Market
Information
Golf ball has been identified as a product
for which could be produced locally in order to replace import. Based
on Malaysian Statistics, import of golf balls into Malaysia was reduced
from RM 14.9 million in 1997 to RM 10.8 million in 2003 (5.573 million
units). During the same period, Malaysia's exports of golf balls has
shown a twofold increase from RM 37.7 million to RM 72.0 million (6.062
million units), and Japan was the major export destination in 2003
with 58.9% of export share.
Domestic consumption is expected to increase
steadily in coming years as Malaysia's economy recovered, due to the
prestige associated with the game and the proliferation of golf courses
nationwide plus various international-level golf tournaments which
were held in Malaysia. With media taking more interest in reporting
golf tournaments and high profile celebrities, it is expected to provide
more appetite for local to play golf as well as attracting foreign
golfers to have their tee here.
Malaysian Rubber Board (MRB) has come out
with the new environmental friendly golf ball which is free of zinc
and heavy metals. It comprises of both polybutadiene and natural rubber
compounds containing methyl methacrylate, magnesium oxide and TMPT
replacing the role of zinc oxide and zinc diacrylate in the conventional
golf ball formulations. This new innovation is also price competitive
with the current formulation of commercial golf balls.
Malaysian Custom Duties
Golf balls are declared under the HS Code 9506.32.000. The Malaysian
Customs Duties Order for this product is shown in the following table:
Malaysian Customs Duties Order
| HS Code |
Unit Of Qty |
Import |
Export |
Sales Tax |
Asean CEPT |
9506.32.000 |
unit |
10% |
nil |
nil |
10% |
Local Manufacturers
Bridgestone
Sporting Goods Mfg Sdn Bhd - Klang, Selangor
DMIB - Petaling Jaya, Selangor
Unigolf
Sdn Bhd (TOPMA) - Ulu Tiram, Johor
Dunlop Malaysia Industries Berhad (DMIB) is
the first golf ball manufacturer in Malaysia to produce balls that
meet the exacting standards of the United States Golf Association
(USGA) and the Royal & Ancient Club (R&A), Scotland. Balls
approved by these two governing bodies of golf can be used in the
most prestigious events like US Masters, US Open, the British Open
and the World Cup Golf. The brand - "Thommo" for which granted
international recognition is truly conform the quality and is a pedigree
of the Malaysian-made golf ball, placing it on par with some of the
best balls in the world. International brand-name which had been produced
locally could be the answer in the increasing golf ball exports as
well as substituting imports.
Consumer's
Behaviour
What people say ?
Some people may say Titliest golf balls are
the best in the world…
Some people may say Nike golf balls are played by
the best professional golfers…
Some people may say Callaway golf balls are the easiest
to control for all golfers…
Some
players consider golf as a symbol of status. In marketing perspective,
golfers are usually brand-loyal with many factors that contribute
to their preference in buying and choosing golf set and accessories
such as price, pier-golfers recommendations, brand name and quality.
For those who are brand-loyalist and experienced in the game, their
buying behaviour especially in term of perception to one favourite
product or brand name, are hard to change. Meanwhile, amateurs generally
pay less and so are less loyal to particular brands and will choose
the cheapest ball or ones that are on special.
In golf, these are the common criteria for
golfers to buy/use the balls:
ü
Soft feel
ü Distance
ü
High spin rate
ü Control
ü Lightweight
Ultimately, golfers that wanted a distance
ball had to give up feel and control. Like wise, golfers that wanted
feel and control had to sacrifice distance. With continuous advances
in technology, any ball that improves the game will no doubt be successful
in the market.
Competition: Golf
Brand Collections in Domestic Market
Below is the list of selected world golf brand collections (in alphabetical
order) that are available in leading sport stores.
| • |
Adidas |
• |
MS Golf |
| • |
Arnold Palmer |
• |
Nike |
| • |
Ashworth |
• |
Odyssey |
| • |
Bob Toski |
• |
Orlimar |
| • |
Bridgestone |
• |
Passport |
| • |
Callaway |
• |
Ping |
| • |
Cleveland |
• |
PGA |
| • |
Cobra |
• |
PRGR |
| • |
Daiwa |
• |
Progripp |
| • |
Dunlop |
• |
Precept |
| • |
Dynatour |
• |
Pure Spin |
| • |
Gold Eagle |
• |
Retco |
| • |
Grand Tag |
• |
Slotline |
| • |
Head Golf |
• |
Snowbee |
| • |
Jack Nicklaus |
• |
Srixon |
| • |
Kasco |
• |
Swing |
| • |
Link Sport |
• |
Taylor Made |
| • |
Liquidmetal Golf |
• |
Thommo |
| • |
MacGregor |
• |
Titliest |
| • |
Maruman |
• |
Tour Special |
| • |
Maxfli |
• |
Wilson |
| • |
Mizuno |
• |
Winfield |
| • |
Momentus |
• |
Yonex |
| • |
Mojo |
|
|
Source: Jusco PGA Tour Corner, Studio-R KLCC,
Isetan KLCC
The most popular*
golf ball brands in Malaysian market are Titliest Pro V, Maxfli, Srixon
and Precept.
* Market Development & Promotion Unit,
MRB 2004 Survey
Pricing
The consumer’s level of experience and commitment
to the game determines the amount they will spend on golf balls. Avid
golfers are largely unaffected by commercial advertising, but the
performance and quality of the balls is a critical deciding factor.
Price is a key factor for the beginner, but as the golfer’s
experience increases, so does their outlay on the cost they are willing
to spend on the golf balls. US brands are considered to be superior
and are the most expensive and dominate the top end of the market.
Asian brands usually accommodate middle to lower end of the market,
that is the beginner and budget-conscious golfers.
The actual retail price of golf balls varies
depending on the outlet they are sold in. Price competitive sport
stores will sell balls singularly starting at RM 2 each. Packet of
three golf balls starts from RM 14 through to RM 72.50. Larger packets
of 15 are also available starting from RM 80 depending on the brand.
The Malaysian Market
There
are about 209 golf courses in the country with the distribution in
each state is as follow:
| Johor |
– 37 |
Melaka |
– 8 |
| Negeri Sembilan |
– 11 |
Selangor |
– 43 |
| Kedah |
– 16 |
Perak |
– 14 |
| Kuala Lumpur |
– 8 |
Pulau Pinang |
– 7 |
| Perlis |
– 1 |
Kelantan |
– 5 |
| Terengganu |
– 12 |
Pahang |
– 22 |
| Sarawak |
– 7 |
Sabah |
- 18 |
Players can purchase the ball from golf pro-shop
at the golf club or buy it off-course, which include general sporting
goods stores and department stores. Retailers play a significant role
in the buyer’s choice of products. The player, especially at
the lower-end of the market, relies on the expertise of the salesperson
in determining the brand to be purchased.
Apart
from the golf courses, it is estimated that there are more than 150
driving ranges nationwide with some of them are a stand alone range
while others are part of the golf course itself. For the 24-bay driving
range, it is estimated that the balls kept in store are around 10,000
– 12,000 units while 4,000 – 5,000 units for that of the
12-bay driving range. Most of the balls are the used ones and supplied
by small-time local entrepreneurs whom collected the “lost balls”
from golf courses. These used balls are sold to driving range operators
at 40 – 50 sen/unit depending on its condition and grade.
Specification
Ball weight: not grater than 45.93
g ( 1.62 oz)
Ball Diameter: not less
than 42.67 mm ( 1.68 in)
The ball is
required to be spherically symmetrical to avoid any asymmetry, which
might give directional flight properties to a ball judiciously placed
on the tee. Maximum ball resilience is also specified. The 'maximum
velocity' rule was introduce when it recognized that potential technological
development might produce balls that could hit further and so diminish
the challenge of established golf courses.
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