Nike eyes bigger role for China under new Asia structure

Nike Inc is bringing its China business into a broader Asia leadership structure as it seeks to improve regional collaboration and revive growth in its second-largest market.

The restructuring, announced on Friday, combines Nike's Asia-Pacific and China operations under a single leadership team, aiming to simplify operations and accelerate the sharing of capabilities across the region, according to Cathy Sparks, vice-president and general manager of Nike Greater China.

"This is a big change," Sparks said. "What this structure gives us is the chance to simplify our operating model and ensure we are more connected and more responsive to consumers in the marketplace."

She said the new structure will allow the company to operate with a smaller, more nimble regional team based in Singapore, while Shanghai will remain the headquarters for its China business. "The team will operate in the same time zone as the markets it serves," she added.

The restructuring has raised questions over whether it could reduce the autonomy of its China business, but Sparks said China's strategic importance to Nike remains unchanged.

"For 45 years, Nike in China, Chinese consumers and our China business

have been central to Nike, and that will absolutely continue to be the case," she said. "China remains a strategic priority. It is our second-largest country business and a critical part of Nike's future growth."

The company remains committed to serving Chinese athletes and consumers while strengthening its local capabilities through product localization, deeper consumer connections across more cities, and a more elevated and premium marketplace execution, said Sparks.

After seven months of leading Nike's China business, Sparks said she believes the new model is the right solution for rebuilding momentum in the market.

The new structure works as a two-way exchange of capabilities, allowing China to benefit from regional expertise while enabling China-developed insights, innovation and operating experience to contribute to Nike's growth across the region, she added.

The organizational change comes as Nike continues a difficult reset in China. The company reported that first-quarter fiscal 2027 revenue in China fell 26 percent.

Chief Executive Elliott Hill acknowledged that Nike still has "more work to do" in China, where the company is undertaking a multi-season overhaul of its marketplace.

Nike is reducing its exposure to heavily discounted online channels and shifting digital sales toward official flagship stores on Tmall, JD.com, Douyin, Nike.com and the Nike App to rebuild a more premium positioning.

Sparks said the company will "continue investing in new retail concepts and digital experiences across the country," citing "tremendous success" with the recent NikeSKIMS launch in Shanghai.

The new structure is intended to support that turnaround by moving decision-making closer to consumers, including within China itself.

"What we learned is that we lost some connection with consumers, athletes, and the places where they play, find inspiration, and experience sport," she said. "Our top priority is putting leaders and teammates back into cities so we can capture the insights most relevant to Chinese consumers."

While Nike's global headquarters will "continue to drive innovation and operational excellence, the application of those innovations must be shaped by local teams," she said.

As part of these efforts, Nike has created regional leadership roles across the country. "Consumers in Beijing and Chengdu are different from those in Guangzhou or Hong Kong," she said. These leaders bring local insights on product assortments, styling, and marketing activations."

The company expects the recovery to take time. Sparks said the China business will remain in a reset phase for the rest of the fiscal year as the company works through inventory challenges and reshapes its marketplace.

"The first indicators will be consumer response," she said. "We should see improvements in engagement, conversion, and traffic before we see financial results."

Looking ahead, Sparks said she expects Nike China to build a healthier and more profitable business centered on sport, local relevance and stronger consumer connections.

"When we combine the best of our global brand with the capabilities of an incredible local team, I think we will be unstoppable."