After eight successive quarters of falling sales in China, Nike to sellers in China: Staring January 1, you can no longer sell ...

Nike is reportedly pulling online selling rights from some of its largest retail partners in China as it seeks to regain control over pricing and reverse eight consecutive quarters of falling sales in its third-largest market. According to a report by Reuters, after eight successive quarters of falling sales in China, Nike is pulling online sales rights from some of its biggest retail partners in a high-stakes bet that tighter control over pricing and distribution can revive its fortunes.The high-stakes strategy, unveiled this week by Nike’s Greater China general manager Cathy Sparks, marks a aggressive effort to curb rampant discounting and brand erosion in the country. Starting in January, major Chinese sportswear retailers will no longer be allowed to sell Nike clothing and footwear online, routing digital sales almost exclusively through Nike-branded storefronts. Twenty-five-year Nike veteran Sparks said that from January, key sportswear retailers in China will no longer sell Nike clothing and footwear online.As per Reuters report, industry analysts largely agree that the move is necessary to fix what experts describe as total chaos in online pricing caused by years of heavy distribution across competing channels. Former Nike executives and market strategy consultants told Reuters that without restricting third-party digital sales, Chinese consumers will continue to expect heavy markdowns, preventing the brand from restoring its premium reputation.However, the shift is expected to carry a significant short-term cost. Former Nike Greater China product director Brian Fenn noted that cutting online rights for major distributors like Topsports and Pou Sheng will inevitably weigh on sales volume, given the sheer amount of product those partners traditionally move. Financial analysts warn that any meaningful payoff could take up to three years to materialize as the company navigates broader macroeconomic pressures in the region.The distribution crackdown comes alongside parallel efforts to tackle Nike’s other major headwind in China: Creating products that resonate with local tastes. To combat rising competition from nimble domestic brands like Anta and Li Ning, as well as fast-growing foreign challengers such as Hoka and On, Nike has appointed its first Greater China Vice President of Local Product Creation. The company is set to launch two locally designed lifestyle collections for the upcoming holiday season.Market observers emphasize that the success of this product shift will depend heavily on whether Nike’s Oregon headquarters grants its regional team enough autonomy to move at the speed of local competitors. As equity analysts point out, restricting digital sales to full-price storefronts will only succeed if the product itself justifies the price tag to Chinese shoppers accustomed to hunting for bargains.Nike, which reported $5.85 billion in total China sales for fiscal year 2026, expects progress in the region to happen in stages. A spokesperson noted that the company has already seen an uptick in full-price online sales over the past two quarters following initial efforts to limit discounting.The intense turnaround push in China adds to the pressure on CEO Elliott Hill, who is nearly two years into his tenure. While Hill has focused on rebuilding North American wholesale relationships and refocusing on core athletic performance, Nike’s shares have dropped about 34% this year as investors await signs of a broader financial recovery.