Licensing Action Increases as Golf Surges
The surge in the popularity of golf during the past 18 months has driven industry sales to new heights and provided an opportunity for licensing
As the pandemic spread last year, the sport was regarded as among the most COVID-safe pursuits, bringing back players who hadn’t picked up a club in years and attracting new ones. The number of rounds played in the U.S. jumped 23% in the first half of 2021 compared to 2020 (and up in the “high single digits” from 2019), according to Golf Datatech. And while there have been signs of growth moderating– the number of rounds rose 0.4% year-over-year in June –the newfound hobby is sticking.
Apparel, equipment jump
And new (or resuming) players need stuff. Golf apparel sales of $562 million in the first half of this year were the highest since Golf Datatech began tracking the category, and beat the previous record of $536 million set in 2015. Equipment sales also jumped.
“With more options for activities open this spring and summer compared to last year, we were cautious as there could have been a potential slowdown in golf participation and/or demand,” said Oliver Brewer, CEO of Callaway, a major golf equipment brand. “At some point consumer demand for new products will have to slow down, however thus far it has held up very well to the pressures of the pandemic.”
Among recent licensing-related developments:
- Perry Ellis International, a PGA Tour licensee since 2004, recently extended its contract through 2028 with the addition of men’s, women’s and children’s apparel. And that was after Perry Ellis in the spring initially extended the contract, which was set to expire in 2022, to 2025.
- Hangsung F.I. signed a 10-year agreement for TaylorMade golf apparel in South Korea. The deal, which replaces one the company had with Callaway that expired last year. TaylorMade Golf was sold earlier this year to a Korean private equity firm, which in turn sold a piece to Korean apparel giant F&F Co.
- The R&A (the governing body of British golf that operates The Open Championship (known in some quarters as the British Open), signed an agreement with the 96-store American Golf chain, which has locations across the UK and Ireland to develop licensed Open-inspired apparel under its Stromberg label, in addition to bags, luggage and trolleys. The deal was brokered by the R&A’s agent, TSBA Group.
- Andrews Links hired The Point. 1888 to delve into its archives to extend the brand beyond golf accessories and gift baskets and into alcoholic beverages, stationery, toys and games, confectionary and other products. The new licensing deals will come as The British Open returns to St. Andrews to mark its 150th anniversary in 2022.
- Apparel Designer Todd Snyder brought Acushnet’s Foot Joy, best known for its golf shoes, into an apparel collaboration that includes seersucker caps, fleece sweatshirts and polo shirts. The collection also includes Snyder’s take on Foot Joy’s Premiere Series Packard golf shoe.
- And streetwear — shouldn’t that be coursewear? — has also come into play. Australia’s Birds of Condor gave an homage of sorts to golfer Tiger Woods with Fore Tiger (the image of the animal not the person), sweats, snapback caps and other apparel along with its home page urging visitors to it to “Play More Golf.” And Maldon Golf, whose collections fuse modern, graphic-heavy designs with golf staples such as polos, technical pants and v-neck sweaters, has collaborations with Nike and New Balance. Puma also launched its own golf-related take on streetwear this past spring.