Nike will tighten control over how its products are sold online in China from January next year, shifting sales to its own branded digital storefronts as the sportswear giant seeks to regain market share and restore its premium brand image.
The move will see key wholesale retail partners stop selling Nike apparel and footwear through their online platforms, instead focusing on physical stores. Online purchases will be channelled through Nike-branded storefronts on Tmall, JD.com and Douyin, as well as the company’s official website and mobile app.
Cathy Sparks, Nike’s vice president and general manager for Greater China, said the strategy is aimed at creating a more consistent shopping experience for consumers.
She said, “Our marketplace has become so fragmented and cluttered. What consumers want is an experience that’s premium, true to the brand, trustworthy, and certainly connected between digital and physical.”
The overhaul comes as Nike continues to struggle in its third-largest market. Greater China sales fell 17% on a constant currency basis in the fourth quarter, following a 10% decline in the previous quarter, as local rivals Anta and Li Ning continued to gain market share. International brands such as On and Hoka have also expanded rapidly in China.
Nike said most of its 16 retail partners in China, which collectively operate thousands of Nike stores, will stop selling the brand’s products online under the new arrangement.
The announcement weighed heavily on Chinese sportswear retailers. Topsports’ shares plunged a record 23%, erasing around HK$3 billion in market value, while Pou Sheng dropped 10% in early trading. Topsports said the move would have a “significant” short-term negative impact as online sales of Nike products account for 22% of its revenue. Pou Sheng said the segment contributes about 15% of its revenue.
Despite the setback, both retailers said they remain committed to working closely with Nike.
Some analysts questioned the strategy. BNP Paribas senior analyst Laurent Vasilescu described the decision as a “strategic misstep”, arguing the company faces a product challenge rather than a distribution issue. He estimated the move could reduce Nike’s sales by between US$500 million and US$1 billion.
Nike said improving products tailored to Chinese consumers is also a priority. The company has appointed a vice president for local product creation in Greater China as part of its broader turnaround strategy under chief executive Elliott Hill.
