Nike to cut thousands of China online distributors from 2027

Source: Quartz Author: Cris Tolomia Read Time: 2 min

Nike announced Tuesday that it will sever ties with thousands of online distributors in China as of January, redirecting shoppers toward its owned digital properties and dedicated storefronts on Tmall, JD.com, and Douyin.

The company stated that the current system—a broad network of storefronts operated by physical retail partners and secondary distributors—has led to uneven pricing and an inconsistent brand image. The consolidation is intended to correct these issues and deliver a uniform consumer experience, rather than reduce overall product access.

"This is not about reducing access. It is about reducing fragmentation and strengthening the consumer journey," Cathy Sparks, Nike's vice president and general manager of Greater China, wrote in a letter. "When the experience is consistent, the brand becomes stronger."

Topsports, Nike's largest distributor in mainland China, expressed support for the change despite anticipating near-term challenges. "This adjustment will bring some short-term pressure to our business," Topsports CEO Yu Wu said in a statement. "But we firmly believe that, over the medium- to long-term, this direction will help promote a healthier, more orderly, and more sustainable retail ecosystem in China."

Wu noted that Topsports and Nike have collaborated for 27 years and that the company plans to intensify its focus on physical retail moving forward. According to CNBC, the change is expected to affect other brick-and-mortar partners in the region that have expanded their online operations in recent years.

BNP Paribas equity analyst Laurent Vasilescu cautioned that the China move mirrors Nike's earlier withdrawal from North American wholesale accounts—a strategy he said ultimately ceded competitive ground and weighed on the company's sales and margins, per CNBC. "We don't think Nike has a distributor problem but rather a product problem which also applies in other markets," Vasilescu wrote. BNP maintains an underperform rating on the company.

The restructuring in China comes as Nike works to reverse a prolonged sales decline in the region. Greater China revenue dropped 17% on a constant-currency basis in Nike's most recent fiscal quarter, a steeper decline than the 10% drop recorded in the prior period, as local brands gained traction with Chinese consumers. The region accounts for roughly 15% of Nike's total annual sales. Nike stock has fallen more than 35% so far in 2026.

"We are making these changes with clarity and conviction because we believe deeply in this market and its long-term potential," the company said.

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