NY Times: "Nike Tosses Its Golf Clubs. (Shirts to Stay On.)"
/Sam Borden of the New York Times went to East Lake trying to gauge the impact of Nike's equipment exodus and concludes a few things.
First though, there was this shrewd observation:
“The secret sauce in the equipment business that Nike didn’t have is that each of these companies that’s thriving comes from a core competency that they grew out of,” said Casey Alexander, a senior vice president at Compass Point Research & Trading, which has long tracked the golf industry. “Callaway still uses the Big Bertha name — that’s what people know them for. TaylorMade invented the metal-headed driver, and that’s still a huge part of what they do. Titleist has a core competency in golf balls. Ping has a history in cast-iron clubs. Nike just never broke through with something like that.”
Borden shared this compilation of observations that is of interest:
Several agents speculated that one (somewhat counterintuitive) ramification of Nike’s move out of the golf equipment business is that there will actually be more, not fewer, Nike swooshes on the golf course at top events.
In the past, the thinking goes, Nike could not attract some players it wanted to work with because many players believed Nike’s clubs were inferior. Now, Nike will be free to chase any player without demanding that the player use Nike’s clubs as well as wear its clothes.
We shall see!
