Strong Signs for Apparel this Month

The retail sell thru data is now out for the U.S. Apparel category and, despite slow sales for equipment, apparel seems to be faring well with total golf apparel sales for the month of March up 5.3%.  Interestingly, both Green Grass and Off Course sales have improved by similar amounts.

March 2022 Apparel Sales Summary

  1. Men’s shirts, which are the largest single apparel category, were up 4% for the month and YTD. While units have declined, Average Selling Prices on men’s shirts are up 10% YTD and are at all-time highs.
  2. YTD Average Selling Prices are up mid to high single digits across most apparel categories
  3. Inventories remain very tight in several product categories, in particular in men’s shirts, where inventories are 8% below last year and 28% below 2019 levels.

On the latest results, Golf Datatech co-founder, John Krzynowek commented:  “Contrary to equipment, which hit a rough patch with slowing sales, apparel sales remained brisk even with limited availability of some key products, such as men’s shirts. Demand seems robust but, so far, the major brands continue to chase supply.  Whether it is raw material issues, manufacturing/Covid outbreaks or shipping, the apparel category is succeeding thru Q1 of 2022 despite itself.  Limited supply results in higher prices, which may impact demand down the road, but for the moment the category continues to grow.”

 

April, The Masters and the Start to the Golf Equipment Season.

the masters 2022
For those lucky enough to live or spend winters in the southern climate, the golf season never really ends.  In the darkest days of winter, between January and the end of March, the most significant changes to the game for warm weather golfers are all the extra people trying to get a tee time at your favorite golf course. In those markets, balls, clubs, bags, shoes, gloves, distance devices and apparel continue to sell briskly, however in the less temperate climes there are no tee times to enjoy, and sales of golf products slow dramatically, lying low like spring flowers just below the surface, ready to “pop” at the first sign of warm weather.

For golfers, early April has become synonymous with improving weather and a trip down Magnolia Lane, at least virtually or thru the power of broadcast TV. It’s also the time when golf product sales explode.

The Masters typically kickstarts the golf season, and it’s now upon us. Even if the weather hasn’t totally flipped from cold to warm everywhere, the worst of winter is clearly behind us, and the “itch” to pick up a club, to make swings, to practice, to play, and to buy new equipment, infects most golfers in the north. Rising from their hibernation, it’s time to test out the new “move” as well as look at what new product can help them hit it further or lower their handicap.

Based upon Golf Datatech’s Retail Sales data, the first three months of the year typically represent about 17% of total year sales, rising sharply to 36% for the second quarter. The Spring Effect isn’t equal across all product categories, but interest rises significantly in April.

Given the short supply of many leading products, April of 2022 is not the time to procrastinate. Any golfer who is thinking about new clubs or shoes will likely want to move quickly. And stocking up on your favorite brand of golf balls or gloves isn’t a bad idea either, as they may not be in stock later this year.

April, Augusta, and new equipment…they go hand in hand. I hope you all enjoy a fantastic few days of golf!

Seven Apparel Categories Up in February

Retail sell thru data for apparel is published today with total Apparel sales for the month of February through the On/Off Course channels up +9.0% and +3.3% YTD

Seven out of eight categories were up for the month, with only Outerwear declining.  The fastest growing category was Men’s Bottoms, which included pants and shorts, +16.7%.

Average Selling Prices (ASP’s) rose for every product category, some double digits, as inflationary pressures build and impact every step of the manufacturing and distribution process

On the latest results, GDT co-founder John Krzynowek said, “Golf apparel is not exempt from feeling the pinch from higher costs, and then passing those costs on to the golfer.  Manufacturing apparel is facing increased labor and material costs, along with the expense of shipping, which has caused retail prices to rise significantly over the past two years.  Ultimately these higher retail prices are going to curtail consumer demand and cause an overall slowdown in sell through.”

 

Golf Datatech and Atenga Insights Renew Successful Partnership

Atenga Insights and Golf Datatech renew successful partnership

The Alliance Between Golf’s Leading Independent Market Research Firm and Pricing Research Specialist to Include Expanded Survey Metrics for Net Promoter Score

Golf Datatech, the golf industry’s leading independent market research firm for retail sales, consumer insights and trade trends, announced today it is extending and expanding its partnership with global pricing research leader Atenga Insights after a highly successful 2021 campaign.

The partnership between Golf Datatech and Sweden’s Atenga Insights provides golf companies in the U.S. and around the world with predictive pricing research that can be completed within a matter of weeks.

“Our year one experience with the Atenga platform confirmed that the new Predictive Pricing & Demand Platform is a game-changer for golf brands of all sizes and in all product categories”, said John Krzynowek, Partner, Golf Datatech. “Our confidence was validated when clients engaged in repeat pricing research programs, which Atenga previously told us occurs in the majority of all projects”.

Golf Datatech’s Predictive Pricing & Demand Platform, powered by Atenga Insights showcases which product attributes and messages drive the optimum price points, as well as identifying critical “price walls.” Price walls are price inflection points (up or down), where a change in price can significantly change unit volume potential. For example, a price wall of $49 may generate the same approximate unit volume as when the product is priced at $45 (suggesting a price increase is appropriate) but drop by 10-15% when breaching $50. Identifying and maximizing revenue and profitability depends on finely tuned pricing guidance, which this platform delivers over and over.

The golf industry hopes to return to a more balanced supply/demand situation at some point in 2022, however for now, with tight supply, maximizing revenue thru the proper price points is of paramount importance.

Atenga CEO Robert Tinterov said, “Those companies that succeed in optimizing the price points golfers are willing to pay will achieve an oversized ROI.”

This year Golf Datatech clients will also be able to deploy the Atenga pricing platform to gain insights into the relationship between their NPS score (Net Promoter Score) and price. Intuitively a brand should have more pricing power if it has a high NPS score, but its dependent upon several researchable variables including channel, season, and market segment.

Adds Krzynowek, “We are now able to help our clients achieve a level of insight that wasn’t previously possible, or otherwise took several months. Through our exclusive database of Serious Golfers, we can quickly and easily survey thousands of golfers. Combined with Atenga Insights’ proprietary artificial intelligence technology, it allows us to complete a predictive pricing research study in a matter of weeks, making it an invaluable tool for golf companies moving forward.”

For more information on Golf Datatech and the Predictive Pricing & Demand Platform, powered by Atenga Insights, call 888-944-4116 or email info@golf-datatech.com

 

 About Atenga Insights

Atenga Insights is a data driven, AI-powered, predictive pricing platform that is quickly disrupting the staid billion-dollar pricing consulting industry. By coupling its own proprietary approach with newly available real time research tools, that enable highly relevant and precise panels, Atenga Insights can provide accurate pricing guidance in six weeks or less and for as little as $25,000. The approach has already been proven in close to one thousand different client situations resulting in hundreds of millions of dollars in incremental profit.

Good Start for Equipment Sales

January was another month of sales improvement with total sales of golf equipment up by 6.1% vs. 2021, and hitting an all-time high for the first month of the year + 51.8% above 2020 levels. (Note: January 2020 was pre-pandemic).

Value sales in every product category were up compared to January 2021, with the exception of Wedges. However all club segments sold fewer sticks than prior year.

On the release of the new figures, Golf Datatech Co-Founder John Kryznowek said, “The good news is that equipment sales in dollars continue to grow, however units sold have slowed and in most categories are contracting vs. prior year. This indicates that the value improvements are being driven by higher than average selling prices, which are already at, or near, all-time highs in virtually every case.  With all the turbulence in the world today, including inflation, potential military conflict, as well as continued shipping and manufacturing challenges, the economy is at a tipping point and trying to predict how 2022 plays out has become increasingly difficult.”