Golf bags

	Model GB-02 from Gostar is available in nylon or PVC.

With material costs and the VAT rate falling, suppliers are able to drop quotes by 5 percent and expand to Africa and Asia.

In response to the global economic slowdown, golf equipment suppliers in China are scaling back prices and exploring new markets.

The price reduction is aided in part by falling material costs. After soaring more than 50 percent last year, aluminum plummeted by 40 percent to $1,990 per ton. Similarly, carbon fiber slid to $40 per kilogram from a September high of $50.

Moreover, the government has lowered the VAT rate from 6 to 3 percent for manufacturers with an annual revenue of less than 1 million yuan or about $145,000.

These factors are enabling makers to reduce product prices toward stimulating demand. Most will be cutting quotes by at least 5 percent in the next six months.

To enhance profitability despite sluggish sales in the US and the EU, suppliers aim to boost exports to Japan, South Korea and Singapore. Further, some companies are cultivating markets in South America, Africa, Australia, New Zealand and India.

The growing consumer base in these new areas and healthy domestic demand are expected to help the industry through the slump.

China has already surpassed Japan as the second biggest manufacturer of golf equipment, next to the US. Golf bags make up about 60 percent of output, while balls and trolleys account for 15 percent each. Golf clubs and tees comprise the rest.

Of the estimated 300 makers, only 10 percent specialize in golf equipment. About 200 companies offer golf bags. There are 50 suppliers each of golf balls and trolleys, and 20 golf club manufacturers.

The main production hubs are Guangdong and Fujian provinces. The former focuses on the midrange and high-end segments and benefits from being located close to Hong Kong, where information on the latest trends is available. The latter leverages its lower labor and overhead costs, and concentrates on the low end.

Both provinces harbor a large number of companies with Taiwan investment because of their proximity to the island. Most specialize in golf clubs and cater to the OEM market.

Among golf bag suppliers, carry and stand versions are the primary designs.

Low-end models typically use polyester with PVC coating around a steel frame, and go for below $25.

Golf bags in the midrange segment are made of 600d nylon coated with PVC or PU and have an aluminum frame. These can have nine to 13 compartments and are priced between $26 and $45.

High-end designs employ 1200 to 1680d nylon and fiberglass. Models can have up to 16 compartments. Most suppliers in this sector are bag makers that diversified into the line. Guangdong is considered China’s main hub for golf bags, owing to its status as a major sourcing center for bags and golf equipment.

Golf balls
One- and two-piece types with 400 dimples dominate China’s golf ball production, but multipiece versions are available.

Generally used as promotional items, one-piece versions are made of rubber and priced between $0.20 and $0.40 each.

Two-piece models have a polybutadiene or BR core, with a DuPont Surlyn cover. These are priced between $0.40 and $0.80 per piece.

Upscale balls have multilayer designs in materials from the US or Japan and balata covers. They often have added features such as LEDs or fluorescent coating.

From January to September last year, golf ball exports amounted to almost $46 million.

Irons are the predominant output among China’s golf club makers, since they make up the majority of a club set.

Stainless steel and graphite are the main materials employed for the shaft. The former is used mostly in the low end, while the latter is adopted in upscale models weighing below 55g.

Stainless steel and titanium composites are utilized for the head. These can be blended with brass or tungsten for better performance. High-end heads are barrel-burnished and have a mirror or satin finish.

About 60 percent of golf club suppliers are Taiwan-invested and clustered in Guangdong and Fujian.

China’s output is divided evenly between manual and electric golf trolleys.

The former usually ranges between $10 and $40, depending on the frame. Steel is typically adopted in the low end, while upscale models employ lightweight aluminum.

Electric trolleys start at $70. Those up to $100 have stainless steel frames, and domestically sourced components and batteries.

Midrange models reaching $300 come with aluminum frames. High-end units exceeding this price feature composite or carbon fiber constructions.