Nike to Cut Thousands of China Online Distributors in January to Curb Discounting

Nike (NKE) will sever ties with thousands of third-party online distributors in China starting January 2026, redirecting shoppers to its own digital properties and dedicated storefronts on Tmall, JD.com and Douyin. The company said the move aims to eliminate uneven pricing and inconsistent brand presentation. Greater China chief Cathy Sparks said the decision is "about reducing fragmentation," not restricting access. Topsports (6110.HK), Nike's largest mainland distributor, backed the plan despite warning of "short-term pressure," citing 27 years of partnership. Nike's Greater China revenue fell 17% year over year on a constant-currency basis last quarter, steeper than the prior period's 10% drop. The region represents about 15% of total annual sales, and Nike shares are down more than 35% in 2026. BNP Paribas analyst Laurent Vasilescu maintained an underperform rating, warning the China pullback echoes Nike's North American wholesale retreat: "We don't think Nike has a distributor problem but rather a product problem."