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 also turned to less costly sports such as tennis that can be easily enjoyed in everyday life 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 in the period of January to April, compared to the same period of last year.
At Shinsegae Gangnam, golf clothing sales decreased 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.
DOWNWARD TREND
Creas F&C Co., the exclusive distributor of Pearly Gates, Ping and St Andrews in South Korea and the No. 1 company in the domestic golf clothing market, reported a 2.6% drop in sales in the first quarter of this year. Its operating profit plunged to one-tenth of that of the previous year.
In 2023, Creas F&C posted more than a 40% fall on-year in operating profit.
Roger Nine Inc. and Acushnet Korea, licensed Korean distributors of PXG and Titleist, respectively, suffered sales drop last year as well.
Industry observers said the golf apparel market has entered a downward trend.
“We foresaw demand would decline due to increased overseas travel after the end of the pandemic, but the decline was too 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 available in the country.
Some industry official said the golf apparel market will follow in the footsteps of outdoor clothing market.
The outdoor fashion brands market, where high-priced products had emerged in the 2000s and 2010s, has recently contracted significantly due to a sharp decline in demand.
There is a high likelihood that the golf clothing market will 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