Personnel Turbulence Up To &Nbsp; &Nbsp; Li Ning Co Said The Strategic Direction Remained Unchanged.

This is a tough organizational restructuring.

In February 3rd,

Before January, the general manager of Li Ning Co human resources and information technology department successively

Within two months, Li Ning Co's human resources, information technology, strategic development, and international

In the short period of two months, some heads of departments have changed, and some have simply not been in charge. For example, the international market department has no general manager under the jurisdiction of the director of marketing.

Lining's public relations department said in an interview that the number of specific streamlining has not been determined yet, but the proportion will not be too high.

Performance prediction

In January, the Li Ning Co released its 2011 performance estimate.

In addition to earnings warning, Lining also had to face environmental pressure.

On the one hand, there is a large stock phenomenon of domestic sports brands.

Dealers have revealed that after a new quarter of 2012, the inventory will be the focus of 2012, and the proportion of the brand's channel inventory will continue to rise in the fourth quarter of 2011.

The stock of Li Ning Co in the first half of 2011 was 992 million yuan, while the stock amount at the end of 2010 was 806 million yuan, and the stock amount increased by about 200 million yuan.

On the other hand, the pace of international brand sinking and the price of Pro democracy has not been relaxed.

In the stores of Nike and Adidas, the price of 300~400 yuan can be seen a lot, while domestic brands are easy to lose competitiveness after raising prices.

In January this year, Li Ning Co accepted the strategic investment of the US private equity fund TPG and GIC (Singapore Government Investment Corp) totaling 750 million yuan.

TPG has many experience in retailing.

However, Lining's public relations department said that the adjustment of the organizational structure had nothing to do with the entry of TPG and GIC.

Lining's public relations department said that the restructuring of the Li Ning Co is the initiative of the existing management of the company. The existing board of directors has affirmed and strongly supported the initiative of the management of the company to change its strategy and focus on its core business, optimize its organizational structure and improve its operational efficiency.

At the same time, TPG will nominate new directors to join the board in the future.

According to the 2010 annual report, in 2010, Li Ning Co employees' welfare expenditure of 4215 employees was 710 million 250 thousand yuan, or 168 thousand and 500 yuan per capita.

This "welfare expenditure" includes the overall cost of wages, salaries, retirement benefits, long-term incentives for employees, etc.

According to the plan, in 2012, Li Ning Co will reduce the proportion of human cost to group sales by about 0.5 percentage points in 2011.

But Lining's public relations department said the 2011 figures were not yet available.

From May 2011 onwards, Li Ning Co continued to appear in senior executives turnover.

This wave of personnel has continued to this day.

In May 2011, former Lining's chief brand official Shiwei, chief operating officer Guo Jianxin, Lotto (Le Tu) general manager Wu Xianyong, and other core executives left one after another.

At that time, the Li Ning Co said in a statement that the three people were resigned individually in the past two months on the basis of their personal development needs, which is a normal change of management personnel.

By November 2011, chief product officer Xu Maochun also formally left.

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How to streamline

Li Ning Co's public relations department said in an interview that the adjustment will further enhance the control and management of cost effectiveness for the front-end business development departments, such as market systems, sales and product systems, while ensuring the necessary inputs.

"For example, we will pay more attention to pre budgetary planning and management, as well as process supervision and performance appraisal."

Lining's public relations department said in the mail.

At the same time, some non core business sectors, such as other brands, will be further integrated to focus more on the core business of the group.

For the functional departments in the background, including human resources, information technology and strategic development, the organization structure will be optimized to improve operational efficiency and reduce personnel costs.

However, the number of specific streamlining has not yet been determined and the proportion will not be too high.

Lining's brand will also undergo a series of integration.

The Ministry of public relations said that the company will conduct adequate analysis and evaluation of existing brands such as "Lotto" and "new action". For those brands with potential development and large business scale, they will further promote their healthy development, and the small business pressure brands will be adjusted and contracted accordingly.

The specific circumstances will be disclosed to the outside world when the company decides the plan.

The financial report showed that the "happy" loss was 56 million 935 thousand yuan in 2009 and a loss of 91 million 749 thousand yuan in 2010.

In addition to streamlining personnel, this adjustment includes integrating resources and motivating excellent employees.

Li Ning Co stressed in its statement that the direction of strategic development will not be changed because of the restructuring of the organization.

As for the organizational adjustment, Zhang Zhiyong, chief executive officer of Lining group, said, "as we have been communicating with the capital market and the outside world, in the process of facing the pformation of China's sporting goods industry and the initiative of the group, in order to cooperate with the group's pformation and strategy implementation, it is a necessary step for the group to make continuous organizational changes and personnel adjustment."

Deutsche Bank's research report believes that the adjustment will help to enhance the long-term competitiveness of Li Ning Co. Under the current low net profit margin, the cost optimization of staff will help to improve the net profit in the future.