PGA Merchandise Show Preview

By Craig Kirchner

The PGA Show in Orlando is an important Mecca in an industry that is defined by important events, tradition and camaraderie.  It is an opportunity to speak with the leaders of the industry on both sides of the table and, in that respect, it is as much an educational journey as it is a commercial enterprise. With that as muse I questioned some of the leaders in the golf apparel industry. With that as muse I questioned some of the leaders in the golf apparel industry as to their short term Orlando intentions and their vision of the future of the industry.

Tom Nolan:  Senior Vice President, Golf & Tennis Ralph Lauren

In his role Tom oversees all business responsibilities for the Ralph Lauren golf and tennis divisions including managing the sales, marketing, manufacturing, distribution, PR, supply chain teams in all aspects of the business.  Tom has spent over a decade in the golf business in many different aspects including working briefly at Taylor Made, and serving as the Publisher of Golf World Magazine prior to joining Ralph Lauren. Tom has an extensive golf background, playing collegiate golf as well as continuing to play in top ranked amateur events across the country. 

Tom, you have moved the cheese considerably since coming on board toward making Polo easier for golf shops to do business with. What do you see new on the horizon both for Ralph Lauren and the golf industry in general?

Thanks Craig, I feel like we have moved the needle a lot here in the last 2 years, but we’ve still got a long way to go and we’re currently working on a lot of different initiatives to help grow our business and take good care of our customers, who are our #1 priority.  I think there is a lot on the horizon for both Ralph Lauren as well as the golf industry in general.  In regards to the industry as a whole, I think while recession has been very difficult for a lot of companies and a lot of individuals both in our business and out of it, it’s also been a bit of a good thing, as it has and will continue to challenge all of us to be better at what we do. I’m a big believer in that you can’t stand still, but you’ve always got to be moving and challenging yourself to be better because that’s what our customers expect.  It’s always been this way, but the difficult financial situation we’ve been in has forced us to be even better, and to me that’s a good thing.  In regards to the apparel world, in relation to the golf business, we’re into a pretty stiff head wind with the commodities market being what it is now.  Cotton prices have gone up 10% and polyester prices are up 20% as well, so this is a natural challenge that we will all face in the future. 

In regards to Ralph Lauren, there is a lot on the horizon for us as we go forward into the new year and beyond. I think our hard work over the last few years has gotten us back on track to where we need to be, which is a leader in the space.  Mr. Lauren started this company in 1967, and for almost 50 years we’ve never “sold out” and we’ve always put quality first and made sure that we always deliver the best product no matter what.  In a tough economy it’s easy to cut corners to save money and have your product sacrifice, we will never do that, and that will help us to succeed because people expect the best, and we’ll always deliver only the best.  Every product category across our divisions Polo Golf, RLX, and Ralph Lauren Golf have made and are making huge strides in design, fabrication and look.  The market has reacted well to what we’re doing and we’ll keep listening to make sure we deliver what customers want.  We’ve also worked hard to make sure our customers come first.  Whatever it takes to be successful, and help our customers be successful we’ll do, no matter what it takes, and I believe this dedication to quality and to our customers will help us continue to be successful.
 
The most exciting thing to me as I think about what the future holds for Polo is that we’re just getting started!  It’s a great time to be a part of Ralph Lauren.  As you may have heard we just signed a 5 year deal with the USGA to become their “Official Outfitter” and this says a lot.  When it came time for the governing body of golf in the US to choose an apparel partner, they chose Ralph Lauren, and that means a lot to me, and I hope it means a lot to our customers.  We’ve made significant strides in the last 2 years, but we’ve got a long way to go and we’ll soon start to implement some new programs, product offerings, and platforms that will keep setting us apart from others, and remind the golf world that there is only one Polo.  I’m really thankful to be a part of such a successful organization and I’m so thankful to have such a great team to work with and such amazing customers and consumers.  It’s a great time to be at Ralph Lauren and I’m so blessed to be able to be a small part of it all.

Christopher Heyn:  Chief Executive Officer with Summit Golf Brands

Christopher Heyn has been the Chief Executive Officer with Summit Golf Brands, Inc. since December 2009. His responsibilities include all aspects of the group’s global brand strategy, product development, merchandising, licensing, sales development, marketing, and direct-to-consumer initiatives for Fairway and Greene, Zero Restriction and EPPro. Prior to joining Summit, Chris held the position of Chief Operating Officer, and Managing Director of David Chu Management Group since November 2007. From April 2003 to October 2007, Chris was President of Nautica Sportswear and Nautica Jeans Company.  Before joining Nautica, Mr. Heyn served as Senior Vice President of the Global Merchandising Group with the National Basketball Association (NBA) from 1997 until 2001. 

Chris, given today's economic climate what is your best advice to shop owners for their time spent in Orlando, the coming year's business plan and the vision you have for the future of the industry?

First, give yourself enough time to really study the market, ask questions, talk with associates, and see as much product offerings you can.  In most cases, this is the one time of the year to “get out” and really get a feel for the market, and create a dialogue with others in your industry.

While in Orlando, look for product that is innovative and compelling, product that will make your selection special to your customer, client or member. In a flat market, you have to distinguish yourself to get the attention of the consumer. Make sure you have the merchandise to distinguish yourself, be special, have a story and make sure you close the deal with the best service.

Make sure you search out brands, partners and vendors that will service your needs and make your job less complicated – getting the extra discount or special deal will not help when you cannot provide the service and quality that is expected from your customer. Having the product on time and ready to go is more important than having a discount on product that is not your shop or inconsistent in quality.

Look for product that will give you a competitive edge against all the other shopping options your customer has in your marketplace – think about his/her “share of wallet” as well as their “share of mind.” If the brand or product is “just down the road” and discounted and promoted with sales, you and your merchandise will become normal, and you will compete with price – and never win. If one of the compelling reasons to buy product is the price, you will most likely end up selling it for a “price.” Be careful when competing with the big boys – they have a lot more resources.

Be wary of “deals.” These are usually marketing ploys that are figured into the cost of the product and most often result in over priced merchandise to get you better margin “on paper” but not in reality, as the price is most likely inflated to offer the discount in the first place.

Long term, we at SGB are very bullish on the opportunities for the golf business and industry. It is a great sport and social community with a very powerful purchasing base, that if attended to correctly one can grow and prosper. Short term, I am concerned that we can evolve as a sport and business to increase our relevancy, compete with other sports and social demands while seizing the opportunity that will exist and maintaining our heritage as a game. Many of our clients are at an important crossroads to realize how great an opportunity they have if they evolve and capture a greater share of their customers’/members’ share of purchasing power. To maximize this opportunity, we must change how we develop our products, service our clients and become more consumer-aware and relevant.

The golf industry is not unlike many other businesses or sports that are challenged to maintain their relevancy with the changing consumer base. It will be our job at Summit Golf Brands to provide the market with superior product, marketing and transactional tools, supported by service to help our customers compete, grow and succeed in the coming years.

Todd Martin:  President of Golf Division for Peter Millar

Todd is a well-known and respected industry veteran with over 16 years of experience in luxury golf apparel. Based in the company’s Phoenix/Scottsdale office, Martin oversees the company’s golf business and golf sales force. Martin is also responsible for strategic partnerships and customer relationship management.

Todd, last year Chris Knott and Mike Bowers conducted merchandising seminars that were incredibly informative and well attended. What does Peter Millar have planned for the show this year and going forward into 2011 to enhance the partnership you have with your golf accounts. How do you see these relationships strengthened in the future?

Peter Millar is very excited to return to the 2011 PGA Show. Once again, we will be featuring unique product and brand seminars throughout the show. These were a huge hit last year, and we’ll be expanding on them again this year. All of our partners will receive invitations via e-mail and it promises to be standing-room only again. We will also be offering our Lifetime of Style package again, with dress furnishings and tailored clothing available for fitting and purchase at the show. This was a huge success earlier this year, and we’ll be launching Phase II at the Show. We will also be featuring nightly receptions at our booth where we can meet with our partners in a relaxed setting and showcase the absolutely beautiful items we’ve created for Fall 2011. Without question, 2011 will continue to be about service, exclusivity and product quality. Our business model has always been quality over quantity, and everything we do – from our sales executives, to our customers, lives up to that.

Marshall Mancillas:  President Carnoustie Sportswear

Marshall Mancillas is the founder, chief executive officer and head designer of Carnoustie Sportswear. As a player for over 50 years, he brings a unique perspective on the market. Mancillas combines a passion for the game, tempered by a reverence for timeless style, with a well-honed sensibility for luxurious men’s sportswear, to produce one of the finest collections of golf apparel available today.  

Marshall, your line has been one of the most handsomely designed cotton mercerized lines for quite some time now and resistant to the industry demand for performance knits. What can we expect from Carnoustie at the Orlando show, and what do you see as the future in terms of fabrication and innovation concerning golf apparel?

Craig, thanks for your interest in our perspective on this ever changing market.

Carnoustie, having fashioned a reputation for double mercerized cotton and signature jacquards, will be introducing a new collection of technical knits at the upcoming Show in response to an emerging demand for a golf polo that looks and fits like our classic Carnoustie polo while offering easier care and enhanced performance features. The interest in technical apparel began several years ago, and, because of our lifestyle and the demands it makes upon us, some people today seek a golf polo that is easier to care for,that travels well and offers superior wearability. Driven by the quest for a golf shirt that plays better in hot weather, the market has relentlessly evolved, and along the way we have learned that we can offer the player fabrics that can wick moisture more efficiently so as to keep the player cooler while at the same time requiring less care.

But the real news for us at Carnoustie is that even our customer, a classic cotton customer, sometimes would like to wear a polo that offers the wearability and ease of care that only a technical fabric can provide. However, it is also clear that our customer wants the fit, styling and drape of the classic all-cotton Carnoustie product that he has come to know. Fabrics and our knitting expertise now allow us to offer such a shirt.

The technical aspects of fabric will continue to improve as we acquire better science and the demand for new fabrics with enhanced performance will also continue. But most assuredly, as it has for thousands of years, the demand for cotton with its natural sheen, breathability and unmistakable look will always be substantial because for some players, irrespective of the technological properties, those fabrics in the future may come to possess, there will be no substitute for the luxury of pure cotton.
The PGA show is an opportunity to interact with the key players of the major suppliers and strengthen those relationships.

Tom Nolan, Chris Hyne, Todd Martin and Marshall Mancillas are but a few of those principals that I’m sure look forward to you stopping by to make yourself known. They would to the man humbly tell you that in their business product comes first and foremost and their names and positions are not the important topic. It is always a good feeling however when we know with a handshake that the people that stand behind that product are customer oriented and a pleasure to know.  I would like to thank them for their insight and vision and wish everyone a healthy and prosperous New Year. Hope to see you in Orlando.