LVMH’s Billion Dollar Formula One Bets More Than the Average Luxury Partnership
When LVMH inclined an estimated $1 billion contract with Formula One late last year, it marked a turning point for luxury companies’ involvement in sports.
F1 is the most elite motorsport, with 24 races worldwide. LVMH’s decade-long collaboration includes three brands participating in the event. This will replace Rolex as the official timekeeper and receive a bespoke Louis Vuitton Trophy Trunk to the winners.
Last weekend, as the team was preparing for the Monaco Grand Prix, LVMH Chief Bernard Arnaud visited the Red Bull Racing Paddock with Frederick, CEO of Loro Piana, who is in charge of the Formula One Partnership. Alexandre is the assistant CEO of Wine and Spirits. Jean and Louis Vuitton watch director.
TAG Heuer has become the official F1 timekeeper First Title Sponsor For the Monaco race. The brand has long connections with the city-state, designing a watch collection that shares the name “Monaco” in 1969. £4,750.
Last official timekeeper in 2003, Timekeeping Retar posted a watch label owned by LVMH on shoppers’ radar.
“Since the beginning of 2025, traffic has risen double digits in stores,” heuer CEO Antoine Pin I said Trendy business. “We’ve adjusted production slightly upwards with car-related models like Carrera and Monaco (to meet demand), and these models are driving the business forward. This is also why I think Formula 1 will work.”
The visibility of F1 can benefit over time. The event attracted A-listers around the world, but Formula 1 races appealed to younger, broader demographics, raising viewers and interest. Netflix’s Drive to survive The show also helped to give it a sense of sport More accessible By getting a glimpse into what’s going on behind the scenes.
This is good for TAG HEAER, where traction is growing. It’s going to happen stand out With Formula 1 races (and more people like Monaco, than others), this continues throughout the year, making it another way for the company to show off its historic relationship with Formula 1.
According to a report released earlier this year, Tag Heuer’s position has appeared on the list of the top 20 Swiss watch brands with sales from the 15th of 2023 to the 15th of 2024 to the 11th of 2024.
“We are in the stage of establishing our role as timekeepers. In the future, we can focus on the epic aspects of Formula One and everything that contributes to the ongoing appeal,” Ping said.
LVMH has invaded the world of sports in more ways than Formula 1. The company has partnered with the Parish Games last yearChaumet designs medals for the winners, and Louis Vuitton creates a trunk of the medals and wraps them up until they are awarded.
Louis Vuitton was Barcelona’s title partner for America’s Cup. Until 1983.
Last year, the conglomerate acquired a majority stake in the football club Paris FC, and Chanel became the official partner of the UK boat race between Oxford and Cambridge University.
LVMH and other high-end players can use infusion of excitement as the world trade war leaves brands tackling uncertainty, especially during the continuing luxury recession.
intersection Due to luxury and sports, luxury labels can influence a variety of buyer groups through athletes and events. If successful, they can portray a larger audience, both in sporting events and in brands.
Representatives from LVMH did not immediately return a request for Fortune’s comment.
This story was originally introduced Fortune.com