Nike announced Tuesday it will cut ties with thousands of online distributors in China as of January, directing shoppers instead toward its own digital properties and dedicated storefronts on Tmall, JD.com, and Douyin.
The company said its current setup, a broad network of storefronts operated by physical retail partners and secondary distributors, has produced uneven pricing and an inconsistent brand image. Nike said the consolidation is meant to produce a consistent consumer experience rather than to reduce overall product access.
Cathy Sparks, Nike's vice president and general manager of Greater China, laid out the reasoning in a letter. "This is not about reducing access. It is about reducing fragmentation and strengthening the consumer journey," Sparks wrote. "When the experience is consistent, the brand becomes stronger."
Topsports, Nike's largest distributor in mainland China, said it supports the change despite expecting near-term strain. "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 worked together for 27 years and that his company intends to deepen its focus on physical retail going forward.
The change is expected to affect other brick-and-mortar partners in the region that have expanded their online operations in recent years, according to CNBC. BNP Paribas equity analyst Laurent Vasilescu cautioned that the China move echoes Nike's earlier retreat from North American wholesale accounts, a strategy he said ultimately ceded competitive ground and weighed on the company's sales and margins. "We don't think Nike has a distributor problem but rather a product problem which also applies in other markets," Vasilescu wrote. BNP maintained an underperform rating on the stock.
The restructuring 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, steeper than the 10% decline posted in the prior period. Local brands have gained ground with Chinese consumers during that stretch. Greater China accounts for roughly 15% of Nike's total annual sales. Nike stock has fallen more than 35% so far in 2026.
The company said it is moving forward with confidence. "We are making these changes with clarity and conviction because we believe deeply in this market and its long-term potential," Nike said in a statement.
