the front ninesportsandleisureresearch.com/wordpress/wp-content/... · 1/17/2019 · 2. shi>s...
TRANSCRIPT
TheFrontNine
1. CustomerCentricityandTheGolferExperience
2. Shi>sintheGolfEquipmentPurchaseJourney
3. PrimacyforGolfRanges--"TheSuperDerivaIve"
4. TheSportsWageringOpportunity--StartsandStops
5. GolferPerspecIvesonCriIcalIssuesImpacIngtheGame
6. TheConInuedEvoluIonofPrivateClubs7. Golfers,TheEconomyandTheStateoftheUnion
8. FacilityOperatorPressuresandPrioriIes9. GolfTravel--IndulgenceandLuxurytoEscapetheChaos
HowtheGolfMarketisTrendingintheYearAhead
CustomerCentricityandTheGolferExperience1.
Behavioral/A,tudinalFusionAndMeasurement
Source: 2019 SLRG Golf Omnibus; 2019 ASGCA/SLRG Golf Market Trend Watch
#1InImportanceForGolfFacilityOperators:
! AddiIonalTeeBoxOpIonsthatallowforashortergolfcourse–70%
Nearly6in10golferswitha20+HCPstronglyagreethattheideaofplayinga9-holeroundofgolfisappealingtothem
FLEXIBILITYANDCUSTOMIZABLEEXPERIENCES62%wouldliketoplaymoregolfthantheypresentlydo.
APPMANIA:• GolfLogix• Arccos• TheGrint• GolfShotGPS• 18Birdies
AMBASSADORS/GOLFEXPERIENCESTEWARDS:
• AGAs&PGAProfessionals
Shi>sinTheGolfEquipmentPurchaseJourney2.
E-COMMERCECOMESOFAGE:
Whereareyoumostlikelytomakeyournextgolfequipmentpurchase?
38% 39%
13%
22%
2013 2019
OVERTHEINTERNE
T
OFFCOURSESPECIALTY
35%ofthoseunderage45
! GolferPurchaseProcessShowsincreasedprominenceofvalued,curatedcontentduringearlyconsideraIonsetformaIon
Source: 2019 SLRG Golf Omnibus
Shi>sinTheGolfEquipmentPurchaseJourney2.
Source: 2019 SLRG Golf Omnibus
59% ofgolfersstronglyagreethat“newgolfequipmentconInuestobecomemoretechnologicallyinnovaIveeachyear…equalinga10yearhighin2013
Golfersin2019are48% more likely toagreethat“buyingtherightnewgolfequipmentcanhelpmetoimmediatelyimprovemygamevs.2012
OEMBrandloyaltyremainsata SIX YEAR low
Shi>sinTheGolfEquipmentPurchaseJourney2.
Source: 2019 SLRG Golf Omnibus
CuraIngtheContent–MostCriIcalInformaIonSourcesThroughoutthePurchaseJourney
TOPTIERo Demoingequipmentinoffcourseproshops,rangesandoncourse
o ResearchingandreadingarIclesingolfpublicaIons,andonlinethroughthirdpartywebsites
o Guidancefromsalesassociatesandteachingprofessionals
o Talkingtoandobservingfriends/othergolfers
o VisiIngOEMandretailerwebsites
o GoogleSearch
o Golfrelatedtelevisionprogrammingandvideos
ALSOIMPORTANT
Shi>sinTheGolfEquipmentPurchaseJourney2.
Source: 2019 SLRG Golf Omnibus
ExpectedDriverSpendingacrossthe$400thresholdinlockstepwithTM5,M6,CallawayEpicFlash$500MSRP
OverallAnVcipated2019PerCapitaEquipmentSpendingisup+25%vs2018:
MeaningfulShi>sinperCapitaSpendingbyCategoryin2018vs2017forallcategoriesexceptgolfbagsandapparel:
ConInuedGrowthAmongCustomFikngStudios—TowardsVirtualInventory:
! 42%of“engaged”golferswon’tbuynewequipmentwithoutbeingcustomfit
Drivers Hybrids Irons Wedges GolfBalls Shoes Pupers
PuperpriceEXPECTATIONSreach$200
! Though70%planningtospendthesameormoreisdownfrom78%lastyear—againsuggestsshareofcustomerbaples
Nowat17Studiosandsome30,000 configuraIons
Shi>sinTheGolfEquipmentPurchaseJourney2.
Skill Level/Experience
Product Need
High
Low
Value Premium
SecondHandSamTheAllIn,
ConstantShopper
BuyingaGameTheNotGoodEnoughs
…AnditallmakesSenseasthenewsegmentaIonisvalidatedfurtheracrosschanneluIlizaIon
GreenGrasssIllshowsresonanceamongprivateclub
members
WhattoMakeofourLoveAffairwithGolfRanges–“TheSuperDerivaIve”3.
“AnEnhancedPracVceRange”movesto#1inimportanceamongSuperintendentsevaluaInggolfers’mostcovetedameniIesin2019Survey.
TopGolfisAbout“Community,”EntertainmentandF&B
SaturaIonandShi>ingNon-golferTastes
VS.
TransformaIonofExperienceandMigraIng“TireKickers”IntoTradiIonalGolfers
TopGolftoSurpass50 U.S.LocaIons
Source: 2019 SLRG Golf Omnibus; 2019 ASGCA/SLRG Golf Market Trend Watch
DriveShackTargets15StandAloneMegaRangesby2020
NewYorkCity
TheSportsWageringOpportunity—StartsandStops4.
21%ofgolfersstronglyagreethat“Golfismorefunwhenthereisacashwagerontheline”
! GreaterInterestAmongPrimarySegments:
o PrivateClubMembersINDEX149
o SingleDigitHandicappersINDEX191
o UnderAge45INDEX122
14 MAY
Source: 2019 SLRG Sports Omnibus, ESPN
TheSportsWageringOpportunity—StartsandStops4.
"The reason we would do it is because we think gaming leads to more engagement."…sports betting in golf as a "second-, third- or fourth-screen experience.”
Source: 2019 SLRG Sports Omnibus, ESPN
Thingstothinkabout:
o IntegrityFeeso InfluxofDeliveryMechanisms
! GolferssIllconsiderthegame’s“purity”amongitsmostsignificantvirtues
FIRSTWAVEOFALLIANCES
GolferPerspecIvesOnCriIcalIssues5.
SOMEBULLISHATTITUDESSTAYTHESAME!
10 Straight Years that95%ofgolfersexpecttoplaythesameormoregolfastheydidayearago
Consistentwith2018,We’veseena-27% Drop since2015ingolferswhostronglybelievethatthegameofgolfis
facingmajorparIcipaIonchallenges
MoregolfersconInuetoseethegamebecoming
More Inclusive and Welcoming thanitwasageneraIonago
Source: 2019 SLRG Sports Omnibus
36%38%
41%
2017 2018 2019
“Golf has become more inclusive and welcoming than it was a generation ago”
GolferPerspecIvesOnCriIcalIssues5.
Source: 2019 SLRG Sports Omnibus
…ButWeSeeSomeMeaningfulShijsInPerspecVvesOnParVcipaVon
In your opinion, which of the following is the most effective way that the golf industry can increase the total number of rounds played?
78%
22%
2019
83%
17%
2018
Bygekngmorenewplayerstotrygolf
ByencouragingexisIngplayerstoplaymoregolf
TheConInuedEvoluIonofPrivateClubs6.
AjerAStrongRecovery,MembershipGrowthHasStalled
Decrease,25%
Decrease,22%
Decrease,21%
Decrease,36%
Decrease,51%
Increase,36%
Increase,37%
Increase,39%
Increase,33%
Increase,19%2011–LOWPOINT
2013–STABILITYACHIEVED
2017–HIGHPOINT
2018–SLIGHTRETRENCHMENT
2019–SLIGHTRETRENCHMENT
TheConInuedEvoluIonofPrivateClubs6.
AjerAStrongRecovery,MembershipGrowthHasStalled…AsWeSeeEvidenceofGreaterFinancialStability:
TheIncidenceofRespondentswhoareconcernedaboutthefinancialstabilityoftheirPrivateClubshasdroppedinoftheeachofthepastsevenyearsfrom36%in2013to22%in2019
o Consistentwithobserveddropinthosewhoreportthattheirclubshaveaggressivelyreducedthepriceofmembership
TheConInuedEvoluIonofPrivateClubs6.
ButMoreChangeisLikelyAhead:
57% sIllbelievethatprivateclubsmustmakeaggressivechangestoremainrelevantintheyearsahead…unchangedfrom2013
o “GamificaIon”tojoinindiversifiedprogrammingandfocusonfamily,juniors,women,youngermembersandconvergenceofhome,officeandclub
Golfers,theEconomyandtheStateoftheUnion7.
52%stronglyagreethatthereisnosuchthingasjobsecurity—anelevenpointimprovementsince2010;andallImebest
NearlySIXIN10areveryconfidentthattheywillhaveenoughmoneytoreIreincomfort—upsevenpointsvsayearago
HOWEVER…
THREEYEARLOWingolferswhofeelsignificantlybeperabouttheirfinancialsituaIonin2019thanayearago…downfrom42%to34%
<10% stronglyagreethatpeoplewillgobacktospendingfreelyonluxuriesin2019
FacilityOperatorPressuresandPrioriIes8.
60%
59%
55%
50%
50%
42%
40%
40%
55%
56%
49%
41%
47%
39%
32%
36%
Maintenancecosts(water,inputs,labor)
CompeIngprioriIesforcustomers'leisureIme
Theoveralleconomy
Decliningconsumerinterestingolf
Thelocaleconomy
Timeittakestocompletearoundofgolf
CompeIIonfromotherareafaciliIes
Water(availability,cost,regulaIon)andcapitalprojectcostsanddebt
2019
2018
Q.Mostsignificantissuesthatcanimpactthesustainabilityandfinancialhealthofyourgolffacility
TOP3BOX
In2019,FacilityGeneralmanagersaresignificantlymoreconcernedaboutcompeIngprioriIesforcustomers'leisureImeandthelengthanddifficultyofthegolfcourse
Source: 2019 ASGCA/SLRG Golf Market Trend Watch
FacilityOperatorPressuresandPrioriIes
Q.Which,ifany,ofthefollowingpotenValenhancementswouldbeofsignificantinteresttoyourguestsormembers,and/orincreasetheusageofyouroperaVon?
GolfCourseRenovaVonsAreEvenMoreCovetedin2019astheMostWantedEnhancementforFacilityOperators!
45%
36%
35%
29%
28%
23%
39%
32%
35%
31%
27%
23%
GolfcourserenovaIon
Anenhancedfoodandbeverageexperience
ExpandedJuniorgolfprograms
ClubhouserenovaIon
Familyprogramming
OnlineteeImereservaIons
2019
2018WouldbeofsignificantinterestSUMMARY
Source: 2019 ASGCA/SLRG Golf Market Trend Watch
8.
GolfTravel—IndulgenceandLuxurytoEscapetheChaos9.
BullishSignals,butHeightenedCompeVVon
Iplantospendac>velyonusefulpas>mesinmyre>rement
Golfismypersonaloasisfromthedaytodaychaos
I’mplanningtotakeamajorvaca>onthisyear
IfeelthatIwillbemorecomfortableinmyre>rementthanmyparentsare/were
Comparedtomyparents,I’mmoreselfindulgent
STRONGA
GREEMENT
Source: 2019 SLRG Sports Omnibus
58%(‘19)49%(‘11) VS
54%(‘19)36%(‘09) VS
59%(‘19)37%(‘09) VS
52%(‘19)44%(‘10) VS
48%(‘19)38%(‘09) VS
GolfTravel—IndulgenceandLuxurytoEscapetheChaos9.
OPPORTUNITY:
Source: 2019 SLRG Sports Omnibus
The‘minivacaIonmarket’—24%stronglyagree
thattheyaretakingmorevacaIonsofshorter
duraIonthantheyusedto.
GolfTravel—IndulgenceandLuxurytoEscapetheChaos9.
MOVINGTOTHEOPPORTUNITY:
Source: 2019 SLRG Sports Omnibus