Nike eyes bigger role for China under new Asia structure

Nike Inc is restructuring its Asia business by merging its China operations with the broader Asia-Pacific operations under a single leadership team. This move, announced on Friday, aims to streamline operations and enhance collaboration across the region, according to Cathy Sparks, vice-president and general manager of Nike Greater China.

The new structure, set to be based in Singapore, will operate in the same time zone as the markets it serves, while Shanghai will remain the headquarters for the company's China business. Sparks emphasized that China remains a critical market for Nike, stating that the company's strategic focus on the country will not change. The restructuring has raised concerns about the autonomy of the China business, but Sparks reassured that Nike remains committed to serving Chinese athletes and consumers while strengthening local capabilities through product localization and deeper consumer connections.

The company is currently navigating a challenging period in China, with first-quarter fiscal 2027 revenue falling 26%. Nike plans to shift digital sales towards official flagship stores and invest in new retail concepts and digital experiences to rebuild a premium positioning. The new structure seeks to bring decision-making closer to consumers within China, with regional leaders in Beijing and Chengdu providing local insights on product assortments, styling, and marketing activations.

Nike expects the recovery in China to be a gradual process, focusing on consumer response before any financial results.