Nike China sales slide 30% as local sneaker rivals gain ground
Nike’s China revenue has dropped to an eight-year low as China Chic, local rivals and a distribution reset squeeze the sneaker giant.
By Sal Moretti · Money Reporter
3 min read
Nike China sales have dropped 30% since 2021, with annual revenue in Greater China falling to $5.8 billion in fiscal 2026, the lowest level in eight years, according to company reports cited by CNBC.
The slump is jarring because China’s sportswear market is still expanding. GlobalData said the category has grown 51% over the past five years, while CNBC cited Chinese government data showing sports-related products and participation in exercise are both on the rise.
Nike’s China revenue has fallen from the prior year for eight straight quarters, CNBC reported. The region, once a prized growth engine with fat margins, is now Nike’s smallest market and a drag on the company’s broader turnaround.
Why are Nike China sales falling?
Analysts and consumer experts told CNBC the trouble runs deeper than a weak retail cycle. They pointed to China Chic, stronger domestic brands such as Anta and Li-Ning, and younger shoppers who want products made for local tastes rather than global styles shipped into Shanghai.
China Chic, also known as Guochao, is a movement promoting pride in Chinese-made and Chinese-designed products. CNBC reported that the campaign gained force after Chinese President Xi Jinping began pushing cultural confidence years earlier, and experts said it helped make domestic brands feel more fashionable to younger buyers.
The shift accelerated in 2021 after an earlier Nike statement expressing concern over reports of forced labor in Xinjiang resurfaced, CNBC reported. Some Chinese consumers called for a boycott, actor Wang Yibo ended his Nike representative deal, and rivals including Anta and Li-Ning promoted their use of Xinjiang cotton, according to CNBC.
Yaling Jiang, founder of consumer research firm ApertureChina, told CNBC that many young shoppers no longer see Nike as culturally fresh. Tracy Dai of consulting firm China Skinny said teenagers who once would have named Nike or Adidas now often mention Anta or Li-Ning.
Nike disputes the idea that it has lost relevance. A company spokesperson told CNBC that China remains highly competitive and that younger consumers now expect more local connections through events, culture and community.
Are other foreign sports brands winning in China?
Some are. CNBC reported that Lululemon’s comparable sales in China rose 20% in fiscal 2025, while Adidas brand revenue in the region climbed 13%.
Adidas has leaned harder into local product teams and regional decision-making, CNBC reported. Its Chinese New Year Track Top jacket, designed by its local team, sold out in 27 minutes and became a social media hit, according to the report.
Wei Kan, a former Nike and Converse executive in China and Taiwan who now runs Conduit Asia, told CNBC that Nike remains more of a global generalist while local rivals have become faster with innovation and better at serving shoppers who care about technical features and value.
What is Nike doing to fix China?
In January, Nike CEO Elliott Hill named Cathy Sparks, a 25-year Nike veteran, as vice president and general manager of Greater China, reporting directly to him, CNBC reported.
Sparks told CNBC that Chinese shoppers have changed and expect stronger product connections and brand engagement. She said Nike believes footwear and apparel designed around Chinese consumers can help drive full-price sales.
Nike has also hired its first Greater China vice president of local product creation, CNBC reported. The company plans two holiday lifestyle capsules, one for Nike sportswear and one for Jordan streetwear, followed later by performance apparel and footwear.
Distribution is getting a cleanup, too. Sparks told CNBC that Nike allowed some brick-and-mortar distributors to sell online during the Covid-19 pandemic, then failed to reset that model as stores reopened, leaving the marketplace fragmented.
BNP Paribas analyst Laurent Vasilescu estimated the online distribution changes could cut annual revenue by as much as $1 billion, or about 17% of Nike’s sales in the region, CNBC reported. Sparks told CNBC some distribution will go away, but Nike expects to replace value through full-price sales and a more premium customer experience.
This story draws on original reporting from CNBC.