The Pellucid Perspective - August 2016 - (Page 8)

INDUSTRY SUSTAINABILITY Are there Darwin Awards in golf? Course conditioning needs to be smarter, not lesser By Stuart Lindsay W ith the Nike decision to exit golf equipment and rumors on for virtually all businesses involved in supplying the golf inof Golfsmith's impending Chapter 11, we got the usual dustry. And even though Nike's exit is probably good for the rechorus of journalists wanting Pellucid's data to contrib- maining equipment companies, the evolutionary challenges will ute to another series of drive-by shootings targeting the golf in- remain. The need for product innovation and a commitment to dustry. Contrary to our contrarian reputation they are generally excellence in quality and service remain relative constants as funsurprised when we point out facts that indicate golf isn't even damental factors for successful business evolution. close to terminally ill. While it may seem unrelated, in between journalists talking There's no denying that the golf industry has issues, but de- about Nike and Golfsmith, we've had some recent discussions remand for golf is not going to disappear. We are definitely in a garding the evolution of golf course conditioning recommendasituation that accentuates the Darwinian theory of survival of tions coming from the USGA Green Section and other industry the fittest, but that is a struggle that all industries and businesses organizations. In one case a superintendent had apparently exface. Acushnet/Titleist/FootJoy is reporting very good results plained the "browning" of several fairways as simply following the and deserves good reception to their loomnew "firm and fast" guidelines being proing IPO. As the golf courses in moted by the Green Section, even though From what we read, Callaway is relativecourse had invested in its own water the US continue their the ly stable and profitable. TMag Golf may be source. One defender trotted out the usual for sale, but they say that their golf division line of how Augusta National had distorted version of survival of is profitable in 2016 and, as part of a public expectations for playing conditions. the fittest, it needs to golfers' company, they can't really lie about things I recently wrote an article for the Michlike that. PING is privately held, but every igan Golf Course Superintendents magabe remembered that indication is that they are gaining market praising the work of two nationally golf course conditions zine share in a couple of categories. We're just recognized superintendents. Both practiced guessing here, but the extinction of Nike are by far the leading "sustainability" long before it was fashiongolf equipment is likely welcome news to and delivered immaculate course concomponent of golfers' able the competitors noted above. ditions at a relatively low cost. We have also As for the Golfsmith situation, they repeatedly stated that the golf industry has perception of a golf outlasted Nevada Bob's, Edwin Watts and been missing a big opportunity in pointing course's value. several other specialty golf retailers. Howout the environmental benefits golf courses ever, they apparently couldn't deal with the provide in terms of air quality and reducemergence of the PGA Superstores, growtion in non-source-point runoff from the ing online sales through multiple channels such as EBay and farmlands they have traditionally replaced. aggressive club fitting programs developed by the major manAs the golf courses in the US continue their version of surufacturers at local public and private courses. We suspect that vival of the fittest, it needs to be remembered that golf course Golfsmith, like a lot of other golf industry businesses, was simply conditions are by far the leading component of golfers' perception hanging on by their fingernails and this year's 8% decline in golf of a golf course's value. If "firm and fast" and "sustainability" are equipment sales was the last straw. simply euphemisms in a campaign to get golfers to accept lesser Some pundits have suggested that Nike deserves one of those course conditions, the industry is taking a risk. In the end, golf wacky Darwin Awards given out annually to the dumbest crimi- courses that have invested in water sources, technology and/or nals for their approach to selling golf equipment in the first place. making wise arrangements will have an advantage. This is being Nike has become a poster child for successful brand awareness proven in drought stricken California, the extensive reclamation building and mass market merchandising, but failed to establish projects in Arizona and an increasing use of gray water in Florida. a meaningful "green grass" presence, which has been a major fac- We would suggest the golf industry will be better served by detor in Titleist's ability to protect its market position over a long veloping progams to deliver the best possible playing conditions period. Others suggest that Nike never really created a "category at the lowest possible expense rather than trying to get golfers killer" such as a "Pittsburgh Persimmon," Big Bertha, a unique to settle for less. Trying to convince a customer to settle for less "pinging" putter or ProV1. when better is available is a losing battle and those that insist on Whatever the reasons, the Nike and Golfsmith situations fighting it might find themselves eligible for a mention in the n simply serve as more evidence of the Darwinian struggle going Darwin Awards. 8 The Pellucid Perspective August 2016

Table of Contents for the Digital Edition of The Pellucid Perspective - August 2016

Toc
Jay Karen's NGCOA agenda: A movable feast
RIP Nike golf equipment
Are there Darwin Awards in gold?
Golf (isn't dead) - It's alive and kicking
Golf weather impact: July down slightly; June utilization gains
Steel City market not black, but not gold either
A golden opportunity for golf? Maybe not.

The Pellucid Perspective - August 2016