Nike to cut thousands of China online distributors in 2027
Nike announced on July 21, 2026, that 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 China, expressed support despite expecting short-term strain. The restructuring comes as Nike faces a 17% constant-currency revenue decline in Greater China, with local brands gaining ground. BNP Paribas analyst Laurent Vasilescu warned the strategy echoes Nike's earlier North American retreat that ceded competitive ground, suggesting a product problem rather than a distributor issue. Nike stock has fallen over 35% in 2026.
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