Key facts
- Nike's revenue in China declined 26% in the latest quarter.
- Nike's market share in China has fallen to 16% from 27% six years ago.
- NikeLab's Shanghai concept store closed after 12 years.
- Cathy Sparks was appointed VP & GM/Greater China to improve performance.
- Nike plans to launch locally designed lifestyle products in October.
- Anta, a Chinese competitor, bought a 29% stake in Puma and has over $11B in annual revenue.
Nike is implementing a significant reorganization in China, its second-largest market, as it grapples with declining revenues and a shrinking market share amid intense competition. The company's revenue in China fell 26% in the latest quarter, and its market share has dropped to 16% from 27% six years ago. The closure of its NikeLab Shanghai concept store after 12 years signifies the challenges the brand faces.
Analysts from Bernstein estimate Nike's market share has significantly eroded. Cathy Sparks, who arrived in March as VP & GM/Greater China, has been tasked with turning around the brand's performance. Nike is reportedly growing its local design team to create a fresh product lineup that speaks to Chinese culture and fashion, though past attempts have sometimes faltered. The company plans to launch lifestyle lines in October, blending traditional and modern motifs, and will focus on fast-growing activities like hiking and racket sports.
In the 2026 third quarter, revenue in Greater China declined 10%, with online sales down 21% and footwear revenues also falling 10%. Elliott Hill, Nike's president and chief executive officer, acknowledged that the brand's China comeback is in its early stages. During the recent Singles' Day shopping festival, Fila and Adidas reportedly surpassed Nike in sales rankings for the first time. Competitors like Anta, Xtep, and 361 Degrees are increasingly challenging Nike on its home turf, with Anta launching a flagship store in Los Angeles and Li-Ning sponsoring NBA player Stephen Curry.