Counterfeit soccer jerseys cause billions in losses.
More than 150 million counterfeit sporting goods items were sold last year, according to a study commissioned by the Association for the Sporting Goods Industry and Trade (Ápice).
247 - The Research and Consulting Intelligence (Ipec) reported that 60 million soccer team shirts were sold in Brazil in 2021, with 22 million being counterfeit. The study was commissioned by the Association for the Sports Industry and Commerce (Ápice), an entity formed by companies in the sports products sector worldwide, including Nike, adidas, and Puma. The companies' revenue from the sale of sports products, including items such as tracksuits and sneakers, was R$ 9,12 billion last year, while their losses amounted to R$ 9 billion. More than 150 million counterfeit items were sold. Losses from soccer products alone reached R$ 2 billion in 2020, according to the National Forum against Piracy and Illegality (FNCP).
According to information published this Tuesday (13) by newspaper The State of S.PauloStreet vendors have a small reach compared to online commerce. Ápice monitors product availability almost in real time, in partnership with a company specializing in digital commerce.
There are over 17 sellers, such as Shopee Brazil, that sell counterfeit sporting goods both within and outside the country, with more than 100 links and six million items in stock.
"If you search for 'national team jersey' you'll even see videos of factories abroad counterfeiting these jerseys to put in the hands of Brazilian consumers at a very low price," says Renato Jardim, executive director of Ápice.
Nike sells the Brazilian national team jersey in two versions. The more expensive one, defined as the fan model, costs R$ 349,99. The Supporter version costs R$ 249,99. The pirate version (described as high quality on Shopee) can be found for R$ 96,99. The same applies to the models of the four major São Paulo teams - Corinthians, Palmeiras, Santos, and São Paulo.
The Corinthians jersey, identical to the one worn by the players, is sold by Nike for R$ 599,99, with a fan version for R$ 249,99. The Palmeiras jersey, by Puma, costs R$ 399,90 in the player version and R$ 299,90 in the fan version. Umbro has two options for Santos' uniforms: R$ 359,90 and R$ 299,90. Finally, São Paulo, by adidas, sells its jersey for R$ 299,99. Counterfeit versions of the four teams' jerseys are delivered, on average, for R$ 50.
"How is that (shirt) "Does it enter Brazil and reach the consumer without paying any taxes?", questioned Renato Jardim, citing Mercado Livre as an example of combating the trade in counterfeit goods. "Websites need to be proactive, active, and reactive to curb this trade. The platform cannot allow itself to be taken over by people who are committing an illegal act. There is no effort to identify and suspend offers and sellers as happens with other platforms," he added.
According to Renato Jardim, "there is no silver bullet that can solve or drastically change the scenario of counterfeit sporting goods," but he understands that "joint measures can help" in combating the trade of pirated jerseys.
Tax policy is one of them. "The price difference between the original product and the pirated one is one of the elements that generates this large-scale commercialization. The relevant part of the original price is in the taxation. You need to have an adequate tax policy precisely because you know that this product is a target for piracy. Those with less purchasing power also want access to the product," explains Renato Jardim.
Currently, the production of shirts is subject to ICMS (State VAT) and IPI (Federal Excise Tax) upon leaving the manufacturing establishment. On sales revenue, the manufacturer pays IRPJ (Corporate Income Tax), CSLL (Social Contribution on Net Profit), PIS (Social Integration Program), and Cofins (Contribution to Social Security Financing). Those who produce pirated goods pay no tax, much less invest in technology and marketing.
According to Rafael Marin, a tax lawyer and professor of undergraduate and graduate studies in tax law, "it is a very big challenge for clubs to lower the cost and make their products more accessible, since several measures depend on the government, such as, for example, granting tax benefits or reducing taxation."
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