Luxury brands are embracing sports, with LVMH marking the Olympics.

• The Paris 2024 Olympic and Paralympic Summer Games will receive a 150 million euro ($163 million) investment from LVMH.
• Luxury fashion is gaining a foothold in the sports world, with LVMH leading the charge and partners like Naomi Osaka and Victor Wembanyama on board.
• As luxury spending slows, linking to the world's top sporting events could benefit LVMH.

The 2024 Paris Olympic and Paralympic Games have showcased luxury, with Moët champagne poured to celebrate wins and custom Louis Vuitton trunks for medal ceremonies.

For Carly Duguid, the ideal blend is luxury fashion and athletics, as she is the creative director for tennis and fashion star Naomi Osaka.

Duguid stated on CNBC that athletes and brands share a strong parallel in their dedication to quality and excellence.

In the era of influencers, fashion has swiftly adopted the sports world and positioned athletes as fashion influencers. These international celebrities assist brands in reaching a fresh audience of fans and potential customers.

Louis Vuitton's roster now includes Osaka, Victor Wembanyama, Carlos Alcaraz, and many French Olympians and Paralympians.

Luxury designers are not only outfitting national teams for the opening ceremony of the Olympic Games, but also creating ambassadorships with athletes and featuring them in billboards and advertisements.

LVMH has become the first luxury brand to sponsor the Olympics, going beyond traditional athlete partnerships.

LVMH, the parent company of luxury brands such as Celine, Louis Vuitton, Loewe, Sephora, and Dom Perignon, has invested roughly $160 million in the Olympics, which is approximately 1% of their 2023 profits. This investment has provided luxury touchpoints to the Games, including the Chaumet-designed medals, French athletes wearing Berluti-designed outfits at the opening ceremony, and medal bearers wearing vintage-style, distinctly French LVMH uniforms.

LVMH financials, luxury buying, and Olympic growth

As luxury spending slows, linking to the world's top sporting events could benefit LVMH.

Despite missing its second-quarter sales and revenue targets, LVMH's luxury sector is still facing challenges due to decreasing global demand, which is largely attributed to increased financial instability and a shrinking market of "aspirational" consumers.

According to Milton Pedraza, CEO of The Luxury Institute, athletes at the Olympics will inspire new potential buyers to purchase LVMH branded items instead of settling for "no-name belts."

Now, luxury brands focus on providing exclusivity while also promoting inclusivity, offering a range of sports such as tennis and sailing.

"Today, many wealthy individuals are athletes, actors, and social media influencers, which has led to the idea that anyone, regardless of their race, creed, gender, or background, can participate in luxury if they attain the economic ability," Pedraza stated.

A new era of luxury in athletics?

The Opening ceremony of the global Games was infused with French glamor, thanks to LVMH's involvement, but the brand's influence extends beyond French culture.

Luxury brands extend out by promoting shared culture through sports, fashion, and luxury.

On the eve of the opening ceremony, Osaka was present at a star-studded party at Fondation Louis Vuitton in Paris, alongside Lebron James, Serena Williams, actors, artists, and other business tycoons, all wearing pieces from LVMH brands.

The Games presented a "great chance" for athlete ambassadors to demonstrate their support for their LVMH partnerships and celebrate the start of the Games.

Duguid stated that LVMH's presence will be felt in every vein of the Games, as every medal tray brought to the champions' podium follows the checker pattern that has long defined the brand.

NBCUniversal, the parent company of CNBC, owns NBC Sports and NBC Olympics. NBC Olympics holds the U.S. broadcast rights to all Summer and Winter Games through 2032.