China Sportswear: Implications of Nike distribution strategy pivot in China – Part 2

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China Sportswear: Implications of Nike distribution strategy pivot in China – Part 2

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28 Jul 2026 10:08:35 ET │ 14 pages

China Sportswear

Implications of Nike distribution strategy pivot in China – Part 2

CITI'S TAKE

In Citi’s view, Nike China’s strategy pivot (announced on July 22) is set to

lead to profound landscape change in China’s sportswear industry

(including market share shift, competition landscape, and a reset of profit

pool in supply chain & channel chain). Further to Citi’s prior analysis on Xiaopo Wei, CFAAC

market share shift (in our Part 1 note on July 22: Anta & Li Ning’s Likely +852-2501-2472

Share Gains on Nike’s Distribution Strategy Pivot in China), we expect low xiaopo.wei@citi.com

risk of rising industry channel inventory pressure due to Nike China’s

Vincent Young strategy pivot after discussion with distributors, brand managers, and e-

commerce operators in the past week. Reiterate Citi’s sector pecking +852-2501-2738

vincent.young@citi.com order: Anta > Li Ning > Topsports (see Citi’s July 20 note: China

Sportswear - Revised Sector Pecking Order). Please sign up for Citi-

hosted sportwear expert call (with English translation) on China

Distributors’ Feedback on Nike China’s Strategy Pivot on Aug 7

(registration).

Nike’s tightened supply for 3Q-4Q26 shipment — Per our discussion with regional

distributors, Nike has stopped 3Q-4Q26E shipment for online biz of its 2nd-tier

distributors since June. Nike is currently discussing its 3Q-4Q26E shipment pace for

the online biz of its 1st-tier distributors (i.e., Topsports/Pou Sheng) before its full

termination as from Jan 2027E. Distributors widely expect Nike to tighten its

wholesale biz in China in coming quarters to reduce its 2H26E channel inventory

pressure.