In my point of view I think that it all has to do with the hunt for the "Fast Buck". Both sides were not looking at the "Big Picture" of the complete golf landscape--I like using the word landscape too, especially when it is appropriate to golf--but were instead focused on turning a "Fast Buck". Nike wanted to secure a share of that golf golden cow and Addidas wanted to get into the golf profit river as fast as they could. Nike put all their chips on a marquis name and Addidas put their hopes on a well known golf name. What happened? Nike is dropping out--more like running from--the golf business and Addidas wants to sell off TaylorMade. So much for the "Fast Buck".
After Tiger Woods won his last U.S. Amateur, it was announced that Titleist was going to give him a ten million dollar deal for signing with them. They also announced the forty million dollar deal he signed with Nike. I truly don't blame Tiger for working out these deas and I certainly do not blame Nike for signing Tiger. Titleist was a known entity and had a golf infrastructure in place with a whole stable of touring pros who played Titlist products. The average golfer knew Titleist products and the brand was very strong with their products. Nike on the other hand had to build a product from the ground up. It had to manufacture a brand, and that brand was built on Tiger. Unfortunately for Nike, that foundation crumbled with the troubles of Tiger. Who would have also thought that the economy would have gone south and Tiger would have turned up lame. There was no foundation to fall back on. They tried, but Rory and others could not carry the torch.
Addidas bought TaylorMade and that seemed to be a good deal. A couple of things happened here after that purchase. The marketing plan was to come out with a new product every six months to offer the golfing public. New was good and the old was bad. Problem was, new was very expensive. Even before the economy tanked, TaylorMade was beginning to get a bad reputation. Why come out with something new when there were still tons of the old sets in pro shops and sporting goods stores that need to be sold? Not only did the public say no, but it said HELL NO. This was even before the economy tanked. There probably is more to this story, but this played a major role. Consumers didn't want to buy equipment that is going to be out of date virtually the day they buy it.
I find fault with the manufacturers as well. Instead of building their brands for the long run and in case golf did tank, they sold out. Golf is cyclical as is other sports and businesses. Instead of building the industry and building good business foundations manufacturers went for the "Fast Buck" and sold out. Why is Ping so successful? In fact, many of the good smaller companies such as Orlimar were pushed out.
Now golf numbers are down and there are many factors. Yes the economy is a lot to blame but golf's skyrocketing costs have a lot to do with that. Golf grew at a phenomenal rate during the Tiger years, but that bubble has burst. Many bad financial decisions were made and the results were declining revenues in the golf industry.
The golf industry is coming back. The game, unlike what a lot of naysayers are reporting is coming back. Players are returning to the game as prices are going down and there are specials out there. It has to. The industry will lose some players in all areas of the industry and that includes courses as well. But, the industry after the correction will be much stronger. Change can be painful, but it is necessary. One thing is for certain and that is slow growth is good, the "Fast Buck" isn't. That "Fast Buck" can disappear just as fast as it showed up. The vein of golf can dry up leaving a worthless hole in the ground.
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| Nike's last innovative club set design. |
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