CEO Left Lining To Repeat Lining.

Lately,

Rumours about the departure of Li Ning Co executives were finally confirmed. It is reported that Jin Zhenjun will continue to serve as executive vice chairman and executive director of the board of directors, as well as members of the Executive Committee of the board.

It is reported that Lining is looking for a new CEO in recent years, and the professional manager is likely to be Spanish.

According to the information disclosed in Lining's 2013 annual report, Jin Zhenjun is a partner of TPG Capital, a private equity fund, and a member of the company's operation team. He became a Li Ning Co director in April 2012 and is a key figure in Lining's pformation.

But until its departure, it seems that it has not reversed the decline of Lining's brand loss.

The depressed consumer market has made Li Ning Co's development difficult.

Li Ning Co yesterday

The announcement gave a high appraisal of Jin Zhenjun's performance in the past two and a half years.

The announcement said that in the past two and a half years, Lining and Kim Chun King jointly led the team to formulate and promote change strategies, pforming Li Ning Co from wholesale mode to retail led business mode.

Jin Zhenjun led the company's daily operation and launched a number of change measures, including strengthening management team, improving channel efficiency, improving the Lining brand, and strengthening product research and development.

Mr. Lining also said that under the leadership of Jin Zhenjun, the company has strengthened the establishment of professional teams in key functional departments and established the brand vision of long-term sustainable development. The company has passed the first stage of the reform plan, laying a solid foundation for achieving the industry's leading direct retail platform.

But highly appraised.

It is an indisputable fact that Lining's brand is losing money repeatedly.

Annual report data show that in 2012, Lining lost nearly 2 billion yuan, lost 392 million yuan in 2013, and lost 586 million yuan in the first half of 2014. By the end of the year, the amount of loss will increase.

In fact, in order to achieve the goal of change, in July 2012, Li Ning Co launched a three stage timetable, namely, in 6 to 12 months, efforts to solve short-term problems such as inventory, cost, organizational execution capability, channel, focus on core business and improving marketing efficiency; to improve supply chain management, marketing and product planning models in one to two years to consolidate the position of the company in the mainland market; two to four years to start pforming business models, while improving consumer efficiency and return on investment while meeting consumer brand experience.

However, Kim Chun Chun's above moves were considered too "iron handed" by the market.

It has been reported that Jin Zhenjun faced unprecedented resistance. A large number of personnel adjustments made the executive power drop. In addition, how to balance the conflict of interests involved in the channel reform is also an important problem.

At the end of 2012, Li Ning Co announced the implementation of a large-scale one-time channel rehabilitation plan, involving a cost of 1 billion 400 million ~18 billion yuan, to reduce channel inventory and ease the pressure on distributors.

This plan directly led to the Li Ning Co's loss of 1 billion 979 million yuan in 2012, the first major loss since its listing.

In the eyes of the media, Jin Zhenjun, a Korean American who speaks fluent Chinese, has more than twenty years of experience in managing global retail business and many successful cases of enterprise pformation. He had led the restructuring and management reform of Daphne, a large automobile dealer group Guanghui automobile.

With TPG's stake in Lining, Jin Zhenjun entered Lining's board as one of the representatives.

In August 2014, Li Ning Co handed in the semi annual report after listing 10th anniversary, and the result is still a sigh.

In the first half of this year, Li Ning Co realized revenue of 3 billion 137 million yuan and a loss of 586 million yuan, which is the only loss of 5 sports brands Anta, Lining, XTEP, PEAK and 31st degree.

According to media reports, according to the data provided by Ou Rui International, Lining's market share declined year by year from ~2013 to 4.1% in 2010, while Nike and Adi remained the first and second, but Lining was overtaken by Anta in the past.

In addition, Lining gave up the contract with the Chinese gymnastics team this year. Insiders pointed out that 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.

Lining quit the contract extension, and Anta immediately caught up with it and became a sponsor of the National Gymnastics Team in August.

Lining has worked with the national gymnastic team for 23 years.

The independent critic of shoes and clothing industry, Ma Gang, said Kim's rejuvenation of Lining has achieved some success.

The first is to pull Lining out of the mire of stock. Secondly, through the channel revival plan, restore the confidence of dealers, and win valuable opportunities for Lining's reform, and once again, improve the efficiency of Lining's supply chain.

However, Lining also paid a higher cost of sustained performance losses, the market share declined, and the industry leadership was not guaranteed.

Li Ning Co said that due to the continuous implementation of the reform plan, continuous advance investment, including direct network expansion and core sports marketing resources input, is still being controlled in order to carry out channel inventory clearance.

Despite long-term sustainable development, time is needed to achieve financial benefits.