Nike Terminates Topsports' Online Distribution｜22% of Topsports Revenue Gone, Nike Reclaims Pricing Power
TL;DR
Nike will terminate Topsports' online distribution rights in mainland China from January 2027, erasing 22% of Topsports' revenue and reclaiming pricing power for official channels.
Topsports International announced on July 22 — it has received formal notice from Nike that from January 1, 2027, all Nike online sales via Topsports channels in mainland China will be terminated. Offline sales continue.
The numbers are direct — Nike online sales currently contribute ~22% of Topsports' revenue. Topsports plainly stated the termination will "cause material near-term negative impact on the business". Topsports is Nike's largest distributor in mainland China, with online its fastest-growing segment.
Nike's play — reclaim online pricing power. Greater China revenue has fallen for multiple years, and Nike believes distributors have run structural discounts to hit volume targets, eroding brand scarcity. Topsports flagship stores on Tmall, JD, and Douyin routinely run 50-70% off — chronic damage to Nike's brand equity.
The comparable is Adidas's 2020 DTC pivot — Adidas sharply cut distributor online rights and Greater China growth resumed five years later. Nike is copying the playbook.
Topsports' response — accelerating outdoor/running brand additions (HOKA, On, Salomon) to reduce Nike dependence. But 22% of revenue isn't plugged in the short term by new brands.
The real shift is in channel power — China's sportswear market spent the last 15 years in the distributor era (Topsports, Pou Sheng, Belle) with brands earning volume through distributors. The next five years are the DTC era — brands go direct to consumers, distributors are downgraded to offline scenario services. Global brands are repricing Chinese e-commerce.
Topsports' long-term stock pressure — Xiaohongshu and Douyin closed loops keep eroding offline distributor pricing power. Nike's move sets a template for other top brands (Adidas, Puma, New Balance) — the post-2027 distributor model will be rewritten across the Chinese sportswear sector.
via 36kr
The numbers are direct — Nike online sales currently contribute ~22% of Topsports' revenue. Topsports plainly stated the termination will "cause material near-term negative impact on the business". Topsports is Nike's largest distributor in mainland China, with online its fastest-growing segment.
Nike's play — reclaim online pricing power. Greater China revenue has fallen for multiple years, and Nike believes distributors have run structural discounts to hit volume targets, eroding brand scarcity. Topsports flagship stores on Tmall, JD, and Douyin routinely run 50-70% off — chronic damage to Nike's brand equity.
The comparable is Adidas's 2020 DTC pivot — Adidas sharply cut distributor online rights and Greater China growth resumed five years later. Nike is copying the playbook.
Topsports' response — accelerating outdoor/running brand additions (HOKA, On, Salomon) to reduce Nike dependence. But 22% of revenue isn't plugged in the short term by new brands.
The real shift is in channel power — China's sportswear market spent the last 15 years in the distributor era (Topsports, Pou Sheng, Belle) with brands earning volume through distributors. The next five years are the DTC era — brands go direct to consumers, distributors are downgraded to offline scenario services. Global brands are repricing Chinese e-commerce.
Topsports' long-term stock pressure — Xiaohongshu and Douyin closed loops keep eroding offline distributor pricing power. Nike's move sets a template for other top brands (Adidas, Puma, New Balance) — the post-2027 distributor model will be rewritten across the Chinese sportswear sector.
via 36kr
