Nike to cut thousands of China online distributors in 2027
Nike announced it will sever ties with thousands of online distributors in China starting January 2027, redirecting consumers to its owned digital properties and official storefronts on Tmall, JD.com, and Douyin. The company cited uneven pricing and inconsistent brand image from the current network of physical retail partners and secondary distributors. Cathy Sparks, Nike's VP and GM of Greater China, stated the move aims to reduce fragmentation and strengthen the consumer journey. Topsports, Nike's largest distributor in mainland China, expressed support despite expecting short-term strain. BNP Paribas analyst Laurent Vasilescu warned the strategy mirrors Nike's earlier retreat from North American wholesale accounts, which hurt sales and margins, and argued Nike has a product problem rather than a distributor problem. The restructuring comes as Nike's Greater China revenue fell 17% in the most recent fiscal quarter, with local brands gaining ground. Nike stock has dropped over 35% in 2026.
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