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Nike cut ties with thousands of Chinese online distributors

Nike announced on Tuesday that it will cut ties with thousands of online distributors in China from January, directing consumers instead to its own digital platforms and official storefronts on Tmall, JD.com and Douyin.

The sportswear giant said its current distribution model, which relies on a broad network of physical retail partners and secondary distributors, has resulted in inconsistent pricing and an uneven brand image.

The consolidation is intended to create a more consistent consumer experience, rather than limit access to its products.

“This is not about reducing access. It is about reducing fragmentation and strengthening the consumer journey,” Cathy Sparks, Nike’s vice president and general manager of Greater China, wrote in a letter.

“When the experience is consistent, the brand becomes stronger.”

Topsports, Nike’s largest distributor in mainland China, said it supports the move despite anticipating some near-term financial pressure.

“This adjustment will bring some short-term pressure to our business,” Topsports CEO Yu Wu said in a statement.

“But we firmly believe that, over the medium- to long-term, this direction will help promote a healthier, more orderly, and more sustainable retail ecosystem in China.”

Wu said Topsports and Nike have maintained a partnership for 27 years, adding that the company plans to place greater emphasis on its physical retail operations going forward.