GolfGear International, Inc. is making a major change in the way it operates, shifting away from a manufacturing company to a direct marketing company. The company will see overhead cut by approximately 50% by outsourcing the manufacturing and assembly of GolfGear products, according to president and COO, John Pierandozzi.
“By outsourcing our manufacturing, we will be able to reduce both our fixed overhead and our cost of goods sold”, said Pierandozzi. “Sales and marketing activities also will be outsourced.”
The company in October will move its headquarters from Huntington Beach, CA to the Palm Desert/Indian Wells area of the state where they will have a club-fitting center, a showroom/sales facility and a small warehouse.
GEAR is also expected to launch in October a new direct marketing TV campaign featuring an infomercial that will air on the Golf Channel and Fox Sports.
In another sales move, Cloud Water Co., Ltd., based in Seoul, Korea, has been appointed exclusive distributor of GolfGear products in Korea.
In Japan, M.C. Corporation, based in Tokyo, has invested an additional $250,000 in GolfGear. The company initially invested $2 million in GEAR in 1999 and became a distributor of its products.
