On June 3, 2026, Chinese media outlet Urban Express reported that US apparel giant Nike fell into 7 consecutive quarters of declining revenue in the Chinese market, and its traditional successful model could not adapt to changes in consumer needs, thus facing a structural crisis.

The article introduced that Nike's revenue in Greater China for the period of December 2025 to February 2026 (third quarter of fiscal year ending May 2026) decreased by 10% compared to the same period of the previous year, resulting in negative growth for 7 consecutive quarters. It also reported that as of May, its market capitalization disappeared by approximately 31.5 billion dollars (about 5 trillion yen) in just a few months, losing an amount equivalent to the entire Adidas company.

Regarding the background of the slowdown, it was analyzed that the standardized, empire-style model based on the stories of star athletes was a hindrance in a fragmented market environment. It was also commented that Nike's displays have mixed uses, making it difficult for customers to choose products that meet their needs.

Additionally, as Chinese consumers shift from brand worship to self-expression, specialized brands like Hoka, On, and Salomon, which are specific to various sports and scenes, and domestic brands like Anta (安踏) are seeing market share flow to them.

Furthermore, it was pointed out that Nike's athlete-first product supply deviates from lifestyle-centric demand, creating large inventories, and significant discounts for inventory clearance are being repeatedly offered. It was argued that frequent discounts are significantly eroding brand influence as well as profit, with the global gross profit margin for January to March this year dropping to 40.2%.

The article also reported that Nike recognized that the Chinese market is at a critical juncture and showed the awareness that a leader capable of reconnecting sports, culture, and the market to rebuild growth momentum is needed, announcing a change in the leadership of its China business.

In response to this report, a series of critical comments appeared on Chinese internet. The most common references were to the Xinjiang cotton issue, with voices like "Since the Xinjiang cotton issue, I haven't bought any Nike or Adidas products" and "Since then, my whole family has switched to Anta. It's cheap and comfortable to wear" standing out.

Additionally, there were many complaints about design and quality, such as "The designs are old-fashioned and not stylish at all," "They've been stuck in retro style without any innovation," "I bought it for 998 yuan (about 23,000 yen), but the sole peeled off in 3 months," and "The quality is rapidly declining," with many opinions suggesting it doesn't match the brand premium.

Furthermore, comments like "My child only wears Li-Ning. Even if I try to buy Nike for them, they say they don't want it" and "Ten years ago, wearing foreign brand shoes was a status symbol, but now there are more options, and that era is over" were also seen, indicating rising evaluations of domestic brands and changes in consumer awareness. (Edited and translated by Kawajiri)