Nike to cut off thousands of online distributors in China, restructure digital footprint

Nike is terminating partnerships with thousands of online distributors in China as part of a broader restructuring of its digital sales strategy in the country. The move, reported by CNBC, will affect a wide range of third-party retailers that currently sell Nike products through Chinese e-commerce platforms. This decision is significant because it signals Nike's shift toward a more direct-to-consumer model in one of its largest markets, where digital sales have become increasingly important. The company is expected to focus on its own channels and a smaller number of strategic partners to improve brand control and profitability. No specific number of affected distributors or timeline for the cuts was provided in the report. The restructuring comes amid a challenging retail environment in China, where Nike has faced both regulatory pressures and changing consumer preferences. The company has been working to streamline its operations globally, and this move in China is part of that effort. The likely next steps include Nike strengthening its direct sales through its own app and website, as well as through select key retail partners, while cutting off smaller distributors to create a more focused and premium brand presence.