The Office for Harmonisation in the Internal Market (OHIM) has released a report detailing the economic cost of counterfeits within the sports goods sector.
The products deemed by OHIM to be within this sector mainly consist of sporting equipment such as golf clubs, tennis rackets and balls, skis, etc. Goods which can be worn as normal clothing were excluded from the study, on the basis that they were better categorised within the clothing and footwear sector.
The report estimates that the industry loses approximately €500 million of revenue annually as a result of fake goods in the EU market place – a figure which represents 6.5% of the sector’s overall sales. The biggest impacts of counterfeit goods were seen in France and Spain, which together accounted for a third of total EU lost sales. The figure in the UK was slightly lower – at an estimated 10%.
It is also estimated that other sectors of the economy lose a further €361 million per year due to the consequential reduction of cross-selling of goods between industries.
The report, which is available in full here, is the third in a series (previous studies have investigated the (i) cosmetic and personal care and (ii) clothing and footwear sectors) and serves to emphasise the importance of strong, effective brand protection strategies in the modern market.