Nike Lost China to Local Brands, Now It’s Trying to Think Like One
Key takeaways
- Nike’s China reset is a costly but necessary pivot to compete with local brands and regain growth in a shrinking market.
- Greater China revenue FY26: $5.85 billion
- Greater China revenue FY24: $7.55 billion
- Segment operating profit FY26: $1.28 billion
What happened
Nike Inc. is overhauling its China business by giving local teams more control, cutting thousands of third‑party online sales channels, and focusing on domestic e‑commerce platforms like Tmall, JD.com and Douyin. The company has doubled its local product‑creation team and plans to launch an all‑China‑made apparel line in the upcoming holiday season. These moves come after eight straight quarters of falling China sales and a sharp drop in Greater China revenue and operating profit.
Why it matters
China is a key growth engine for Nike, yet its revenue fell from $7.55 billion in FY24 to $5.85 billion in FY26, and operating profit dropped from $2.31 billion to $1.28 billion. By localizing product development and sales, Nike hopes to regain market share lost to domestic rivals Anta and Li Ning and improve pricing…
Short-term and longer-term
Short-term. Short‑term traders should focus on the Q1 earnings release, where Greater China revenue is projected to drop 12.6% to about $1.3 billion.
Longer-term. Longer‑term investors should assess whether the local product‑creation strategy can sustainably restore Nike’s relevance in China without eroding global scale.