Nike's China GM expects market rebound

Cathy Sparks, Nike's vice-president and general manager for Greater China, arrived for her interview wearing bright red Vapor 12 tennis shoes — the same model designed for and worn by Chinese female tennis star Zheng Qinwen during the world gold medalist's recent training in China.

The athletic footwear was more than a fashion statement. It embodies what Sparks hopes will become the blueprint for Nike's comeback in one of its most important — and most challenging — markets: China, with products inspired by Chinese athletes, designed and developed locally, and brought to market faster than ever before.

After more than 25 years at Nike, with leadership roles spanning North America, Europe and the Asia-Pacific, Sparks has been handed one of the company's toughest assignments — returning China to sustainable growth after several years of declining sales.

The challenge is considerable.

Nike's revenue in China fell 12 percent in the fourth quarter ended May 31 and 11 percent for the full fiscal year, weighed down by weakness in both its direct-to-consumer and wholesale segment operations. The slowdown has made China a key battleground in Nike CEO Elliott Hill's global turnaround strategy.

For Sparks, reversing that trend requires more than launching new products. It means rethinking how Nike creates products, tells its brand story and reaches consumers in what she describes as one of the world's fastest-moving retail markets.

"The complexities of the China market are challenging. They're exciting," said Sparks, who took on her new role in April. "It's a complicated puzzle to figure out at this moment."

Her strategy mirrors Hill's three priorities — "product, marketing and marketplace" — but with a distinctly local focus.

Nike has doubled the size of its local product creation team and appointed a vice-president dedicated to local creation. Its first apparel collection created, designed and developed entirely in China will debut in the coming holiday season.

"We're really working on elevating the voice of the Chinese athlete into our global product engine. We are empowered as the China team to create product in China, made in China, designed and developed in China for Chinese athletes and consumers," Sparks said.

The faster development cycle reflects the pace of China's sportswear market, where domestic competitors launch products more quickly and consumer tastes evolve rapidly through social media and digital commerce.

Sparks believes closer collaboration between Nike's local design teams and manufacturing partners will become a competitive advantage. "This will be one of the most important unlocks to our growth," she said.

In addition to product innovation, Nike is reshaping its marketplace after years of expanding across thousands of retail touch points that executives say diluted the brand and encouraged discounting.

The company is reshaping its digital marketplace in China. Beginning in January 2027, sales of Nike products through partner-operated online storefronts — including Topsports' online stores — will be discontinued.

"We have over 2,000 disconnected points of distribution online," Sparks said. "When there is that much disconnected distribution, the stories behind our most important products don't cut through. The challenge we've had over the last couple of years is our marketplace has become so fragmented. It's been very challenging for us to bring together a great product, an amazing story and a beautiful presentation for the consumer," Sparks said.

Instead, the company is directing consumers toward its flagship stores for Nike, Jordan, ACG and Kids while renovating existing locations and introducing retail concepts designed specifically for Chinese consumers.

Early signs are encouraging. Nike's House of Innovation store in Shanghai posted double-digit sales growth in the latest quarter, while recently renovated stores and a new ACG concept store in Nanjing, Jiangsu province — which opened in April — also outperformed.