Key facts
- Nike will terminate online sales rights for distributors in China effective January 1, 2027.
- The move aims to address a cluttered marketplace and declining sales in China.
- Consumers will be directed to official Nike channels.
- Nike's sales in Greater China fell 17% in the fourth quarter.
- Domestic competitors Anta and Li Ning are gaining market share.
Nike is set to terminate the online sales rights of its distributors in China, including Topsports International Holdings Ltd., effective January 1, 2027. This strategic shift aims to consolidate Nike's fragmented digital channels, combat online price wars, and rebuild consumer trust in a market where its sales have been declining. The company's sales in Greater China fell 17% in the fourth quarter, a steeper drop than the 10% decline in the previous period, as domestic rivals like Anta and Li Ning gain ground.
Consumers will be guided towards official Nike channels, such as its website, app, and official storefronts on major e-commerce platforms like Tmall, JD.com, and Douyin. Nike's vice president and general manager of Greater China, Cathy Sparks, stated the move is intended to ensure products are sold at full price. However, analysts suggest Nike's challenges lie more with its product offerings than distribution.
Nike CEO Elliott Hill's broader turnaround strategy, which emphasizes sports and rebuilding wholesale relationships, continues to be tested. A Nike spokesperson confirmed that most of its 16 store partners in China will cease online sales. The company is also prioritizing the development of products tailored to Chinese consumers.