Tuesday, April 7, 2009

Rossignol just like General Motors?

In recent weeks, the Rossignol group unveiled major and painful restructuring plan and announced that it would let 30% of its workforce go, amounting to 450 people with 275 of them in France. Ski production will be trimmed from 800,000 to 650,000 pairs after 290,000 pairs were left unsold this winter. The Rossignol group, which includes Dynastar, Look and Lange lost 58 million euros on sales of 270 million in 2008.

According to Bruno Cercley, its president, the group aims to breakeven within 2 years, yet without closing any of its current production sites in France, Spain or Italy, hoping instead to build on their strengths. Just like for GM, these moves may prove to be “too little, too late” for Rossi. With the management unwilling to make courageous decisions, like consolidating ski manufacturing, cutting the number of models, changing its overall paradigm and embracing risks that these changing times demand, this may prove to be too mild a medicine.

If what they do in Park City, their U.S. headquarters, is any indication, aggressiveness, imagination and progressive marketing seem no longer part of the company DNA and for retailers and consumer alike, the entire product offering of the group is quickly becoming the falling knife no one wants to catch...

2 comments:

Anonymous said...

Industry Report: Rossignol announces staffing changes
Thursday, 30 April 2009

As we reported last week, French ski maker Rossignol has made significant changes in its worldwide operations to combat the deepening global financial crisis, including eliminating 30% of its workforce.

Today the company, which also owns Dynastar, Lange and Look brands, announced some of the specific changes affecting its U.S. employees based in Park City, Utah.

A release by the company stated that the reorganization is “designed to focus its efforts and better execute within its core business categories.”

According to CEO Bruno Cercley, the company’s new focus is “execution, execution, execution.”

“We have great brands with long histories of great products,” said North American President, Francois Goulet. “We’ll focus on delivering quality products, strong logistics and better marketing support for those products.”

The release stated that the North American division will stay focused on sales and the sales teams will retain their current staff. The marketing department will concentrate primarily on communications and “support of key products within each line.” Shipping procedures will also undergo a streamlining process.

With the changes come a few personnel modifications. Former VP of Brand and Sports Marketing for Dynastar and Lange, Tait Wardlaw will now be VP of Marketing and Communications for Rossignol, Dynastar and Lange. Former Director of Sports Marketing and Strategic Partnerships for the Rossignol brand, Jason Newell will now assume those responsibilities for all of the group’s brands. Jesse Keene will now be Director of Racing and will be responsible for all alpine and nordic racing activities for all brands through the U.S. Ski Team level. Former Marketing and Promotions rep for Rossignol in the Intermountain territory, Matt Rihm will assume the role of Team Manager for all brands overseeing the support and promotion of all big mountain, freestyle, and snowboard athletes for Rossignol, Dynastar and Lange.

After 30 years with the company Steve Dudley will take advantage of an early retirement program, stepping down from his role as VP of Marketing and Communications for North America.

“Steve has played an essential role in Rossignol’s development both from the U.S. perspective and on a global basis. Steve started his career as a tech rep and had a successful progression to the top executive level for Rossignol Ski Company. His passion for skiing and for the brand touched everyone that had the privilege to work with him,” read the statement.

http://www.skiracing.com/index.php?option=com_content&task=view&id=7485&Itemid=2

Anonymous said...

Sounds interesting, but will that re-arrangement spells a new direction and some innovative actions for the reconstituted team, or is it more of a "same old, same old?"