Nike Set to Trim Its Chinese Online Distribution Network by Thousands in 2027

Nike said on Tuesday that, beginning in January, it will end relationships with thousands of online distributors in China, directing consumers to its own digital platforms and official storefronts on Tmall, JD.com, and Douyin.

Nike explained that the existing network—spanning physical‑store partners and secondary distributors—has led to irregular pricing and a fragmented brand image. The consolidation aims to create a uniform consumer experience, not to limit product availability.

“This is not about reducing access. It is about reducing fragmentation and strengthening the consumer journey,” Cathy Sparks, Nike’s vice president and general manager of Greater China, wrote in a letter. “When the experience is consistent, the brand becomes stronger.”

Topsports, Nike’s biggest distributor in mainland China, said it supports the shift even though it anticipates short‑term pressure. “This adjustment will create some near‑term strain on our business,” said Topsports CEO Yu Wu in a statement. “But we are confident that, in the medium to long run, this move will foster a healthier, more orderly, and sustainable retail environment in China.”

Wu noted that Topsports and Nike have collaborated for 27 years and that the firm plans to deepen its emphasis on physical retail moving forward. The adjustment is also likely to impact other brick‑and‑mortar partners in the region that have expanded their online sales in recent years, CNBC reported.

Laurent Vasilescu, an equity analyst at BNP Paribas, warned that the China shift mirrors Nike’s earlier pullback from North American wholesale accounts—a move he said eroded competitive advantage and pressured sales and margins, according to CNBC. “We don’t see a distributor issue; we see a product issue that also affects other markets,” Vasilescu wrote, noting that BNP Paribas maintains an underperform rating on Nike.

The restructuring comes as Nike seeks to reverse a prolonged sales decline in Greater China. Revenue from the region fell 17% on a constant‑currency basis in the company’s latest fiscal quarter, a sharper drop than the 10% decline in the previous period, as local brands capture more Chinese shoppers. Greater China represents about 15% of Nike’s total annual sales, and the company’s shares have slipped more than 35% so far in 2026.

“We are making these changes with clarity and conviction because we believe deeply in this market and its long-term potential,” the company said.

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