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Competion Cemmlsalon prebes Nike after retallers' replica Bok jersey scrum

The uncamed metales siry bay ave being untalty prevented from selling the ofllcial gasar. ackes.

Dow to rights issues, only a smal number of retallers 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 rugty replica goods.

The Compestion Commission has now launched an irvestigation into the global sportswoar giant afer independent retalers complained about Nike's refusal to allow them to sell efficial Springbok Rugby replica jorseys.

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

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

The commission's Siya Makunga confimed that they had launched an irvestigation, but could not comenent further. The new complaint was lodged on $5$ September.

Protecting the brand

Mearwhile, the South African Rugby Union $($SARU$)$ has moved to protect the Springbok brand. On $15$ Septerrber, it secured an intarim court onder restraining Eskorts "Springhox' marketing campaign.

SARU has also dosed orline retalers of counterleit 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 off 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 Rugby's contrect with Asics expired, the team announced it had signed a six$-$year contract with the American brand to supply the Bols playing kit and other apparel, including the 'uke mpeciade' away jersey.

The deal which includes fhe $2023$ and $2027$ Rugby Word Cups, will see the Nike "Swookl' respear on the Spinghok jerog. Nike was ithe lam's apparel partner once before, between $1996$ and $2003.$

At the time, Jurie Roux, the CEO of SA Rughy, said: $"$We enjoyed a great relationctip with Asics and really appreclate the contribution that the company made over the past eight years.

Trs ahays sad to see a valued partner depart but we understand that bushess strategies shilt over lime and we with Aslos well in its continued joumey in Soith Arrica."

The Nike$-$branded official Bok jersoys were tevealed in July $2023.$

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

We were discontinued as a slockist of Nike products in $2019,$ after $30$ years of slocking their product, growing their business and were suddenly informed that we don' meet the criteria of Nise's business strategy going forward and so wo cant stock Nike products, 'Kopper explained, saying the dectision to distrlbute only to larger stores was tantamount to bullying.

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

Nibe'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 proviously stocked its goods.

Sold like hotcakes

On Tuesday, Klocoer lold Cace Ts$\text{'}$ that in the past, when Asics was the sponsor, they had no problem with slocking Springbok jerseys, and when the Boks won, there was a special vibe in the store.

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

This year, the hot ficket litems at Koppers Sport are locally manulactured Oid School supporters' jerseys, without the olficial Springbok branding.

But most customers just want the official 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 allordable 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 retail partners to better focus on direct to consumer sales. By September $2021,$ it had "exited about

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