Sneaker maker Nike (NKE) says it plans to revamp its online presence in China to create a better and more consistent consumer experience.
The Oregon-based maker of athletic apparel said that it also plans to end its relationships with thousands of online distributors that had been selling its products in China.
The online distributors in China will be cut off starting in January of next year as Nike looks to clean up what’s become a messy digital marketplace and get the region back to growth.
Beginning in 2027, Nike’s online footprint in China will shift to the retailer’s official website and app, and the storefronts it operates on some of China’s largest online marketplaces, such as JD.com (JD).
Currently, consumers in China can shop Nike through thousands of online storefronts powered by Nike’s brick-and-mortar partners in the region and a network of secondary distributors.
Nike says the current situation has created inconsistent branding and pricing experiences and hampered the company’s efforts to reverse a sales decline in the country of 1.4 billion people.
The plan to pare back its online footprint is designed to create a better, more consistent experience for the consumer and allow it to take back pricing control online, added Nike.
The move comes as Nike’s sales in China have shrunk 30% in the last five years. The Asian nation remains Nike’s second largest market after the U.S.
NKE stock has declined 74% in the past five years to trade at $42.96 U.S. per share.
