The Road to Nowhere

roadnowhere-e1335851784411Our industry never ceases to amaze me. I was thinking back at the many different retail sectors I have worked, and advised, in and can’t ever come up with a comparative market place.

We have recently seen another round of crazy discounts by several off-course retailers, disguised as end of season clearances, pre-Christmas sales etc. and perhaps papering over the cracks of the real issues we have in golf retail.

I wonder how long the multinational golf brands can sit and shake their heads at this constant stream of retailing activity, which only serves to fly in the face of the huge amounts of money spent on research and development, player endorsements, consumer marketing and retailer incentives, which should serve to position their brand at the premium end of the market.

Yes, all brands these days need multi-channel representation and more importantly multi-channel brand management. Yes, mainstream high street chains do have aggressive pricing activity in order to grab the consumer from competitors but here’s the point.

This is done as part of a strategic plan built into the business and taking into account the complex factors involved in managing your brand. They don’t just wake up one morning and decide to knock 20% off of everything, which, by the way, needs a 200% increase in sales to break even!

A strategy is like a road map, it gives you the route to your business destination. Without a strategy a business has no map, no direction and gets lost very quickly.

The golf pro must not allow him/herself to be dragged into this ridiculous situation where the only winner is the consumer, with little in the way of satisfaction or profitability for the retailer.

Eddie Reid
Managing Director
http://www.tgigolf.com

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