Driving Luxury: LVMH’s Bold Move into Formula 1 Sparks Debate

• The luxury holding company is deploying many brands to advertise in F1 for a nine-figure-per-annum deal slated to run for a decade.
• Unlike the other brands, this visibility-first approach unexpectedly generated a debate about whether it conflicts with LVMH’s tradition of exclusivity.

A groundbreaking move by the luxury goliath, LVMH, has shaken the motorsport world, announcing to the fashion and business worlds the arrival of a large, decade-long, “nine-figure/million-dollar” per annum, high-profile brand sponsorship accentuating its tenacity. With the brands Louis Vuitton, TAG Heuer, Moët et Chandon, and Belvedere used and thrown aside as mere creature comforts, LVMH is certainly leaving its mark. However, not everyone is convinced that they are here for the right reasons.

The Greatest Luxury

Louis Vuitton served as title sponsor of the season opener in Australia… with extensive camera-facing signage around the circuit including on crash barriers, pedestrian bridges, signposts, starting lights, grass and podium. The actual podium itself read like an LVMH shrine, undoubtedly featuring the Moët & Chandon logos, champagne bottles for the drivers, and a very prominent “Victory Travels in Louis Vuitton” display complete with its exclusive trophy trunk made especially for the race.

TAG Heuer, which replaced Rolex as the official timing partner of F1, made its noise. The design of its trackside clock was inspired by a particular watch within its classic collection, the 1986 Formula 1, all to imbue a vintage look, Louis Vuitton is using a specialized new logo for its F1 advertising. The usual interlocking ‘L’ and ‘V’ monogram is slightly blurred to give it a whoosh – a sensation of being in motion.

Backlash over a Distinctive Takeover

While the trackside spectacle that LVMH has engineered turned heads, it also attracted its fair share of friction. There have been some within the industry to argue that a flamboyant spectacle is not the way to go in the realms of the luxury brand field and that a huge gaping distance has emerged between these kinds of boldness and the exclusivity and understated cachet that LVMH brands have come to imply.

Ricardo Fort, a longtime sports marketer” in a proper way, a way that enhances brand partnerships and does not detract from them,” wrote on his LinkedIn page that Louis Vuitton’s trackside signage ‘feels wrong’ and ‘off brand. He felt that branding could be, and must be, very subtle, manifesting only subtly in the backdrop while “letting the event be the star.” Fort praised other LVMH approaches – a Vincent Van Gogh-inspired musical experience at the Paris Olympics and the petite scale where Louis Vuitton held a luxury sponsorship for the NBA, of which he knew nothing until the afternoon he called NHP.

But the schism parties added to it. Tennis Australia’s,  Global New Partnerships Manager Nick Sloman replied to Fort, ‘From attending the race, the branding execution was really strong and walkability high, high visibility, the talk of the town.

Making the Best of the Partnership

It isn’t just LVMH that Rhino’s tag team moves globally. TAG has also started advertising the F1 partnership with retail point-of-sale displays, including in the U.S., while Louis Vuitton has designed a unique trophy trunk for every Grand Prix. Leading drivers stand upon these double luxury trunks for memorable cross-ferry moments that combine motoring with high fashion.

Chinese actor Gong Jun posted pictures on his Weibo account of himself at the track wearing Louis Vuitton apparel, apparently a guest of LVMH. Resolver of many thus-far unknowns, and this huge attention has drawn the brand closer to the main players in China’s luxury market.

Luxury Inside the Track 

LVMH entering Formula 1 is certainly bigger than just being a sponsor – it’s a real statement. It’s betting on the growth of F1’s global appeal to lure in a wider, younger audience.

While some critics argue that this blossoming brand assault will weaken their luxury visibility by watering it down, LVMH seems fairly secure that the gamble will pay off. One thing is certain: no matter whether you love it or revere it, you just can’t ignore it.