2030 Golin meets the water in the golf industry… Active M&A and direct entry

Input 2021.03.08 14:30

Last year, the domestic golf apparel market surpassed 5 trillion won… Expected to exceed 6 trillion won in 2 years
Increased golf population as young people and women flock to…Going directly to overseas brands and opening large stores

On the afternoon of the 6th, the 7th floor of Shinsegae Department Store in Gangnam, Seoul. A woman in her twenties was taking a video of herself after changing clothes at a golf clothing store. In the next store, couples who looked in their 30s were choosing golf equipment. Colorful golf clothes aimed at young people were on display here.

Golf goods stores in major department stores and large marts are crowded with consumers in 2030. Due to the spread of coronavirus infection (Corona 19), outdoor activities are restricted, and young people are flocking to golf, a sport that allows social distancing.

An official from E-Mart said, “Recently, the number of young generations and female beginners is increasing, and the golf population is increasing rapidly.”

According to the Korea Leisure Industry Research Institute, the domestic golf apparel market last year recorded 5,125 trillion won, an 11% increase from 2019 (4,631.5 billion won). The Leisure Industry Research Institute estimates that the domestic golf apparel market will steadily grow to reach 5.68 trillion won this year and 6.35 trillion won by 2022.

E-Mart’s golf equipment sales last year increased by more than 5% compared to the previous year. From January to mid-February this year, sales increased by 24% from the same period last year. Lotte Department Store also saw a 25% increase in golf-related sales last year compared to 2019. An official at Lotte Department Store said, “Golf sales have been increasing since the second half of last year.” “I said.

With the rapid growth of the domestic golf market, global golf brands are also rapidly advancing into Korea. Shinsegae International (031430)Opened a flagship store (store that maximizes the brand image) of Jay Lindberg, a Swedish golf apparel brand, in Sinsa-dong, Seoul on the 5th. This is the first time Jay Lindbergh, who had been expanding stores centering on department stores, opened a single store.

An official from Shinsegae International said, “Denmark designer David Tulstrup has worked hard on the store configuration to the extent that he is in charge of interior design.”

Kolon Industries FnC introduced overseas golf brand G/FORE in Korea last month.
Callaway plans to end its domestic copyright with Hansung FI at the end of June and enter the country directly. Callaway Korea, which had only developed club and supplies business in Korea, will also take charge of the fashion division and start marketing directly. Mizuno Golf plans to open 20 new stores within this year.

Majesty Golf Korea, an overseas golf club brand aimed at golfers in their 50s or older, has been on sale in the M&A market. The domestic private equity orchestra PE, which acquired Majesty in 2017, selected Goldman Sachs as its sales advisor at the end of last year and began the sale of the company. Majesty is a golf equipment manufacturer and distributor jointly made by Maruman of Japan and Cosmo Group of Korea in 2003, and is famous as a brand specializing in high rebound clubs.

Orchestra PE invested 80 billion won in 2017 to acquire 100% of Maruman Korea and 29% of Maruman’s Japanese headquarters. Earlier last year, it bought all the shares of Maruman’s Japanese headquarters, which was listed on the Japanese stock market.
Majesty Korea’s sales in fiscal year 2019 (October 2019-September 2020) reached 102.6 billion won, nearly doubled from the previous year. Operating profit increased by about three times.