New Product 'Kirkland Signature Version 2'
Listed on USGA and Other Official Club Lists
Expected Release This Spring... Potential for Unprecedented Pricing
Image of the new Costco iron "Kirkland Signature (Version 2)" registered on the official club list of the United States Golf Association (USGA) and The Royal and Ancient Golf Club of St Andrews (R&A) [Photo by USGA website]
This time, it's irons. Costco, known as a global 'distribution giant,' is expanding its presence in the golf equipment market. Following golf balls, gloves, putters, and wedges, the launch of a new line of core club products is imminent. Attention is focused on whether it will continue the success of previous products, which were highly regarded for their cost-effectiveness and widely chosen by consumers.
According to industry sources on the 3rd, the new iron set released by Costco has been listed on the approved club list of the United States Golf Association (USGA) and The R&A, the governing bodies of golf in the US and UK. Once registered on the approved club list according to USGA and R&A regulations, these clubs can be officially used in professional golf tournaments worldwide and selected amateur competitions, just like existing clubs. The official product name is Kirkland Signature (Version 2). Kirkland Signature is Costco's private brand (PB) name.
According to the released photos and descriptions, the new iron set that Costco will introduce features the Kirkland Signature logo and the word "Tungsten," presumably indicating the material, engraved in English on the back of the club head. The manufacturing method is forging (heating the metal and hammering it to shape). The sole (the bottom part of the head that contacts the grass) is stamped with the iron number, and a black dot can be seen near the toe (the wide front part of the face).
Golf.com in the US stated, "The black dot indicates a small hole in the toe, revealing that the head is hollow inside." It added, "Based on the tungsten inscription, it can be inferred that this club enhances forgiveness (a feature that compensates for imperfect impacts by correcting distance or direction to some extent) and helps lift the golf ball more easily."
Although specific information such as the release schedule and product configuration has not been disclosed, the industry expects Costco to launch the irons around this spring. The price is also likely to be set aggressively compared to existing major iron manufacturers' products. Previously, in October 2020, Costco released three Kirkland Signature wedges (52°, 56°, and 60°) priced at $159.99. At the exchange rate at that time, this was about 185,000 KRW, making the price per wedge around 60,000 KRW, which was about one-third the price of premium products from other companies.
The first golf product Costco introduced to the market was a urethane golf ball launched in 2016. This product was priced at $29.99 for two dozen (24 balls), which was less than 1,400 KRW per ball at the time. It gained a reputation for good quality at about 30% lower price than competitors' golf balls, causing shortages both online and offline. In June 2020, Costco introduced the Kirkland Signature (KS)1 putter with adjustable weight at $139.99, which sold out in the US market.
With its global distribution network, Costco was able to significantly reduce the distribution cost of golf equipment by applying an Original Equipment Manufacturer (OEM) method. The new iron set was manufactured by 'Indy Golf,' a small wedge and putter manufacturer headquartered in Carlsbad, California.
Golf.com explained, "A company with sufficient cash reserves can produce clubs exclusively for sale through overseas manufacturers or manufacturers already designing products for the market." As of last year, Costco's annual sales reached $227 billion (approximately 307 trillion KRW).
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