Increase in 2030 'Gollini' Beginners
Three Major Department Stores' Sales Grow by an Average of 50% Year-on-Year
Outdoor Sales Also Recover Thanks to Camping Enthusiasts
[Asia Economy Reporter Eunmo Koo] Recently, a golf craze has been sweeping mainly among the 20s and 30s age group, and with the prolonged COVID-19 pandemic causing a surge in golf demand, the golf apparel market is showing remarkable growth.
According to the distribution industry on the 8th, the golf apparel sales of the three department stores?Lotte, Shinsegae, and Hyundai?last year increased by an average of more than 50% compared to the previous year. Hyundai Department Store's golf apparel sales growth rate, which remained at 3.1% in 2019, rose to 10.3% in 2020 and then surged to 65.5% last year. The number of golf brands Hyundai Department Store deals with nearly doubled from 36 last year to 62 this year.
Shinsegae Department Store also saw its golf apparel sales grow by 56.3% last year compared to the previous year. The related sales growth rate, which was 5.6% in 2019, increased to 15.2% in 2020 and jumped to 56.3% last year. Lotte Department Store also showed a moderate growth trend, increasing by 9.6% in 2019 and 10.4% in 2020, before expanding its growth rate to 37.0% last year.
The recent sharp increase in golf apparel sales is interpreted as the emergence of a new demand group as the golf population, which was mainly middle-aged and older, has expanded to include the MZ generation (Millennials + Generation Z). With overseas travel blocked due to COVID-19 and prolonged restrictions on existing outdoor activities, golf, which allows small-scale outdoor activities, is being recognized as an alternative among young people. According to the Korea Leisure Industry Institute, the golf population exceeded 5.15 million last year for the first time ever, surpassing 5 million. In particular, the golf population in their 20s and 30s increased by 35% from the previous year to 1.15 million.
Especially, their sensitivity to the latest trends and their tendency to invest generously in spending to express their individuality are also fueling the growth of the golf apparel industry. The domestic golf apparel market size is expected to grow from 5.1 trillion won in 2020 to about 6.3 trillion won this year.
The industry believes that the recent growth of golf apparel, based on the increase in the golf population, will continue even after the end of COVID-19. Um Chang-yong, Marketing Director at Chris F&C, said, "The recent boom is partly led by young new golf entrants," adding, "After COVID-19 ends, people may travel abroad for golf, so the golf apparel industry is expected to continue growing." He explained that even if overseas travel resumes, the number of people traveling abroad for golf will increase, so the golf apparel market will not suffer a significant blow.
Meanwhile, the outdoor market, which had been declining since peaking in 2014, is showing signs of recovery as more hiking and camping enthusiasts seek mountains or seas to avoid infection risks instead of indoor activities. According to the three department stores, outdoor sales last year increased by an average of more than 20% compared to the previous year. Hyundai Department Store and Shinsegae Department Store, which had outdoor sales growth rates of only 0.3% and 0.9% respectively in 2019, saw sharp increases to 30.5% and 16.5% last year. Lotte Department Store, which experienced negative growth of -13.6% and -12.0% in 2019 and 2020 respectively, also rebounded with a 23.1% growth in related sales last year.
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