News
ANALYZE THIS: SERIOUS GOLFERS’ HABITS
6/7/2003
“They’ll have to advertise and promote aggressively, and I mean ads for golf equipment by itself, not packaged with a treadmill.” John Krzynowek A 46-year-old golfer, who plays 67 rounds annually and enjoys a household income of $91,000 per year, sits at his laptop computer and searches the Internet to do a little homework for a new driver he’s itching to purchase. He scans the Web sites of Callaway, Titleist and TaylorMade – even takes a quick peek on eBay to see if any good deals might be had. But ultimately, he decides to swing by his favorite off-course retailer to make the buy. Sound familiar? It should. This is a profile of a serious golfer. The statistical portrait, so to speak, was gleaned from a new report about the critical population of 6 million to 7 million serious golfers who account for as much as 80 percent of all U.S. golf equipment sales (measured in dollars). The 2003 Golf Retail Channel Segmentation Report- a Golf Datatech LLC research firm study commissioned by Golfweek – surveyed nearly 3,000 serious golfers to capture empirical data about the type of equipment they purchase, and where and why they buy. Among the more interesting findings is the reemergence of the Internet as a viable retail channel for this audience. Though quickly written off by many industry observers following the “dot.com bust,” the Internet not only is providing information but purchasing opportunities for serious golfers. Many of the respondents perceive the Internet channel (retail or auction site) provides them with a wide product selection at a good price. For example, 18 percent of serious golfers said Internet retailers have the best prices for new irons and 12 percent said it has the best selection of new irons. Both answers placed the Internet second among all retail channels. Perhaps, more significant, Internet retailers were rated as having the most “channel momentum”- measured by a ratio of serious golfers’ last and next purchases – for irons and drivers. “Internet usage by golfers under 40 was the highest … Obviously they’ll get older and become more important (as part of the buying public), and it’s logical to think they will make Internet retail and auction sites even stronger,” said John Krzynowek, a partner as Kissimmee, Fla.-based Golf Datatech. But the Web’s growing prominence isn’t likely to prompt new golf e-tailers to rush the Internet the way they did a few years ago. Instead, Krzynowek expects those who already have “established significant equity in their franchise” will capture more market share. The most used Internet sites for equipment purchases were golfsmith.com (37 percent), followed by eBay.com (34 percent), tgw.com (33 percent) and edwinwatts.com (25 percent). Nor should Internet acceptance be interpreted as a green light for equipment manufacturers to sell directly to consumers online. “It still will be very difficult considering the risk of alienating existing (retail) channels,” Krzynowek said. That includes off-course stores, which survey participants selected as their preferred place to buy all equipment. For example, when asked where they expect to purchase their next driver, 47 percent of serious golfers cited off-course specialty stores, followed by on-course shops (22%) and Internet retailers (10%). Their next iron set purchase received similar responses. “It’s been a difficult three years for off-course retailers, considering the state of the economy and other challenges,” Krzynowek said. “But for those left standing, things will likely get better for them. Consumers still regard them as the place to go.” On the other hand, sporting goods stores have yet to resonate with serious golfers. Only 10 percent of survey respondents said they shop in sporting goods stores more than once every two weeks. By comparison, 17 percent of serious golfers shop as frequently at off-course stores and 33 percent do so at on-course shops. But sporting goods stores’ low approval rating – mostly because of a lack of premium brands – also signal a considerable growth opportunity for them. That may help explain why several major chains have announced their intent to become authentic and success golf retailers. Changing serious golfers’ perception about sporting goods will be difficult, considering how little they frequent such retail outlets. Nevertheless, a committed effort including better inventory, demo capability and the hiring of knowledgeable sales people could greatly elevate the stature of sporting goods stores in the golf industry. The most notable example of such a transformation: Dick’s Sporting Goods, which has established itself as a leading seller to serious golfers. “It’ll take a considerable investment and a new mindset,” Krzynowek said. “They’ll have to advertise and promote aggressively, and I mean ads for golf equipment by itself, not packaged with a treadmill.”
