How Nike’s navigating China’s cut-throat sportswear market

Despite posting 8% YoY revenue growth in Greater China in 2023, Nike’s market share in China is under threat from local giants like Anta and Li-Ning, and international rival Adidas. Anta Group’s impressive performance in 2023 – revenue climbed 16.2% YoY to 62.36 billion RMB ($80.9 billion) – highlights the growing strength of Chinese brands. Last year, Li-Ning grew revenue 7% YoY to $3.9 billion. These companies have adeptly capitalized on the guochao trend, a movement that emphasizes Chinese cultural pride and has fueled the popularity of domestic brands. According to Citigroup analyst Paul Lejuez, Nike continues to dominate in North America and Europe, leading in terms of brand recommendation and innovation. However, in China, Adidas is closing the gap, outpacing Nike when it comes to consumer preference and innovation. China accounted for 15% of Nike’s revenue in 2023, down from previous years. While Adidas has seen the popularity of its Samba sneakers boom across Asia – #samba has amassed 257 million views on Xiaohongshu and counting – Nike has struggled to offer an equivalent cult style that transcends subcultures to the same effect. The brand has unveiled some blockbuster footwear collaborations this year in China, such as May’s mainland-exclusive Supreme Air Force 1s, and the iconic Phantaci Air Max 1 Grand Pianos returning back in April. Nike’s strategy in China seemingly also involves a renewed focus on its Jordan brand, aiming to leverage its cultural appeal to re-engage the market. The opening of a flagship store in Beijing, featuring exclusive products and collaborations with local artists, underscores this effort. The Jordan brand has maintained its appeal across different demographics in China, supported by strategic partnerships with Chinese basketball stars and streetball events. Additionally, Nike is making broader strategic moves to revitalize its positioning. The Nike On Air showcase, which debuted in Paris and made its second stop in Shanghai in June 2024, signifies Nike’s commitment to innovation and market relevance in China. This event, combined with Nike’s long-standing sponsorship of China’s national track and field and basketball teams, reflects the brand’s deep-rooted presence and influence in Chinese sports culture. These efforts, while aimed at improving market presence, also highlight the broader challenge: competing with Anta’s multi-brand strategy, which has enabled China’s leading domestic sports brand to surpass Nike in sales by effectively catering to diverse market segments. While Nike’s legacy and strategic innovations keep it relevant, the rise of local brands like Anta and Li-Ning, coupled with Adidas’ strong foothold, present high hurdles. Yet, with a core focus on supporting sports culture, championing nostalgia, and reimagining signature footwear silhouettes with local cultural nuances, the brand is positioned to overcome them.

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How Nike’s navigating China’s cut-throat sportswear market