Nike is reportedly considering a significant strategic shift in the way it will allow products to be sold online in China, and some industry analysts aren’t convinced it’s a smart move.
A recent report from China’s Economic Observer said Nike may stop allowing distributors in the country to sell Nike products online beginning in January 2027. The goal would be to push consumers toward Nike’s own digital storefronts and give the company greater control over pricing and inventory (the company reported a 10% decrease in sales in China during its most recent earnings back in April).
But experts say that if Nike goes through with the move, it could backfire. Analysts at Jefferies, Bernstein SG, Deutsche Bank, and BNP Paribas all touched on the report in recent research notes. Deutsche Bank is approaching Nike’s upcoming June 30 earnings call “with a cautious stance,” in part because of a “potential sharper-than-expected pullback from wholesale partners” in China. BNP said “we believe that if Nike did ultimately terminate online sales by its Chinese retail partners it would be a strategic misstep.”
Laurent Vasilescu of BNP Paribas elaborated, telling Front Office Sports that Nike—which in recent years has been losing market share in China to domestic competitors like Anta and Li-Ning, as well as other companies like Lululemon and Swiss brand On—may be misunderstanding its problem.
