Although it’s been the subject of some pretty heated debate behind the scenes at MyGolfSpy, I’m going to throw this out there for your consideration.
It’s time to get involved Srixon-Cleveland-XXIO in golf’s “Big Five.” Yes, you can make a strong case for Mizuno and COBRA. However, considering his combination of clubs, golf balls, and overall momentum, I’m giving it the Srixon-Cleveland-XXIO.
(Not to abbreviate Cleveland or XXIO, but for the sake of this article, let’s agree to abbreviate the corporate identity to Srixon. It’s easier on the keyboard.)
Being a Big Five contender was certainly not in the cards for Srixon a decade ago. In terms of market share, the group was firmly placed in the “Other” category. like Srixon made it from there to here, not to mention the entirety of Srixon’s back story, is beyond fascinating. It actually begins with a former Buddhist monk in the early 1600s.
(Oh, come ontell me you don’t want to read this story.)
Journey from “Other”
Srixon et al is part of Dunlop Sports, a subsidiary of Japan’s Sumitomo Rubber Industries, commonly known as SRI. If you’re scoring at home, SRI is the first half of Srixon. “x” in Japanese culture represents “endless possibilities”, while “on” represents “forward”.
SRI may not be the biggest name in golf, but we can guarantee it’s the oldest. It dates back to founder Masatomo Sumitomo, a former Buddhist monk who opened a bookstore in Kyoto in the early 1600s. To put that in perspective, that’s when the Pilgrims first boarded the Mayflower. Sumitomo would later go into business with his brother-in-law, who developed an advanced method for refining copper.
Over the span of 300 years, Sumitomo expanded into mining, metals and machinery, banking and finance, heavy industry and, eventually, rubber. In 1913, Sumitomo partnered with the British Dunlop rubber company to create Dunlop Japan. This partnership continued, albeit with a noticeable hiatus, until 1963. This was when a cash-strapped Dunlop sold its factory and full control of Dunlop Japan to Sumitomo. The company then rechristened itself Sumitomo Rubber Industries.
The company had produced golf balls since 1930, but only as a backroom manufacturer for Dunlop, Slazenger and Maxfli. In 1995, Sumitomo’s Kobe factory was destroyed by an earthquake. However, less than 10 months later, it opened a new factory in Ichijima. By 1997, the Srixon brand was launched.
USA branch
While Japan was her home turf, Srixon immediately sought to establish a foothold in North America. It launched the premium XXIO line in 2000 and in 2007, bought Cleveland Golf for $132 million.
However, in 2015, North America was at a turning point. Sales fell that year even though the North American golf market was growing. Srixon found himself in the dreaded “Others” category.
When that happens, it’s not long before there’s a new sheriff in town: Dunlop sports veteran Matt Yasumoto, who led Srixon to a slow but steady turnaround.
Slow but steady, as we will learn, is very Sumitomo style. This particular turnaround was not a quick fix, nor was it driven by marketing campaigns or advertising. Instead, Srixon focused on its products and its business operations behind the glass.
“Our parent company, our engineering team and our R&D team have always been focused on how we can help consumers and empower them through the joy of the sport,” Srixon VP of Marketing Chris Kircher tells MyGolfSpy. “We’ve been making golf equipment for a long time, but we continue to make incremental improvements with the consumer at the center of our decisions.”
Srixon surprised us here at MyGolfSpy in 2017 when, seemingly out of nowhere, its Z565 driver at the top of the field in the most demanding testing. Since then, Srixon and Cleveland have been frequent visitors to the medal podium, and Srixon has evolved from a cult favorite to a secret success story, where it is now, a reader favorite and a powerhouse on the rise.
“That’s the beauty of Japanese manufacturing,” says Kircher. “It doesn’t matter if it’s tires, golf equipment or cosmetics. There is always a commitment to superior quality and excellence that is unrelenting. It can never be sacrificed.”
Believe it or not, PGA Tour staff matters
When it comes to getting the most out of its PGA Tour sponsorships, Srixon punches way above her weight class. His Tour staff is small but one of the best in the game with major champions Keegan Bradley, Hideki Matsuyama, Shane Lowry, Brooks Koepka and JJ Spaun, along with supreme ball striker Sepp Straka.
“These guys are with our R&D team every week tinkering with things,” says Kircher. “They share knowledge and feedback and it all goes back to creating the product.”
While the overly cynical might disregard the Tour staff’s performance, OEMs know that key digital metrics go haywire after a win. Traffic spikes can last up to four weeks on their platforms as well as those of their retail partners. Big wins, like Spaun’s last year, take even longer. However, the best marketing story, according to Kircher, is when out-of-contract players put your stuff in the bag.
“As marketers, we try to tell brand stories, but when a Tour player uses our product without getting paid, that’s an even more powerful story,” he says. “We’re not the biggest spenders in the game, but a lot of players under contract elsewhere have one or more of our products in their bag.”
Srixon can’t use his name (shhh!) but world number 1 Scottie Scheffler plays a Srixon utility iron even though he’s under contract with TaylorMade.
“There’s no amount of money that covers equipment that just doesn’t work,” explains Kircher. “For the amount of money they play every weekend, they have to trust that the equipment they’re using will help them win on Sunday.”
Cleveland Golf: Déjà vu all over again?
When Srixon hit its nadir in North America in 2014-2015, management made the difficult decision to spin off Cleveland Golf as a full-line brand. Instead, Cleveland would just focus on the wedge and the shot. Given the structure of the market at the time, the move was strategically logical. It freed up resources for Srixon to build a stronger North American base.
Cleveland returned just a few years later. However, earlier this year, Srixon confirmed that Cleveland will again get out of the full line equipment game to focus only on wedges and paws.
In 2014, the move was intended to focus on strengthening Srixon in North America. Today, it aims to empower Srixon to the next level.
“This allows us to recharge our Srixon iron and driver innovation and build our momentum,” explains Kircher. “The new Srixon ZXiR is Srixon’s first game-changing iron, which gives us a great opportunity to expand to new consumers.”
After Srixon launched its ZXiR game-improving irons, a full-line Cleveland brand was largely redundant. However, it had become a popular choice for high-priced setters while remaining a strong powerhouse. Roger Cleveland’s return to the company he founded made the decision easier.
“Being the authority on the short game is our rightful place in the market,” explains Kircher. “To do that, we had to strip away some of the resources allocated to drivers and irons and go all in on the wedge, barrel and Roger.”
Srixon, Cleveland and the “Founder’s Principles”
Spend any time with Roger Cleveland and you’ll realize that age doesn’t dampen enthusiasm. It sharpens it.
“You see him in the R&D room, and he just loves to talk about jumping and grinding and wedge formation,” says Kircher. “If you think about the original 588, every great wedge that’s been made since then has been based on those iconic shapes.”
And speaking of founders…
In 1650, Masatomo Sumitomo wrote a set of trading instructions called Monjuin Shiigaki, OR The founder Prefried. Based on Buddhist teachings, it has become a fundamental philosophy of Japan’s industrial and manufacturing culture. It is also essentially official Sumitomo Business Philosophy. Among its main topics are:
- Ethical conduct over profit; integrity and moral behavior outweigh short-term gain.
- Responsibility to employees and the community; a business should benefit society, not just the company.
- Respect and encourage individual creativity.
- Foster a culture of innovation and continuous improvement.
These last two are more visible in Cleveland RTZ wedge which are made from a proprietary material developed by Cleveland called Z-Alloy. When Cleveland hired PhD metallurgical engineer Boeing Smith, he was tasked with identifying a higher wedge material than the commonly used 8620 carbon steel.
Smith soon discovered that 8620 was the best material available for wedges. If Cleveland wanted something better, they’d have to invent it.
This is what they did.
“We have a challenging spirit here and allow our people to immerse themselves in the possibilities they believe exist,” explains Kircher. “So we innovated an entirely new material in Z-Alloy in a segment of materials that hadn’t been innovated in decades.”
Srixon doing Srixon things
While this may all sound like happy marketing talk, long-term successful enterprises almost always have a consistent underlying philosophy. And, hey, with a 400-year run, you’ve got to admit it Founder’s Rules has several legs.
“You see it most in product innovation and R&D,” says Kircher. “We start with a high standard of excellence and focus on improving, improving, improving.”
Successful companies take a culture of excellence and innovation seriously. It’s what helps them hire the right people and free them up to develop materials and products that matter to consumers. Otherwise, it’s all just words.
And words alone, my friends, do not get you to 400 years of longevity. While it’s hard to match Masatomo Sumitomo’s Buddhist bookstore Srixon handcuffs or a Cleveland wedgethe corporate bond and the philosophy that underpins it is a relatively straight line.
“Going forward, Srixon will be built around innovation and culture,” says Kircher. “Cleveland will be about legacy and returning our icon to its original place.”
Personally, I’m still bummed there won’t be another Cleveland HiBore Driver (that I in love). All will be forgiven, however, if Cleveland comes out with a new wedge 588. Kircher offered no promises, saying only that you’ll see some interesting releases from Cleveland over the next few months, plus updated Srixon offerings next January.
“We believe deeply in the culture of sports. It’s the real heart of the game,” says Kircher. “We believe we can create great products for anyone who loves the game and wants to get better.”
So is Srixon one of the “Big 5?”
The MyGolfSpy staff is divided on this one, as compelling cases can be made for Mizuno and COBRA as well. Mizuno sells a lot of irons and has that vibe, while COBRA probably sells more ironwoods than Mizuno and Srixon combined.
However, it is said here that Srixon it’s him. When you combine its iron and ball sales with its metal woods and add Cleveland wedges and machines plus the growing and profitable XXIO business and a dynamic Tour staff, the Srixon group makes a compelling case.
So, based on what you’ve read and seen, do you THINK Srixon qualify for that final slot in the Big Five?
