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What is the future of the golf industry, and how should we respond?

'Who Moved My Cheese?' is a self-help book published by American author Spencer Johnson in 1998. It tells the story of two different groups of mice and their responses in a situation where the cheese in the cheese warehouse is diminishing and ultimately runs out.

Group A mice prepare themselves mentally when they see the cheese supply in the warehouse gradually decreasing. Eventually, when the cheese is gone, they embark on a difficult and challenging journey to find new cheese.

On the other hand, Group B mice, upon realizing that there is no cheese in the warehouse, get angry and blame each other, remaining trapped in the same warehouse.

So, how would this apply to the golf industry in South Korea?

The golf course industry in each country goes through stages of "introduction phase - growth phase - adjustment phase - recession phase." During the COVID period, South Korean golf courses enjoyed the highest growth in history in terms of domestic golfers and revenue. However, as we move towards the endemic phase, we are entering the "adjustment phase" once again.

As of 2017, around 2.6 million South Korean golfers traveled abroad for overseas golf trips to destinations including Southeast Asia, China, and Japan every year. However, during the COVID period, all this demand shifted to domestic golf courses, giving all golf courses across the country an unprecedented boost. However, this boom was more a result of external factors than the golf courses' own efforts.

So, when more than 3 million South Korean golfers go abroad for golf in the winter of 2023-24, can South Korean golf courses surpass the performance of 2020-22 from next year? How should we adapt to this change?

1. Golf courses must make every effort to adopt smart innovation technology and digital infrastructure.

Observing the young people in their teens and twenties around us, one can't help but be amazed at how rapidly the world is changing. They use smartphones and social media for all communication and social activities, considering it the most important tool in their daily lives. Smartphones have long established themselves not just as a means of communication through calls but also as a crucial means of communication through platforms like Instagram, Meta, and direct messaging.

In response to these lifestyle changes, golf courses should actively introduce and test innovative technology to embrace a new generation, rather than making excuses about the limitations of changing existing members. This includes adopting new technologies and services to expand sales and marketing, utilizing smartphones for reservations and payments, and considering options like equipping golf courses with innovative technology and introducing autonomous golf carts.

2. Golf courses should shift from being business-oriented to family-friendly and offer facilities and features that can accommodate a diverse range of generations.

In the current golf course environment in South Korea, there is a lack of options or limited offerings for family-oriented golfers, in addition to business golfers. By providing facilities, features, and product marketing tailored to various generations, differentiated services can be made possible.

3. Innovation and reward are necessary for golf course organization and culture.

When the author conducted consulting for golf courses in South Korea after working at golf courses in the United States and Japan in 2005, the most surprising thing was that the organizational structure of golf courses in Seoul and the metropolitan area was the same as that of golf courses in Jeju Island. At that time, Jeju Island golf courses had sales levels that were 50-60% compared to those in the metropolitan area.

The importance of golf course organization varies depending on the operating type, ownership, region, and sales. Therefore, organizing and staffing according to these factors can be helpful in differentiation and enhancing competitiveness. Above all, sales and marketing should be proactive in the adoption of innovative technologies and marketing strategies.

In the case of Rancho Mirage Country Club in California, where the author worked as CEO since 2005, they allocated 40% of the operating profit as incentives for the CEO and employees, distributing approximately $500,000 annually to the employees, which led to continuous profit growth.

Rewarding employees who lead innovation and proactive change in golf course organization is a solid guarantee for the golf course's ongoing success.

Sources : Golf Industry News (http://www.golfin.co.kr)

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