Why Are 'Golf Prices' Like This... MZ Golfers Flocking to Japanese Direct Purchases

[Image source=Yonhap News]

[Asia Economy Reporter Byeon Seon-jin] The 2030 golf generation, which surged due to COVID-19, is even changing trends in various equipment and apparel markets. Some buy clothing at low prices through overseas direct purchase, while practical consumers who reduce cost burdens by buying secondhand instead of new products have become the mainstream. Renting expensive luxury golf apparel instead of purchasing it is already a trend among the 2030 generation.

Golf Beginners Flock to Japanese Direct Purchase Sites Due to Lower Yen Value

A men's T-shirt from the golf brand 'PXG' sold at a department store in downtown Seoul costs 299,000 won. Meanwhile, the same product's local price in the U.S. is $165 (about 216,000 won). U.S. products priced under $200 are exempt from customs duties and VAT, so even considering international shipping costs of 30,000 to 40,000 won, they are more than 40,000 won cheaper. The 'G/FORE' golf shirt sold at 240,000 won in domestic department stores is also priced at $120 (about 157,000 won) in the U.S.

The price difference between domestic and overseas for famous brands is due to distributors setting prices considering taxes, labor costs, and commissions paid to department stores. Additionally, the recent surge in golf population has led importers to adopt high-price policies. Mr. Yoon said, “Although the exchange rate has soared past 1,300 won per dollar, increasing the burden of direct purchase, it is still cheaper than domestic prices,” adding, “Purchasing golf apparel within the range exempt from customs duties and VAT is a reasonable consumption.”

Especially recently, the decline in the yen's value has caused a rapid increase in Japanese direct purchase shoppers. For example, a golf skirt from the Japanese golf apparel brand 'Mark & Lona' can be purchased for 15,400 yen (about 150,000 won). Assuming the product price remains the same, the exchange rate fluctuation means it can be bought for more than 10% less than a year ago. Kim Ja-in (31), who runs a blog related to overseas direct purchase, said, “Many ‘blog neighbors’ inquire about Japanese direct purchase due to the weak yen,” adding, “This is the reason I recently introduced Japanese direct purchase sites and methods.”

‘Rental’ and ‘Secondhand’ Rising Due to ‘Certification Shot’ Trend

Among the 2030 generation, renting golf apparel and equipment has already become mainstream. Brands like J.Lindeberg, G/FORE, PXG, and Titleist, whose T-shirts cost hundreds of thousands of won, are popular in the rental market. Beginner golfer Bae Juyoon (31) said, “With prices soaring, I can't spend a lot on golf apparel that I don't wear often,” adding, “The advantage is being able to wear different clothes every time.”

Lee Young-jin (49), CEO of the golf apparel rental company 'Jams Golf' launched earlier this year, said, “Because golf apparel sold in department stores is expensive, many consumers are switching from purchasing to renting,” adding, “At the beginning of this year, most customers were in their 20s and 30s, but recently, middle-aged customers are also renting a lot.”

A representative from another rental company said, “Many young customers want to take different ‘wear shots’ every time and post them on social networking services (SNS),” adding, “Renting is a wise consumption method in this era of high prices.”

The number of practical 2030 consumers looking for affordable secondhand golf products is also increasing. Especially, the secondhand golf equipment market is thriving as beginners who started golf due to trends but felt burdened by the tens of thousands of won in round fees are putting their used golf equipment on the market. A user of secondhand trading said, “Recently, more than 100 golf-related items are posted every hour,” adding, “I check frequently to hunt for bargains.”

Professor Lee Eun-hee of Inha University’s Department of Consumer Studies analyzed, “Young people have a strong desire to show off by wearing expensive apparel at golf courses, but their purchasing power is relatively low, and the high inflation narrows their choices,” adding, “As a result, rational consumption trends are intertwined, increasing various forms of golf equipment transactions such as direct purchase, rental, and secondhand.”