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How Long Can TaylorMade Dominate the Industry?

BY Tony Covey
Oct 1st 2013
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Written By: Tony Covey

Will TaylorMade Stay On Top?

Yesterday evening on Twitter and Facebook we asked a very simple question:

For how much longer do you think TaylorMade will dominate the golf industry?

Technically I rephrased the original question, but you get the gist. It goes without saying that “dominate” carries a bit of ambiguity.

Does dominance mean they ring the register at a significantly higher rate than anybody else? Does dominance mean the continued absence of a clear #2 or serious threat to the empire?

For me it’s a bit of both, I suppose.

Predictable Response

As we’ve come to expect from just about any query posted on social media, the responses were a predictable mix of…

Outrage (combined and summarized like this):

TaylorMade is only a marketing company that floods the market with cheap mass-produced crap from China while lying to gullible consumers. They suck.

A dose of The optimistically delusional:

This despite the noteworthy fact that both companies, like TaylorMade, mass-produce their products in China.

The apparent TaylorMade loyalist:

@MyGolfSpy there isn’t a company with the product, poise or cash to pass Taylormade. Only way it happens is if they pull a 90’s callaway…

— Freddy Villarta (@freddyvillarta) October 1, 2013

“90s Callaway“…ouch. Fair…but ouch.

The awesomely playful Callaway loyalist:

@MyGolfSpy – who?

— Craig Evans (@TheCraigEvans) October 1, 2013

And of course, the obligatory rant against marketing and the current state of the industry.

I’ll Ask Again

With the perhaps unrealistic hope that we can all stay on topic, I’m going to pose the same question to you here today.

Before you answer, try to remember this:

We all live in our own little bubbles. We think that what happens on our local golf course or in our local shops must be what happens everywhere else. If I hate Callaway, everyone does. If I think Nike makes the best equipment in golf, nearly everyone else believes that too.

We like to think that as individuals we represent the majority. More often than not, we don’t. Pop your bubble, man.

I’d like ask that you do what you can to take your own emotional reactions out of the question. Refrain from spewing hate, or complaining about release cycles, or how much money a given company spends on tour. This isn’t a question about means. It doesn’t matter how TaylorMade got to their current position of dominance. The reality is they are dominant. We’re only asking how long you think they can stay on top.

While I’m certain that if you gave me 10 minutes I could find 10 guys who’d like to see Wilson, or Cobra, or PING, or Titleist, or Tour Edge or… (you get the point) steal the #1 spot from TaylorMade, realistically, we see only two companies with the potential to actually do it any time soon. So for the sake of this discussion, we’re going to limit our focus to Callaway and Nike.

Before you answer our poll questions, and add your comments, I’d ask (please, please, please) that you first consider the following facts:

TaylorMade

The #1 Driver on Tour (it shouldn’t matter, but #1 on tour remains the most significant piece of branding for any company who can claim it)
A strong #1 in the metalwoods category (market share)
A strong #1 in the iron category
#2 in the apparel category (adidas), trailing only Nike
#3 in the footwear category (adidas), trailing Nike (#2) and FootJoy (#1).
Not a top 3 player in the ball, putter, or wedge categories

Callaway (the company most often considered the greatest threat to the TaylorMade empire)

#1 Putter on Tour
#1 (Odyssey) in Putter market share
Trails TaylorMade significantly in driver and iron market share.
Leads (relatively small margins) TaylorMade in Wedge and Ball Categories
Not a significant factor in footwear or apparel, which are huge revenue streams for its competitors (adidas, Nike, and PUMA)

Nike (the company I believe is the bigger threat)

Has Tiger Woods
Trails TaylorMade significantly in drivers and irons
A relative non-factor in wedges and balls
Leads TaylorMade (adidas) in apparel (#1) and footwear (#2) categories
Has a ton of money

Now consider a few intangibles

Over the last 12 months Callaway has sought to reinvent itself. It has launched a full-on Social Media assault, and has basically started its own media company to shoot and promote Callaway-centric video content. While it has clearly had some impact with online consumers, Callaway’s ability to reach the offline consumer remains uncertain.
Nike has the largest Social Media following in golf, the deepest pockets in the game, and a documented history of dominance in other sports, but is still fighting perceptions that it is not a “real golf company”. Thus far the Nike way has not translated to golf, but it is most certainly ramping up its efforts. Nike’s financial situation gives it the luxury of time to figure things out.
Insiders have suggested that there has been a fundamental shift within TaylorMade. The analogy I would make is one of a football team that has stopped trying to put points on the board, and has switched to the prevent defense. The problem with playing the prevent is that you give up a lot of yards, and your opponent usually scores a few points of his own. If TaylorMade goes back to playing offense, can anyone keep up?
As much as some might like to believe otherwise, the products themselves aren’t really central to the question. Why you may perceive that Callaway products are superior to Nike Products, or that Nike products are superior to TaylorMade, I can assure you that they’re all very good, and very similar (and all mass-produced in China). Properly fit to properly fit, there’s no significant difference…especially in the driver category.

Have Your Say

So armed with facts, intangibles, and (I suppose) your own perceptions, please share your thoughts on the following:

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Tony Covey

Tony is the Editor of MyGolfSpy where his job is to bring fresh and innovative content to the site. In addition to his editorial responsibilities, he was instrumental in developing MyGolfSpy's data-driven testing methodologies and continues to sift through our data to find the insights that can help improve your game. Tony believes that golfers deserve to know what's real and what's not, and that means MyGolfSpy's equipment coverage must extend beyond the so-called facts as dictated by the same companies that created them. Most of all Tony believes in performance over hype and #PowerToThePlayer.

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Tony Covey

Driver Titleist TSi3	3-Wood Titleist TSi2 13.5°
5-Wood Titleist TSi2 18°	7-Wood Titleist TSi2 21°
Irons (5-9) PXG 0311 GEN5 T	Wedges Vokey SM9 (46° F, 50° F, 54° D, 60° T)
Putter PXG Blackbird	Ball Titleist Pro V1x Left Dash

Tony Covey

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Join The Discussion

Wedgewizard

11 years ago

I really like the last comment from skinndeep, but if i can just say before giving my opinion, Taylormade is leading the golf industry!Yes, but they lead in the” off the rack” department. That´s all. I tried 2 yearsago the burner driver and it was horrible: for me! For my brother, he’s not even considering the other companies. For my part, i really think for most of amateur player, if you like nike, ping, taylormade or even titleist for the rich(haha), JUST GET FIT. Most of the difference are just estethical. Yes it have different kind of iron: gi, players iron , and the super game improvment, which i think should not exist! I tried last month the rocketbladez, with the slot , and dawm , why so many people buy them? Anyequipment will do the job if you take the time to get fit. It’s just an advertising situation!

skinndeep

11 years ago

I learned to play Golf in south Africa about 30 years ago, lived there for 14 years than move to NC lived there for 6 years from there I moved to Germany where I still live. My handicap is 7,8 below 10 for the last 15 years. i had the honour and pleasure to play with Gary Player in a pro Am during my stay in SA, during the round we come to the very same subject at the time Taylormade wasn’t the number one. But he told me something significant which none of the Club makers will like to hear but which is still valid and logic and which some of the readers already somehow mentioned. He told me :2listen young men I would still play pretty much the same score with my 15-20 year old club on the modern golf course provided you give me a modern ball. If you really wanna by a new sett you realistically have to wait 7-8 years before you will find a significant difference for you as a amateur, however you might find than that you might have problems adjusting away from “the old trusted” and consider you still looking back to them for at least six month. in other words if you want it longer and strait get “ball fitted” where by the better player can do that him self. And only star looking for new “croucket sticks” every 7-8 years.

Lloyd

11 years ago

I’ve already wrote a piece on this subject but any way. I think taylormade will stay on top and the only company possibly could take them down is titleist and the reason why callaway and ping are both great company’s and make top clubs but they seam to attract the older generation u go on the golf course and u will see couple of old timers with there power caddy trolleys full of ping or callaway clubs and then in front of them u will see couple of young guys carrying there bags full of taylormade or titleist clubs cuz they attract all golfers and as more and more young people are learning to play they probley want the best clubs to play and they will do there home work and see taylormade is on top or they will go down the driving range and that’s all you see taylormade and titleist u might see a nike or other makes in a couple of bags. What I’m trying to say is with taylormade flooding the market and every where u look is taylormade they will stay on top I no nike has tiger woods but not every one is a fan.

dcorun

11 years ago

I really get a kick out of these conversations about who is the best, biggest and baddest. I play what I feel is best for myself, not who has the biggest pockets and most commercials. You very seldom hear about Cleveland/Srixon but, I love their clubs and have played them for years. Cleveland puts a lot of thought and craftsmanship into their clubs. They also don’t come out with a club every other week. They make great wedges and the Tour players will tell you that. Let all the rest fight it out and I’ll continue to play what I consider the best clubs on the market. And by the way they also make a really good golf ball the Q-Star. A final thought is that most golfers play the clubs the pros play so, as long as Taylormade, Callaway and Nike have the most cash to buy players to play their clubs the longer they will stay on top.

Nevin

11 years ago

Count on an article about TM to bring out the silly and over the top statements. The truth is that all of the major companies make very good equipment but right now TM is probably the most innovative. While their marketing is a bit annoying their equipment more that makes up for it for me. As much as I love Titleist clubs, my TM driver remains in the bag because it is longer for me and just as straight.

Five years is a very long time and many companies change and stop being the leader. So whether TM is still the top dog is 5 years is impossible to predict. I remember when Callaway totally dominated. Of course there was no internet for people to rant about them back then.

Fleeter

11 years ago

I play a ping driver, rbz 3 wood, titleist irons, vokey wedges and a cameron putter. I really think TM will dominate for a while longer though. They are very aggressive in their marketing and advertising. I’m trying the SLDR soon as a potential for my next driver, but I’m also planning on hitting the G25. I have a friend that says what sold him on TM (and he’s a solid 2 cap) was when he turns the TV on an most of the pros are swinging those white drivers you know what they’re playing. I think that putting the white driver out there was huge for TM. It’s a crazy market. Titleist make beautiful clubs and I think they could give TM a run for their money but so could Nike and Call too! Great comments on this one for sure.

Fred Hill

11 years ago

They are a marketing giant.. thats all.

Their product over the past few years have been hit and miss. The R9 was considered to be the best adjustable driver until the R1 arrived
this year. Now they are discontinuing that for a Mizuno remake called the SLDR which is average at best.
FYI watch out for the sliding mechanism to fail and the sldr medalion to fall off.

They may dominate but consumers blinded by their advertising are continuing to by without trying other products.

Wake up people. Cobra has made some of the most innovative products over the past couple of years since being purchased by Puma Golf.

Sometimes that groove you are in becomes a rut.

Justin Taylor

11 years ago

Taylormade will continue to dominate but human nature dictates that a change will come. I say 5 years as things don’t change overnight but they will change. Just like in the past people seek change. History shows that its not based on anything tangible. Governments change because people want something new. They don’t want anyone sitting on top for to long.

Joe Golfer

11 years ago

I think TM will continue to dominate for another five years or so, but I also think that other companies will come a little closer. So maybe “dominate” isn’t the right word, but I do think they’ll sell the most drivers and have the biggest driver presence on tour as well.
I think Callaway will come closest, simply because of their efforts to publicize their products, even if it results in lawsuits between TM and Callaway about who has the world’s longest hitting driver, yada yada yada.
Overall, I don’t think the ratios will change all that much from what they currently are.
The article writer believes that Nike will be a player due to their financial resources and efforts to dominate in other sports. I don’t know about that, simply because their clubs are crappy, IMO. That red driver clubhead looks gimmicky and cheap, not technologically superior. Tiger can’t seem to hit the fairway with his drives, and Rory has lost his game. The only irons we see on tour are ones that John Q. Public would never play, as they are muscleback blades. No matter how much money Nike has, they still have to make a better product, and then they have to get Numerous pros to use it, not just Tiger or the struggling Rory.
I’ve read that pros play a different version of TaylorMade’s driver clubhead than the avg guy who buys at a store. Also, pros play a far far superior shaft, but TaylorMade paints those pro’s shafts so that they look like the ones in the store that consumers purchase. Deceptive? Sure it is. So TaylorMade makes the consumer believe that they are getting the same clubs that MANY pros are playing.
People reading this post are likely pretty golf knowledgeable and already know those things, but 90% of people who walk into your local Golf Galaxy are not, and TaylorMade knows that.
Other companies have pros using their own preference of premium $400 shaft as well, but those companies haven’t caught on yet to painting the shaft to match their clubs in stores.

Daniel Stone

11 years ago

Over here in Bangkok T/M are big sellers. However I have noticed one glaring glitch. I have a Thai friend who runs a golf fitting/repair/ 2nd hand clubs shop on a driving range. People come and let him sell there clubs. . What I have noticed is that most clubs for sale are T/M and most are there drivers and 3 woods. I was there yesterday, he must have around 50/60 TM’s for sale. the bulk are drivers. I asked him why.
He said nearly everyone did not like the drivers and hated the 3 woods. They are buying over here some great Japanese brands. The quality is far superior to what T/M are turning out.Mizuno, Honma, the list is very long, so I won’t bore you with it. Kasco make there own shafts, really high quality. No need to ever change I like I had to in my Callaway Razor Hawk. Downside they are way more expensive. But twice the quality. You did a test recently on Hireko’s driver. Now that’s value for money. Do I like T/M well they suit certain people. I guess everyone plays with what they feel comfortable with. But for me I don’t like them. or there marketing policy. Rgds Daniel.

steve Sammut

11 years ago

In the whole scheme of things, does it really matter? I mean, I couldn’t have told you who was #1, although I might have guessed Taylormade. I think we play what we like or what we hit well. I use Taylormade irons, but only because I hit my friends and did like they way they felt…as well as the way the ball came off the club faces. I had a Taylormade driver that hit well in the golf store, but not so well on the course, so I’m back to my Cobra and love it. I have 3 Renegar wedges that will probably be buried with me and they are far from the largest wedge company. It doesn’t matter who is #1, #2 or #3….if you like what you hit, you will play them. I will say, however, I do get tired of Taylormade saying that their new gizmo will revolutionize golf…whatever that gizmo is.

Chris

11 years ago

If you look at history, the one factor that seems to start a company’s demise is their inability to change, stay ahead of the curve, or keep in tune with what their customer’s want. They end up at some point following, or copying in some way, technology instead of being the innovator. I usually use the Foot Joy example. They were number one in a large way and then Adidas and then Nike really came out with new styles and technology stories that made a huge dent in Foot Joy’s market share. Then Foot Joy started introducing styles that looked a lot like their competitors yet their market share continued to slide south. They have since stopped the bleeding but the damage is done. It’s interesting that Taylormade had the speed pocket after Adams did and their answer to being sued was to buy Adams. That’s why I think Taylormade will be on top for a while…they have deep pockets.

golfercraig

11 years ago

Wrong. FJ’s marketshare has been the same for the last 15 years. Nike and adidas grew their marketshare, but it was at the expense of Etonic and Dexter (and others.) It would be a good analogy if it were only true.

HackerDav

11 years ago

Actually, that’s wrong. FJ’s marketshare has fallen from over 50% to as low as 38% at points this year. Its in the Golf Datatech numbers. They’re losing out the most on the battle for footwear dominance to Adidas and Nike. That’s fact. Regardless of your opinion of them, their numbers are plummeting on the footwear side of the business and the only brightspot is apparel.

golfercraig

11 years ago

They are at 53% marketshare according to DataTech. The CONTOUR line sold more than adidas or Nike. That’s right. One family of shoes sold more than than the ENTIRE line of adidas or the entire line of Nike.

HackerDad

11 years ago

Sorry, but I see it differently based on the numbers in front of me. In the US, perhaps, globally, not so. I’ll agree to disagree. I’m a big fan of their classics. But FJ are in the midst of a huge identity crisis. They’re trying to be athletic and classic all at the same time, and in doing so, losing their identity in my opinion. The M Project is a horrible shoe, the Icon is a phenomenal one. They need to position themselves differently, or they will keep sacrificing marketshare (globally and otherwise) year over year.

DaveL

11 years ago

the days of demonstrably superior products are over (unless you go beyond the USGA rules like a couple companies like Polara Golf do), they all provide the same customer service, they all claim bells & whistles make the product work like magic, so it gets down to “marketing spend”. In a marketing battle, the guy with the most $ wins. Thus, Nike will eventually dominate. The only hope for Callaway is if they are the first to recognize the value of making demonstrably superior products again (ERC Driver…) and go after all of us who are tired of TaylorMade hype and watching TM introduce 3 driver models every 9 months.
As with oversized tennis racquets, shape skis, snowboard, aluminum bats, etc. “Performance Trumps Conformance”. 85% of golfers don’t have a handicap, carry a foot wedge in their bag, and agree on the rules on the 1st tee – this is a huge untapped market that Mark King (Taylor Made/Adams Golf) sees plain as day but Chip Brewer (Callaway) is ignoring this reality because it does not fit with the Callaway brand (would have fit perfectly with TopFlite which they sold to Dick’s Sporting Goods…). Face it, just like there are two type of baseball (hardball & softball) there are two types of golf and as soon as the golf companies realize this, a few will break from the pack and the hierarchy will shift.

Raymond

11 years ago

Taylormade has done an excellent marketing and sales job to the end consumers by…
1) Exposure through the PGA Tour players. The professionals will only play clubs that will provide benefit to them (ie. superior performing club(s) or monetary compensation should there be no added performance benefit)
2) Best mass-marketing to the average (mass) golfers; a.k.a. a) 17 more yards, b) white paint, c) adjustable weights and loft.
3) First-to-market with significant and relevant concepts (real or not) that consumers can relate to as “the one” that will improve their own game (real or not).

These marketing efforts has garnered the attention of the consumers translating into brand awareness and, ultimately, brand consumption.

Although I view Nike as the potential threat to Taylormade, in the long run, Nike (and other golf manufacturers) has not (yet?) captured the “heart and soul” of the consumers to not only desire their products but NEED them to improve their game/image/distance/handicap/etc. etc. etc.

John Avery

11 years ago

I think all the top brand clubs are pretty much equal to each other. They all have similar technology. The most important thing is how it feels and how it looks to you.Kinda like women.

Berniez40

11 years ago

If Nike buys Callaway—-all bets are off.

wayne norris

11 years ago

I have a r11 driver and a rbz 3 wood both are better than anything else I have tried, especially the 3 wood which is the best club in my bag.i am not a taylormade loyalist but other makes just dont seem to cut it.
Where taylormade may be behind is with their irons.

Rah

11 years ago

Ping drivers in my opinion are far more reliable and better than TM…. Quality and engineering over popularity and marketing wins in my book but not in the bank book I guess ..

RoverRick

11 years ago

Poppy cock. This whole article is poppycock. Taylormade is going into a prevent defense by releasing the SLDR and SpeedBlades. Please.

The only “HATE” for Taylormade I hear is pretty much from you. Most everyone else tries out the TMag products and either buys them or not. But I have never heard someone say that TMag product suck.

I am a Titleist/Mizuno Fan and a former Hogan Fan. However, I have had an R11 in (and out, sometimes a Titleist) of my bag since late 2011. I hit it today and had the best driving day I have had in months and averaged 15 more yards than normal. There R11 hybrids are some of the best I have hit since the Hogan CFT’s. I have hit other peoples RocketBladez. Actually, I hit JBones Rocketbladez a couple of weeks ago and made a poor swing and it went right next to where I had just hit the ball with a good swing with the MP59’s. They are not better but certainly more forgiving than my Mizzies. I fear that the Speedblades are significantly better than anything else. (I would like to compare them to the Callaway Apex),

I personally, do not like the looks of some of the TMag stuff but I can not fault their performance. They will be number 1 as long as the equipment they put out is as good or better than everyone else’s. The guys chasing them will continue to chase them until they put out a product that is noticeably better.

Tony Covey

11 years ago

Rick – Kudos for the use of “poppy cock” (I think), but yeah…this is most definitely not the same TaylorMade we’ve seen over the last few years. They’re definite accelerating product, and it’s good product, but the the marketing has changed dramatically. It’s toned down, it’s careful. They got where they are being being almost over-the-top. They’re not doing that right now.

This season, they’ve scaled back dramatically. R1 and RBZ 2 were almost matter-of-fact releases with no real fanfare (at least not TaylorMade fanfare around them). R1 Black…same. SLDR that was subdued (again by TM standards) as well. The *feel* was more of a Titleist release (here’s our new product, here’s what it does). Even SpeedBlade wasn’t launched with the same flair as its predecessor.

I don’t know everything that’s going on behind the scenes. I can tell you that people have been shuffled, and what we’re hearing is that they are being much more conservative in their marketing approach, and flatly rejecting the kind of out of the box marketing that got them to where they are.

The season got off to a tremendously slow start (for everyone), but I think it threw TaylorMade off its game. They’re not bulldozing like they have done. Simple terms, they’re not stepping on throats, they’re not running up the score. They are playing not to lose, and in an industry where the clock never hits zero, that’s not a great long-term strategy.

RoverRick

11 years ago

Perhaps they found out with the release of the 17 yard claim of the RocketBallZ FM’s and the subsequent Callaway ads comparing it that they should come up with a different approach. While the releases of these new clubs may be subdued by TMag standards, from what I read, mainly here, the products really speak for themselves. Heck, even I am interested in SLDR and Speedblades and I am the happiest I have ever been with a set of golf clubs.

Callaway now using the Apex and soon the Edge name might be poised to make a run. The Raxr Fit Extreme and XHot drivers as you point out in your other article are quite good, except for the name. The new Apex irons are built on the Hogan CFT Edge technology as were the X Tours, Diablo and X Hots that were fine irons but horrible names. After almost 10 years Callaway is reviving the Hogan names and hoping to grab more market. They just may do it. I had some X Tours, and they were great, but subsequent models turned me off simply by name and aesthetics. I do not want to use head covers because I am embarrassed by the pimped out badges and names on my clubs.

john

11 years ago

What Golf Company has brought innovation to the game like TM? They were the first to introduce FCT technology and now every OEM has it. TM launched white in 2011 and Callaway’s response was “Perfomance over paint.” Ironically, I now see white Callaway product in the market. Cobra has coloured Drivers and Nike has red. It’s TM’s vision and innovation that has forced the competitors to catch a wake up. Love them or hate them, they are a cool brand and they make product that performs. They may have had a hickup this year, but so what leading business hasn’t. Challenges create opportunities. I’m looking forward to seeing what they deliver in 2014.

Regis

11 years ago

I’ve been playing at a private club here on Long Island for over 30 years.The average golfer is upper middle class and probably plays to a 12-18 handicap. Our Pro shop sells most major brands but is a Titleist shop. Our golfers are more influenced by what others in their peer group succeed with than what the pros play. Nike is not a player. Nor is Cobra. Taylor Made dominates the wood market and Ping and Callaway dominate the irons with Titleist and Mizuno getting their share. Callaway made a huge entry with the X-hot series. The Rocketballz fairways seem to be showing up in a lot of bags. Going forward I just don’t see these guys (and girls) changing loyalties So I see Taylor Made continuing to dominate the woods market (Adams is gaining a share too) with the iron market spread along the lines of existing loyalties. Given the fact that drivers/fairways are the most often recycled purchases, Taylor made has nothing to worry about

R Vee

11 years ago

Tour Edge…? Don’t make me laugh!

Rex

11 years ago

Not one of your better researched pieces…..

Callaway is not long for this world in its current configuration. The absence of a holding company bankrolling ELY dooms it to second tier status…..the past 5 year topline decline is evidence enough. With savior Chip unable to get a single quarter right (topline basis) in the past year, you have the measure of his talent. See beyond your fatal flaw (hubris) and sell the company Chip, as TM will throw you no more bones….

Nike? Really? Are you aware of how much they vested in 2013 in a vain attempt to gain equipment traction? With 8% year over year growth, you have another shameful failure on their part.

The company that can, at will, take TM down is Titliest. Can Wally find the courage to actually offer product that appeals to the masses (GI $699 irons / $299 drivers, etc)? Not likely, but his handlers can and will…..that will be a dark day for all other brands….on a global basis.

You need to do a better job reading the tea leaves if you are going to write a piece like this….

REX

Largechris

11 years ago

I see TM as the most aggressive ‘Goldman Sachs’ type win at all costs company out there at the moment.
But as a poster above said, no one can keep that position forever. TM innovate in a certain way (colour, CoR, speed slot etc.) but just my opinion they haven’t transformed the market in the same way that the cally big Bertha did in the early nineties.

If another company, big or small, came along with a big leap of innovation (single length irons is my current favourite no haters please) then the market could be shaken up a lot….

TM did very well introducing a cheaper line (rocketballz) but I can’t see them being able to repeat that trick for diminishing returns.

I’m not convinced that there will be a continuing mass market for 400 dollar drivers, I think consumers are more savvy about the real cost of made in china.

What would happen if Hireko started sponsoring one top PGA player? I think a lot of consumers might have their heads turned…

DK

11 years ago

TaylorMade will continue to dominate and it hinges on a few factors…
1. Can they push the USGA around and either achieve bifurcation or successfully release non-conforming clubs with some big tech gains (starting with Adams as a MGS article speculated recently)?
2. Will they find ways to continue to innovate? Meaning club technology, making the right plays regarding sales approach (navigating green grass and big box tightrope), maybe strengthening their image as more than just a behemoth marketing company?
3. Will going back to the uber-accelerated product cycle create blowback or satisfy all consumer types? This allows for older products to be purchased and cleared out by late-majority and laggards, while still providing new product for innovators, etc.

I find it hard to believe that a company that has been so aggressive in the past would suddenly rest on their laurels and play prevent defense. Every manufacturer has essentially hit their ceiling regarding club advances, if that doesn’t change it will come down to marketing, servicing accounts, customer satisfaction.
The most recent example of complacency is Titleist and their golf ball, they have allowed a few competitors to eat at their market share while stuck in a “stay the course” strategy. If TaylorMade falls into the same trap, something similar could happen…

drewt

11 years ago

Wasnt there that rumor a bit ago that Bridgestone has cash and wants to get in the game? Whether through callaway or someone else…..I think thats the wildcard to unseat taylor made

Cragboy

11 years ago

I am new to golf. I just started playing two years ago. I borrowed a set of clubs from my cousin and played. This year I decided to buy a new set of clubs. I went down to a local golf shop To buy a new set of clubs. I hit everything they had to Offer. From taylormade to pings calloway Adams mizuno Cleveland everything. I ended up with nikes. They were the best fit for me. Hi had no preference before going into the shop. I had no brand loyalty yet. I loved the nikes irons and I Bought the driver too. I Dropped 10 strokes off my score this year. I could see nike Over taking Taylormade.

lloyd duffield

11 years ago

I CURRENTLY USE TAYLORMADE CLUBS FROM PUTTER TO DRIVER. I SWITCHED FROM USEING NIKE CLUBS INCLUDING THE VRS COVERT DRIVER / HYBRID / FAIRWAY WHICH WAS ALL GOOD AND EYE CATCHING UNTILL I PUT THEM UP AGAINST TM RBZ STAGE2 CLUBS. THE STAGE2 FAIRWAY AND HYBRID OUT PERFORMED THE COVERT CLUBS HANDS DOWN MORE YARDS AND FELT BETTER ON IMPACT AND I HAVE THE TM SLDR DRIVER WHICH IS BETTER THAN THE NIKE COVERT BUT SAYING ALL THIS THE NIKE PUTTERS AND THE VR PRO IRON RANGE IS GOOD THE VR PRO BLADES IS ONE OF THE BEST IRONS IVE HIT. I NO PEOPLE SAY NIKE HAS TIGER WOODS BUT HOW LONG HAS TIGER GOT LEFT 4-5 YEARS AND WITH RORY DROPPING BY THE DAY WHOS LEFT TO CARRY THE NIKE FLAG. PEOPLE BUY NIKE PRODUCTS BECAUSE OF ONE MAN TIGER WOODS WHEN HES GONE WOT THEN?. BUT I DO STILL LIKE NIKE GOLF SAYING THAT CALLAWAY I THINK MAKES THE BEST CLUBS BUT THERE LOSING MILLIONS YEAR AFTER YEAR HOW LONG CAN A COMPANY CARRY ON LOSING MONEY WITH OUT GOING BUST WITH NO BACK UP COMPANY TO HELP. BUT AFTER ALL THIS THERE WAS A POLL ON A WELL KNOWN AMERICAN SITE WHICH THE QUESTION WAS WOT CLUBS WOULD YOU BUY THROUGH OUT YOU GOLF BAG TITLEIST WAS A CLEAR WINNER WITH PING CLOSE SECOND BUT TAYLORMADE WILL STILL TAKES SOME BEATING THERE TO BIG WITH THE BACKING OF ADAMS GOLF / ASHWORTH / ADIDAS AND WITH PROBLEY 80% OF GOLFERS WITH TM PRODUCTS IN THERE BAG ITS A BIG CHALLENGE TO WIN.

golfercraig

11 years ago

All this being said–from a guy in the business–I PRAY it’s Callaway. They are so good to deal with, so good to their customers and retail partners, and so focused on EVERYONE being happy. Chip is trying to turn a ship around that had already run aground. I hope the shareholders give him some time to do the right thing. Little things, like finally having a rain glove, indicate that they finally have a guy that PLAYS golf making the decisions around there. The new balls are fantastic. The new irons, while priced too high, are REALLY good. and the new hybrid is out of this world fantastic. The golf biz needs another company to step up in hard goods. Titleist, Mizuno, Cleveland and BStone don’t care. Ping is content (the good and the bad of being privately owned. No shareholders screaming REVENUE REVENUE REVENUE, but no real reason to get crazy inventive.) Cobra? Please. A non-player.That leaves Nike and Callaway. Gotta tell ya, i think anyone at all associated with the industry is rooting for Callaway, including me.

Sean

11 years ago

I could see in 10 years Nike making a strong push to be #1 with their diversified brand and global supply chain advantages over the others. I think that for anyone to dethrone the TM folks it may takes some mergers and acquisitions. Having said that, I have not been too impressed with this years drivers SLDR (way too gimmicky and probably not suitable for the average golfer).

ron

11 years ago

Why cant nike just buy out TM and make them go away and bring back macgregor and Ram and USA made forgings like the old good ol days. NUFF SAID

pgapro

11 years ago

Thanks to Taylor Made Golf Co. for bringing down trade-in values of all golf clubs.
Your trade-in $ does not reap what it use to on the used club market.

Kevin Simms

11 years ago

I’d say Nike has the best shot with those who are newcomers to golf. With the amount of money they are able to put into marketing and with Tiger Woods on their side, it’s incredibly easy to sway a newcomer into thinking Nike is the end all be all for golf.

Firstkart

11 years ago

How long will TM dominate?
My question is, “Who says they dominate”?
If I bag TM clubs and wear Nike apparel and play a Titleist ball for 5 years the numbers tell me that I will spend the most money on Nike apparel, TM will be second of my spend and Titleist third.
So I ask again “Who says they dominate”
This is just an example of a setup. I do not bag any TM clubs, I do wear Nike apparel and I do not use TL balls.
At Golf box here in Perth, sales numbers there say Ping G25 Irons have outsold all other brands 3 to 1 and the G25 Driver 2 to 1 over all other brands for since their release.
I think that TM dominance is subjective, they may have been a clear leader once but not anymore and their dominance is used as a marketing strategy where they can use which ever numbers look good to back the claim.
I have nothing against any brand.

GOLFERCRAIG

11 years ago

No. It’s not subjective. They are almost a 2-1 leader in dollars at the cash register. They have a current iron marketshare higher than Callaway has EVER had (and they were the market leader for 15 years straight.) It’s not subjective. What you are describing is known as “small sample size.” I knew a guy who smoked 3 packs a day and lived to be 96. Doesn’t make smoking a good idea. You know that Ping sells in one spot. Doesn’t mean it’s worldwide.

Mik

11 years ago

Haha @ Eric’s comments. I agree with Bridgestone – absolute quality.

Mik

11 years ago

Don’t write off Puma/Cobra. They have deep pockets as well and perhaps intelligently acquired a brand in Cobra that had history and presence (something Nike failed to do). They’re innovative and targeting the next gen. Their equipment is also as good as any other OEM’s. You just have to try the ZL Encore or Amp Cell drivers to know. Very underrated drivers!! Plus their AMP Cell Pro irons are the business. Throw in their apparel line and you have a winning combo.

GOLFERCRAIG

11 years ago

One problem–they have zero marketshare. Puma apparel has zero marketshare. They are DOA.

Eric

11 years ago

Ping is the ugly step sister who wishes someone would ask them out next Saturday.
Taylor made is the ugly girl with the big boobs.
titleist is the really good looker who bores one to tears.
Callaway the wild drunk girl who has a great time but is really lonely on Sunday morning.
And Bridgestone is the hot super model who wants sex constantly and can cook like your Italian grandma.

BlkNGld

11 years ago

… whose family doesn’t let her out at night or on weekends?

Rat

11 years ago

When you have the market flooded then by shear numbers TM is #1.Callaway has a chance within the next 2 years but will their money hold out? Nike will never make it, they haven’t the product quality and you get only get so much out of one Tiger. Their product is and always has been second rate. Titlest is sinking due to lack of vision. Watch out for Wilson Staff,5 years can see them pushing for the lead even though they do not have 40 guys signed to play their product. They have nice new designs coming out.

sparty

11 years ago

I have often pondered why Mizuno Golf is not the leader in irons on tour. Their irons are, IMO, superior to all. But I guess I do know the answer, which simply comes down to money. Their philosophy perplexes me at times. I guess they are happy with their low market share. Nike on the other hand has really been impressive. I swore off Nike as an actually contender many years ago, but they have since changed my mind. I am not sure if other golf companies spend as much on R&D as Nike does. Their Oven facility is amazing and it fascinates me the amount of science they put into their golf equipment now – irons (forging process huge improvement), putters (I game a Method, knocked Odyssey and Scotty out of my bag), and their apparel (most comfortable and stylish out there). My vote is that Nike will take the number two spot in the future.

ron

11 years ago

I really dont understand why anyone would buy their equipment especially golfers who know that they are a marketing co. and not really a golf co. the drivers are cheaply made and the irons are even worse made. I would think by now experienced golfers and equipment junkies would know this by know buy they still buy them STUPID.

Tom

11 years ago

I really don’t understand how anybody that claims to be a golfer can make such inane remarks about TM. A marketing company? What a joke that comment is. They are a GOLF company, that makes outstanding drivers, who also happen to have a world class marketing dept. I play Mizuno blades, Adams hybrids, Titleist wedges, S Cameron Putter, and I play Taylormade drivers…….I have tried them all, nothing anybody else makes comes close.

Harry Smiles

11 years ago

Over here in Australia Nike have no presence at all, I’m not sure about the rest of the world but I can’t see them dominating until they can at least get into shops world wide.
In the last year Callaway has really made ground on Taylormade, you see almost as many xhot drivers as R1s. That said I think the average not handicapped golfer looks at the White drivers and thinks they look cool and by them.

Francisco

11 years ago

In my country (spain) TM is the number one in woods, and Ping in irons, in Spain doesn’t sold practically any club nike

doggy style, your mom loves it

11 years ago

Nike. Period. No one company resonates with the younger aged golfers, who grew up with Michael Jordan, and Tiger, and all of the champions. Younger audiences truly believe that Nike is the best brand, and that Nike is what champions wear. Once Nike finds an iron design that isn’t too flashy, and limits the gimmicky features, the golf world is in trouble. Think AP2, when they find their AP2, watch out. Their woods are getting to that point, regardless of my negative opinion of them… but they are getting much better. Its not even a question, very simple answer. Nike.

DaveMac

11 years ago

Taylormade’s dominance is a house of cards bought my paying tour players of all levels to play their drivers (thus controlling the darrell survey), it is a model which has been very successful, but the competition is shaping up to make the fight less one sided. The signs are there that Taylormade’s crown is slipping, the R1 was perhaps a step too far (garish logo, distinctive sound, questionable adjustability and high price).

Callaway, buoyed by the arrival of Chip Brewer have raised their game, mainly by having products with cool brand components and slick use of being one of the guys on social media.

IMO Nike are the real threat (the one with the deepest pockets) and the biggest change which happened this year (no not Rorry’s signing) was the announcement that chief designer Tom Stites has retired from front line work, while his products have always been innovative they have always lacked shelf appeal. I think his departure will allow Nike the freedom needed to create more marketable products and fully leverage the tour profile that they paid handsomely for.

The bottom line is it is a shrinking market, cash is tight, golf is on a down cycle and even the most ardent of equipment junkies are getting tired of shorter and shorter product life cycles and marketing hype.

Let battle commence.

Will

11 years ago

Having hit a SLDR, I will say they have a few more years in them… honestly, I think they have a strong flipside to their marketing.

They have a decent fitting presence, and it is already rolled out in box stores. The local golf galaxy has a TM rep IN STORE. He is willing to work with you, give you some demo TM balls to hit and “custom” fit you into a driver.

I believe custom fitting is the wave of the future, and whoever dominates in that regard will dominate the market. TM already has the beginnings of that concept built in.

finalist

11 years ago

I can’t even begin to answer this question. It’s basically a complete guess.

Perhaps look at a different industry where a strong number one lost their spot. The only thing that may unseat TM in the short term is an internal scandal that makes headlines on traditional media.

For the long term nobody stays number 1.

Andrew

11 years ago

Anybody who says that they don’t dominate doesn’t understand market share. TM owns the marketplace in dollars in the register at the end of the day (in the golf world). Their empire is built upon the marketing dollars they have spent to convince the people who by TM that they have the best stuff to offer.

The dollars are from different buckets such as player endorsements, tv commercials, print ads, demo days at the range or green grass clubs, etc. Even so far as to go to mark down dollars given to the companies that sell their products, and in store signage.

Bottom line, you have to spend money to make money, and they do it in the right spots, and in the largest amounts. How much Titleist advertising do you see compared to TM? Titleist isn’t even in the Tiger Woods EGA video game.

Sure Nike has deeper pockets, but they don’t have the equipment reputation that TM does. They also don’t have as many people playing their stuff on the Tour. That’s HUGE. How many times did we see the SLDR driver on TV in the hands of a pro about to tee off this year once it was released versus a Nike or 913? Quite a bit. Most players don’t play a club unless they are paid to and that’s what TM does very right. With those endorcments comes the same bragging rights that Titleist gets with their Pro V.

So Nike doesn’t have the equipment, let’s look at Titleist then. Titleist has the product, and some great endorsements, but their distribution is severely lacking. They have not adopted to changing times and are finding out that their “green grass only” distro model isn’t working in the new era of big box retail, not to mention EComm.

What about Callaway? They have a great opportunity to take that number 2 spot that is not held by anyone (although Nike is close). Their new CEO has the right idea I think, and they will need to do some marketing to make their product not seem so downstream in perceived value than TM to the customer. Takes money to do that.

Clevland/Srixon. No. I love their stuff but they don’t stand a chance right now.

Kenny B

11 years ago

I see two factors: marketing and innovation. TM has the marketing machine and likely will not lose the edge anytime soon unless they have a big screw-up. But innovation… research and technology advancements can happen anytime by anyone. Minor changes with marketing hype don’t count; status quo. But whoever has the people and money to invest in research for the next BIG thing, there’s the winner. Could be anybody, but Nike has the advantage.

Tim

11 years ago

I play Nike irons, driver and wedges just because they seem to be a better fit for me, not b/c of TW or Rory or anybody else and I’ve tried pretty much everything out there in the stores from all OEM’s. I really do like the Titleist stuff, all of it, but the price point is a little much for me. If $ was not an issue, I would have a 100% Titleist bag.

flaglfr

11 years ago

I know this is kind of a huge tangent, but I think it will be part of any change that takes place in golf. The answer to your question in my mind is… it depends. It depends on how long we are willing to credit gains in distance to club manufacturers instead of the de-lofting practices that are the root of many yardage gains they and others claim. It depends on how long they can continue to convince everyone that you are hitting it longer because it is their club. It depends on how much they can get others to call them number one even when they finally aren’t anymore. It depends on how loyal everyone is to the Corporation and it depends on whether or not the governing bodies take any action against what they are beginning to call “hot clubs” and “hot balls”.
Frankly, they are all playing similar games now and to single out one probably isn’t fair. It is however IMHO real. But this is probably another article for another time….

Matt @ PluggedInGolf.com

11 years ago

The question that still needs to be answered is, “What defines ‘dominate’?” When is the reign officially over?

I think that in the next couple years, TaylorMade may still be #1 in woods, may still be the #1 driver on Tour, but I don’t think it will continue to be “dominant” in the way that they currently are. I think the other companies, Callaway, Nike, etc, will continue to grow their share of the market at TaylorMade’s expense even if none take the throne.

One thing that will work against TaylorMade in the coming years is the average golfer’s growing knowledge. I know that people like to rail against the average golfer as a fool for marketing but he is, slowly, getting his hands on better information about the importance of fitting and the realities of equipment. This will only help other companies as more golfers stop buying “What ____ plays” and start buying the best club for them.

mygolfspy

11 years ago

We actually defined this in the first section of the article:

“Does dominance mean they ring the register at a significantly higher rate than anybody else? Does dominance mean the continued absence of a clear #2 or serious threat to the empire?

For me it’s a bit of both.”

Westy

11 years ago

Oh well in for a penny,

I play a mixed bag, I have taylormade woods and hybrids with ping irons, callaway wedges and a Yes! Putter.

I went to get fitted for most of the clubs and tried loads, picked what worked. I don’t really care about marketing too much – I do read with interest reviews on this site.

I don’t care what I play, but acknowledge its healthy to have lots of competition in the marketplace and if the other companies are trying to produce good products then we all benefit – result.

John Barry

11 years ago

Great topic as always…let’s dig in:

Taylor Made is a marketing machine, yes, and they do have products to back them up. Adams did help them a lot and bought them “converts” to the brand. they have 2 very distinctive clothing brands appealing to old and young, classic and cutting edge golfers. But, is being “number 1” all that it’s made out to be? You have to spend a heck of a lot of money to be there. Every PGA Show your expected to be bigger and better, every release a winner, every tour pro a star, marketing out the wazu!

Nike, your next my friend, you want number 1, because you dominate so many other sports and categories. Nike shoes tells stores where they can open and expand to, they through their huge weight around all the time in other markets, and if they ever get to be top dog, they will in golf.

Puma/Cobra, you have a young person’s ID, not a bad thing, especially with everyone talking about growing the game. I think Ricky Fowler has brought more young in the game, with the exception of Tiger of course. Keep doing what you do.

Titleist is a players brand, and the number 1 ball in the game. they know what they do, and do well. They maybe content to just keep on doing what they do, but no company out there is ever happy not growing, so I expect them to really step up the marketing, the appeal to all golfers young and old. they have the clout to do it.

Callaway, poor folks, mis-management in your past really hurt you. I know you trying, hitting the social media, you have Phil and followers, but I think you are the one of the top dogs that gets trampled.

Just my humble opinions

ola scholander

11 years ago

we keep forgetting about the ping and ecco side of things. they will never dominate, but they are like saab cars (if anyone remembers..?) and their owners, some willnever, ever consider anything else, and they are proper inventors just as saab. (was…)

MikeB

11 years ago

It will be difficult for companies to overtake Taylor Made as long as they play follow the leader. Perceived innovation fuels sales and TMaG is the best at making golfers think that they are innovators.

Mike M

11 years ago

I really liked the article about Nike wanting to be the #1 company in golf. it seems like they really are starting to care about the products they release and are having some success with sales.

On the other hand, if TM does start releasing non confirming clubs or pushes even harder into the market, I don’t think any other company will stand a chance. They have tons of resources and a strong grip on the market. I think that it’s up to TM to lose their dominance.

It seems as though the success of the other 2 (callaway and Nike) will be tied to the results of their pros. If Tiger and Rory do well, nike’s market explodes, same goes with Callaway and Phil. TM does use pros in their advertising, but it’s always the product first – the pros just use it.

HackerDav

11 years ago

The only one with the cojones, cash, and ability to wait it out are Nike. Everyone said the exact same thing about Nike in just about every other category. Perhaps the greatest example is soccer. They’ve been plugging away at soccer since the early 90s. Now those bets are paying off. The biggest difference is, of course, the overall size of the market. I’m not sure Nike will hang around long enough to quibble over a measly few billion dollars, which is the size of the golf market. With soccer, that’s a much bigger pie, as are running, and casual sportswear. Personally, I think they will keep chipping away and will hang around and keeping throwing money at golf simply because they can. The other obvious example would be action sports. There’s a reason they’re called 6.0. They tried and failed 5 times before they cracked the code. Nike’s danger is in their tenacity. They will wait it out because they take the long view that so many others (notably Callaway and Puma/Cobra) will not. They have enough cash to hold out. With all of that said, I don’t believe they will ever be the #1 clubmaker overall. I believe their dominance could come from protecting their apparel/footwear business and chipping away at marketshare on the clubside to become a bigger player, but never a dominant one.

ola scholander

11 years ago

Very good comment hackerdav, talking to my local golfshot 8pretty big and actually one of the very few off course ones around stockholm sweden), they make very little on clubs, almost nothing on balls (surprising!!), the paychecks are generated from apparel and shoes.

me being a gear head, i invest 1000-1500 use/year in club gear, but i am probably one of 2% that does that. with that said, i am double when it comes to nike clubs and apparel, but they do take up..: putters are coming together really really well, players irons (not for me..) look really good, woods are crap, GI irons (my class) look UGLY, tw shoes are awesome, bags are super. c

clothes: well as long as you get them in xxs, wich in us are called medium (whats with you guys???) they are rely nice!

dan foster

11 years ago

I think getting Adam’s golf has bought them 5 more years. Taylormade is definitely perceived as a club for those who want to hit long, but also having the clubs that most consider the best in the game-improvement category gives them an awfully large share of the golf market that will at least consider buying their clubs. But nothing lasts forever.

ola scholander

11 years ago

ap 2 friends, that should be, sorry but the spellcheck keeps making pranks

ola scholander

11 years ago

my optiforce driver tells me callaway taking over (i switched from rbz2 to optiforce 460 and gained whopping 25 yards)

my test of rocketbladez tell me tailor-made (i gain 12yds pr club over my g25s, and dont come talking about lofts, its all about trajectory dudes)

what tells me callaway will take over is that my hardcore 4 hcp titleist apt friends speak very highly over callaway (they accept my callaway game improvemment stuff but not the other brands), i e i think callaway has a stronger reputation to build on if they continue the innovative streak in marketing and products

Mike Honcho

11 years ago

Nike is leading the ‘unseat’ them pack right now? Really???? MachSpeed, Covert cavity, VR Pro with a compression channel. Until they learn that a) these designs are gimmicks or repeats of other’s designs and b) Eldrick is not going to be playing golf for another 20 yrs, then they bring no worthwhile driver product to the market and their grand marketer will not be around forever. And it sure doesnt help with Rory’s ‘face plant’ with the switch from Titleist to Nike either. Sorry guys TM forever. And for the record only 1 TM Club is in the bag (Rocketballz first ver driver). oh and c) you hate it but boy do they know how to market and d) you hate it even more because they do make a good club. Interesting how highly ranked other company staff players (Luke Donald and Brandt Snedeker just to name some) play TM drivers.

Tony Covey

11 years ago

Mike – Let’s call Nike the long the play. In Nike what I see is a company with tremendous resources heading in the right direction (not at warp speed or anything), but in 2013 they made progress. Comparatively speaking they are admittedly just a bit beyond nowhere (numbers-wise) in the golf equipment industry, but there’s tremendous potential. It really boils down to whether or not Nike proves capable of figuring out golf the way they have the other sports. Thus far they haven’t, but I believe they will.

Bill Pruitt

11 years ago

It is just a matter of time for Callaway to get it back, they have came back in a big way this year. At my local courses I have been seeing alot of people that have never played Callaway and have said that they never would, playing Callaway now. And people do know how it is, even if they are contained to just thier own little world, all you have to do is look around the golf course, guarantee you will see more Burner 2.0 headcovers than you can count. You see it everywhere you go, high handicappers playing Titliest MB’s and CB’s, everyone knows in the golf world its all ego, like seeing 65 year old men swinging a 913D3 with a GD AD DI xstiff 80 gram shaft, they play what the pro’s play, not because it fits them or their swingtype, but hey its their money, everyone is free to do as they wish. But alot of people play Taylormade because they are bombarded with TM advertisements, and the fact that they are #1, its not hard to think, that after watching a PGA event, where alot of guys are using R1 drivers, that their is a reason they are doing so, and make you want to run out and buy one. Which I did, and hate the driver. I relaized that the pros drivers are set up for them, weight, COG, shaft, and most of them are playing prototype stuff that just looks like the off the shelf models, and they also have 120mph plus swingspeeds, and could probably hit just as well with a 2X4 piece of wood. I only play 2 local courses but have seen thousands and thousands of Burners and Rocketballz drivers, woods, and irons. I have hit every manufacturers products known, even clubs most people would not consider, and have found for me, that Callaway has the best products that suit me and help me break 80 every blue moon. But I would also say that if you have a good swing with good fundamentals and ballstriking skills, you could play good with any brand. They all have to go by the same rules. Everyone likes to think that what they like and play is the best, and if that helps them shoot lower scores that is all that matters, even if it is with Taylormade, or Nike for that matter.

MH

11 years ago

I would have agreed with you until I spent some time with Chip Brewer at the NGBA Trade show. He basically said our game plan is to make a product, sell it all and not refill it. Just like the problem they had with optiforce. As a retailer we loved the product when we first got it, but 3 weeks into the cycle we tried to fill in and were told that they had no plans to keep making it. It sold better than they thought and they were done. Well after a bunch of complaints we get a phone call that said if we want the driver we have to purchase a 3,4, and 5 wood. Well since we sell 1.2 fairways for every driver we passed on it. Sold out of the driver and moved players into something else. According to the C.E.O., this is the game plan going forward. So after we met with the rep in our area we cut back our initial pre-book from last year. I am not going to hang my hat on a company that does not plan on being a true partner with its retailers.

No if things change, then we will be back on board. The new X2 hot irons at 799 will be a bust, and the new x2 hot driver at 349 while every competitor is at 299 will also be a bust. So I don’t see Callaway having a better year this year than last.

Tony Covey

11 years ago

This nebulous idea of “inventory management” is something we’re starting to hear quite a bit. It would appear that retail models are shifting as green grass (and basically anything that’s not big box) is not willing to take in boatloads of inventory that have to be netted down later (for another boatload of inventory that they probably can’t sell).

That has trickled down to the manufacturers who, like retail shops, aren’t interested in being stuck with a boatload of inventory they have to sell below wholesale or offload other ways. The trickle down effect is that production runs are going to shrink, and that ultimately could lead to products legitimately selling out.

The upside is that it forces a fundamental shift in the business of golf retail to a model that works with the reality of accelerated release cycles.

As much as everyone like to blame the golf companies for “ruining golf”, and putting out more product that small retailers can handle, some responsibility does fall on retailers for not having the foresight to adjust their buying models to fit the changing times.

New product should be good for everybody, but not when it leaves you holding the bag for old product.

Callaway is an interesting case. They had a solid 2013, but aren’t anywhere near their 5 year goal (it’s cool, they have 4 years left), but I’ve heard from a few small shops that Callaway completely bungled the release of Optiforce and MD II (big box got inventory, mom and pop got hosed), and as you said, they’re already raising prices (both retail and wholesale), and appear to be leveraging some of the same heavy-handed strategies that have made retail guys feeling less than warm and fuzzy about TaylorMade in the past.

Time will tell, but it look like they could be getting ahead of themselves.

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