Nike China will end partnerships with thousands of online distributors from January 2027 as the sportswear company restructures its digital retail strategy to regain momentum in one of its largest markets.

The company announced the move on Tuesday, saying it aims to simplify product distribution, strengthen brand control and improve the online shopping experience for customers in China.

Nike shifts focus to official channels

From next year, Nike will sell its products in China primarily through its official website, mobile app, and flagship stores on the country’s leading e-commerce and social media platforms.

The company said the new strategy will reduce the number of online sellers while creating a more consistent digital presence.

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Company seeks stronger brand control

Nike products are currently available through local retail partners, thousands of independent online storefronts and secondary distributors.

Although the extensive network has expanded product availability, it has also led to inconsistent branding, pricing and customer experiences.

The company said the restructuring will help deliver a more unified retail strategy across China.

Flagship stores to enhance customer experience

Cathy Sparks, Nike’s Vice President and General Manager for Greater China, said the redesigned flagship stores will become the company’s primary digital destinations.

She said the updated stores will offer clearer product displays and a more connected shopping experience across online platforms.

Analysts compare move to North America strategy

Reports about Nike’s plans first emerged in Chinese media last month.

Following those reports, BNP Paribas analyst Laurent Vasilescu compared the strategy to Nike’s earlier decision to reduce wholesale partnerships in North America.

That move was widely linked to declining sales and weaker market performance in the region.

Company targets long-term recovery

Yu Wu, a senior executive in Nike’s China business, acknowledged the restructuring could create short-term challenges.

However, he said the strategy would support a healthier retail environment over the medium and long term while improving the overall consumer experience.

Nike’s sales in China have fallen by around 30% over the past five years, increasing pressure on the company’s global turnaround strategy.