The Olympic Games are Over, but the Paralympics are Just Beginning: Lessons in Communication and Strategy
Now that the Olympic Games have come to a close, the Paralympics are taking center stage, and there are already some valuable lessons to be learned in terms of communication and strategy. One of these lessons comes from Louis Vuitton, the world's largest luxury brand.
As a partner of the event, the medals won by champions are displayed inside a customized trunk manufactured by Louis Vuitton. The brand has thus associated itself with athletics. While the mix of sports and luxury is not common, the connection exists. The common thread between athletes and luxury is a commitment to quality and excellence.
This has become even more concrete with the emergence of new communication channels and the weight of influencers in marketing. Global stars have become trendsetters, helping brands connect with a higher number of potential buyers. LVMH sought to generate buzz beyond partnerships with athletes, becoming the first luxury brand to sponsor the Olympic Games. The sponsorship cost the brand nearly $160 million, less than 1% of the holding company's profits in 2023.
Now, it will be interesting to observe the return on investment of this sponsorship. Luxury spending in general is slowing down. The idea is that, given that many new rich individuals are athletes, actors, social media influencers, and regardless of race, belief, gender, or any other origin, it is possible to access luxury if one has the economic means. If it proves to be commercially effective, we will see significant evolutions in the world of sales and the nature of sponsors for sports events.
