Reasons For Nike'S Withdrawal From Golf Club Market

Is it unexpected or reasonable for Nike to announce its withdrawal from the golf club market? What will it do to the golf industry?

Hear

Chen Zihao, a professional footballer in Zhuhai, was shocked by the news that he would abandon the market for golf clubs.

He is a Nike signing player. He also debugged clubs in Dallas, Nike and R & D center in July this year to feel the new technology of brand application.

He said: "I feel that in recent years, Nike has invested a lot in the research and development of ball games. I also like the clubs that I use very much now."

Influenced by Woods and Mike Roy, Chen Zihao was a loyal fan of Nike before signing the contract.

"Do sports people dislike Nike?" he asked with a smile.

In 2012, he was 16 years old as a volunteer to participate in a commercial match between Woods and Mike Roy in China. It was a wonderful feeling to enjoy the same camps as an idol.

In addition, Nike signed Chinese players, including Li Haotong and Feng Simin.

They wear Nike clothing and Nike clubs, and the contract has a strong exclusivity.

But the statement issued by Nike in August 4th was changing what it was.

Trevor Edwards, President of global brand, said Nike will quit the club manufacture and focus on golf shoes and clothing. The goal is to "become an indisputable leader in golf shoes and apparel industry".

Unexpected? In reason?

In the 2016 fiscal year, revenue was $706 million, the lowest in third consecutive years, the lowest since 2012.

At the same time, the global golf market is sluggish and the US is declining. The emerging market in China is limited by policy reasons. These are all factors that affect Nike golf's exit.

Backed by far-reaching brand influence, Nike has invested in the manufacture of golf clubs and clubs since the beginning of this century. It has signed Woods, the king tiger, and killed him.

But it has always been controversial, the industry generally believe that its club technology content is not high, but rich and generous, in the star, marketing has natural advantages.

After Woods, Nike signed a contract with McElroy to create a new king.

In China, Li Haotong and Feng Simin, who signed the contract, are now fighting in the US arena. They are the 95 new generation strength players with good image and performance.

In 2013, when he signed a contract with Nike, Li Haotong was 17 years old and his record was mediocre.

But he has an extra bonus to win the championship. He gets a $500 bonus every time he gets a world mark, and according to the annual raise, he can get up to 1000 dollars per point.

In 2014, Li Haotong won four championships, earning 63 world points, ranking 195 from 729 at the beginning of the season.

Because of the star players, Nike has great appeal.

In 2005, Woods came to China for the first time in the HSBC championship competition. Golfing fans and former chairman of the CITIC Group, Kong Dan, had the chance to match the tiger with a special set of Nike.

As a result, hats and belts are exactly the same as those worn by tigers on the same day. T-shirts are of the same color, which makes their communication more tacit.

"As a popular brand, if it doesn't bring the tiger and other big names into the flag, Nike will hardly have a place in the market of ball games". Amateur golfer Li Xiaoming said that in 2006 he was an amateur in the China Open Championship of the European tour, and also behind the curtain of the Golf charity's "sky of love".

He believes that the ball market has its historical heritage. Nike has not been able to really shake the status of the four traditional brands of Callaway, Telme, PING and Titleist, and has never been involved in luxury clubs as HONMA does. It has limited profit and development space.

He used Nike No. 1 and putter, but he did not adapt. He gave up.

Lin Tao, general manager of Beijing Li Gong sports park more than 10 years ago, bought the first set of iron products produced by Nike because of the fresh sense of publicity.

"Yes, but that's OEM," Lin said. For Asian people, Japanese clubs are more suitable.

For Nike Golf quit the ball market behavior, some Nike employees feel suddenly, without warning.

But objectively speaking, this is a rational market behavior.

"In the past two years, the attention of golf has been declining worldwide, including the United States and Europe.

China was originally an emerging market, but because of its policy, China failed to become a place to save golf, "Peng Yanyan, a professional player Wu Shun, said." it's very normal for businessmen to do business that is not profitable. "

Ji Lili, the founder of Yoshi Golf studio, has been focusing on club maintenance since 2003, so that the finished product clubs are more suitable for individual differences.

For Nike ball, she likened, "like CASIO in watches, it is designed for young people. There is no unique place in technology, but it is worth keeping."

"In Nike golf, ball sales, ball bags and ball sales account for only 10% of the share. It is more reasonable for the listed companies to cut off the decline.

Especially in the case of a shrinking Golf environment, this is a very normal market behavior, "said another deputy, Xie Jia Feng, vice president of Bai Jia golf.

In fact, under the downturn, golf players are facing sales difficulties.

Ji Lili found that most Japanese stores mainly focus on European and American brands, and Japanese brands are more in quantitative production, according to the expected sales volume of distributors.

In Li Xiaoming's view, Nike has led the trend of golf clothing. With the influence of big names such as tiger, the T-shirt has been rapidly occupying the high ball clothing market, which is not only fashionable, but also has the meaning of breaking traditional conventions.

The tiger is sick and has a devastating impact on the Nike ball Market.

Today, Nike is out of the ball Market, but the decision to retain clothing is wise, and it is a market competition to foster strengths and circumvent weaknesses.

Lin Tao is more direct to say that Nike should not enter the market. "Making clubs is itself a technological activity and requires historical precipitation."

At the beginning of this year, Adidas sold its golf club brand Taylor, which is linked to Nike golf's exit from the ball Market.

In response, Kaiser sports vice president Wang Cheng said: "Adidas sold Taylor, Nike announced the withdrawal of the ball Market, coupled with the previous Titleiest acquisition by the Koreans, reflecting the market share and development trend of golf in the United States, at least not in the short term.

As the first brand of sport, Nike's entry and exit is more typical. When it entered the golf industry, it signed a tiring tiger, which heralded the coming of an era.

To this day, this era is over.

The bubble industry and the flashy golf industry have faced unprecedented challenges.

Brian Strong, a spokesman for the company, said that the ball mill that is in production cycle will also be in normal production as part of the pition plan.

Players and Nike not yet mature contracts are being discussed one by one, and do not rule out the possibility of retaining Nike's clothing and open ball sponsorship to other brands.

Li Haotong is busy with the Olympic Games in the Chinese players signed by Nike. Feng Simin and Chen Zihao are preparing for the regular matches. There is no conclusion on how to deal with the contract with Nike.

Xu Yifei, the representative of the SRIXON/XXIO, who is responsible for the players' affairs, said that the market budget has been determined this year, whether or not to sign players who may "return to the circulation market" and wait until the end of the season to see the specific circumstances.

"Nike golf's exit will give some market share to other brands.

Its two tier ball has a good market share, which is good for Callaway and Taylor.

Xie Yufeng looked at Nike's exit on the other hand.

It can be said that in the difficult position, Nike golf's broken arm self insurance is the correct judgement.

The so-called farewell is for good-bye.