Nike to cut off thousands of online distributors in China
Nike is consolidating its online presence in China by cutting ties with thousands of secondary distributors to focus on its official website, app, and major platforms like Tmall and JD.com. The move aims to improve brand consistency and pricing control following a period of declining sales.
Why it matters
This strategy reflects a broader trend of major brands moving toward direct-to-consumer models to regain control over brand equity and customer experience in fragmented digital markets.
Nike is planning to cut off thousands of online distributors in China beginning in January as the sneaker giant looks to clean up what's become a messy digital marketplace and get the region back to growth, the company said Tuesday.
Starting next year, Nike's online footprint will shift primarily to the retailer's official website and app, and the storefronts it operates on Tmall, JD.com and Douyin, some of China's largest online marketplaces and social platforms.
Currently, consumers can shop Nike through all of those channels as well as thousands of other online storefronts powered by Nike's brick-and-mortar partners in the region and a network of secondary distributors. While the vast digital network has led to widespread consumer access to Nike's products, it's also created an inconsistent branding and pricing experience and hampered the company's efforts to reverse a sales decline in the region.
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