Can you explain why there is such media interest in your products?
When we set up MD Golf in 1999 our mission statement was to offer a top class product that most golfers could afford. Over the last nine years we have continued to improve our sourcing skills and believe that right now there are simply no manufacturers providing this sort of quality at even close to our price points. Thus when we go into tests we always do extremely well as anything at a similar price offers an inferior make-up of technology and components.
Golfing icon Seve Ballesteros is raising your profile greatly. How is this assisting your development?
Getting Seve on board has immensely helped our business. Consumers and retailers have always complimented us on the quality and performance of our product. However, they maybe lacked the confidence to buy or stock our brand as we are not a household name. Now with Seve supporting our product line everyone is looking at MD Golf in a different light; we are now treated as a serious brand. The credibility he has provided us with is huge. Obviously it was a great shock when we learned of his illness but we understand he is doing extremely well and all at MD Golf wish him well.
We understand that you have recently agreed a major deal in Japan. Can you tell us more?
In February we signed a five year deal with Cles Corporation in Osaka; they will be our exclusive distributor for Japan. Cles are one of the largest retailers in Japan and we have been working on this deal for around 12 months so it was fantastic news when everything was agreed and signed off. A lot of people don't realise how big a golf market Japan is - it is by far the second biggest market globally with over 10 million players. Both Cles and our company believe there is a lot of potential for MD Golf as there is limited competition in this segment of the market. The premium end of the market is dominated by extremely expensive Japanese brands and the bottom end is awash with very low end product. The brands that are strong in Europe and America, and which are closer to our price points are much weaker in Japan, so I feel there is a real opportunity for MD Golf.
How about other markets?
Our first container of product went to New Zealand at the start of March and Warren Vinning and his team at Golf Distributors Ltd. believe that MD Golf will be the next big brand in his country. We have also just received our first order from Spanish retail giant El Cortes Ingles and Green Grass Golf GmbH have been appointed as our new distributors for Germany. We are also very close to completing deals in Australia and South Africa.
It certainly sounds as if the export side of your business is growing. How about things closer to home?
Of course export is extremely exciting and provides us all with a great sense of pride to see our products being sold on the other side of the world, however our bread and butter is the UK and Ireland marketplace. Right now the market is the toughest I have seen it since we set up our company in 1996 and 2009 will be a very interesting year. Our pre-book was 116% ahead of last year on the 31st December and we are continuing to break into new accounts who are leaving their ‘forward orders' very late. Of course the biggest challenge will be how well the stock moves off the shelves, as there is an immense amount of clearance in the UK market from the big manufacturers. Our hope is that retailers will zero in on the significantly high margins they can make from our products rather than turning stock at a low return on close-out product.
How much technology is involved in your products?
We have always used some of the best components in the marketplace and are up to date on the latest innovations, but we recognised in order to start and set market trends we needed some outside expertise to help us achieve this goal. Thus recently we recruited an R&D specialist who has been involved with a number of the global giants over the last 15 years to assist us with all our product development. Along with the input of Seve and his team at Amen Corner this will allow us to start and bring out products that are more innovative and make a difference to golfers of all abilities. Already we have plans to launch a new shaft system for late 2009 which is completely new to the market.
What are the next steps in your plans to develop the brand?
While there is no question Seve provides us with immense kudos, we recognise if we are truly to get over the brand prejudice that is inherent in everyone we have to get the clubs out on tour and used by the world's leading players. Obviously due to the huge sums of money involved to sign up players we have decided to go down the route of not paying players and letting the product speak for itself. Most endorsement deals give the players the opportunity to use one or two clubs from another manufacturer, thus we are targeting wedges as our key product to get into Tour pros' hands. We know that many leading amateurs already use them out of choice and the spin statistics over the last three years show that the product works. Over the coming months via our new Tour rep we expect a lot of players to test the product on the PGA and European Tours and we have every confidence that Tour usage will follow.
Golf Network, MD House, Orchard Close, Antrim, Northern Ireland BT41 2RZ. Tel: 02894 460333.
Email: michael@mdgolf.co.uk
