Paris 2024 Olympics: what impact for luxury?

Six months ahead of the Olympic and Paralympic Games, the business outlook for the luxury goods sector is mixed. While Lvmh should benefit from the Premium partnership established with the event, other fashion and leather goods houses and the luxury hotel sector could suffer from a drop in high-end tourism to the capital.

 

Will the Paris Olympics be a good deal only for Lvmh in the luxury sector? While the number one player in this universe should benefit from its status as premium partner of this summer’s competition, the context will not necessarily be favorable for other players in the sector…

With six months to go until the Paris 2024 Olympic Games, there’s no doubt about it: the sporting event will be a privileged showcase for the Lvmh group and its Maisons.

We learned this summer that the luxury giant would be a “premium partner” of the next Olympic and Paralympic Games, in return for a considerable entrance fee (between 150 and 200 million euros, depending on the source).

A great showcase for Lvmh

The group headed by Bernard Arnault will thus be able to multiply its presence in front of the cameras and in the press worldwide.

 

Its flagship brands Dior and Louis Vuitton, as well as its men’s brand Berluti, will be dressing and equipping French Olympic and Paralympic athletes. Its beauty brand Sephora will partner the Olympic Torch Relay. Its jeweller Chaumet will design the champions’ medals. And Moët et Chandon champagne will froth to celebrate the medals.

Lvmh also announced “direct support for certain athletes whose exemplary careers make them ‘Artisans de toutes les Victoires'”. Among the most popular is 21-year-old swimmer Léon Marchand, already a three-time world champion and world record holder.

Last but not least, the luxury giant will also showcase its charitable side through a new initiative with Secours Populaire Français. It will finance membership and courses in a sports association for a thousand children in need.

 

15 million visitors expected

But beyond the emblematic French luxury group, do other players in the sector, whether brands or ultra-high-end hotels, have reason to look forward to the forthcoming sporting event? And with it, the flow of some 15 million people expected to attend the event in Paris?

This is by no means certain, if we are to believe the various echoes gleaned from the press. Holding the Olympic Games could discourage both domestic consumption and the arrival of VIP tourists…

Indeed, it’s not at all certain that the hustle and bustle of the Parisian capital will be conducive to business for lovers of the “luxury, calm and pleasure” triptych.

 

Anticipated Haute Couture Week

It’s true that the Fédération de la Haute Couture et de la Mode (FHCM) had already anticipated the preparations for the Olympic Games in April, to ensure that the industry’s major event – the Semaine de la Haute Couture – would not suffer too much. The organization thus announced that the next autumn-winter shows would be held a week ahead of schedule, from June 24 to 27.

“Most of the usual venues will be occupied by the Olympic Games, whether to host journalists or competitions”, emphasized Bruno Pavlovsky, President of the FHCM and President of Fashion and Chanel SAS.

The FHCM is therefore working with the authorities to identify which of the 200 Parisian venues usually hosting fashion events are likely to be able to host fashion shows during this atypical period.

Bruno Pavlovsky: enthusiastic and realistic



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Read also > OLYMPIC GAMES 2024: FRENCH FRAUD AUTHORITIES TO TIGHTEN HOTEL CONTROLS

Featured photo: © Unsplash

Picture of Sophie Michentef
Sophie Michentef
Sophie Michentef has worked for more than 30 years in the professional press. For fifteen years, she managed the French and international editorial staff of the Journal du Textile. She now puts her press, textile, fashion, and luxury expertise at the service of newspapers, professional organizations, and companies.

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