The move shifts 16 major retail partners to in-store sales only, redirecting digital revenue to Nike’s own platforms.
Nike will prohibit its 16 major wholesale partners in China from selling its products online starting January, funneling digital sales to its branded storefronts on Tmall, JD.com, and Douyin. The company aims to reduce marketplace fragmentation and bolster full-price sales amid rising competition from local brands like Anta and Li Ning, as well as international labels On and Hoka.
Two of Nike’s publicly listed partners, Topsports and Pou Sheng, warned of significant revenue impacts. Topsports, which derives 22% of its revenue from online Nike sales, expects a near-term hit, while Pou Sheng noted online sales account for 15% of its revenue. The shift follows Nike’s strategy to tailor products more closely to Chinese consumers and enhance brand control.
Nike’s Greater China general manager Cathy Sparks stated the move seeks to create a premium, trustworthy consumer experience. Competitors have gained ground in China, pressuring Nike’s market share and prompting the shift toward direct-to-consumer channels.