Nike China: Leader of DTC Strategic Transformation

Qingyun Jiang; Chunyi Zhang

Product #:FDC-23017-2X-CE

Supplier:School of Management at Fudan University

Discipline:Marketing

Setting:China, 2023

Details:Case (PDF) • 10 pages • 2023-12-22 (Rev: 2025-08-01)

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Nike rolled out the Direct-to-Consumer (DTC) marketing strategy to China market in 2021 in line with global strategy. Yang Ming, the VP of Direct Retail E-commerce in Nike Greater China, had to answer several questions: Would Nike China follow the headquarters’ strategy or develop a localized plan? If localization was pursued, how did DTC strategies differ between China and the US, and which online sales channel to be selected as partner? This case highlights the trends in marketing channel in China to impress students with the concepts of digital transformation, supply chain and channel.

Learning Objectives

This case applies to marketing courses for undergraduates, MBA, and EMBA programs on marketing strategy, digital transformation, and marketing channel management. Through discussion, students can understand and master the new trends and changes in marketing channel redesign, the impact of digital transformation on the supply chain and channel integration, and the reconstruction of the company's value chain in the context of the internet and digital technology. It is recommended that students read and discuss the case in groups before class and then return to the classroom for focused discussion and exchange, either through whole class discussion and exchange or group presentation followed by whole class exchange. The learning objectives are as follows: 1. Draw students' attention to the emerging phenomenon of DTC in marketing. Through this case, they will learn about the motivation behind the change of DTC channels, the types of DTC practices in different enterprises, and the impact of DTC on the enterprise's business model, production and marketing relationships, value chain composition, channel patterns, and customer relationship management. 2. Focus on the changes in marketing channels and their relationship management in the process of DTC change. Guide students to analyze the influencing factors of channel structure, channel management structure, and channel relationship management strategies in the context of DTC, as well as the relationship between the redesign of such marketing channels and market changes, technological changes, and so on. 3. When discussing this case in MBA and EMBA programs, another focus is on the relationship between DTC changes and the digital transformation strategies of enterprises, as well as the impact of DTC on their business models. This helps students understand that DTC-led business models have more urgent requirements for supply chain flexibility and agile marketing of enterprises. 4. If the case is discussed in the marketing strategy course, we can also focus on how DTC strategy reconfigures the company value chain and use Nike as a case to explore how the enterprise transforms from a “smile curve” strategy to a new strategy centered on “customer equity.” 5. Help students further understand the unique role of e-commerce platforms in the DTC transformation process and their boundary conditions in the discussion of the case.

Nike China: Leader of DTC Strategic Transformation

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Learning Objectives