Nike Struggles to Regain Footing Amid China Headwinds and Falling Sales

Nike stock has lost more than 75 percent of its value from its 2021 peak.

A woman browses her phone while walking past a Nike logo inside a shopping mall in Beijing on June 2, 2021. Photo by Nicolas Asfouri/AFP via Getty Images

For decades, Nike dominated the global athletic footwear market. However, the company is now facing one of the most difficult periods in its history.

Nike’s global market share has declined for three consecutive years, while its stock price and market value have fallen sharply from its pandemic-era highs. In the United States, the company is also facing investigations due to its diversity, equity, and inclusion (DEI) practices.

In the global market, Nike is struggling to solve mounting pressure in China.

A Global Giant Under Pressure

The company’s market struggles have also been reflected on Wall Street. On May 15, Nike shares fell to $41.88, its lowest level since 2014. The stock has lost more than 75 percent of its value from its 2021 peak of $174.88, erasing hundreds of billions of dollars in market capitalization and reducing the company’s value from nearly $300 billion to about $62 billion.

The decline has raised broader questions about whether Nike is losing its grip on a market it once appeared to dominate effortlessly.

When it comes to corporate activism, Nike became one of the most visible corporate supporters of socially progressive causes during the late 2010s and early 2020s.

The company famously featured former San Francisco 49ers quarterback Colin Kaepernick in a major advertising campaign after he became a polarizing figure for kneeling during the national anthem to protest alleged racial injustice. Nike also publicly supported the Black Lives Matter movement following nationwide protests in 2020.

While the campaigns strengthened Nike’s standing among many younger and progressive consumers, they also triggered backlash from conservative customers, some of whom shifted to competing brands.

Former Nike CEO John Donahoe was blamed for prioritizing high-margin direct sales over long-standing retail partnerships, leading to declining sales. Under Donahoe, Nike reduced its reliance on major retailers, focusing instead on its own stores and online channels.

For years, China was Nike’s most profitable market outside North America. However, the company’s performance in the communist nation has also been in decline.

In 2021, the United States enacted the Uyghur Forced Labor Prevention Act, which restricts imports linked to forced labor in China’s Xinjiang region, including cotton products.

To comply with U.S. law, Nike said it would ensure its products are “responsibly sourced.” The move triggered a wave of nationalist criticism on Chinese social media, prompting some Chinese celebrities to end endorsement deals with the company and shift their support to domestic competitors.

A Broader Geopolitical Problem

U.S.–China tensions, growing economic nationalism, and Beijing’s push to strengthen domestic industries have all created new risks for foreign brands operating in China.

Davy Jun Huang, a U.S.-based economist and former columnist for Chinese state media outlet CNTV, told The Epoch Times that multinational firms such as Nike, Apple, and Tesla helped build China’s manufacturing ecosystem through investment and large-scale production orders, only to later face intensifying competition from local Chinese firms.

He argued that geopolitical tensions and state-backed industrial policies have increasingly favored domestic brands over foreign competitors.

U.S.-based China current affairs commentator Wang He told The Epoch Times that Nike is unlikely to abandon China despite the mounting difficulties, given the size of the market and the company’s long history there.

Huang noted that Nike has continued promoting a “China-for-China” strategy designed specifically for Chinese consumers.

Even so, investor confidence remains fragile. In April, market forecasts projected another 20 percent decline in Nike’s China sales for the next fiscal quarter. The company later announced plans to cut roughly 1,400 jobs, or about 2 percent of its workforce.

In March, Nike also appointed Cathy Sparks to lead its Greater China business. Sparks, a veteran retail executive with 25 years of experience, replaced former regional head Dong Wei.

Huang said that Nike’s future in China may increasingly depend on not only consumer demand but also the broader trajectory of U.S.–China relations and Beijing’s willingness to allow foreign brands to operate in an increasingly nationalistic market.

Cheng Wen and Yi Ru contributed to this report.