Can a Golf Shoe Help GEOX Beat the Recession?

TIME Magazine
By SEAN GREGORY Wednesday, Apr. 01, 2009

Why have golf shoes proven recession resistant? For one, all that walking around in the grass (and for many, the sand) really wears down your spikes. "Golf is very hard on shoes," says Matt Powell, an analyst at SportsOneSource. "Grass creeps in them, they get wet, and they can even get moldy. It's easier to play in an old golf shirt than play in old, rotten shoes." While you can send weary brown shoes to the repair shop, it's harder to fix up a pair of sneakers. Plus, consumers might be trading down from expensive golf equipment to shoes. Instead of splurging on a $700 set of new clubs, which rarely wear out to the point you can't use them, golfers can buy new shoes for a fraction of that cost. This way, they feel like they're saving money while getting a necessary upgrade. (See pictures of shoes worn by Olympians.)

Despite this favorable environment for golf shoes, GEOX's success is no gimme. First, the shoes are expensive, ranging from $160-200. Some golf shoes in the market cost even more, but that's still a steep price during down times. Plus, golf is a crowded marketplace; in the U.S., for example, Nike owns 56% of the market. With Tiger Woods returning to the course, in his usual Swoosh-clad clothes, an upstart like GEOX is unlikely to make a serious dent. "It's not like the industry is crying out for a new brand or a new idea," says Powell. "It will be a very difficult challenge for GEOX."

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