Nike Combines Greater China and Asia-Pacific Operations in Cost-Cutting Regional Overhaul
Nike Inc. is combining its Greater China and Asia-Pacific operations under a single leadership team based in Singapore as part of a newly announced operating model dubbed Pace, wwd.com reported. The restructuring aims to streamline the organization and cut costs, though it has drawn mixed reactions from market watchers regarding its potential impact on the brand’s local connection.
Under the new structure scheduled to take effect in fiscal-year 2028, the Asia-Pacific and Greater China (APGC) region will be managed from Singapore. Chief Executive Elliott Hill stated during a post-earnings conference call that moving certain support roles out of Nike’s Beaverton, Oregon, headquarters will place the team “closer to the athletes and markets they serve.” However, the plan contrasts with the approach in other territories, such as EMEA (Europe, Middle East and Africa), which will continue existing operations unchanged, and the Americas, which brings together North America and Latin America.
Market Concerns and Strategic Risks in China
The decision to group Greater China inside a broader regional structure in Singapore has raised questions among industry analysts. Colby Howard, president of Heron Events at Heron Intelligence, noted that former Nike executives interviewed by his firm warned against pulling work out of Shanghai. According to Howard, running Chinese operations from Singapore risks severing local relationships that are vital to brand success in the country.
Patrick Ricciardi, an analyst at research firm Third Bridge, indicated that while a massive overhaul of the Greater China operation is necessary, contacts suggest the turnaround could take at least two to three years. Greg Zakowicz, an e-commerce and retail adviser at Omnisend, expressed doubt over whether the sportswear giant has a fully realized plan to tackle regional challenges, noting that revenue for Greater China fell 22 percent—or 26 percent excluding currency changes—during the first quarter ended August 31.
Retail Reset and Localized Product Plans
Addressing the sales decline, Cathy Sparks, vice-president and general manager of Nike Greater China, told chinadaily.com.cn that the restructure will simplify operations and accelerate the sharing of capabilities while keeping Shanghai as the local business headquarters. Sparks emphasized that China remains the company’s second-largest country business and a critical growth driver.
Chief Executive Elliott Hill outlined plans to elevate brand presentation by tightening the digital ecosystem around official flagship stores on Tmall, JD.com, Douyin, Nike.com, and the Nike App, while reducing exposure to heavily discounted online channels. Hill also noted that the majority of stores in Greater China have not been refreshed in the past seven years, signaling a shift toward inspirational brick-and-mortar experiences. As part of a push to be “more local,” Nike plans to launch its first “Made for China” collection in November, featuring products designed, developed, and manufactured directly within China.
Frequently Asked Questions
When will the new APGC leadership structure take effect?
The new APGC formation is expected to occur in fiscal-year 2028, bringing together Asia-Pacific and Greater China under a single leadership team based in Singapore.
How did Nike’s Greater China revenue perform recently?
For the first quarter ended August 31, revenue for Greater China declined 22 percent, or 26 percent excluding currency changes, according to company reports cited by wwd.com.
What is the timeline and focus for the new ‘Made for China’ collection?
The first collection coming out of China, titled Made for China, will launch in November and will be available exclusively in brick-and-mortar stores as part of Nike’s localized product strategy.
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