Top golf simulator firm strengthens mutual growth
GOLFZON, the country’s top supplier of indoor golfing systems (screen golf), is taking bigger role in boosting the local golf industry as its simulators are gaining more traction.
Globally, the golf industry’s economic impact was reported by experts and analysts as being nearly $70 billion per year. Also, its charitable impact is close to $4 billion per year through 143,000 events and 12 million participants.
GOLFZON has no plans to hugely increase its footstep in the global golf industry; however, its low-key with organized strategies has been successful since the release of its simulators.
“The number of amateur and professional golfers is on the rise and easier accessibility for golf games has awakened idling demand for golf-related things. Now is the time to invest in golf and GOLFZON is positioned well to seek for further growth,” the company said in a statement to The Korea Times.
Company spokesman Yoo Jae-woo said screen golf has become the right place for familiarity between friends and company co-workers, as it costs less than playing at clubs and is more convenient.
GOLFZON’s simulation systems have been widely accepted for their effectiveness and profitability, also golf club manufacturers focus their research projects on them.
“Golf simulation systems have been adopted by golf shops, along with some social clubs reinforcing sales of golf clubs,” said Yoo.
Yoo stressed that today’s screen golf system has changed the styles of golfers and the screen golf industry is near a quantum jump as two main factors that were previously regarded as barriers have been addressed.
“The widespread perception in Korea is that golf is only for the premium class and outdoor field golf is high priced. Screen golf systems are steady for reinforcements. Again, this is the market that can’t afford to lose,” the spokesman said.
Led by chief executive Jang Sung-won, GOLFZON dominates the domestic virtual golf industry, selling more than 80 percent of game systems and practice simulators at screen golf and indoor practice ranges nationwide. As of last year, it had more than 5,000 golf shops in the country.
The Seoul-based outfit posted 13.9 billion won ($11.73 million) in operating profit in the second quarter, up 100.6 percent from a year ago. Sales stood at 59.7 billion won, up 135.5 percent year-on-year, according to the company in a note to the Korea Exchange.
Mutual, global growth
Inspired by the continued organic growth, GOLFZON said it’s been accelerating moves to respond with the government’s initiative for “shared growth” with local partners because the expansion of its business is creating jobs.
“The popularity of screen golf products has been successful for steady growth in related industries. More than 40,000 new jobs were created,” it said.
As Korea is becoming more of a golf-mad country, screen golf is also a blessing for local suppliers. Screen-golf shops are everywhere in the country and that means the popularity of the sport is making huge positive impact on them.
The number of screen golfers rose to 2 million by last year.
Now, GOLFZON is eyeing on global markets. It recently signed an agreement with Byron Asset Management in China to export at least 200 simulators over the next two years to the asset manager. The products will be supplied to cities in Guangdong Province, China.
“Quick enhancements in software and hardware are the key. Its profits and increased footprint will be subject to how the company is adaptive to entice more customers,” said Hana-Daetoo Securities in a note to clients.
Source : THE KOREA TIMES