Nike Inc (NYSE: NKE) signed a deal with CBP (Customs and Border Protection) to stop the entry of counterfeit products into the US.
Nike will provide technology to CBP to scan for counterfeit products at consignment express and mail facilities.
In a communiqué to Fox Business, a Nike spokesperson said the company partners with CBP to allow genuine products and prevent the entry of fake products into the US.
CBP seizes 26,503 consignments
CBP seized 26,503 consignments in 2019. Its value could have been $1.3 billion if they are legitimate. Counterfeit products are a menace in the US.
Among the counterfeit products, clothing accounted for 15%, while jewelry and shoes account for 12% each. Balance counterfeit products include toys, pharmaceuticals, wallets, handbags, electronics, and other goods.
Nike is the victim of scammers. CBP seized counterfeit Nike shoes (14,806 pairs) in Los Angeles in 2019. The value of genuine products could be around $2.247 million. Chinese exporters put the wrong label of napkins on the consignments to mislead the authorities and prevent detection.
According to CBP, counterfeit products pose a serious national security issue besides hurting American businesses. Criminal organizations use proceeds of counterfeit product sales to fund their illegal operations.
Deputy Executive Assistant Commissioner (Field Operations) of CBP, Diane Sabatino, said the alliance with Nike strengthens its efforts to safeguard national interest and optimize its resources.
Naomi Osaka introduces NKE apparel capsule
Naomi Osaka, the tennis superstar, unveiled her NKE apparel capsule just in time for the French Open 2021. NKE apparel comprises Osaka hand-designed mesh bodysuit, a crop top, hoodies, shirts, and T-shirts.
Osaka said she like to foresee things as unpredictable. What she wears reflects her thinking. She would like to try a mix of designs. Nike focuses on signature collections for girls and women in sports.
Osaka can utilize the alliance with Nike to inspire the girls using her voice in sports. She can share her sports experience and the latest trends in materials to design shoes for the playground.
The demand for sports footwear
The market for sports footwear is $102.76 million in 2019. It expects to grow at a CAGR of 4.1% between 2020 and 2027.
Sports footwear offers required traction, motion control, stability, and flexibility. They find wide usage in golf, hockey, football, cricket, and ball sports.