Nike and sportswear brands face consumer demand challenges in China and U.S

The sportswear and athletic footwear sectors are facing significant headwinds due to shifting consumer behavior and economic trends in both China and the United States. In China, brands like Nike are experiencing weakened demand as consumers become more discerning and engage in consumption downgrade trends. To address these challenges, Nike is reportedly restructuring its operations, including plans to move its Greater China operations to a new Asia-Pacific plant in Singapore and launching locally designed product lines.

In the U.S. market, major retailers such as JD Sports, Dick’s Sporting Goods, and Academy Sports + Outdoors are navigating issues including soft demand for end-of-cycle product lines, excessive promotions, and inventory shortages for high-demand styles. While performance-based running shoes—including brands like On, Hoka, and Salomon—show upward momentum, this growth has not fully offset declines in other categories like retro basketball and football footwear.

Market analysts note that the weakness in China appears broad-based, affecting major players including Anta Sports and Adidas. Meanwhile, in the U.S., retailers are observing a shift in consumer priorities toward health and fitness, with running clubs and gyms gaining cultural prominence.