Nike, one of the world’s leading sportswear brands, is facing growing challenges in China, a market that has long been key to its global growth. For the sixth straight quarter, sales in China have fallen, signaling that the company’s efforts to revive growth are not yet working. Footwear revenue dropped nearly 20%, while online sales fell sharply, by about 36%.
The slowdown comes despite Nike’s attempts to refresh its product lineup and clear out older stock. The company has reduced discounts and promotions to encourage full-price purchases, but this approach has weighed on profit margins.
China now accounts for around 15% of Nike’s total revenue, but the market is becoming increasingly competitive. Local brands such as Anta and Li‑Ning are gaining ground, offering popular and affordable alternatives that are drawing consumers away from international labels like Nike. High tariffs and excess inventory have also put pressure on the company’s profits.
Nike executives have described the Chinese market as complex and dynamic, noting that a clear timeline for a turnaround is not yet visible. Analysts say part of the weak sales is by design, as Nike works to sell slow-moving inventory before new launches. However, they also note that the company will need fresh strategies to regain market share and consumer attention.
The ongoing slowdown has affected investor confidence, with Nike’s share price showing signs of stress this year. The company’s leadership acknowledges that a reset in strategy is required, focusing on better stock management, targeted marketing, and addressing local competition.
As Nike navigates this difficult period, the coming months will be critical in determining whether the brand can stabilize its performance in China, restore growth, and compete effectively against rising domestic competitors.
Also Read: Trump strikes drug price deal with 9 pharma giants