Nike Inc. is consolidating its China operations into a broader Asia leadership framework as part of an effort to enhance regional collaboration and revive growth in its second-largest market. The company announced the restructuring on Friday, merging its Asia-Pacific and China businesses under a unified leadership team. This change aims to streamline operations and improve the sharing of capabilities across the region, according to Cathy Sparks, vice-president and general manager of Nike Greater China.
Sparks described the shift as significant, emphasizing that the new structure will enable a simpler operating model and greater responsiveness to consumers. The regional team will be based in Singapore to maintain proximity to the time zones it serves, while Shanghai will continue as the headquarters for Nike’s China business.
Despite the integration, Nike affirms that China’s importance remains unchanged. Sparks stressed that Chinese consumers and the local business have been central to Nike’s strategy for 45 years and will continue to be a strategic priority. She outlined ongoing commitments to support Chinese athletes and consumers through product localization, deeper engagement in more cities, and an enhanced premium market presence.
Since taking leadership of Nike China seven months ago, Sparks has expressed confidence in the new model’s potential to regain momentum. The structure is designed to facilitate a two-way exchange of knowledge, allowing the China team to benefit from regional expertise while contributing insights and innovations back to the broader Asia market.
The organizational update comes amid a challenging phase for Nike in China, with the company reporting a 26 percent revenue decline in the first quarter of fiscal 2027. CEO Elliott Hill acknowledged the need for additional work as Nike undertakes a multi-season marketplace overhaul. The company is scaling back reliance on heavily discounted online channels and shifting focus toward official flagship stores on platforms such as Tmall, JD.com, Douyin, Nike.com, and the Nike App to rebuild a more premium brand positioning.
Sparks highlighted ongoing investments in new retail concepts and digital experiences, citing success with initiatives like the recent NikeSKIMS launch in Shanghai. The revised structure aims to bring decision-making closer to consumers, including strengthening local leadership to capture deeper insights about diverse markets across China.
“Consumers in Beijing and Chengdu are different from those in Guangzhou or Hong Kong,” Sparks noted, explaining that regional leaders will tailor product assortments, styling, and marketing efforts accordingly. She warned that recovery will require time, and the business is expected to remain in a reset phase for the remainder of the fiscal year as it manages inventory challenges and reshapes its marketplace.
Initial signs of progress will be measured by improvements in consumer engagement, conversion rates, and store traffic before financial results reflect the changes. Sparks remains optimistic that combining Nike’s global brand strength with localized expertise will enable the company to build a more sustainable and profitable future in China.