The US sportswear giant. Nike posted a notice to runners in mainland China, saying the app will “cease service and operation” effective July 8.
In a statement to CNN Business, a spokesperson for Nike (NKE) said it would launch a “localized” platform for Chinese runners in the future and continue to invest in updating its digital platforms in China. According to the brand representative:
“We are creating an ecosystem from China to China, specifically catering to the unique needs of consumers in the region.”
China is one of Nike’s main markets. The company made nearly $8.3 billion in Greater China, which includes Hong Kong and Taiwan, in the last fiscal year, according to its annual report last . That was more than its sales in the rest of Asia Pacific and Latin America combined. China is also a major manufacturing hub for the brand, with about a fifth of Nike’s footwear and apparel being manufactured there.
The Nike Run Club, which allows users to track their runs and complete challenges with friends, has more than 8 million users in China who have collectively covered more than 600 million kilometers (nearly 373 million miles), according to a statement from the Nike Run Club. company in the app. According to Nike, local users will be able to export their fitness data.
The move is the latest in a series of changes that major Western companies have made to their mainland business in recent months. Last week, Amazon (AMZN) announced the closure of its Kindle bookstore in the country, as well as the discontinuation of sales of Kindle devices to retailers.
This summer, Airbnb (ABNB) will withdraw all as its in-country listings and will focus on outbound travelers. The company made the decision because of rising costs that have been compounded by Covid-19.
Last October, LinkedIn said it would shut down the on-premises version of its platform in China, citing a “significantly more challenging operating environment” and compliance obstacles. The Microsoft-owned platform (MSFT) has decided to introduce an entirely new and even more localized service called InJobs.
This article is a translation of the writing by Michelle Toh to the CNN Business.
The post Nike will terminate its app’s activities in China appeared first on DNEWS.
