{"text":[[{"start":8.7,"text":"Nike will cut various online distribution channels in China as it tries to overhaul digital sales in a market that has posed a huge challenge to the US sportswear brand."}],[{"start":18.7,"text":"Cathy Sparks, vice-president and general manager for greater China, said on Tuesday that Nike would concentrate sales on its own website and app, as well as major platforms Tmall, JD.com and Douyin from January."}],[{"start":32.45,"text":"The move is a departure from an earlier approach that involved more than 1,000 “digital storefronts”, many of which were run by Nike’s bricks-and-mortar retail partners."}],[{"start":42,"text":"One distributor, Topsports, said it had received confirmation from Nike that existing online sales of its products would “terminate completely” from January 1 in an exchange filing on Wednesday. Its shares in Hong Kong fell 23 per cent."}],[{"start":58.2,"text":"Nike’s sales in greater China, one of its most important markets globally, have slumped against a backdrop of intense competition from international and domestic brands."}],[{"start":68.5,"text":"Revenues in the country fell 12 per cent year on year to $1.3bn in the three months to the end of May, adding to a string of earlier quarterly declines."}],[{"start":78.5,"text":"“Our presence has become too fragmented,” Sparks said of the previous distribution model. “As consumer behaviour shifted rapidly during and after Covid, some of the steps we took created an experience that is less consistent, less trusted and not delivering the growth we expect.”"}],[{"start":95.95,"text":"The company said that alongside “consolidating distribution” on major online platforms, there would be some exceptions for licensee partners and that it would work with a “small number of multi-brand partners”. It will also invest in bricks-and-mortar locations with its 16 store partners in China."}],[{"start":112,"text":"“This is not about reducing access or a move away from partners,” Nike said in a statement. “Our retail partners remain central to how athletes and consumers experience Nike and Jordan across China, and we are committed to growing together.”"}],[{"start":127.35,"text":"In a report last month, BNP Paribas analyst Laurent Vasilescu argued that terminating online sales by retail partners would be a “strategic mis-step”."}],[{"start":138.2,"text":"“Nike pulled back on wholesale partners in the west and that opened up shelf space for competitors,” he wrote. “The same would likely happen in China and only accelerate the gains of emerging brands like On, Hoka and Salomon, and the market share recovery of Adidas.”"}],[{"start":153.75,"text":"Domestic labels are also challenging Nike. Li Ning signed a sponsorship deal with US basketball star Steph Curry last month, and Anta agreed to buy a 29 per cent stake in Puma this year."}],[{"start":166.25,"text":"Anta also has a major stake in US-listed Amer Sports, which owns a host of brands including Salomon and Arc’teryx."}],[{"start":182.15,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784703867_4461.mp3"}