Market share of golf

The golf market of Japan is shrinking!

The market size of golf in Japan is about 1.3 trillion yen(about 13 billion dollars), and the market size of golf goods is about 250 billion yen according to the total sales of golf goods manufactueres in 2017. That was 1.9% decrease from the previous year.

This market is decreasing year by year because the number of golfers and golf shops decrease every year. In the harsh business environment, golf goods manufactueres and shops think quality matters more than quantity. There are many high quallity and high price golf goods in Japan as a result. This is why there is an only small decrease in the sales of golf goods.

The number of Japanese golfers in 1991 was 10 million people, but that is now is about 7.6 million people. About half the players have gone for 25 years. Of course, the market size of golf decrease by half. Not only play fee of golf and golf goods but also the sales of golf driving range decreased. As a reason for that, Japan made progress in diversification of recreational facilities for 20 years, and is also aging society.

About the golf market share in Japan, DUNLOP has the top market share. DUNLOP Sports Co. was merged into Sumitomo Rubber Industries, Ltd in 2018, but Sumitomo Rubber Industries sells golf goods with keeping DUNLOP brand. Its XXIO brand and SRIXON brand are very popular in Japan. DUNLOP also has the top market share of tennis goods. Bridgestone Sports which is subsidiary of Bridgestone Co. has the second market share. It also has the second market share of tennis goods.

The trend of golf goods in 2017 is high functionality. A golf driver which improve a disstance is hit though a fairway wood, iron and utility are not hit. Average purchase price of driver rises 5,000yen, and reaches 50,000yen(about 500 dollars). Japanese golfers interseted in a distance of driver.

The trend of Golf shoes in 2017 is changed from dial shoes to spike-less shoes recent years. Some proffecional players use spike-less shoes because of improving grip performance. A caddy is light one is popular now, especially with a weight less than three kilogram(about 6.6 pounds).

The golf shops and manufactures need young people to expand the golf market. There are many problem to do that, the most hard problem is a money among them. A play fee and golf goods are expensive for young people, a golf club set is about 50,000yen, a play fee for one time is about 20,000 yen in Tokyo. New golfers increase if a play fee and golf goods are dicounted, but an average spend per user will be lower by dicounting. As mention above, the golf market keep the sales by high average spend per user. Increasing new golfers is inconsistent with expanding golf market.

DUNLOP(Sumitomo Rubber Industries) and Bridgestone are listed on the Tokyo Stock Exchange. Foreign investors can invest in Bridgestone on NYSE by ADR(American Depositary Receipt). In addition, they can do them through many ETFs, MAXIS Nikkei 225 ETF(NKY), iShares MSCI Japan ETF(EWJ), Wisdomtree Japan Hedged ETF(DXJ) and more.