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Changing the rules
Brands are changing the rules on the retail channel, according to Ian James, head of marketing at Foremost Golf
Published:  03 July, 2010

Ten years ago, when the internet promised so much, many predicted that brands would, increasingly, go direct to the consumer, eventually removing the need for the retailer. However, in the face of intense pressure from the large retailers, brands have largely held off from alienating this traditional distribution channel. Even Levi, faced with the threat of being de-listed by large retailers, was forced to close down its direct e-commerce strategy.

But the decline in retail spend in the major consumer markets has tipped the balance and changed the rules. Many manufacturers are experiencing real pain. The largest brands will unfold strategies to build direct consumer relationships. This approach is already visible with golf brands that have created their own ‘locker rooms’ for registered golfers.

Relationships between manufacturers, brands, retailers and consumers will go through a very painful re-alignment over the next five years because:

a) Under extreme financial pressure, golf brands are subjected to a fiercely competitive struggle for space in the existing retail stores, which is reducing sales and margins.

b) Purely online retailers have emerged whom, frankly, offer no additional value to brands, so the brands will cut them out of the chain.

c) There are many strong examples of major consumer brands going direct to the consumer successfully - think Apple, Android phones, Dell computers.

The battle is on for ownership of the relationship with the consumers. For the PGA professional to flourish, three factors have become critically important:

1. Managing the relationship with the golfer; staying in contact even when they are NOT in the shop or at the range – they need to feel they can reach ‘their’ professional for assistance at any time.

2. Delivering value through expertise; driving improved results to the golfer through core expertise, so that value is ADDED TO THE TRANSACTION.

3. Making sure the golfer UNDERSTANDS the benefit of this, VALUES the result and TRUSTS that the PGA Professional can deliver it.

It has never been so important to invest in your expertise, and then to market that expertise and its potential impact.

www.foremostgolf.com




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