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Competion Cemmisalon prebes Nike after retallers' replica Bok Jersey scrum

The unamed retales say they are being untaily prevented from selling the oflicial gasar. whense Nexe Springbok forgby replica jersey because hey are only arailable in limited quaritites at a tiny selection of adets.

Dow to rights issues, only a small number of retalers ane allowed to stock them and, in South Africa, that means the SA$.$

Nike $-$ the sole manufacturer and distributor of the official Springbok Rugby jersey $-$ permits only selected outlets to stock the rugby replica goods.

The Competion Commission has now launched an imvestigation into the global sportswear giant afer independent retallers complained about Nike's refusal to allow them to sell official Springbok Rugby replica jorsoys.

The independent sportswear suppliers have not been named $-$ apparently out of fear of victimisation.

They hawe accused Nike of violating the Competition Act by agreeing to eoclusive distribution of the shirts with only certain retalers $-$ a restrictive arrangement its predecissor, Asics, did not have during ils parthership with SA Rugby.

The commission's Siya Makunga confimed that they had launchod an irwestigation, but could not comment further. The new corrplaint was lodged on $5$ Septomber.

Protecting the brand

Meanwhile, the South African Rugby Union $($SARU$)$ has moved to protect the Springbok brand. On $15$ September, it secured an interim court order restraining Eskort's 'Sprogbox' marketing campaign.

SARU has also dosed orline retalers of counterfeit apparel, who have tried to cash in on Rugby World Cup fever. Rian Oberholzer, CEO of SA Rugby, wamed: $"$We will do what we have to do to prolect our rights and those of our highly valued partners, who are being shamelessly ambushed right now.

$"$We cannot allow companies to flagrantly leverage their brand ofl the back of the Springboks brand when our real supporters in corporate South Africa $-$ who enable us to put the Springbok rugby team on the field $-$ are paying for the rights to use our IP:$"$

The new deal

Last year, after SA Rughy's contrect with Bsics expired, the team announced it had signed a six$-$year contract with the American brand to supply the Boks playing kit and other apparel, including the Whe mpec.ade' away jersey.

The deal which inclubes the $2023$ and $2027$ Rugby World Cups, will see the Nike "Swochl' respear on the Soringlok jeney. Nike was ithe inam's appared parther once before, between $1996$ and $2003.$

At the line, Jurie Roux, the CEO of SA Rughy, salid: $"$We enjoyed a great relationchip with Asics and really appreclate the contribution that the company made over the past elight years.

Trs ahailys sad to see a valued partner depart but we understand that business strategies shift over fime and we with Aslcs well in its continued joumey in South Atrica."

The Nekebranded official Bok jerseys were tevealed in July $2023.$

Independent retaler Dik Klopper of Koppers Sport $-$ who is not invilved in the latest complaint to the commission $-$ lodged a complaint in $2019$ after Nike sent independent stores tike his a letter informing them that it would be dosing their accounts because they didn't the profle.

We were discontinued as a slockst of Nike products in $2019,$ after $30$ years of stocking their product, growing their business and were suddenly informed that we dont meet the criteria of Nike's business strategy going forward and so we can' stock Nike products," Kopper explained, saying the decision to distribute only to larger stores was tantamount to bullying.

In his case, the Competition Commission investigated but opted not to pursue the maller because Nike wasn't viowod as "dominant" in the market as it had less than $35\%$ market share.

Nike's bet on a direct to consumer strategy, in which it owns the customer relationship, effectively meant culting out the smaller, mostly specialised sports stores like Koppers that previously stocked its goods.

Sold like hotcakes

On Tuesday, Kacoer told Cace T$8$ that in the past, when Asics was the sponsor, they had no problem with slocking Springbok jersoys, and when the Boks won, there was a special vibe in the store.

"I think the product was better $...$ and it wasn't as copensive as it is now."

This year, the hot ficket items at Koppers Sport are locally manulactured Old School supporters' jerseys, without the official Springbok branding.

But most customers just want the cfficial jersey, Kopper said, which reflects poorly on his business.

"Everybody asked me why I cant sell Nike and when I try to eoplain it to them, they don't understand."

Klopper said all South Africans should have access to the national rugby team jersey at a reasonable and aflordable price.

His chain of sports stores has a reputation for selling quality products and would love to carry Nike, he says.

Focus on direct to consumer sales

In $2017,$ Nike slashed the number of global r