TABLE OF CONTENTS

1. Golf Industry Performance Worldwide

1.1. An Overview

1.2. Global Golf Equipment Demand

1.3. Global Golf Economy

2. The US Golf Industry

2.1. Industry Performance

2.1.1. Industry Segmentation

2.1.2. Golf Course Revenues

2.1.3. Golf Supplies/Equipment Market

2.2. The US Golf Equipment Industry Forecast

2.2.1. Cause and Effect Relationship

2.3. US Golf Economy

Number of Golfers

Rounds Played

Average Rounds Played

2.3.1. Golf Facilities in the US

2.3.2. Golf Course Closures

2.4. Golf Industry Trends and Developments in the US

2.5. The US Macro Economy Factors and Impact over Golf Industry

2.5.1. Population Growth and Golf Participants

2.5.2. The US Economy, Contribution of Golf Industry

2.5.3. Personal Disposable Income (Historical and Present Performance)

2.5.4. Inflation

2.6. The US Golf Industry Driving Forces

3. The European Golf Industry

3.1. Industry Performance

3.1.1. Golf Facility Operations Market

3.1.2. Golf Equipment Revenues

3.1.3. European Golf Industry Future Outlook

3.1.4. Cause and Effect Relationship

3.2. European Golf Economy

Number of Golfers by Demography

3.2.1. Golf Facilities

3.3. Golf Industry Trends and Developments

3.4. Golf Course Developments by Geography

3.4.1. Golf in Central & Eastern Europe

3.4.2. United Kingdom

3.4.3. Golf in Nordic countries

3.5. European Macro Economy Factors and Impact over Golf Industry

3.5.1. Europe Population

3.5.2. Gross Domestic Product

3.5.3. Inflation

3.6. Growth Drivers

4. Opportunities in Asian Markets

4.1. Developing Golf Facilities in China

4.2. Expanding Golf Equipment Market in India

4.3. Golf Merchandise Exposition

Golf Tourism in India

5. Industry Competition and Players Profile

5.1. Types of Players

5.2. Company Profiles

5.2.1. GolfSmith

5.2.2. Dick’s

5.2.3. Sports Authority

6. Appendix

6.1. Abbreviations

6.2. Definitions

6.3. Research Methodology

Data Collection Methods

Approach

6.4. Disclaimer

LIST OF FIGURES

Figure 1: Golf Economy Structure

Figure 2: The US Golf Industry Segments 2011

Figure 3: The US Golf Course Revenues (2006-2011)

Figure 4: Golf Equipment Revenues in the US (2006-2011)

Figure 5: The US Golf Clubs Market by Value (2006-2011)

Figure 6: Golf Balls Retail Sales in the US (2006-2011)

Figure 7: The US Golf Equipment Market Forecast (2011-2016)

Figure 8: The US Golf Clubs Market Forecast (2011-2016)

Figure 9: Total Number of Rounds Played in the US (2006-2010)

Figure 10: Total Number of Golf Facilities in the US (2000, 2005 and 2010)

Figure 11: US Golf Course Closures (2006, 2007 & 2010)

Figure 12: Total Population in the US (2000-2010)

Figure 13: The US GDP at Current Prices (2000-2010)

Figure 14: Personal Disposable Income in the US (2000-2010)

Figure 15: The US inflation, Average Consumer Prices in % (2007-2015F)

Figure 16: The US Golf Participants by Age in 2010

Figure 17: Golf Participation by Working Group, 2011

Figure 18: Incremental Rounds Played by Aging Population in the US (2006-2015)

Figure 19: Golf Course Demand by Countries in Europe in 2011

Figure 20: Golf Course Supply by Countries in Europe in 2011

Figure 21: Golf Facility operations Revenues in Europe (2006-2011)

Figure 22: European Golf Equipments Market by Value (2006-2011)

Figure 23: European Golf Facility operations Direct Revenue Forecast (2011-2016)

Figure 24: European Golf Equipments Market Forecast by Value (20011-2016)

Figure 25: Percentage of Female Golfers in 2010

Figure 26: The UK Consumer Expenditure on Golf Equipment (2006-2010)

Figure 27: Europe GDP at Current Prices (2006-2010)

Figure 28: Dick’s Total Revenues (2006-2011)

LIST OF TABLES

Table 1: The US Export of Golf Balls to Countries Worldwide in 2009 by Value

Table 2: Relation between Independent factors and the US Golf Industry

Table 3: Total Number of Golfers in the US (Age 6+) (2006-2011)

Table 4: Change in Number of Rounds Played by States in 2010

Table 5: Missouri Golf Equipment and Supplies Retail Sales (2009-2011)

Table 6: Top Golf Courses in the US (2010)

Table 7: Opportunities & Threats in European Golf Industry

Table 8: EU Imports of Golf Equipments by Value & Volume (2006, 2008 & 2010)

Table 9: Relation between Independent Factors and the European Golf Industry

Table 10: Demographic Distribution of Number of Golfers in European countries in 2010

Table 11: EU Golf courses and Number of Registered Players by Demography in 2010

Table 12: Total Number of Golf Courses and Players by Demography in England (2006-2011)

Table 13: Total Number of Golf Courses and Players by Demography in Ireland (2006-2011)

Table 14: EU 27 Population aged between 65 years old or over, Present and Projections

Table 15: EU 27 Young Age Dependency Ratio, Present and Projections

Table 16: Population aged between 65 years old or over, Present and Projections

Table 17: GDP per Inhabitant in PPS, EU 27=100 (2010)

Table 18: Golfsmith Net Revenues and Gross Profit (Jan 2010 & Jan 2011)

GOLF INDUSTRY PERFORMANCE WORLDWIDE

In Golf, participants are divided into four major categories: core golfers, occasional golfers, juniors and range users. In recent years, Golf has gained popularity in many parts of the world such as Japan, Thailand, China, UK& Ireland, Germany and South Africa; while the US is leading in terms of number of players and golf economy.

The structure of golf industry is fragmented with large number of male participants than female while this trend is slowly changing and increasing number of women are entering into the golf business, hired in different areas. With rising interest for golf in all age groups and increasing female participation, market for golf products and facilities are taking an organized structure.

GLOBAL GOLF EQUIPMENT DEMAND

North America account for the largest market for golf equipment and accessories but in recent years a fall in demand has been observed which affected global golf equipment market, reflecting a flat output. The overall market for golf equipment worldwide reached USD ~ billion in 2011, grew only 0.50% from 2010. The economy of the US and Europe are still

struggling to achieve stability. However changing weather conditions have caused low demand for golf equipments and accessories.

Looking at general macro economy conditions, India and China are emerging markets for golf. However these emerging economies hold a negligible share in golf equipment market and may not be able to pay off losses incurred.

The overall market for golf equipment worldwide reached USD 13.70 billion in 2011, grew only 0.50% from 2010

GLOBAL GOLF ECONOMY

In general terms, golf economy has been divided into two parts: Direct and Indirect segments. Direct segment is a combination of golf equipments, clubs fees, courses and tournaments. While indirect segment include golf tourism and real estate related

to golf.

There are almost ~ golf courses worldwide, generating total industry revenues of USD ~ billion. The leading countries in terms of revenue generation and participants are, The US, Europe (UK & Ireland) and Japan.

THE US GOLF INDUSTRY

The US golf industry is one of the largest in the world ranking and has advanced golf facilities. While in recent times, its growth rate is slower than expected because of the high cost involved in the game and present condition of the economy which does not allow spending much on leisure activities.

Figure: The US Golf Industry Segments 2011

Country Clubs

Public golf courses

Private golf courses

Worldwide, the leading countries in terms of revenue generation and participants are, The US, Europe (UK & Ireland) and Japan

GOLF COURSE REVENUES

Total golf course revenues were up 0.90% in 2010 and 0.94% in 2011 reaching to value of USD ~ billion and USD ~ billion respectively. The figures suggest a positive growth in golf demand and supply while growth rate is relatively low. During first half of 2011, economy reflected a

recovery in growth but in the second half of the year the fall in GDP, declining currency rates and falling industrial profit affected the golf industry performance. Bad weather was also accountable for fall in golf course direct revenues.

Figure: The US Golf Course Revenues (2006-2011)

2006 2007 2008 2009 2010 2011

USD

Bill

ion

The US golf course revenues were up 0.90% in 2010 and 0.94% in 2011

GOLF SUPPLIES/EQUIPMENT MARKET

In 2009 consumer purchases of golf supply/equipment declined by 11.45% reaching USD ~ billion compared to USD ~ billion in 2008. Golf market showed a positive response in 2010 driven by economy overcoming from

recession and increasing golf events in the country. Golf equipment revenues in 2010 witnessed 1.64% growth to USD ~ billion.

Figure: Golf Equipment Revenues in the US (2006-2011)

Figure: The US Golf Clubs Market by Value (2006-2011)

2006 2007 2008 2009 2010 2011

USD

Bill

ion

2006 2007 2008 2009 2010 2011

USD

Bill

ion

In 2009, consumer purchases of golf supply/ equipment declined by 11.45%

In 2009 golf ball sales was USD ~ million falling 3.33% from previous year, while sale of used balls increased during the period because of cost cutting strategy adopted by some of the public and private golf clubs. Golf balls retail sales increased in 2010 and 2011

at a low growth rate.

Figure: Golf Balls Retail Sales in the US (2006-2011)

Table: The US Export of Golf Balls to Countries Worldwide in 2009 in Value

Countries Export Value in USD millions

United Kingdom

Canada

Japan

South Korea

Australia

Netherlands

Hong Kong

Singapore

Mexico

South Africa

2006 2007 2008 2009 2010 2011

USD

Mill

ion

In the US Golf balls retail sales increased in 2010 and 2011 at a slow growth rate of 0.8% and 0.9% respectively

THE US GOLF EQUIPMENT INDUSTRY FORECAST

In normal economic condition AM Mindpower expects equipment retail sales to grow at a CAGR 3.63% but taking present economy condition into consideration, market is expected to grow at a CAGR 3.08% from 2012-2016. Demand will be low in year 2012 as well due to loosing

investor’s confidence, slow recovery and recent fall in golf tourism market. Figure: The US Golf Equipment Market Forecast (2011-2016)

In 2011, golf clubs accounted for 30.60% of the US golf equipment market and are further expected to grow 4.38% in 2013. The future growth is expected to be driven by recovering country’s financial condition, rising employment rate and government’s approval of establishing new golf facilities.

2011 2012 2013 2014 2015 2016

USD

Bill

ion

In the US demand for golf equipments is expected to be low in year 2012

Figure: The US Golf Clubs Market Forecast (2011-2016)

THE US GOLF ECONOMY

NUMBER OF GOLFERS

There was a fall in number of golfers in 2009 compared to 2000 (~ million) & 2005 (~ million). Numbers fell again in 2010 by 3.32% to ~ million due to fall in number of Core golfers by 3.60% from ~ million in 2009 to ~ million in 2010.

Table: Total Number of Golfers in the US (Age 6+) (2006-2011)

2006 2007 2008 2009 2010 2011E

Adult Female 18+

Adult Male 18+

Total Adults

Girls 6-17

Boys 6-17

Total Juniors

Total Golfers

2011 2012 2013 2014 2015 2016

USD

Bill

ion

ROUNDS PLAYED

In 2009, ~ million rounds of golf were played in the country down by 2.30% in 2010 to ~ million. A fall in rounds played is not only the impact of uncertain economy condition prevailing in the country but also changing weather conditions accountable for fall in total rounds played during 2010.

Figure: Total Number of Rounds Played in the US (2006-2010)

THE EUROPEAN GOLF INDUSTRY

INDUSTRY PERFORMANCE

In last 20 years Europe’s golf industry is showing a positive growth well both in terms of demand and supply and the number of golfers has been increasing with expanding market for golf course supplies. Within Europe, a major portion of golf demand and supply comes from few countries such as the UK and Ireland who are the leading producers and consumers.

2006 2007 2008 2009 2010

No.

of R

ound

s Pla

yed

in m

illio

ns

Figure: Golf Course Demand by Countries in Europe in 2011

Figure: Golf Course Supply by Countries in Europe in 2011

GOLF FACILITY OPERATIONS MARKET

In terms of direct revenues, European golf industry generated USD ~ billion in 2010 an increased from USD ~ billion in 2009 while decline from revenues generated in 2007 to USD ~ billion. Initially the major sources of revenues were tourism, golf facilities and construction

industries but during recession all the three industries faced heavy losses and so did golf industry in many European countries.

UK & Ireland Germany Sweden France Netherlands Spain

UK & Ireland Germany France Sweden Spain Italy

The European golf industry is benefiting from rising golf participation rate in the UK

In 2011, golf facility operations reached USD ~ billion rise from USD ~ billion in 2009 compared to USD ~ billion in 2007. These figures reflect unstable economic environment during the years.

Figure: Golf Facility operations Revenues in Europe (2006-2011)

GOLF EQUIPMENT REVENUES

Production of golf equipments grew faster in the last 10 years but in recent past (during global economic slowdown) the sector has witnessed fall in demand, reduced golf facility revenues and golf club

membership.

2006 2007 2008 2009 2010 2011

USD

Bill

ion

A major portion of the demand for golf equipment is coming from Western part of the Europe

Figure: EU Production of Golf Equipments by Value (2006-2010)

Table: EU Imports of Golf Equipments by Value & Volume (2006, 2008 & 2010)

2006 2008 2010

Value

Volume

Note: Value in USD Million, Volume in ‘000 tonnes

2006 2007 2008 2009 2010

USD

Mill

ion

EUROPEAN GOLF INDUSTRY FUTURE OUTLOOK

The recent economic changes affected forecast for European golf industry as well. Golf is treated as an expensive sport compared to other outdoor sports, with high membership fee and is also regarded as a status symbol. Falling national income and trade have led the manufacturers of golf equipments to reduce their production estimate for 2012 and 2013. The UK accounts for a large demand of golf products though sales is expected to fall in the country during 2012 and number of tournaments are expected to be low compared to previous years.

Figure: European Golf Facility operations Direct Revenue Forecast (2011-2016)

In short term demand for golf equipments will be low and accordingly manufacturers will plan to reduce production quantity. Keeping macro economic factors and industry factors into consideration we expect the golf sector to recover from this situation by 2014 driven by new planned tournaments and recovering economy, which may once again give a boost to golf tourism.

2011 2012 2013 2014 2015 2016

USD

Bill

ion

Figure: European Golf Equipments Market Forecast by Value (20011-2016)

EUROPEAN GOLF ECONOMY

European golf market is developing with increasing number of golfers of all age groups offering ample of opportunities for golf equipment and accessories retailers in the region. Golf is popular only in 7-8 European countries and only few of these have mature demand and supply, while in other countries the sport is still in its early phase. In 2009 there was a 3.30% decrease in the number of golfers in UK and Ireland, known as largest golf markets in the region.

NUMBER OF GOLFERS BY DEMOGRAPHY

In most European countries, male golfers have leverage and dominate in terms of participation rate. Currently, around three fourth golfers are male, and one fourth accounts for women and junior golfers.

Table 1: Demographic Distribution of Number of Golfers in European countries in 2010

Countries Male Female Junior

Bulgaria

Poland

UK & Ireland

Portugal

Lithuania

Cyprus

Hungary

2011 2012 2013 2014 2015 2016

USD

Bill

ion

Spain

Greece

Estonia

Italy

Norway

Denmark

A large number of female golfers belong to Germany, Austria and Switzerland with female participation rate crossing 27%. Mainly Germany and Austria has leading position in terms of total number of female golfers.

Figure: Percentage of Female Golfers in 2010

GOLF FACILITIES

Growth rate of opening new courses started falling from 2008 onwards, reflecting effect of global crisis, increasing unemployment rate, struggling European economy and falling number of golf players.

There are many other issues such as climate change, insufficient water supply, land availability and government policies in European countries restricting establishment of new golf courses.

Germany Austria Switzerland Netherlands Belgium

Table: Total Number of Golf Courses and Players by Demography in England (2006-2011)

Years Courses Players Male Female Juniors

2011

2010

2009

2008

2007

2006

GOLF INDUSTRY TRENDS AND DEVELOPMENTS

THE UK SPORTS TOURISM AND GOLF

WALES GOLF TOURISM AND ECONOMY

GOLF INDUSTRY RECOVERY FROM RECESSION

JUNIOR GOLF IN ENGLAND

WEATHER FORECASTS VIA MOBILE FOR GOLFERS

NEW GOLF BAG STORAGE SYSTEM

GOLF COURSE DEVELOPMENTS BY GEOGRAPHY

UNITED KINGDOM

In the UK after football, golf is considered as the second most important structured sport. Although only 4.50% of adults play the game regularly, the penetration rate is doubled, considering the infrequent and holiday players.

Figure: UK Consumer Expenditure on Golf Equipment (2006-2010)

Moreover, the game is also very lucrative financially, as it needs permanent single-sport sites and also involves spending on personal and facility equipment, clothing, socializing as well as travel. Golf as a sport demands a high level of commitment, thus, making it difficult for majority of the adults, in terms of both time and money.

GOLF IN NORDIC COUNTRIES

Nordic countries showed a fast economy growth before 2008 compared to other countries in Europe. On the other hand during recession Nordic countries were highly affected. These countries have large number of affluent population supporting golf industry. In Sweden golf has gained popularity with almost 6.30% registered golfers. In Denmark and Norway golf is growing at faster rate led by easy accessibility of golf facilities.

Although demand for golf apparel and accessories is not the same in all the Nordic countries, such as, Norway has low demand for golf apparel compared to Denmark due to change in climate conditions.

2006 2007 2008 2009 2010

USD

Mill

ion

OPPORTUNITIES IN ASIAN MARKETS

DEVELOPING GOLF FACILITIES IN CHINA

EXPANDING GOLF EQUIPMENT MARKET IN INDIA

GOLF MERCHANDISE EXPOSITION

GOLF TOURISM IN INDIA

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