Nike to Cut China Distributors January 1 After 10% Revenue Decline
NKE•Nike plans to end key distributor sales in China from January 1, moving exclusively to its official flagship website as online and brick-and-mortar revenue dropped 10% and online sales plunged 21% in Q2. The shift revives its DTC-first strategy after five years of wholesale partnerships that underperformed.
1. China Distributor Cut Plan
Nike will terminate key third-party distributors for online sales in China starting January 1, directing all purchases through its official flagship website to regain control over pricing, inventory and consumer data.
2. Q2 Greater China Performance
In its December fiscal Q2, Greater China revenue declined 10%, online sales fell 21%, and footwear revenues also dropped 10%, highlighting persistent weakness in both brick-and-mortar and digital channels.
3. Leadership and Strategic Shift
After Angela Dong stepped down on March 31, Cathy Sparks—formerly vice president and general manager of APLA—was named vice president and general manager of Nike Greater China, tasked with accelerating a direct-to-consumer model to boost margins.
4. Analyst Warnings
Analysts warn that eliminating wholesale distributor channels mirrors past DTC pushes in Western markets that opened shelf space for rivals and could risk a similar loss of market share in China.
