Nike overhauls online distribution in China as revenue keeps falling

Nike is overhauling its online distribution approach in China, according to Retail Dive, as the brand works to stem a sharp decline in one of its most important markets. Revenue in the region fell 12% in the company's most recent quarter, a drag that has weighed on the wider turnaround effort chief executive Elliott Hill has been steering since taking over. Nike has described the Chinese e-commerce landscape as fragmented, reflecting the proliferation of platforms, livestreaming channels and third-party resellers that have complicated the brand's ability to control pricing and presentation online.

The move signals that Nike's China problem is not simply about weaker consumer demand but also about channel control. Chinese shoppers increasingly discover and buy sportswear through a wider array of platforms than in Western markets, including Tmall, JD.com, Douyin and various livestreaming formats, and Nike has struggled to keep its brand positioning and pricing consistent across all of them. A cleaner, more controlled distribution structure would give Nike more leverage over discounting and inventory, both of which have been persistent problems in the market.

China remains central to Nike's long-term growth ambitions and to its positioning against Adidas and fast-rising domestic rivals such as Anta and Li-Ning, which have gained share with strong local execution. The distribution reset is a tacit admission that Nike's prior approach was not working, and it comes as the broader company continues to work through elevated inventory and margin pressure. What to watch is whether the changes show up in improved China revenue trends in the coming quarters, and whether Nike pairs the distribution shift with any change in pricing or product strategy specific to the market.

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