Nike in China is in the trenches as sales fall by more than 30%

The root of Nike's problems is a combination of shifting consumer tastes, stronger domestic rivals, and operational drawbacks. 国朝 (guochao), also known as China-chic is a cultural movement driven largely by Gen Z and younger generations. It incorporates traditional aesthetics and embraces Chinese culture across fashion, technology, and craftsmanship. The movement brought forth a surge in national pride and promotes domestic brands over international ones. People are starting to feel that owning something from their own culture is cooler than owning something from a foreign brand.

Now, many younger consumers in China feel more connected to domestic brands like Anta and Li-Ning. Nike also faces competition from brands like Hoka and On, who have grown over the past few years by capitalizing on a growing wave of athletic participation in China. Even Adidas, who has also faced continuous decline in the past, has made a comeback.