French luxury goods giant LVMH is said to be close to inking a massive sponsorship arrangement with Formula One, which will be a high-risk, aggressive move for the group’s brand portfolio of luxury goods and other items. This possible partnership illuminates the recent phenomenon of luxury brands’ desire to associate themselves with the glamour and International appeal of the world-class sports.

This is reported to be involving a number of LVMH brands whereby select luxury brands like Louis Vuitton, Dior or Hennessy could be showcased at F1 events across the globe. This tactical maneuver arises at a time when more and more premium-positioned brands seek to leverage sports connections in order to identify and speak to wealthy international consumers and to bolster their own profiles.

Given the nature and an international calendar of Formula One and its associations with luxury and precision, it is the perfect stage for presenting LVMH’s brands and their values. Being the favourite sport of millions of people across the globe and having a larger percentage of rich people, it is definitely the right platform to advertise and promote luxury brands.

Some of the scholars in this industry opine that this partnership is likely to transcend sponsorship systems in the industry. There is anticipation that some LVMH brands shall form partnerships with Formula One teams that may include marketing a limited edition merchandise, giving privileged customer experiences, and even creating marketing stunts during races.

The time factor is however interesting as this deal might be taking place in the middle of the numerous economic challenges affecting luxury industry and shifts in customer preferences. This leads to the conclusion that with the acquisition of Formula One LVMH may expect bonding of expected aspirations with future related to experiential luxury and impact of global sporting events.

This move by LVMH could also lead to further deals between other luxury conglomerates and brands and other high profile sports. Even the luxury segment has moved ahead and got engaged for sponsoring sporting events and wearing apparels and accessories for tennis events for watches, and fashion apparels for team and players for fashion brands.

With talks said to be on an advanced level, the luxury and sports industries are said to be waiting for the clearance to give the necessary go ahead while preparing to shift marketing strategies in both industries. This partnership could be of great success and future market strategy frontier for luxury brands since it creates an opportunity to change the conventional approaches of the luxury brands when it comes to sports sponsorship.