Nike to tighten online sales in China amid 'fragmented' marketplace

China, Nike's third-largest market, remains a key source of concern for the world's biggest sportswear brand. The e-commerce shift is part of a broader effort to revive growth.

Sales in Greater China fell 17% on a constant-currency basis in the fourth quarter, the company reported last month, steepening from a 10% decline in the previous quarter. Fast-rising domestic rivals Anta and Li Ning have chipped away at Nike's market share, while foreign brands like On and Hoka have also surged.

Nike's China woes have reinforced for investors that CEO Elliott Hill's turnaround strategy still faces significant obstacles. In his nearly two years at the helm of the company, Hill has pushed to refocus on sports, rebuild wholesale relationships in North America and introduce new products.