NEWS
The Golfalot Price Index in the United Kingdom fell slightly this month with drops across most sectors, thus leading to a decrease of 1.14 percent. The biggest losses in August were utility clubs (minus-5.2 percent) and putters (minus-3.6 percent).
Lija promotes Ayr Barnett to director of operations, and hires Christine Jakovcic as director of brand management and revenue strategy and Julia Wallis as director of finance and administration.
Greg Norman Collection introduces its new concept called TCT, Temperature Control Technology. The TCT polo, like the ML50 polo, is 100 percent microfiber polyester designed with a unique and proprietary cross-section high-gauged knitting process that offers inherent performance benefits such as a luxury-infused weightlessness and premium UPF.
Officials for the PGA Fall Expo, Aug. 26-27 in Las Vegas, Nev., report that buyer and PGA professional pre-registration is up 11 percent and 9 percent, respectively.
VedaloHD signs an endorsement agreement with caddie Steve Williams, who wears the VedaloHD performance enhancing lens technology on the golf course.
Atomic Chic, designer of r25 and Red 24 brands of sports purses, will exhibit at the PGA Fall Expo, Aug. 26-27 in Las Vegas, Nev.
Innoventions Enterprises, maker of SunBuster Sport Enhancement Eyewear, will hold the SunBuster Challenge at the PGA Fall Expo, Aug. 25-27 in Las Vegas, Nev.
Pink Tee Inc. announces a new clothing line for girls and that incorporates the most current color trends such as cool blues and earth tones. Pink Tee's line will be branded with a custom tee holder, accessorized with a pink golf tee, custom buttons, lower waist bands and lengthier polos.
AHEAD, an official licensee of the 2008 Ryder Cup, now offers a wide selection of Ryder Cup headwear and accessories through September.
Q-AND-A
Tom Elwell, CEO, Etonic Worldwide
Editor's note: Apparel Wire editor Stuart Hall recently conducted an e-mail interview with Tom Elwell, chief executive officer for Etonic Worldwide. Elwell talks about the company's high and lows of the past decade, as well as what the future holds.
AW: In October 2006, Etonic was purchased by an Italian company, Lotto. Why did Lotto buy Etonic and what plans do they have for the brand?
Elwell: Lotto Sport Italia SpA is one of Europe's leading performance soccer and tennis brands. The acquisition of Etonic Worldwide LLC provides Lotto with growth opportunities in the performance golf, running, and bowling footwear categories here in the USA market as well as around the globe. In addition, Etonic's USA operational logistics provide a strong platform to service and grow Lotto Sport's performance soccer and tennis businesses here in the USA market. Lotto's mid-term vision for Etonic's golf footwear business is to achieve a top-four brand position in the USA and international markets.
AW: Etonic has a long history of technological advancements in footwear such as the first shoe with waterproof leathers, stabilizer technology and then leading the industry in the early '90s into the spikeless revolution. So what is next in footwear technology for Etonic, I guess in relation to your new 2009 models?
Elwell: For 2009, we are excited to introduce PowerUp Technology featuring Etonic's state-of-the-art PowerPlay Outsole System. The PowerPlay Outsole System was developed after intensive studies of the foot's anatomy and the body's movement dynamics during the golf swing. The system provides six innovative outsole and midsole technologies working in harmony to deliver superior traction, flexibility, and stability to promote better footwork and balance to maximize power transfer to the ball. The PowerPlay outsole system provides the most technically advanced golf footwear in the game today.
AW: Etonic in the late '90s had 20 percent market share in footwear and was a solid No. 2 in the category. Since then it has slipped, what happened and how do you gain share back?
Elwell: Etonic was sold to Spalding in 1997. At the time of the sale Etonic was the number two brand in golf footwear with an 18% share; average retail selling prices in the $80 range; and a reputation for producing premium grade golf footwear suited for the game's best players. In five short years the brand's share fell to the low single digits. During this period, Etonic lost touch with its core product attributes to include leadership in game improvement outsole technology; superior comfort and fit; tradition inspired styling; and higher average price positioning. These attributes were the foundation for the brand's success and consumer franchise that was built from the early 80's through the mid '90's. Quite frankly these attributes have been sorely absent in Etonic's footwear styles since 1998. To regain lost share we will return the brand to these core attributes and will strive to design and produce footwear that delivers the performance, comfort, and quality the serious golfer expects from the Etonic brand. At the same time we will work diligently to become a "user friendly brand" from the Green Grass Professional and Golf Specialty Retailer's perspective. We will strive to rebuild our consumer franchise through a network of retailer brand advocates.
AW: How difficult is it to get that share back, especially in this economic climate?
Elwell: First of all let's remember that it took almost a decade for the brand to reach its current share levels. Realistically speaking, it will take a number of years to rebuild our share and market presence. To borrow an expression, "Rome wasn't built in a day." However, research shows that the Etonic brand name has retained significant awareness levels and cache among golfers. This is a big advantage for Etonic and will help facilitate the brand's return. To regain share, we must provide today's players with the leadership products they have grown to expect from Etonic.
This initiative begins with a commitment to consistently execute the brand's core attributes in every pair of footwear produced as well as to adhere to an attitude of "continuous improvement" in our products and in every touch point with the consumer. Our ability to succeed in rebuilding market share in any economic climate will be directly tied to how well we execute against these fundamental principals.
AW: Early in July you announced a return to core values for Etonic, saying "we're reintroducing tradition-inspired styling that reflects Etonic's heritage in the game." Is it easy for a company to lose sight of what made it successful in the first place as it attempts to keep up with the Joneses?
Elwell: Designing and producing high performance golf footwear that delivers superior comfort, fit, and styling is as much an art as it is a science. Unfortunately, through Etonic's ownership changes occurring since 1997, much of the company's marketing and footwear making expertise was lost.
However, that changed when Lotto purchased the brand in October of 2006. Lotto Sport Italia is the first owner of Etonic since Charles Eaton Jr. with significant manufacturing expertise in the performance sports footwear business. The Italians are well known for their superior skills in footwear design, quality, and craftsmanship. This is very significant for Etonic. Lotto's expertise in engineering and development, combined with the new management that has been installed since my appointment has vastly strengthened Etonic's footwear marketing capability. This is very evident in our new collection for the 2009 season.
AW: What do you think will be Etonic's biggest challenge in 2009?
Elwell: There are so many loyal retailers and consumers alike that want to see Etonic return to the forefront of the golf footwear industry. Given the extremely successful reception of our new 2008/2009 product line, we believe our most significant challenge will be to ensure we can accurately forecast the market demand for these exciting new products. In the total scheme of things, this is a great problem to have.
AW: The tours influence sales of high-end equipment, but does it have a direct effect on golf shoe sales? What are the factors that influence the purchase of golf shoes?
Elwell: Based on research conducted by NPD among avid golfers, the most important product attributes impacting golf footwear purchases are comfort and fit (84 percent), price (8 percent), and style (6 percent).
In terms of "purchasing influencers," the same research indicates that In-Store Point-of-sale information to include advise from sales clerks is the most important purchasing driver at (36 percent), followed by word of mouth from a fellow golfer (24 percent), recommendation from a golf professional (14 percent), and information found in a golf magazine (12 percent). Endorsement by a tour professional only influenced 3 percent of consumers to purchase a given brand. We believe these purchasing drivers play right into our wheelhouse and will help us to re-establish the Etonic consumer franchise over the mid-term.
FEATURE
PGA Fall Expo stays in step
By Stuart Hall
Editor
The times they are a changin' and the PGA Fall Expo is keeping step.
Given the fluctuating economic times, many companies within the golf industry are seeking business solutions to meet the challenges of this demanding era. And Ed Several, PGA Shows group vice president, believes this year's PGA Fall Expo, scheduled for Aug. 26-27 at Mandalay Bay Resort and Casino in Las Vegas, Nev., addresses those needs.
"Each year we try and give it an exciting new look, and this year we're so happy that, first and foremost, we have so many new exhibitors that have not been at the PGA Fall Expo in the past," said Several, adding that there will be roughly 400 exhibitors in attendance, including 100 new companies and 120 of which will be golf apparel brands.
"Secondly, we have added a new look to our conference sessions. Working with the PGA of America and the [Association of Golf Merchandisers] we have put together a series of conferences that are timed to coincide with really everyone's need to address the challenges of the economy that is out there."
All totaled, there are more than 25 education and business seminars that take place from 8 a.m.-2 p.m.
"Also, we wanted the Expo to have a more community feel, so we've elevated the entertainment as well and, lastly, the golf tournament has been expanded with a new format and new locations," said Several of Styx founder Dennis DeYoung's performance at the annual House of Blues reception and the golf tournaments being moved to Badlands Golf Club.
Entertainment and golf aside, the two-day show, along with the Demo Day on Monday, Aug. 25, are the main attractions. As of Aug. 12, PGA professional and buyer registration had increased 6 percent over last year at this time.
"We have more business booked now for this month's PGA Fall Expo than we almost have time to accommodate," said Tony Smith, sales director for Antigua. "We expect a busy two days with current customers and look forward to establishing new accounts as well."
The Expo is of especial interest to the apparel companies. In 2008, the Expo has been moved from its usual mid-September date, which conflicted with the Ryder Cup, to a more amenable August date.
This year the Expo coincides with four of the fashion industry's biggest events - MAGIC, MODA, MRkt and Accessories: The Show.
"First, we made an extra push to focus on apparel as part of this event," Several said. "And the reason is that from a timing standpoint it's great for the spring buying cycle. So we saw that as a real need for companies to get together and, based on that, a lot of it was driven by a lot of the requests by apparel exhibitors for the spring marketplace to be held at the end of the summer. So by meeting those requests we were able to put together the event and exhibitors have taken advantage of it."
Several admits that the PGA Fall Expo, now in its 16th year, has evolved into its own entity, much different than the long-running PGA Merchandise Show held each January. While the PGA Merchandise Show is a global gathering place that kicks off the golf season, the fall event is geared more toward apparel and business solutions, with a healthy dose of equipment.
While Reed Exhibitions runs and manages the respective shows with The PGA of America, Several is quick to point out that "they're owned and developed by the industry based on their input. So the success and growth of the show is based on the input of those in the industry and how they wanted this event to shape up and meet their needs."
And shaping up very well.
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