The sportswear group will restrict partner-led online sales from January 2027, concentrating digital distribution on official channels as it confronts declining revenue and stronger domestic competitors.
Nike will streamline its Chinese online business by withdrawing e-commerce selling rights from major wholesale partners and directing consumers towards a smaller network of official digital storefronts.
From January 2027, Nike products will be sold online through the company’s own website and app, alongside official stores on Tmall, JD.com and Douyin. Physical retail partnerships will continue, making the change a digital-distribution reset rather than a full retreat from wholesale.
More than 1,000 storefronts affected
Nike’s products are currently available through more than 1,000 partner-operated digital storefronts in China. The fragmented network has contributed to inconsistent presentation, heavy discounting and difficulty distinguishing authorised products from grey-market or counterfeit inventory.
Centralisation should give Nike tighter control over pricing, product launches, consumer data and brand presentation. However, it also reduces online reach and transfers more responsibility for traffic generation, fulfilment and inventory management back to Nike.
Retailers including Topsports and Pou Sheng will lose Nike’s online sales rights but retain their physical-store businesses. Their shares fell sharply after the strategy became public, reflecting the potential loss of digital revenue.
China turnaround remains difficult
The restructuring follows eight consecutive quarters of declining Nike sales in China. Greater China revenue fell 17% in the latest quarter, while fiscal 2026 sales in the region were approximately $5.85 billion. Domestic groups Anta and Li Ning, alongside international performance brands such as Hoka and On, have gained ground through faster product cycles and stronger local relevance.
Nike has also appointed a Greater China executive for local product creation, signalling that distribution reform alone will not resolve its market-share problem.
Suppliers may face a sharper demand signal
For apparel and footwear manufacturers, a more controlled marketplace could reduce promotional volatility and improve visibility over genuine consumer demand. It may also lead to tighter assortments, lower inventory tolerance and greater emphasis on China-specific products.
The principal risk is familiar: Nike previously reduced wholesale exposure in Western markets before rebuilding some partner relationships. The China strategy will succeed only if cleaner distribution is matched by desirable products, competitive pricing and faster local decision-making. The first measurable signals will be digital traffic, full-price sell-through and partner-store performance after January 2027.
