Nike is adjusting its sales strategy in China by restricting online sales through wholesale distributors and directing customers toward official Nike channels, aiming to regain market share as competition intensifies. This move reflects the American sportswear company’s efforts to address declining sales in its third-largest market.

Starting in January, key retail partners in China will cease selling Nike products online and focus exclusively on in-store sales, according to Cathy Sparks, vice-president and general manager of Greater China. Instead, Nike will channel its online sales through branded digital storefronts on major Chinese e-commerce platforms, including Tmall, JD.com, and Douyin, as well as its own website and mobile app.

Sparks, who took over the region’s operations earlier this year after a 25-year tenure with the company, described the current online market for Nike as “fragmented and cluttered.” She emphasized the company’s intention to offer consumers a more premium and consistent shopping experience that integrates digital and physical retail environments.

The strategy comes amid a period of sustained sales challenges for Nike in China. The company reported a 17% decline in sales on a constant-currency basis in Greater China during the fourth quarter, worsening from a 10% drop in the preceding quarter. This downturn has been attributed in part to growing competition from domestic sportswear brands such as Anta and Li Ning, as well as rising foreign challengers like On and Hoka, which have expanded their presence in the market.

Nike’s shift involves most of its 16 retail partners in China, which collectively operate thousands of Nike-branded stores. These partners will withdraw from online sales platforms to comply with the new distribution approach, a Nike spokesperson confirmed.

The announcement immediately affected the stock prices of major Chinese sports retailers. Pou Sheng’s shares declined by 10% in early trading, while Topsports experienced a record 23% drop, collectively erasing around HK$3 billion (approximately S$494 million) in market value.

By consolidating its online presence under official Nike-branded channels, the company aims to rebuild consumer trust and sell its products at full price, counteracting the discount-driven competition that has eroded its position. Nike’s approach signals a broader industry trend toward tightening control over e-commerce to enhance brand integrity and customer experience in increasingly competitive markets.