Nike is set to stop most of its retail partners in mainland China from selling its products online as part of a major overhaul of its distribution strategy.
From 1 January 2027, Nike will concentrate ecommerce sales through its own website and app, alongside official Nike stores on Tmall, JD.com and Douyin.
The majority of Nike’s 16 retail partners in China, which operate thousands of its physical stores, will no longer be authorised to sell the brand online and will instead focus primarily on bricks-and-mortar retail.
Nike Greater China vice president and general manager Cathy Sparks said the group’s digital marketplace had become “fragmented and cluttered”.
The sportswear giant hopes that reducing the number of ecommerce outlets will provide shoppers with a more consistent and premium experience, while strengthening trust in product authenticity and limiting heavy discounting.
The shake-up will affect major Chinese sportswear retailers including Topsports International and Pou Sheng.
Topsports said online Nike sales accounted for around 22 per cent of its revenue during its most recent financial year and warned the change would have a significant negative impact on its business in the short term.
Pou Sheng, which generates roughly 15 per cent of its revenue from selling Nike products online, said it remained committed to working with the brand despite the changes.
Shares in Topsports fell 23 per cent following the announcement, wiping approximately HK$3bn (£286m) from its market value, while Pou Sheng’s shares dropped around 10 per cent.
The overhaul comes as Nike battles weakening demand and growing competition in China from domestic sportswear groups such as Anta and Li Ning, alongside international rivals including On and Hoka.
Nike’s Greater China sales fell 17 per cent on a currency-neutral basis during its fourth quarter, accelerating from a 10 per cent decline in the previous three months.
It reported total fourth-quarter sales of $11bn (£8.2bn), down one per cent, while Nike Direct revenue fell seven per cent to $4.1bn (£3.1bn). Digital sales across the Nike brand dropped 12 per cent.
Nike is also looking to develop more products specifically for Chinese shoppers and has appointed a vice president of local product creation for Greater China.
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