HeadlinesBriefing favicon HeadlinesBriefing.com

Nike Overhauls China Strategy to Halt Discounting

Wall Street Journal US Business •
×

Nike is overhauling its approach to its second-largest market, moving to reclaim its premium status by cutting off most third-party online vendors in China. Cathy Sparks, a Nike lifer who assumed her post this spring, says third-party vendors like Topsports have created a fragmented online sales experience marked by heavy discounting. Nike believes it must commit to localized product development if it’s going to capture the attention of young Chinese people who don’t know who Michael Jordan is.

The plan is to rev up the engine of locally designed products, including by paying homage to traditional Chinese design motifs—something that rivals like Adidas have done very successfully in China. Sparks has appointed the company’s first head of local product-creation for China at the VP level, reporting to her, and the local product-creation team is doubling in size.