Nike will overhaul its Chinese online sales strategy by cutting ties with thousands of distributors starting January. The company plans to consolidate its digital footprint onto its own website, app, and branded storefronts on Tmall, JD.com, and Douyin. This shift aims to create a more premium and consistent brand experience across a fragmented marketplace.
The move follows seven consecutive quarters of falling revenue in Greater China. Nike reported a 17% currency-neutral revenue drop in the most recent quarter. Domestic competitors continue to capture market share from the brand. Cathy Sparks, Nike’s head of Greater China, stated the goal is to make the consumer journey more direct.
Shares of Topsports International, Nike’s largest Chinese distributor, fell as much as 28% following the announcement. Nike’s stock remained largely unchanged in pre-market trading. The strategy seeks to improve long-term profitability through tighter control over distribution and pricing. Analysts noted that a similar direct-to-consumer pivot in North America previously yielded poor results.