Over the past six months, my return to China has profoundly reinforced my understanding of the potential of Nike (NKE.US). This is a place where the brand has the power to transform lives, propel industry growth, and achieve rapid expansion through deep consumer connections and a passion for sport.

During this period, I have visited numerous cities across Greater China, witnessing firsthand the resilience of the Nike and Jordan brands and the strength of our connection with athletes everywhere. I felt the immense energy of 25,000 fans at a Chinese Super League match in Shanghai. I watched the next generation compete fiercely in the China High School Basketball League. I observed weekend morning street basketball games in Guangzhou where players poured their hearts out. I took a fencing class in Hong Kong with Olympic champion Cheung Ka-long. And I was truly inspired by the determination at the challenging ACG Chongli 168K trail race, where neither an approaching typhoon nor any other obstacle could stop our team, 12,000 runners, or elite athlete Yao Miao from leading a group of young girls.

Sport is the fuel of urban vitality, shaping culture and reminding athletes of all ages and abilities across China that potential is limitless. Nike and Jordan remain vibrant here, with a solid foundation and authentic, powerful connections to athletes and consumers.

I have also spent hundreds of hours walking through commercial districts—visiting malls, observing consumer behavior, studying live-stream commerce, meeting with partners, and touring stores with colleagues. This is a rapidly evolving, deeply interconnected market.

My career began on the front lines in a Nike store. For 25 years since, I have helped shape the brand's global market ecosystem and consumer experience, much of that time spent working in Asia. Therefore, this opportunity holds deep personal significance for me.

I have seen firsthand how immersive retail and connected digital platforms can inspire consumers through world-class athletes and innovative products. I have witnessed the magical moment when a consumer laces up a new pair of Nike running shoes for the first time to achieve a new 5K goal. All these experiences reaffirm a simple yet critical truth: our connection with consumers remains strong, but our market presence is not yet where it needs to be.

Today's consumers expect authentic products, a clear and consistent brand story, and seamless experiences at every touchpoint. By building a more unified, high-quality, and deeply connected market ecosystem, we can reduce fragmentation, strengthen consumer trust, and deliver superior Nike and Jordan experiences everywhere.

However, the reality is that compared to Nike's historical alignment with—and leadership of—the market, our current presentation has become too dispersed. Rapid shifts in consumer behavior during and after the pandemic led to initiatives that resulted in inconsistent, less credible experiences that did not drive the expected growth.

Consequently, Nike is taking focused strategic action to reshape our market ecosystem, starting with our digital channels. Beginning in January 2027, Nike will rebuild its digital ecosystem in China around flagship stores on Tmall, JD.com, and Douyin, alongside the official Nike website and app. These new flagship stores will serve as unified shopping gateways within these platforms, offering consumers an upgraded experience with clearer product presentation, more compelling brand storytelling, and a more complete consumer journey.

This means consumers will increasingly begin and complete their shopping journeys on these online platforms, ensuring their experience is direct, smooth, and unmistakably Nike. As part of this shift, online stores currently operated by partners selling Nike products will gradually phase out such sales, with some authorized exceptions.

The goal of this adjustment is not to reduce shopping access but to decrease fragmentation in online channels and enhance the integrity of the consumer journey. When the experience is consistent, the brand grows stronger.

This is not solely a digital strategy. Nike and Jordan stores remain central to the consumer brand experience. Our retail partners play a crucial role in bringing sport into communities, and we remain committed to growing together with them.

In the last six months, we have launched new retail concepts like ACG Basecamp and ROOKIE Kids stores, and upgraded existing stores, including the Shanghai House of Innovation flagship. We have seen positive consumer responses, driving same-store sales growth and increased foot traffic.

Simultaneously, we are developing new retail concepts led by local teams for launch within the next six months. The work I have seen is innovative, tailored to local needs, and feels like the Nike we know and love.

We will continue working closely with partners to elevate product presentation, optimize service, strengthen merchandise assortments, and create more meaningful, sport-led experiences in stores. When we make these improvements, consumers respond positively, revealing clear opportunities to strengthen the market ecosystem and create value for partners.

Our partnership is built on a shared understanding: building a healthier long-term market ecosystem sometimes requires short-term adjustments. Recently, Mr. Yu Wu, Chairman, CEO, and Executive Director of Topsports International Holdings Ltd., a deeply respected acquaintance, shared his perspective with me.

He stated that as Nike's largest distributor in mainland China, Topsports has developed alongside the brand for 27 years based on mutual benefit. While this adjustment will create significant short-term pressure on their business, he firmly believes it will help foster a healthier, more orderly, and sustainable retail ecosystem in China in the medium to long term, further enhancing consumer experience and product appeal. Topsports will continue its close collaboration with Nike, leveraging its strengths in offline retail operations, local consumer service, and deep market penetration across city tiers to deliver more professional and enriched sport experiences through new-concept stores and high-quality physical retail environments.

I fully agree. The core of this effort is to build a stronger, more sustainable market ecosystem that can better serve consumers and support the long-term growth of Nike and its partners.

Concurrently, we are advancing broader changes to move closer to consumers and drive business transformation. We recently appointed Nike Greater China's first local Vice President of Product Innovation, focused on creating products designed, developed, and manufactured in China for Chinese consumers.

This focus is crucial, enabling us to deliver products that meet local needs with the speed, relevance, and precision this market demands. We are also strengthening connections with local communities—launching more local events, investing in regional team building, and embedding our teams closer to where consumers live, shop, and play sports.

The most powerful market ecosystem is one where product, brand storytelling, community, digital, and retail are seamlessly integrated. In such an ecosystem, the journey from inspiration to purchase to participation in sport is smooth, and every interaction reinforces the spirit and values Nike represents.

This is our strategy: building a higher-quality digital ecosystem, stronger retail experiences, more innovation driven by local insights, and bringing our teams closer to consumers to deliver a consistent, premium Nike brand experience.

We are moving forward with clarity and conviction because we deeply believe in this market and its long-term potential. This belief shapes the actions we are taking today. This work requires focus and discipline, but the direction is clear. The market has changed, and so must we.

Nike has an outstanding team in Greater China to drive this momentum forward. My teammates here inspire me daily. They understand this market and our consumers deeply and are already actively elevating the brand experience. Personally, I am energized and confident. Nike's future in Greater China is bright.

We remain steadfast in investing in a future built on a stronger, more connected, higher-quality market ecosystem. Online and offline, we will focus on serving athletes in Greater China better than ever before.*

*If you have a body, you are an athlete.