Grombala joins Dunning Golf sales team
Dunning Golf announces the hiring of Tim Grombala as sales representative for Michigan.
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Tuesday, May 29, 2007
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NEWSBUSINESSSmaller brands find their niche -- or else...
By Megan Jones
During the PGA Merchandise Show in January, the company previewed its Calvin Klein Golf brand, intending to sell in 250 golf specialty shops by the end of 2007. It may expand throughout the United States and overseas by spring 2008. John O'Donnell's Johnnie-O line (www.johnnie-o.com), on the other hand, can be found in approximately 30 high-end pro shops -- think Pebble Beach, Bel Aire -- around the country. He hopes to bring that number up to 150 by the end of the year. "We'll see where we go from there," O'Donnell said. "I'd like to think in '08, could we go to 300? Maybe." The golf apparel industry is a lucrative one. Though the exact size, and demographics that propel the market, are difficult to pin down, a National Sporting Goods Association survey found that customers spent approximately $1.6 billion on "apparel for golf" in 2005, including $258.8 million on golf shoes alone. While there certainly is money to go around, O'Donnell and other small/boutique business owners quickly learn that business is different for the one- or two-person operation than it is for the Calvin Kleins. "There are a lot of people in the apparel market," O'Donnell said. "The big guys get the bigger voice." The "big guys" have deep pockets, not to mention the distribution channels, sales force and established reputations that are hallmarks of both a successful launch and staying power. It can be a difficult market to break into. But for some, the rewards of seeing their creations worn by avid golfers, from the celebrity pro to the average Joe, makes their gamble worth the substantial risk. THE RISKS The challenges building a brand are many, and include: Perhaps the biggest obstacle for any start-up to overcome is securing the cash and credit necessary to get their goods to the market. Leslie Chow, like many entrepreneurs, opted to self-finance Iconic Sport (www.iconicsport.com), at least in the beginning. But it never hurts to have back up. Chow, who has a background in the technology industry, said her tech contacts have expressed interest in investing in her high-performance, fashionable women's golf clothing. "It's always a challenge," she said. "… But I haven't had to go that route yet." O'Donnell has funded his company for the last two years with a home equity loan on his California condo, but said it will be necessary to seek investors to take Johnnie-O to the next level. "It's scary, being accountable to friends' and family's money," he said. "Distribution is a challenge for the whole industry," Chow said. "It's incredibly fragmented. There are a lot of small golf shops that are hard to get to, hard to serve. … A lot of the smaller [buyer's] reps don't go to the PGA [Merchandise] Show. Getting to those people is a challenge." Marje Helfet and Annalisa Sullivan, founders of Fairway Skins Co. (www.fairwayskins.com) agreed, though they said the problem is not limited to small shops. Helfet and Sullivan are trying to get their women's botanical-print, leather golf gloves into companies such as Four Seasons Hotels and Restaurants, which own numerous clubs around the country. "You would think there would be one person guiding purchasing for the entire organization," Helfet said. "But it's all done independently," so that Fairway Skins has to sell its line to each of the company's club shops. Whether a small company can't afford to hire a fleet of employees from the get go, or is simply choosy about who it allows to represent its brand, the end result is the same: One or two people, usually the founders, are responsible for most, if not all, aspects of running the company. Fairway Skins, for example, has accounts across the country, but is concentrated in Southern California, Hawaii and the South-Central states. Helfet said she would like to expand more heavily into the Southeast, especially Florida, "But we don't have any sales reps in Florida. It's hard. A rep would ramp sales up 1,000 percent." "People say, 'Why don't you go and hire a bunch of sales reps?'" O'Donnell said. "But I don't want just anybody selling our stuff. Is it worth it to have it in just any shop?" Charlotte Dyslin, senior vice president, sales and marketing for Helen Kaminski (www.helenkaminski.com), said the company's small size makes it challenging for its reps to get to as many shows as it would like to each year. The Australian-brand hats, for example, weren't on display at this year's PGA show, even though "It's certainly easier to see [buyers] there." (Though the company is primarily a fashion brand, it recently debuted the Elements collection, a sub-line targeting golfers and other outdoor enthusiasts.) "Most golf courses are not necessarily set up to do retail at a high level," Dyslin said. "Some are, but not all. It takes time to help them understand how to merchandise to get the performance they want" from their products, so that a customer is eager to buy. For example, Helen Kaminski's high-end hats show and sell better when displayed on hat racks rather than boxes on the floor. THE REWARDS What can a budding entrepreneur do to increase the odds of success in his or her favor? Contacts in the industry may help. O'Donnell, a long-time avid golfer, said knowing the right people make his job a soft sell. "Of the top 100 shops in the country, I bet I can find someone I know who is a member for an introduction," he said. "And once they see the brand, it's 'I've got to get that in our shop.'" Merchandise shows can be a great place to develop contacts, even for companies with a limited budget for advertising or public relations. Helfet and Sullivan attended their first PGA show in 2006. "It was a terrible booth, way in the back," Helfet said. "But we had a good time and met a bunch of people." Realistic expectations can help a company get through a difficult first few years, too. "You have to have the finances and the fortitude to go in small, incremental steps," Chow said. And good timing, of course, doesn't hurt. Sullivan said she believes Fairway Skins' gloves may sell better now that women are recognized as big golf apparel spenders than it would have if it had entered the market at the beginning of that monetary trend. "It's starting to be a women's club-y type of thing," Sullivan said. In fact, there may even be areas in which small companies have the advantage over their larger competitors. Chow, for example, believes Iconic Sport's small size gives her a flexibility that large companies lack. "We're a lot more agile," she said. "We can try things more quickly - new fabrics, styles, more product lines. … We're not trying to reach everyone, just our particular market segment." A niche focus allows Fairway Skins to grow at a level with which its founders feel comfortable. "We can go our own pace," Sullivan said. Chow said the rewards of business ownership are great enough that she is glad she took the risk. "I like to create new things," she said. "When people send you e-mail saying, 'I love your stuff,' that's really encouraging. Once you're into it, you think, I can't give up now. That's not to say that every day I think 'This is a great day,' but I like the whole thing." "No matter what happens, I'm going to have no regrets," O'Donnell said. "I think that's the best way to live life. I don't want to wake up in 20 years and think, 'Why didn't I do that?'" |
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