Nike plans to cut off thousands of online distributors in China from January, shifting its online presence mainly to its official website and app, and its storefronts on Tmall, JD.com, and Douyin.

Chinese shoppers can buy Nike products through those channels, as well as thousands of other online stores.

Nike said the broad distribution network expanded access but also led to inconsistent pricing and brand presentation across online marketplace.

BNP Paribas equity analyst Laurent Vasilescu said the move resembles Nike’s earlier wholesale pullback in North America, which he said hurt sales and margins and could open shelf space for rivals in China.

Topsports, a Chinese sports retail company and Nike’s largest distributor in mainland China, said the change would put short-term pressure on its business, but it supports the shift.

🔗 Source: CNBC

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