NIKE B (-) : China Distributor Shake Up?

Research evidence excerpt

NIKE B (-) : China Distributor Shake Up?

EQUITIES

GENERAL RETAIL

NIKE B UNDERPERFORMPRICE* USD43.2  TARGET PRICE USD23 (DOWNSIDE 47%)

FLASH NOTE

China Distributor Shake Up?

23 JUNE 2026 Securities Research Report Production time: 14:53* (London time)

Research Analyst & Publishing Entities

Laurent Vasilescu BNP Paribas Securities Corp (1) (+1) 212 634 4971 Laurent.Vasilescu@us.bnpparibas.com

What happened?

According to the Chinese news agency Sina, Nike is planning to cut off its key distributors from selling Nike product

online starting January 1, 2027 (see link for the article in Chinese).

BNPP View:

Sina, the Chinese media conglomerate that has a controlling interest in Weibo Corporation, reports that Nike plans to

shake up its distribution channels in China. Reportedly, distributors will no longer have the right to sell Nike products

on any online platform starting January 1, 2027. Consumers will only be able to buy online through Nike’s official flagship

website in China. The article anonymously quotes one distributor who states that he has been representing Nike for

nearly 10 years and he was recently made aware of the decision to shake up the distribution channels. The article notes

that Nike’s decision could significantly impact sales volumes going forward for distributors.

According to Pou Sheng’s 2025 presentation, digital sales contributed over 30% of sales and Douyin sales grew over

70% YoY (see link). Online is also a key growth strategy for Topsports detailed in their latest annual presentation (see

link). We know from Pou Sheng and Topsports that brick and mortar sales have been pressured for many years while

online sales overall in China have been the growth engine for many sporting goods brands. A potential push to eliminate