India, the world’s highest golf course; it is the exception of Britain, there is the world’s oldest golf club country; India, an average club membership up to 1,300 people, ranking the highest in the world; but operating income was for the world court minimum; India golf course almost no real estate development, nor to develop the tourism market … … in this ancient and mysterious oriental country, with a distinctive golf developments by the colonial stigma and a strong military colors, forming a unique business model.

Friends of the Indian ball disputes

In many Indian buffet on the sidelines in golf, you can often see this as Nandkumar Dhekne sitting here while eating sandwiches lunch, while other groups of kick down the ball in front of friends. According to Dhekne introduced at this golf club, called Eagleton, was put down on the pitch stuffed a half-hour is a common affliction, but many Catholics are still duty-bound to come to the ball to play, because this is their only option. 50-year-old Dhekne graduated from University of Mumbai Department of Chemical Engineering, is currently in India GE Energy’s regional director, prior to contact with golf, he was an outstanding amateur cricket in the lived in the U.S. after many years of experience to talk business on the pitch He began to like the game of golf, and quickly became a handicap of 20 players. Back to India’s development, he found a ball very hard on Yao Da. Dhekne live in Bangalore area, not only this terrible congestion outside the stadium there is another five pitches, including three from the Indian army operations and management, the other two operating for more than 10 years of KGA golf course and Bangalore Golf Club is overcrowded. Dhekne joked that at least two clubs have to wait 20 years before it can hit the ball, so he had to choose this course. Dhekne said, Eagleton Golf Club in India belong to the high-end golf course, which opened in 2000 after the club began to selling membership cards, he bought a lifetime membership price is 7,500 U.S. dollars, the current members of the golf course for at least more than 1,500 people, plus also receive the usual visitors and guests (the stadium was the only one golf course open to tourists), stadium traffic jam is not surprising.

The 56-year-old Toni Oberoi situation is completely different, who almost single-player has the best courses, including India – Delhi Golf Club course, including a number of membership, and self-development and construction of a golf course. While many golfers still blocked on the pitch when eating bread, he had finished playing the 18th red cooler sitting in the restaurant, leisure club and enjoy delicious Hongmen lamb and curry vegetables. In 1990, Oberoi to as the colonel retired from the Indian Army after the beginning plays a game of golf, and involved in the industry. And other teammates difference is that, Oberoi can visibly guarded by soldiers into a golf course, never worry about not hit the ball.

Dhekne and the Oberoi is the Indian golfers in the typical case, which also reflects some of the salient features of Indian golf. Golf Benchmark Survey, according to the company (Golf Benchmark Survey) research data shows that India is golf’s two biggest features are: first, the Indian average number of 18-hole golf course membership ranking first in the world, the average number of members of each course up to 1300 people, operated by a non-military courts a greater number of its members, and some members of the number of pitches up to 1700,1800 person still receives FIT; Secondly, the Indian golf course revenues and average operating profit is lowest in the world, the annual profit not even one-third of the European court, which polled, 40 golf courses in India, 83% of the golf course manager said they were not able to achieve profitability, only 17% of the course is modest profitable. India several thousand years of civilization, history, population, second only to China, the land area in the world, 7, but the past 20 years, world economic development, one of the hottest regions, why golf’s development will present a two characteristics of such a morbid it? This begins with the history of golf in India, their own cultural characteristics and economic status of India’s unique business model on the golf look into the reasons.

Born out of the development path is not for bone

India is the addition to Britain, the world’s first country club with golf. From 1757, the British Empire in the Battle of Plassey started to win, until 1947, India has experienced for almost two centuries of colonial rule, the colonial ruler of the British Empire will be the game of golf into this old country . In 1829 and 1842, the Royal Calcutta Golf Club, Golf Club have been established in Mumbai, India opened a prelude to golf. During the colonial rule, golf is only the British colonial rulers and soldiers, exclusive games, no Indian can not enter the stadium. Beginning of the 20th century, British colonial rulers in India, the construction of faster growth in the number of golf courses, which also includes the construction of the Delhi Golf Club, including a number of well-known, better-quality golf course, but this time, players, stadium management those who are basically the British. In 1947, India, “Mahatma” Gandhi, under the leadership of the independence, the British colonialists left the 25 golf courses in India, to take over these courses is the Indian army. During the colonial rule, the concept of golf in India, there is no market to speak of, he is only a manifestation of the power politics of the rulers, while the Indians does not understand golf are. To a certain extent, this period of Indian golf course is just other people’s wedding dress, not to mention market development.

Post-independence India bodiless but not for bones, the 20th century, economic reforms in the early 90s, before India’s deep-rooted religious conflict, poverty, the caste system continues to chaos, basically accept the new government when the British colonial rule in the system and the law has been formed of an upper, middle, lower-division system, a strict social hierarchy maintained. During this period, leaving the colonists to take over the golf courses of the Indian army and the government operation and management of golf, and there is not much innovation, although at this time Europe and the United States golf market has undergone a dramatic and revolutionary changes in golf operations in India and development is basically the continuation of the British prior to the set of tools. Golf in India is only the military and political officials entertainment and receiving guests in a way. During this period, by the military to invest in constructing and operating its own golf course are more, but the stigma of the colonial period is very clear; the course were very few private investors. Golf market in India’s development can be described as in its infancy.

The second half of 1991, India, Rao Government has implemented drastic economic reforms, including the open economic policies, industrial restructuring, foreign economic cooperation policy, these reforms in India has brought golf into the market good. During this period, foreign and domestic private capital investment in India is relatively thriving golf course, the quantity and quality of golf courses has also been a qualitative leap. However, after the golf market, due to the military operation and management of the golf course in the market account for a large resource advantage, so new entrants into the market, foreign capital and personal investment courses simply can not become the market leader, more than the industry norm makers, while the pace of development of such courses is relatively difficult. Today, Indian golf is still a strong military colors, the supreme Association, down to the golf course managers, many of them are retired army officers.

Given limited funds Clubs

According to the Indian Golf Union (Indian Golf Union) official data statistics, as of June 2008, India, a total of 186 golf courses, but recently, according to local media reports, India, there are at least 220 golf courses open. Of which 30% of 9-hole golf course, 70% of the 18-hole golf course only a handful of more than 18-hole golf course. In these courses there are at least more than 100 pitches by the Indian military operation and management (some media that the military golf course accounts for two-thirds of India’s total). In India, high-quality golf course accounts for the main part of the low-quality golf course only about one-quarter. Golf courses in India are mainly distributed in the Arabian Sea coast of southwestern and northern areas. India’s current population of about 40 golf million, has also emerged out of Jeev Milkha Singh, Jyoti Randhawa and other international-class player.

With the revival of Indian economy and take-off, the Indian elite and middle classes increased sharply, India has 1.1 billion people, second only to China, which is very rich elite of about 10 million people, these people can be consumed entirely affordable golf; the same time, India’s middle class can be divided into two parts: one is the upper middle class, about 30 million people, this part of the population is also capable of spending golf, the other part of the lower middle class of about 250 million people, this part of the people golf market of potential customers. However, in India, in addition to established customers only course open to the military, the rest of the stadium, it was only 100, which also includes a lot of 9-hole course. In addition, India golf membership prices have been very cheap, one of the few golf course is destined to attract golf lovers, the world’s largest number of golf course membership is not hard to understand. Of course, we consider the Indian golf market demand can not be a huge elite and middle class because of religious beliefs of those who do not play golf into account. Nevertheless, India’s existing golf courses still can not meet the market demand, eventually formed the current situation to meet all needs.

Seller’s market weak Das CIO

Demand and supply from the market point of view, India should belong to a seller’s market, golf, golf course a limited number of membership cards should be Luoyangzhigui, hard to find a card, then the price should rise with the tide decided by the seller. However, the data survey shows exactly the opposite. Golf Benchmark Survey, according to company data shows that India is a founding golf course membership fee to join one of the lowest around the world (India’s founding membership golf courses generally have 200 places, the second batch of members of the first 201-400 members The entrance fee to double, the first 400 members will each increase after a certain amount, the more to the back of more expensive), India, 18-hole golf course a founding membership of the average contributions is 1,865 U.S. dollars (2007 dollar rupee exchange rate , the same below), a quarter of the golf course membership fees of less than 1,000. Membership cards, the average annual fee is 112 U.S. dollars, an annual fee golf course less than one hundred U.S. dollars accounted for 61.5%. Of course, it is only 666 U.S. dollars per capita income (2008 data) in India, golf is still considered a luxury for ordinary people, but for a large middle class and elite, the membership fees very low. Of course, India has a lot of entry fees up to 2 million dollar annual fee of 2,000 high-end golf course. In addition, India’s consumption of golf is quite low, on the local visitors, 18-hole golf course in India the average weekday green fee is 13 U.S. dollars, holiday green fee is 18 U.S. dollars, with an average ball fare is 13 dollars. Curiously, for foreign visitors, the consumer price of at least 2-4 times to bring up.

With such a low position that ultimately led to the club’s meager income, the data show that golf courses in India as the world’s lowest profit rate, India, the average annual income is 190,811 per stadium million, operating costs were 177,454 million. Club operating in Europe’s most depressed areas of Eastern Europe, 18-hole golf course average annual income of up to 719,000 U.S. dollars, while the golf course in Spain is India’s annual income 10 times as high as 1.9 million U.S. dollars. Of course, the performance of the best stadium in India to have 100-150 million in revenue. Sources of income from the business point of view, India’s pitches profit mainly by selling membership, accounting for 66.3%, only 16.8% of green fees, golf carts, and catering income of the rest only 16.9%. (See chart)

Installed the wrong system, “computer”

India has such a large demand for the golf market, but the ball will be the price of membership and operating income was lowest in the world, why is there such an embarrassing situation? In fact, the golf market in India can be likened to a computer, it has the largest hard drives of computers, and even the best LCD displays (market demand and development opportunities), but the CPU is using the oldest and the lowest level version and systems are the most ancient Windows95 (colonial stigma and military colors), and all software is not online upgrades (the development model is different from the international), how to run faster?

In fact, careful people may find that in the above average data, the total of more than half of the military operation and management of golf courses into account, price, and operational data on the natural dragged the hind legs, a phenomenon that is India golf market development constraints. India, a golf magazine editor in chief in the phrase: India’s golf market is flooded with bureaucracy, army officials and stadium when the upstart in the investment did not take into account the money (profit) issues, the quality of course this depends on the Executive Golf Campaign attitude. Golf course in India in the middle and have to pay membership fees account for only half of the course, fully one-third do not need, as well as 19.4% of the course only charge their members a special membership fee, which is India’s military golf side characteristics. The people who have a membership card, there is one-third of the pitch without spending a penny. Faced with such data, the golf course profit-making points lie?

In India, to achieve profitability are basically non-military court, but part of the course of development and living space is very narrow, is not optimistic. Intends to invest in many companies and private golf course, but when you pick up to find prices have gone up by 1000%, being forced to back off. The golf course has been completed to upgrade themselves and improve the quality, it will also encounter many problems. To the KGA golf course in the above-mentioned example, an excellent location for this course, Bangalore is located in downtown, IBM’s office building on the edge of the pitch, standing on the greens will be able to see, including Microsoft a number of large international companies to neon. In the last century 80′s, court investors a strategic means to an rupees (equivalent to 2.5 cents) per mu of the price from the then city rented the land, the original clubs are also low-end positioning, number of members enrolled very substantial agenda. To the late 90s of the last century, the ball would have to improve the hardware upgrade, but the land owners had to pay 2 million U.S. dollars to buy about 5 acres of land to expand their parking lot and clubhouse. After playing more and more people, KGA golf course affordability is unable to cope, the ball would have to spend 500,000 U.S. dollars installed lighting, but the bottles and had not used after the first. KGA golf course the ban on the use of lights on the ground that will affect the light near the airport’s security.

In addition, the golf courses in India is almost does not involve real estate projects, nor to open up overseas tourism market, which are the profits has become the mainstream form of an international court. However, in recent years, the situation has improved, many new stadiums have opened in these two businesses involved. In any case, India’s golf market has huge potential, if the system changed to change the current model, known as “BRIC” India may become the fastest growing golf market in Asia region.

From the Editor:

Needs “a little more … …”

The development of golf in India has a very fertile soil, but it does not appear blossom everywhere, thriving scene. From natural conditions, India has nearly 3 million square kilometers of land resources, located in climate, ample rainfall in South Asia, both beautiful beaches, there are pleasant mountain scenery, suitable for development of all types of pitches, In addition, India has a very rich tourism resources. Spending power from the point of view, with the advance of economic reforms, as the world’s second most populous country, India’s new rich indigenous increasing spending power of gradual increase; the software industry is a locomotive for economic development in India, including Microsoft, IBM, including many IT giant R & D departments have settled here, which not only brings a great deal of foreign investment to India has also brought a not a small crowd of golf consumer. In addition, the development of golf in India have been hundreds of years old, and many courts are not bad quality. However, we see the Indian golf is a pace and level of their economic development are incompatible: The number of courses can not meet the market demand, the golf course operating income is low, operating tactics of the single and so on.

To be sure, India’s vast poor population, for centuries been the religious conflicts, deep-rooted caste system of its chronic problems of economic development, but also its root causes of the slow development of sports, not just golf, popular in the world of basketball, soccer, volleyball and other sports in India and could not be actively developed. However, from the direct cause of the point of view, India’s golf is like the train derailed and the market, we can see, India’s sports are still a distinct colonial imprint, including the most popular cricket by the British colonial rulers, into the. Golf is no exception, many years ago by the British colonists hung on the door, “idlers No entry” signs are still effective, and many stadium is not for profit, but the owner’s own backyard playground. Unique to the history of golf development in India has given the military its distinctive color, which also largely determine its prospects for development. India’s comprehensive economic reforms have gone through almost 20 years away, a large part of the course are incompatible with the laws of the market. Rules of the game-makers have the resources and take advantage of market-led, is the front of the train, but as a rule enforcer of private capital and foreign capital, not on the bus or be forced to get off.

In 1992, Deng Xiaoping, chief architect of China’s reform and opening up an: “Emancipate the mind, a little more daring, a little faster pace,” enlightening, there has been a three-day floor “Shenzhen speed” miracle. India may also need to golf “more … … a little.” Since independence in 1947, Gandhi led the Indians have never given up the spirit of reform, golf development in India has such a good soil, a little more relaxed as long as the market conditions, competition mechanism could be improved a bit, operating means a richer that predicted by the industry The “India is the future of golf’s fastest-growing countries” will become a reality.