Nike to cut off thousands of online distributors in China, restructure digital footprint - CNBC

What the report says

CNBC reported that Nike plans to sharply narrow its online distribution network in China starting in January, cutting off thousands of digital storefronts as it tries to regain control over pricing, branding and the customer experience. The company said Tuesday that its online sales in the market will be centered on Nike’s own website and app, along with official stores on major Chinese platforms Tmall, JD.com and Douyin.

According to CNBC, Nike products are currently sold not only through those official channels but also through numerous online shops tied to brick-and-mortar partners and secondary distributors. That broad reach has made the brand widely available, but Nike says it has also produced uneven pricing and presentation online. Cathy Sparks, Nike’s new vice president and general manager for Greater China, described the move as an effort to reduce fragmentation rather than limit consumer access.

The shift could weigh on near-term sales in a region CNBC said has already contracted by about 30% over the past five years. BNP Paribas analyst Laurent Vasilescu warned in a note that the strategy resembles Nike’s earlier pullback from wholesalers in North America, which he said created openings for competitors. He argued Nike’s bigger challenge is product demand, not distribution.

Nike is not fully ending relationships with affected partners, CNBC reported, but is pushing them to focus more on physical retail. Topsports, Nike’s largest distributor in mainland China, said it supports the change despite expected short-term pressure, framing it as a step toward a more orderly retail system and improved consumer experience.