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EMERGING MARKETS They have replaced golf’s most sacred tenets Tony Wang, on the other hand, is a 32-year-old finance executive and an avid golfer. The son of a wealthy steel magnate, he belongs to China’s fu’er dai (wealthy second generation), a term used colloquially to describe the children of wealthy families. He was first introduced to the game of golf during his university days in Australia, where he played regularly with his small circle of wealthy Chinese classmates. He and his friends played the game mainly because it was considered a luxury sport that differentiated them Visits by big names like Tiger Woods have helped to market golf to the growing number of wealthy Chinese from their peers. Moreover, the luxury services available after the actual game – spa, hot springs, food and beverage objectives of conformity, benevolence dictating the rise of more extravagant facilities – sometimes influenced their and tradition. The authors also noted golf courses. repeated patronage. More often than that, “as a result of economic growth Tang Li is a successful executive not, they preferred golf courses near and modernisation processes, it is and a graduate of one of China’s top a bustling city with an active nightlife. expected that more people will acquire an universities. On his 47th birthday in 2010, A typical trip would involve travelling individualistic and material orientation”. he decided it was time to find another to a golf course in a nearby city during China’s new upper class is also form of exercise because it became the day, enjoying the city’s nightlife and growing quickly: According to Credit increasingly difficult for him to continue staying overnight. Suisse’s ‘Global Wealth Report’, the playing soccer. Previously, he would have After obtaining his university degree, country had 964 000 millionaires (in never even considered golf, thinking he Wang returned to China and joined Guan US$ terms) at the end of 2012, a 19,8% would not be able to afford the hefty Lan Hu, one of the most expensive clubs increase from 805 000 in 2010. There are US$98 000 annual club membership fees, in China. He played there at least once also nearly 35-million individuals within even with a good-paying job at a state- every fortnight, enjoying a full day at the the top 10% of global wealth holders, owned organisation. golf course and then making the short an increase of 35,6% from 25,8-million However, he soon learned from his drive to Shenzhen city, where he spent in 2010 (third only to the US and Japan). friends that there were alternatives. the night in the company of his friends. Mainland China today also has the Many medium-sized golf courses in These younger groups of golfers have second-largest number of billionaires, Beijing offer cheaper options that do transformed the luxury leisure golf market according to Forbes’ 2013 Billionaires List, not require membership dues, but do in China. They have replaced golf’s most with 122 citizens (or 161 if Hong Kong is require fees based on actual playing sacred tenets – love of the game, fair included), compared to the US with 442. time – typically around US$65-130 per play and sportsmanship – with a focus round of 18 holes. With help from his on luxury, entertainment and general A micro look at friends, Li has become a regular golfer. excess. Courses originally designed as golfers in China On average, he plays five to six times places to practice and compete with There are two distinct groups of golfers a month and spends about US$3 268 friends now offer a host of other facilities. in China: ageing baby boomers who have annually. He plays mostly with friends For instance, amenities at Mission Hills saved just enough to be able to try this and, increasingly, more with his business now include a Japanese spa, mineral new luxury leisure activity, and a growing partners. Sometimes he has lunch with hot springs, a luxury hotel, meeting- and younger crowd of self-indulgent golfers in his friends at the golf courses, but he conference-room facilities, shopping their 20s to late-30s who are increasingly never drinks or lingers afterwards. centres and a karaoke club. 54 strategicmarketingafrica Third quarter 2014 52-56 Emerging Markets v5.indd 33 2014/06/26 12:32 PM