A Nike will end sales of its products at thousands of online stores operated by distributors in China starting in January 2027. The decision is part of a restructuring aimed at reducing discounts, regaining control over prices and strengthening the brand's digital presence in the Chinese market.
With the change, online sales will be concentrated on Nike's website and app, as well as official stores on the Tmall, JD.com and Douyin platforms. Most of the affected distributors will be able to continue selling the products in physical stores, while some licensed partnerships will have exceptions.
The overhaul affects major commercial partners, such as Topsports and Pou Sheng. Digital sales of Nike products accounted for approximately 22% of Topsports' annual revenue and 15% of Pou Sheng's revenue in their respective most recent fiscal years disclosed before the announcement. The two companies confirmed the termination of their online sales authorizations starting January 1, 2027.
According to Cathy Sparks, vice president and general manager of Nike in Greater China, the expansion of digital channels produced a fragmented experience for consumers. The company intends to reduce the dispersion of sales among different operators and offer a more consistent presentation of its products.
Nike tries to regain market amid the advance of Chinese competitors
The decision comes amid the deterioration of the company's results in the region. In the quarter ended in May 2026, Nike's revenue in Greater China fell 12%, to US$ 1.3 billion. Excluding currency fluctuations, the decline reached 17%.
The company faces the advance of local competitors, such as Anta and Li Ning, while trying to regain its ability to sell products without heavy discounts. The reduction of digital channels, however, could also pressure sales volume during the transition.
In parallel, Nike appointed its first vice president of local product development for Greater China. The initiative seeks to expand the creation of footwear and apparel developed specifically for Chinese consumers, complementing the commercial reorganization planned for January.
