Nike is overhauling its online sales strategy in China by directing customers to official Nike-operated digital stores, as the global sportswear giant works to regain market share from fast-growing domestic competitors.
Beginning in January 2027, major wholesale partners in China will stop selling Nike products through their own online stores. Instead, customers will purchase Nike apparel and footwear through official Nike storefronts on Tmall, JD.com, Douyin, as well as Nike’s official website and mobile app.
The move is part of Nike’s broader turnaround strategy aimed at improving brand consistency, reducing excessive discounting, and rebuilding consumer confidence in one of its most important international markets.
Nike Wants Greater Control Over Online Sales
Cathy Sparks, Vice President and General Manager of Nike Greater China, said the company’s digital marketplace has become fragmented, making it harder to deliver a premium shopping experience.
“Our marketplace has become so fragmented and cluttered,” Sparks told Reuters.
She said Chinese consumers increasingly want trusted, premium shopping experiences that seamlessly connect online and physical retail channels.
Under the new strategy, wholesale retailers will shift their focus toward operating physical Nike stores while official Nike channels become the primary destination for online purchases.
China Remains a Challenging Market for Nike
China continues to be Nike’s third-largest market, but sales have been under pressure amid slowing consumer spending and intense competition.
According to the company’s latest financial results, Greater China sales declined 17 percent on a constant-currency basis during the fourth quarter, following a 10 percent decline in the previous quarter.
Domestic brands including Anta and Li Ning have continued expanding their market share, while international competitors such as On and Hoka have also attracted Chinese consumers.
The latest restructuring reflects CEO Elliott Hill’s ongoing efforts to revive Nike’s global business by focusing on product innovation, strengthening wholesale partnerships, and enhancing direct-to-consumer sales.
Retail Partners Face Short-Term Impact
Nike’s decision will significantly affect several of its long-standing retail partners in China.
The majority of Nike’s 16 store partners, which collectively operate thousands of Nike outlets nationwide, will no longer sell Nike products through their own online platforms.
Following the announcement, investors reacted sharply.
- Topsports shares fell by a record 23 percent.
- Pou Sheng shares dropped 10 percent during early trading.
The market decline erased approximately HK$3 billion ($382.7 million) from Topsports’ market value.
Topsports said online sales of Nike products account for roughly 22 percent of its total revenue, while Pou Sheng reported that Nike online sales contribute approximately 15 percent of its business.
Despite the changes, both companies reaffirmed their commitment to maintaining their partnership with Nike.
Analysts Question the Strategy
Not everyone believes the new approach will solve Nike’s challenges in China.
Following reports of the planned restructuring earlier this year, BNP Paribas analyst Laurent Vasilescu described the move as a potential strategic mistake.
He argued that Nike’s biggest challenge is not distribution but product competitiveness, estimating the strategy could reduce annual sales by $500 million to $1 billion if it limits product availability.
Local Product Development Becomes a Priority
Alongside changes to distribution, Nike is placing greater emphasis on designing products specifically for Chinese consumers.
Sparks confirmed the company has appointed a Vice President of Local Product Creation for Greater China, reflecting Nike’s commitment to developing products tailored to local preferences and market trends.
The company hopes that combining localized product development with stronger control over online sales will help restore growth and strengthen its competitive position in China’s rapidly evolving sportswear market.
