What are the defining characteristics of the golf equipment industry?
Defining characteristics for the golfing industry focus mainly on innovative technology and name or brand recognition. Golf companies essentially sell the same products, so they need to differentiate their products through technological advances such as size, weight, swing velocity, and distances. Research and development is essential to any golf company wanting to stay ahead of competitors. Fortunately for them, golf as a sport attracts mostly upper middle class to wealthy consumers of the economy so the industry can focus on quality with the assurance of high-end sales. Unfortunately for them, because of the expense of golf, when the economy falls, so do sales of golf equipment.
Due to the maturity of the market, golf companies are turning to different aspects of the economic market instead of focusing only on clubs and golf balls. International interest in the game of golf has helped to turn the maturing sport into higher profit margins when adding overseas sales, and a new focus on younger generations (and ultimately their large amounts of disposable income available to them through credit cards) has helped to promote the sport to confirm long-range interest in the golf equipment market.
Golf companies commonly gain brand recognition by hiring professional golfers to promote their products because testimonials by well-known golfers can be one of the most effective forms of advertising for a company. This promotion comes in many different forms by requiring golfers to not only carry golf clubs and balls, but to wear clothing with a company’s logo inset. Golf companies ultimate goals are to sell the higher end items, such as golf clubs, and brand recognition helps bring consumers to the door step for that to