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00:02Nike plans to cut off thousands of online distributors in China beginning in January
00:06as it works to improve branding, pricing, and sales in the region, according to CNBC.
00:11The company will focus online sales through its website, app, and official storefronts on Tmall,
00:16JD.com, and Douyin. Nike said the move will reduce fragmentation and create a more consistent
00:22shopping experience. However, the strategy could pressure revenue and hurt brick-and-mortar
00:27partners that expanded online. BNP Paribas warned the plan resembles Nike's decision to reduce
00:33wholesalers in North America, which hit market share and hurt sales and margins. Nike's largest
00:39mainland China distributor, Top Sports, said it supports the change despite expected short-term
00:44pressure. For all things money, visit Benzinga.com.
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