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Nike is overhauling its online sales strategy in China by limiting how its products are sold through third-party retailers, directing consumers instead to the company's official digital channels as it seeks to regain market share.
Starting in January, major Chinese sportswear retailers will stop selling Nike apparel and footwear online. Instead, the products will be available through Nike-branded storefronts on Tmall, JD.com and Douyin, as well as the company's own website and mobile app.
Cathy Sparks, Nike's Vice President and General Manager for Greater China, told Reuters the move is designed to strengthen consumer trust, improve the brand experience and reduce excessive discounting by allowing the company greater control over online sales.
She said China's online marketplace has become increasingly fragmented, making it more difficult to deliver a consistent premium shopping experience across digital and physical channels.
China remains Nike's third-largest market, but sales continue to decline. The company reported a 17% fall in fourth-quarter sales in Greater China on a constant-currency basis, compared with a 10% decline in the previous quarter.
Nike has been losing market share to domestic rivals such as Anta and Li Ning, while international brands including On and Hoka have also expanded rapidly in the Chinese market.
The announcement weighed on shares of Chinese retailers Topsports and Pou Sheng, both of which generate a significant portion of their online revenue from Nike products. Despite the expected short-term impact, both companies said they remain committed to working with Nike.
Nike said it is also focusing on developing products that better meet the preferences of Chinese consumers as part of its broader turnaround strategy.
Source: Reuters
https://thedailyexpress.news/news/business/1f1858d4-773a-6440-bfdf-cfb65807bfcd