Nike Tightens Online Sales Strategy in China

Beginning in January, Nike will cease online sales through thousands of third-party distributors in mainland China. The company will instead sell directly via its own website, app, and brand-run storefronts on the major Chinese platforms Tmall, JD.com and Douyin. The shift also requires the 16 Nike-affiliated store partners that manage thousands of physical locations to stop selling Nike products online, redirecting those sales to the new digital channels.

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Nike reported that sales in Greater China fell 17% on a constant-currency basis in the fourth quarter, deepening a 10% decline recorded in the prior quarter. The slowdown follows a period in which domestic rivals such as Anta and Li Ning have captured market share, while foreign competitors like On and Hoka have also grown. Topsports, a leading Chinese sportswear retailer, derives about 22% of its revenue from online sales of Nike products, underscoring the scale of the distribution network that will be affected.

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Cathy Sparks, Nike’s vice president and general manager of Greater China, said the move is intended to give shoppers a “premium, trustworthy” experience that links digital and physical retail. Nike has also appointed a vice president of local product creation in Greater China to develop items that better match Chinese consumer preferences.

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Laurent Vasilescu, a senior analyst at BNP Paribas, argued that the strategy is a “strategic misstep,” suggesting Nike faces a product rather than a distribution problem and warning that the change could hand opportunities to competitors.

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• “Our marketplace has become so fragmented and cluttered,” — Cathy Sparks, vice president and general manager of Greater China

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• “Nike doesn't have a distribution problem in China and elsewhere. It has a product problem,” — Laurent Vasilescu, paribas senior analyst

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• “These new flagships will serve as the single, elevated destination for Nike within these ecosystems, with clearer product presentation, stronger storytelling and more connected consumer journeys,” — Cathy Sparks, vice president and general manager of Greater China

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• “Topsports has worked with Nike for 27 years based on the principle of mutual benefit and shared growth," Topsports CEO Yu Wu said in a statement.” — Topsports CEO Yu Wu

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