Luxury brands embrace sponsorship to connect with young consumers

Despite this heritage, however, it’s notable that luxury brand sponsorships are having something of a purple patch. A far cry from the ‘chairman’s whim’ sponsorships that used to be a major feature of the sector, luxury partnerships have emerged as one of the business’s most dynamic and creative segments in recent years. 

So why does luxury goods sponsorship feel so vibrant right now? Well it doesn’t do any harm that the luxury goods market continues to grow apace. While most of the world is stuck in a permanent cost of living crisis, luxury goods defies expectations. One report predicts the sector will reach US$579.3bn in revenues by 2030. 

But just as important is that the profile of luxury goods consumers is shifting. Increasingly, young audiences (including sports fans) are becoming interested in owning luxury items – a trend that neatly dovetails with the luxury sector’s own growth ambitions. This has brought new communications channels and immersive experiential activations into play – with sponsorship a key beneficiary.

At the same time, this new wave of consumers has a more complex set of demands from luxury brands than their predecessors. While still attracted to prestige and quality, they also want to support brands that champion sustainability, wellbeing and inclusivity. Again, this plays into sponsorship’s wheelhouse. 

Here are a few examples and themes that illustrate the current market: 

LVMH and Formula 1: LVMH signed a US$1bn, 10-year global sponsorship deal with Formula 1 in late 2024. The deal takes advantage of F1’s unique ability to deliver both audience scale and brand aspiration. The beauty of the deal for LVMH is that it can activate all of its key brands through F1 (eg Louis Vuitton, Moët Hennessy, and TAG Heuer). It can also select a broad array of activations ranging from classic corporate hospitality to limited editions products to content marketing.

Chanel and the Oxford-Cambridge Boat Race: Chanel signed a deal to become the title sponsor and time-keeper of the Oxford vs Cambridge Boat Race in 2024 – renaming the event as ‘The Chanel J12 Boat Race’ (after Chanel’s iconic watch model). This is reckoned to be Chanel’s first-ever sports sponsorship deal and is a good indicator of the shifting dynamics in the luxury sector. Explaining why it chose the Boat Race, the emphasis has been shared values such as the pursuit of excellence and the importance of collective effort. Chanel has also sought to link the precision required in rowing and that of high-precision watchmaking.

Burberry and The Victoria and Albert Museum: It’s not unusual for luxury brands to support the arts. But Burberry’s decision to support the transformation of the Fashion Gallery at the V&A is a major statement. The partnership will see the gallery redeveloped and renamed The Burberry Gallery upon reopening in spring 2027. The deal is a way of consolidating Burberry’s status as a pillar of British heritage (both brands were founded 150 years ago). But it also has a future-facing dimension. The new Gallery will be “a participatory space”. There will be “a wide-ranging activity programme onsite, offline and online, offering a world-class learning experience”.

Louis Vuitton and Real Madrid: This is another deal that maybe wouldn’t have happened a decade ago – and it hints at two trends. The first is the premium-isation of football – with clubs like Real Madrid now viewed as sporting royalty. The second is the growing presence of footballers and their families as social media celebrities. With so much attention on their lifestyles, they have become a great way to deliver brand messaging. This particular deal is a multiyear partnership across both men’s and women’s football teams, plus basketball. LV will provide formalwear, luggage, and accessories for the teams during travel and institutional events.

Dunhill and the Royal Philharmonic Orchestra: Another new partnership, luxury menswear house Dunhill sees it as a celebration of British heritage, classic artistry and cultural excellence. In addition to serving as official luxury clothier to the RPO, the two-year partnership sees Dunhill and the RPO come together for experiences ranging from private concerts and intimate performances to global cultural moments.

Cartier and Venice International Film Festival: Launched in 2021, this partnership is about supporting contemporary cinema. Key elements include the Cartier Glory to the Filmmaker Award, which recognises an outstanding filmmaker's contribution to the film industry. The partnership is a good fit, given Cartier's long-standing connection to arts and culture. It has included exhibitions featuring Cartier's iconic pieces with cinematic connection (a famous example of this link is the diamond bracelets worn by Gloria Swanson in iconic movie Sunset Boulevard). Film Festivals make a lot of sense for luxury brands. As a second example, French fashion brand Ami Paris became the main sponsor of Critics’ Week at the 2025 Cannes Film Festival.

Dior and Paris 2024 Summer Olympics: Dior parent LVMH had a wide-ranging partnership with Paris 2024. Under this umbrella, Dior signed numerous athlete ambassador partnerships which illustrated the changing face of luxury. Alongside a fencer and a tennis player (which you might expect), there were boxers, skateboarders, surfers and soccer players in the Dior line-up. Dior did another interesting thing at Paris 2024, creating a floating spa. This was an astute recognition that luxury, beauty and wellness are growing hand in hand.

Ralph Lauren & Wimbledon/US Open/Australian Open: Okay, so this isn’t a new set of sponsorships. But it is interesting because of the way the brand has evolved its activity. The shift towards more of a design/fashion role is a no-brainer. But there is also a much stronger social purpose dimension to the partnerships these days. For example, for the 2025 US Open renewal, Ralph Lauren and the US Tennis Association established an annual fund to support youth tennis in underserved communities. Meanwhile, sustainability has moved centre-stage. As an example, the brand used fabrics made from recycled plastic bottles for Australian Open uniforms. Ralph Lauren isn’t the only luxury brand to embrace consumer concerns about the planet. Swarovski optics division, Swarovski Optik, is a partner of wildlife conservation charity WWT, sponsoring wetland habitat work and providing optics equipment. Champagne brand Telmont, meanwhile, partners the UIM E1 World Championship (all-electric powerboat racing series). Telmont’s vision of ‘In the Name of Mother Nature’ dovetails with E1’s focus on electric racing and environmental consciousness.

Final Thought: Luxury meets social purpose

Finally, not to be overlooked, luxury brands have great stories to tell. They generally have historic associations with celebrities and events – or a rich cultural heritage. They can also sign up today’s talent at the drop of a hat. This access to engaging stories and characters dovetails neatly with branded content and sponsorship.