With LA 2028 looming, can the Olympics be a long-term investment for fashion?

The 2024 Paris Olympics have undoubtedly placed the fashion industry in the spotlight. Partnering with the Olympics gives brands unprecedented visibility and maximises marketing budgets, however some analysts have questioned whether direct sales will live up to the hype. But is this truly the primary objective?

LVMH is a case in point. Despite being a top-tier partner, the French luxury group’s direct financial returns seem limited so far. This has raised eyebrows about the Olympics' ability to boost sales. Despite this, the group’s image has skyrocketed: LVMH has been everywhere for months.

When asked about the economic impact, Yann Rivoallan, head of the French Women's Ready-to-Wear Federation, said: "While July was tough for French fashion, the Olympics brought a much-needed boost. Sales started to climb from July 26, thanks to the festive atmosphere."

The Olympics clearly energised the fashion industry then. While it's still early days, initial data from Algolia and analysis by Kantar head of Luxury Insights, Françoise Hernaez, offered some early insights.

Record audience, modest budget

The most striking takeaway from FashionUnited’s conversation with the director of Kantar was that the 2024 Paris Olympics achieved an unprecedented viewership record. And this was accomplished with a limited budget. Nearly 54 million French viewers tuned in to watch the competitions, a historic figure. The organisers' innovative digital strategy allowed them to reach a wider audience, particularly younger generations, as evidenced by the 68.5 million videos viewed in just four days on digital platforms.

What's particularly interesting is that the 2024 Paris Games managed to break all viewership records with a significantly smaller budget than some previous editions, according to Statista data. While Beijing 2008 and Rio de Janeiro 2016 spent 32 billion and 16 billion euros respectively, Paris made do with a budget of around nine billion euros. Although this budget is still subject to confirmation, the difference can be explained primarily by better cost management and a more rational use of existing infrastructure, according to Statista.

A boost in sports product sales

This record audience is also already having a significant impact on purchasing behaviour, particularly by boosting sales in the fashion and sports sectors. According to a recent study conducted by Algolia, a French search-as-a-service platform, 42 percent of consumers are more likely to buy products promoted by high-level athletes representing their country. Collaborations between Simone Biles and Athleta or Coco Gauff and New Balance perfectly illustrate this trend, for example.

Amazon has emerged as the undisputed leader in online sales of Olympic merchandise, outpacing official websites and specialty stores. However, 56 percent of consumers lamented the lack of originality and innovation in the current offerings. In parallel, the resale market is experiencing an unprecedented boom, with a 1083 percent increase in transactions related to the Olympic Games on StockX between June and July, where Jordan 4 Retro SE Paris Olympics sneakers are particularly sought after.

Partnerships and visibility for brands

This edition of the Games provided brands with a unique opportunity to expand their global reach, particularly through strategic partnerships with athletes. Partnerships with athletes, both individual and collective, have been a key lever for brands, allowing them to reach new audiences and strengthen their image during the event.

Brands like Louis Vuitton have leveraged this event to assert their leadership and consolidate their image, noted Françoise Hernaez. "Louis Vuitton has established itself as one of the most iconic partners of the 2024 Paris Olympic Games. According to our Kantar BrandZ study, the French brand is recognised for its elegance and leadership, values that resonate strongly with the sporting spirit. This strategic partnership therefore allows Louis Vuitton to strengthen its position as a global luxury brand and reach a new generation of consumers." Moreover, "with 92 percent of LVMH's sales made abroad, the group's brands have every interest in taking advantage of the international visibility offered by the Olympic Games," added Hernaez.

"Before 2021, it was not permissible for athletes to have direct brand affiliations,"

New rules, new sales

France is not the only country to have showcased its expertise. International fashion brands have also left their mark on this historic event. Ralph Lauren designed tricolour blazers for American athletes, Armani dressed the Italian team, Stella Jean the Haitian team, and Actively Black was in charge of the Nigerian team's outfits. Even some of the more uncharted brands, such as the house of Michel & Amazonka, which dressed the Mongolian team, have been widely talked about on social networks. "The most agile brands are those that manage to partner with these rising talents to strengthen their image and reach new audiences," the director continued.

According to Hernaez, this rise in collaborations is explained by a greater openness of the Olympic committees, offering brands unprecedented visibility linked to the choice of team outfits and partnerships. "Before 2021, athletes could not be directly associated with a brand," he stated.

Economic benefits for Paris and France

The 2024 Paris Games are a catalyst for many sectors of activity, going far beyond the realm of sports. They constitute, or at least have the potential to be, a real engine for the French economy. According to a study commissioned by the IOC, the event could generate between 6.7 billion euros and 11.1 billion euros in economic benefits for Paris and its region over a 16-year period. Beyond this financial impact, the Games helped to strengthen the tourist attractiveness of the capital and to restore its image, particularly after a year 2023 marked by a decline in attendance.

As a true showcase of Parisian luxury, the Champs-Élysées, attracting nearly 300,000 people each day, of which only 2 percent were Parisians, was at the heart of the Olympic Games' stakes. The sporting event offered a unique opportunity to strengthen the international appeal of this iconic avenue and to consolidate France's global influence. Thanks to massive investments, particularly from LVMH, the Champs-Élysées was transformed into a true luxury showroom. Despite the challenges posed by the Covid-19 pandemic or various social movements, rents on the avenue have increased significantly, according to the Kantar director, attracting new foreign investors. These have acquired several iconic buildings, such as the HSBC headquarters, leased to LVMH.

Long-term effects for French brands

What Hernaez highlighted was that beyond official partnerships, French fashion and luxury were particularly showcased, with a lot of efforts made towards Parisian fashion stores. "In the collections and pop-up stores linked to the Olympics, there are many references to French looks of the 1920s, the decade when Paris last hosted the Olympic Games, in 1924. A reference to an interesting Parisian form," analysed Hernaez.

French brands thus have all the cards in hand to experience sustainable growth. While analysts are cautious about the immediate future, the director believes that the growth potential is real in the medium and long term. "I think the ceremonies associated with the Olympics will strengthen the image of French elegance and creation among fashion buyers in the longer term, whether they are big houses or small creators," emphasised Hernaez. "Dior has skillfully exploited the aura of the Olympic Games by offering an already accessible exhibition of dresses worn by renowned stars such as Céline Dion, Lady Gaga, and Aya Nakamura during the Opening Ceremony. At the same time, Daphné Bürki, as artistic director of the opening and closing ceremony costumes, has highlighted emerging creators, such as Jeanne Friot who dressed the rider [of the mechanical horse which traversed the Seine, ed.] or Coperni who dressed Angèle [Belgian singer-songwriter, ed.], thus offering them global visibility and great commercial opportunities."

The 2024 Paris Olympic Games have opened up new perspectives for the fashion industry. While the direct economic benefits are still being measured, the impact in terms of image and reputation is undeniable. Moreover, they have sparked a real resurgence of French elegance. "We are witnessing a resurgence of the dress codes of another era," concluded Hernaez. This return to the source, particularly to the 1920s, is intriguing. Is it a simple reference to the past or a desire to reinvent sporting elegance? Because at the same time, athleisure, identified as the fifth trend by the Heuritech barometer, is being propelled to the forefront. The 2024 Paris Olympic Games have crystallised the emergence of new trends, those that manage to marry heritage and innovation. The question is now, can the impending LA Games in 2028 have the same impact and appeal?