Nike continues to lose ground in China even as the country’s sportswear market grows. The company has reported eight straight quarters of declining sales in the region, with revenue now about 30% lower than it was in 2021. Industry experts say Nike has lost some of its appeal among younger Chinese shoppers, who are increasingly turning to local brands like Anta and Li-Ning. They also believe the company has been slower than its rivals to respond to demand for products and marketing that better reflect local tastes.
The company also faces growing competition from global rivals that have adapted more quickly to local tastes. Adidas, for example, has regained momentum by giving its China team more freedom to create products and marketing campaigns tailored to local consumers. Nike says it is taking similar steps, including hiring its first Greater China vice president for local product creation and developing footwear and apparel designed specifically for the Chinese market.
At the same time, Nike is overhauling its distribution strategy after allowing physical store partners to expand online during the pandemic, creating what the company describes as a fragmented shopping experience. While the changes could temporarily reduce sales, Nike believes a simpler distribution network and a stronger focus on full-price products will help rebuild its brand and strengthen its position in China over the long term.
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