When LVMH inked an estimated $1 billion take care of Formulation One late final 12 months, it marked a turning level for the posh firm’s involvement in sports activities.
F1 is essentially the most elite motorsport, with 24 races worldwide. LVMH’s 10-year collaboration entails three of its manufacturers collaborating within the occasions, together with Tag Heuer changing Rolex because the official timekeeper and bespoke Louis Vuitton trophy trunks being gifted to winners.
This previous weekend, as groups have been gearing up for the Monaco Grand Prix, LVMH chief Bernard Arnault visited the Crimson Bull Racing paddock together with his sons: Frédéric, CEO of Loro Piana answerable for the F1 partnership; Alexandre, the deputy CEO of the wines and spirits division; and Jean, Louis Vuitton’s watch director.
Tag Heuer turned the official F1 timekeeper and first title sponsor for the Monaco race. The model has a protracted reference to the city-state, having designed a watch assortment sharing the “Monaco” identify in 1969. It additionally has a complete line of F1-themed watches that may price as a lot as £4,750.
Its timekeeping return, having final been the official timekeeper in 2003, has put the LVMH-owned watch label on consumers’ radars.
“Since the beginning of 2025, traffic is up double digits in the stores,” Tag Heuer’s CEO Antoine Pin instructed Vogue Enterprise. “We adjusted production slightly upward on the car-related models, like the Carrera and the Monaco [to meet demand]. These models are pulling the business forward, which is also why I think the F1 works.”
F1 visibility might reap advantages over time, too. Though its occasions have attracted A-listers all around the world, F1 races have appealed to a youthful and wider demographic, boosting their viewership and curiosity. Netflix’s Drive to Survive present additionally helped make the game really feel extra accessible by providing a glimpse of what goes on behind the scenes.
This bodes nicely for Tag Heuer, which has been rising in traction. It’ll be outstanding at F1 races (some, like Monaco, greater than others), which final the whole 12 months and will probably be one other method for the corporate to flaunt its historic ties with F1.
Tag Heuer’s place jumped within the checklist of high 20 Swiss watch manufacturers by gross sales from fifteenth in 2023 to eleventh in 2024, in accordance with a report revealed by Morgan Stanley and LuxeConsult earlier this 12 months.
“We are in a phase where we establish our role as the timekeeper. In the future, we could focus [our message] on the spectacular aspect of Formula One and the emotions it generates, all that contributes to its ongoing appeal,” Pin stated.
LVMH has made inroads into the world of sports activities in additional methods than F1. The corporate partnered with the Paris Olympics final 12 months, with Chaumet designing the winners’ medals and Louis Vuitton creating the medals trunks encasing them till they have been awarded.
Louis Vuitton was the title accomplice of America’s Cup in Barcelona, a collaboration with the crusing championship that dates again to 1983.
Final 12 months, the conglomerate additionally purchased a majority stake within the soccer membership Paris FC, whereas Chanel turned the official accomplice for The Boat Race within the U.Okay. between Oxford and Cambridge universities.
LVMH and different luxurious gamers might use an injection of pleasure now, particularly as the posh downturn continues whereas a worldwide commerce battle leaves manufacturers grappling with uncertainty.
The intersection of luxurious and sports activities permits luxurious labels to affect completely different teams of patrons by athletes and occasions. If profitable, they may draw bigger audiences, each for the sporting occasion and the manufacturers.
Representatives at LVMH didn’t instantly return Fortune’s request for remark.
This story was initially featured on Fortune.com
