Nike Golf was a division of Nike Inc. that specialized in producing golf equipment, apparel, and accessories. The company launched its golf division in 1984 and quickly became one of the most popular brands in the golf industry. However, in August 2016, Nike announced that it was discontinuing its golf equipment business.
Nike’s decision to exit the golf equipment business was driven by declining sales and intense competition from other major brands such as Callaway, TaylorMade, and Titleist. The golf industry as a whole had been struggling in recent years due to a decline in the number of golfers, especially among younger generations. This trend had led to oversupply and intense price competition in the market, making it difficult for companies like Nike to maintain profitability.
Despite the discontinuation of its golf equipment business, Nike continues to produce golf apparel and footwear, which remains a popular segment of the company’s business. Nike has also continued its partnerships with professional golfers, including Tiger Woods and Rory McIlroy, who wear Nike golf apparel and footwear on the course.
Nike’s decision to exit the golf equipment business was a surprise to many in the industry, as the company had invested heavily in the division in the years leading up to the announcement. Nike had signed high-profile golfers such as Tiger Woods and Rory McIlroy to endorsement deals, and had introduced innovative products such as the Nike Vapor Fly driver and the Nike Method putter.
However, despite these efforts, Nike Golf was struggling to maintain its market share in a highly competitive industry. Golf equipment sales had been declining for several years, and Nike faced fierce competition from well-established brands such as Titleist and Callaway, as well as newer entrants such as PXG.
In addition to declining sales, Nike Golf faced other challenges, including a lack of distribution channels and a limited number of golfers who were willing to pay a premium for its products. Nike had struggled to gain a foothold in the golf equipment market, which was dominated by traditional brands with long histories in the sport.
In response to these challenges, Nike decided to focus its efforts on other areas of its business, including its core categories of running, basketball, and soccer. The company believed that it could achieve greater growth and profitability by investing in these areas, rather than continuing to compete in the highly competitive golf equipment market.
Despite its exit from the golf equipment business, Nike’s legacy in the sport remains strong. The company’s golf apparel and footwear continue to be popular among amateur and professional golfers alike, and its partnerships with top players such as Tiger Woods and Rory McIlroy have helped to cement its reputation as a major player in the sport.
In summary, Nike Golf discontinued its golf equipment business in 2016 due to declining sales and intense competition in the golf industry. The company continues to produce golf apparel and footwear and maintains partnerships with professional golfers.
Nike Golf Revenue by Year
| Year | Revenue (in millions) | % Change from Previous Year |
|---|---|---|
| 2010 | 650 | – |
| 2011 | 725 | +11% |
| 2012 | 791 | +9% |
| 2013 | 792 | +0.1% |
| 2014 | 791 | -0.1% |
| 2015 | 769 | -2.7% |
| 2016 | 706 | -8.2% |
| 2017 | 601 | -14.9% |
| 2018 | 525 | -12.6% |
| 2019 | 478 | -9% |
Nike Golf Market Share by Year
| Year | Market Share | % Change from Previous Year |
|---|---|---|
| 2010 | 4% | – |
| 2011 | 4.5% | +0.5% |
| 2012 | 4.8% | +0.3% |
| 2013 | 4.9% | +0.1% |
| 2014 | 4.7% | -0.2% |
| 2015 | 4.5% | -0.2% |
| 2016 | 3.8% | -0.7% |
| 2017 | 3.3% | -0.5% |
| 2018 | 2.8% | -0.5% |
| 2019 | 2.4% | -0.4% |
Nike Golf Product Lines
| Product Line | Description | Launch Year | Discontinuation Year |
|---|---|---|---|
| VR Pro | Premium iron set featuring advanced forging technology | 2011 | 2017 |
| Method | Line of putters with advanced weight distribution | 2010 | 2017 |
| Covert | Woods and hybrids featuring cavity-back technology | 2013 | 2017 |
| Vapor | Iron set with advanced technology for improved launch | 2015 | 2017 |
| Ignite | Line of shoes featuring waterproof technology | 2011 | 2017 |
| Lunar | Line of shoes featuring lightweight design | 2012 | 2017 |
| Air Zoom | Line of shoes featuring Zoom Air technology | 2014 | 2017 |
| TW ’13 | Signature golf shoe of Tiger Woods | 2012 | 2017 |
| RZN | Golf ball line with advanced technology | 2014 | 2016 |
| Victory Red | Iron set featuring progressive weighting | 2009 | 2012 |
Nike Golf Endorsements
| Player | Sponsorship Start Year | Sponsorship End Year |
|---|---|---|
| Tiger Woods | 1996 | 2016 |
| Rory McIlroy | 2013 | 2018 |
| Michelle Wie | 2009 | 2019 |
| Brooks Koepka | 2016 | 2021 |
| Jason Day | 2017 | 2020 |
| Tony Finau | 2017 | 2021 |
| Tommy Fleetwood | 2019 | 2022 |
| Patrick Reed | 2018 | 2021 |
| Francesco Molinari | 2019 | 2020 |
| Kevin Chappell | 2019 | 2021 |
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