Nike to Cut Thousands of China Online Sellers as Region Sales Shrink 30%
Updated
Updated · CNBC · Jul 21
Nike to Cut Thousands of China Online Sellers as Region Sales Shrink 30%
3 articles · Updated · CNBC · Jul 21
Summary
Beginning in January, Nike will drop thousands of online distributors in China and concentrate digital sales on its own site, app, and flagship stores on Tmall, JD.com, and Douyin.
Nike said the overhaul is meant to reduce fragmented pricing and branding, tighten control of the consumer experience, and help revive growth in a market that has declined about 30% over five years.
Analysts warned the move could cause a material near-term revenue hit and echo Nike’s failed North America pullback from wholesalers, which BNP Paribas said opened shelf space for rivals.
Topsports, Nike’s biggest mainland China distributor, said the shift will pressure its business in the short term but backed the plan as a step toward a healthier retail ecosystem.