Who Is More Suitable For Lining Than Zhang Zhiyong, Jin Zhenjun Or Chen Yihong?

"He volunteered to leave."

A person familiar with the matter said that unlike the previous departure of Zhang Zhiyong, Kim Kim Chun's departure in the industry seems to be more of a return to the role of investors.

This is also the second time that Li Ning Co has replaced chief executive officer in two years.

In July 4, 2012, Lining announced that Jin Zhenjun and Lining jointly performed the position of chief executive, and then said they were looking for the right candidate. But in March 21st of this year, Jin Zhenjun was officially appointed as the acting chief executive, who was less than 8 months away from office.

In 2010, Li Ning Co celebrated 20th anniversary, Lining changed the LOGO, and changed the slogan "anything is possible" to "Make The Change". The leader is CEO Zhang Zhiyong, who opened the curtain of Lining's change.

In July 2012, Lining was in the greatest crisis.

Brand remolding failure, high level turbulence, stock price crash...

At that time, the departure of Zhang Zhiyong, chief executive officer, made Lining worse.

And Jin Zhenjun himself was "ordered to be in danger". On the one hand, he made bold efforts to carry out a series of reforms to Lining.

In November 14, 2014, it was reported that part of Lining executives had received an email notification, and Jin Zhenjun "left" Lining.

In the past 5 years, the famous local sporting goods company, with its 2 high-profile CEO, became the banner of the company's pformation.

What did Lining experience in the 5 years of reform?

Zhang Zhiyong: reshaping the brand and moving towards internationalization

Zhang Zhiyong is Lining's second CEO.

It took over Lining's management power from Chen Yihong's hand and brought the Li Ning Co from the 1 billion era to the threshold of ten billion.

At the time of Li Ning Co 20th anniversary, at that time, Li Ning Co had more than 7900 stores in China, and also had sports equipment brand, "red double happiness" and "badminton brand". At the same time, it had the operation rights of the French outdoor brand AIGLE and Italy leisure sports brand Lotto. Zhang had completed the layout of many domestic markets, trying to reshape the brand of Lining to enter the international market, so he launched a revolution to make Lining fashionable and internationalized.

In 2009, Lining's Spanish agent signed the contract.

In July 2009, Lining opened the Singapore store. In December 2009, the Lining badminton store opened in Tsim Sha Tsui in Hongkong. In January 2010, the store opened in Lining.

Lining's internationalization entered the double line operation mode of agent operation and self run store operation.

According to Zhang Zhiyong plan, the international testing period of 2009~2013 has been internationalized in 2014~2018. In 2018, foreign sales accounted for 20% and reached the top 5 targets in the world.

Internationalization and brand reshaping intersecting

In June 30, 2010, the Li Ning Co changed the standard to make brand reshaping.

The plan began in June 2007 and the Lining brand remodeling group was established.

The aim is to create a cool, fashionable and international new image.

2010 is an era of soaring CPI, and the operating costs of rent, labor costs, pportation and hydropower are rising. Almost every sports brand is raising the retail price tag. After the bid, Lining became a radical markup, and the price of its 2010Q4 clothing product rose by 17.9%.

Changing bid and raising price bring great hidden trouble to Zhang Zhiyong's reform.

On the one hand, the new label has attracted the original verbal war of consumers who like classic labels, and has also brought inventory problems.

The public announcement of the bid will mean that all the old items will be stored in stock. All Lining stores will need to clear their inventory in a relatively short time.

The new price increases greatly, and the direct result is the disappearance of the cost performance advantage. This practice of fast price increases leads to the loss of competitiveness of Lining's products in the three or four line market, triggering the collective tucking of consumers and terminal retailers, and also laying down the foreshadowing for the decline of single store sales, inventory backlog and a large number of stores. This section was later interpreted by the media as the loss of Lining's market positioning.

At the same time, Zhang's Li Ning Co also carried out a channel integration.

At the end of 2010, Lining had nearly 8000 stores, and the proportion was up to 90%. Among the franchisees, there were more than 1700 single store retailers. The management capacity and competitiveness of these retailers were relatively weak. Lining hoped that larger retailers would integrate these inefficient operators, so as to realize the scale and specialization of retailers.

In the first half of 2011, Lining integrated 256 single store operators.

Some results have been achieved, but Lining's inventory is also soaring.

According to the 2011 earnings report, Lining's stock amounted to 1 billion 133 million yuan, the provision for inventory was 1 billion 875 million yuan, while the inventory in 2010 was 810 million yuan, and the provision for inventory was 1 billion 151 million yuan.

In July 2012, Zhang Zhiyong led the remodeling and pformation of Lining brand in the past two years.

In the past two years, Li Ning Co inventories increased sharply, profits declined, executives left, nearly 30% of the 2012 Spring Festival layoffs, and Li Ning Co was in a dilemma from the era of high growth.

In 2012 and July 5th, Li Ning Co announced that Zhang Zhiyong resigned from CEO, and Lining himself and TPG partners were jointly responsible for Li Ning Co CEO.

In the industry gradually warming up, Lining continues to maintain losses and expand the deficit, which makes the outside world constantly speculate whether the departure of Kim Chun Jun also means that its leading "three stages of change" and "channel revival plan" failed.

Jin Zhenjun: focus, revival of Lining

In July 2012, Jin Zhenjun took up the post of CEO as Lining.

Lining took over three plans to revive Lining:

(1) pay attention to retail terminal sales and channel inventory; improve the cost structure of products and operations; strengthen organization and execution capabilities; improve channel efficiency, profitability and performance; focus on core products and domestic markets; and enhance brand input and improve marketing efficiency.

(-2014 2013) improve supply chain management, marketing and product planning models; provide more first-class products and customer experience.

(3) (two to four years) to pform business models to enhance the profit structure of companies and channels, to meet market demand on product and consumer brand experience, and to build a virtuous circle in improving retail efficiency and cash and return on investment.

The three plans are Lining's program of action. Kim's actions in Lining are all around the three plans in action and deployment.

From the adjustment of organizational structure to the replacement of management, to the three stage of reform that is still being carried out by Lining, the Lining direction given by Jin Zhenjun is not wrong in the eyes of the industry. The first stage takes 6 to 12 months to solve 6 short-term problems, such as inventory, cost, organizational execution capability, channel, core business and improving marketing efficiency. In the second stage, from 2012 to 2014, the supply chain management, marketing and product planning models were improved, including product development and consumer experience, so as to consolidate the leading position of Lining brand in the Chinese sporting goods market. The third stage started from 2 to 4 years to pform the business mode, while improving the retail efficiency and return on investment while meeting the consumer's brand experience.

Focus on core products and domestic market.

Jinshi has contracted with Yue Tao and AI Gao to stop the sale of the new mobile brand, and basically stopped Zhang Zhiyong's multi brand and multi category layout.

In terms of internationalization, Jinshi also contracted completely. Hongkong stores closed down and quit the US market. In addition, affected by the economic crisis, Lining's Spanish agent went bankrupt. Lining's internationalization only had the overseas business of the red double happiness brand and the sales of badminton products in Southeast Asia.

In addition, the distribution of marketing resources also led to the signing of CBA and NBA star Wade from the full flowering and contraction of Zhang Zhiyong era to focus on basketball resources, giving up endorsement contracts with entertainment stars Lin Chiling, tennis star Cilic, Ljubicic and so on.

In 2014, Lining gave up the contract with the Chinese gymnastics team.

The main reason is that Lining's marketing expenses are high. Although gymnastics can enhance Lining's brand influence, gymnastics products can not achieve good market benefits.

Channel revival.

In June 2012, the company stock was 1 billion 138 million yuan and accounts receivable was 2 billion 500 million yuan.

This not only means that Li Ning Co has a backlog of inventory, but Lining's channel providers are also facing a backlog of inventory and unable to repay.

And the external environment is deteriorating. Anta, XTEP, PEAK and other brands are also stuck in the backlog. The national sporting goods market is carrying out a clean inventory competition.

If Lining looks at the existing large inventory dealers, dealers will not be able to enter new products, and the receivables will not be recovered. At the same time, Lining will face the consequences of turning retail stores to other brands.

To this end, Li Ning Co spent 1 billion 800 million to repurchase inventory from dealers, offset accounts payable, and promote new products in the circulation of channels.

Improve.

In August 2012, Mr. Kim invited Deng Hongbing, a senior supply chain management officer who worked for DELL, to be the head of Lining supply chain.

Deng is responsible for establishing Lining's big data center, promoting the data collection of Lining's 80% stores. At the same time, Deng Zai Lining has introduced the fast and reverse commodity mix in the original futures group products mode, and quickly tested the goods through trial shops. If the sales respond well, it will immediately fill the bill and go to the market. If the sales are not good, the production will be suspended.

This is Kim's emphasis on the retail oriented demand driven, agile supply chain system.

Expand direct business.

The expansion of direct business is an important part of Lining's pformation of business mode, and is an important part of Jinshi's upgrading of retail efficiency.

In June 2012, Lining had 6657 franchises, 646 direct outlets, and 20.8% direct sales. In June 2014, Lining had 4552 franchisees, 1119 direct outlets, and 38.3% direct sales.

According to its financial report, Lining's distribution expenses account for 48.9% of Lining's total revenue.

The expansion of direct business directly led to Lining's continued losses in the first half of 2014.

Although the direction is not wrong, but the big investment has not been effective. In the middle of last year, Jin Zhenjun said in the performance press conference that the worst time had passed, but the performance in the middle of this year was even worse.

Lining's semi annual report released in August 14th showed that, with the increase of 8%, it still lost 586 million yuan, compared with a loss of 184 million yuan in the same period last year.

China

The market is a rapidly developing and rapidly changing market.

In 2008, the official sponsor of the Beijing Olympic Games, Adidas's blind expansion in the Chinese market, laid a hidden danger for its 2009 channel pains. However, Adidas quickly adjusted, and then made a strong attack in the middle end market, sports life category and entertainment marketing, and found the status again in the Chinese market.

In the era of Li Ning Co, China achieved outstanding results in the Chinese market in 2008. However, in the process of internationalization and brand remoulding, it was too aggressive to sink into the quagmire of storage and storage. In addition, the concept of company's original management and airborne management led to conflicts, which resulted in the slow progress of the company's decision making and poor execution.

In the golden age, we must establish a new strategic direction.