Korea's golf apparel market shrinks as golf boom fizzles
Hun-Hyoung Ha
May 29, 2024 (Gmt+09:00)
A golf apparel store within a department store in Korea The heyday of South Korea’s golf apparel market seems to be over with the end of the COVID-19 pandemic.
Millennials and Generation Z, who had led the rapid growth in the golf industry, are opting for overseas trips instead of playing golf. They have also turned to less costly sports such as tennis that can be easily enjoyed as part of an everyday routine amid persistent inflation.
According to fashion industry sources, golf clothing sales at the biggest department stores of Lotte Shopping Co., Shinsegae Inc. and Hyundai Department Store Co. declined by double digits over the January-to-April period compared with the same period last year.
At Shinsegae Gangnam, golf clothing sales fell by 12.7% on-year due to the poor performance of major brands such as Gpore, PXG, Malbon Golf and Titleist.
Among the top 10 brands in terms of sales, only Dunlop, Footjoy, and Amazing Cree posted sales growth during the period.
“There was no significant change in consumption by VIP customers, but demand from people in their 20s and 40s and female customers decreased,” said a department store official.
(Graphics by Sunny Park) DOWNWARD TREND
Creas F&C Co., the exclusive distributor of Pearly Gates, Ping and St Andrews in Korea and the No. 1 company in the domestic golf apparel market, reported a 2.6% drop in sales in the first quarter of this year. Its operating profit plunged to one-tenth of the previous year's level.
In 2023, Creas F&C posted a more than 40% fall on-year in operating profit.
Roger Nine Inc. and Acushnet Korea, licensed Korean distributors of PXG and Titleist, respectively, also suffered sales declines last year.
Industry observers said the golf apparel market has entered a downward trend.
"We foresaw declining demand due to increased overseas travel after the pandemic, but the decline was steeper than we had expected," said a fashion industry official.
During the golf industry boom from 2020 to 2022, some 50 golf clothing brands were launched — about 40% of the 200 brands currently offered in the country.
Some industry officials said the golf apparel market will follow in the footsteps of outdoor clothing market.
The outdoor fashion brands market, where high-priced products emerged in the 2000s and 2010s, has contracted significantly due to a sharp decline in demand.
The golf clothing market will likely be reorganized around brands that have gained a reputation as a golf club brand and those that focus on functionality and cost-effectiveness, said a golf fashion industry official.
Write to Hun-Hyoung Ha at hhh@hankyung.com Yeonhee Kim edited this article