In an interesting announcement, Callaway Golf announced that they are going to sell direct to consumer off of their website www.CallawayGolf.com. It's an interesting move to say the least, and based on the success of the program will certainly pave the way for other golf retailers to sell direct.
The press release with a great deal of detail can be viewed here.
The concept is pretty simple, Callaway sets up on it's website a secure shopping cart with all of the Callaway and Odyssey products featured, including even licenced items such travel bags and sunglasses. Once the order is completed, Callaway basically broadcasts the order to authorized retailers in the general area who will respond if they can fill the order from their stock.
Even as the owner of an ecommerce site, at first glance I think it's a fine idea. It gives Callaway a chance to promote the program to their green grass properties who likely aren't too involved in ecommerce as a way that they can generate more Callaway revenue. They might even be able to require these retailers to carry a larger inventory than normal to be eligible to fill orders.
A few of the potential disasters... What happens when a retailer sends the wrong item? What happens when someone buys a "new" club to learn that it is "shop worn" and has been manhandled by every tire-kicker that has come through the shop? How quickly will an order get shipped by an overworked assistant pro who can't find the appropriate box to ship the club in (or, takes an Adams Driver out of its packaging to ship the Callaway Club in its place)?
I am certain Callaway has contracted a third party company to manage this program for them so they are probably viewing this as low risk. What they are really risking is their brand. To truly build or maintain a premium brand you need to be fanatical about every component of the process, including shipping, customer service, quality control, etc. When someone buys direct from Callaway they are going to have a certain expectation regarding the process. "I'm sorry Mr. Johnson, the fact that the 9.5 Regular driver arrived as a 8.5 Xtra Stiff really wasn't our fault, it was our partners" isn't going to fly with most consumers.
I'll be very curious to see where this leads, but in my humble opinion the risk is very significant for Callaway. Their retailers, if smart, will be ok with process and hopefully embrace the program. But will golfers really shop on www.shop.callawaygolf.com? Probably... but, with the non-discounted prices, lack of free shipping and the question mark about the service process, I don't think it will be as many shoppers as Callaway has been led to believe.
