Nike to Restructure China Online Sales by Cutting Thousands of Online Distributors

Nike is overhauling its Nike China online sales strategy by cutting thousands of online distributors beginning in January, as the sportswear giant seeks to streamline its digital marketplace in China and strengthen its long-term growth in the region, the company said Tuesday.

Beginning next year, Nike’s online footprint in China will be concentrated primarily on its own website and app, along with official storefronts on Tmall, JD.com and Douyin, some of the country’s largest online marketplaces and social commerce platforms. The company said the move is designed to create a more consistent shopping experience for consumers, though the strategy shift could weigh on regional revenue in the near term.

The restructuring is expected to be significant in scale, with Nike planning to cut ties with thousands of smaller online resellers that have contributed to what the company described as a fragmented marketplace. Further details on the company’s broader financial performance and strategy can be found through Nike’s investor relations site and its official newsroom.

The announcement has already had a visible effect on Nike’s China-based retail partners. Shares of Topsports International fell as much as 24% after the news, reflecting the retailer’s heavy reliance on Nike, which accounts for about 22% of its revenue. Fellow distributor Pousheng International also dropped as much as 8%, even as the company said Nike’s contribution to its overall profit was “insignificant.”

The shake-up comes as Nike has been working to reverse a prolonged sales slump in Greater China, one of its largest markets outside North America. A crowded and inconsistent online marketplace, with numerous unauthorized or unofficial resellers operating alongside the brand’s official channels, has been cited as a factor complicating the company’s turnaround efforts.

Greater China remains one of Nike’s largest international markets, but the company has faced increasing competition from domestic sportswear brands and changing consumer spending patterns in recent years. The restructuring is part of Nike’s broader effort to strengthen brand control and create a more consistent digital shopping experience across its official sales channels.

By consolidating sales through its own platforms and a smaller number of official marketplace partners, Nike is aiming to gain tighter control over pricing, product presentation and the overall customer experience in China, the company indicated. The approach mirrors broader efforts by global consumer brands to streamline digital retail operations in the region as competition from domestic sportswear players intensifies.

Nike said the restructuring is intended to simplify its digital retail ecosystem in China by directing more consumers to its official sales channels. Under the new strategy, the company’s website, mobile app and official storefronts on Tmall, JD.com and Douyin will become the primary online destinations for customers. By reducing the number of online distributors, Nike aims to improve pricing consistency, strengthen brand presentation and deliver a more unified shopping experience across its digital platforms as it seeks to rebuild momentum in one of its most important international markets.

Nike has not disclosed a specific revenue target for the restructured China operations or detailed how many total distributors will be affected beyond describing the number as being in the thousands. The company has also not said whether further changes to its China retail strategy are planned once the January transition takes effect.

The move reflects a broader pattern of multinational companies restructuring their operations amid shifting market and trade conditions, a trend also visible in other sectors, such as the automotive industry’s recent JSW Group-Volkswagen partnership in India.

Nike said the restructuring will begin in January, with online sales shifting to its official digital channels and selected marketplace partners. Investors and retailers will be watching closely to see whether the strategy helps the company regain momentum in one of its most important international markets.