Nike's running and working out app to close service in China next month
Jun 09, 2022
Beijing [China], June 9 : Nike's running and working out app, Nike Run Club (NRC) has informed Chinese users that it will end the service in the country next month, becoming the latest Western company to reconfigure its business in Beijing.
The US sportswear giant posted a notice to runners in mainland China, saying the app will "cease service and operation" there starting July 8.
Citing a statment of Nike (NKE) spokesperson, CNN reported that it would roll out a "localized" platform for Chinese runners in future, and continue to invest in updating its digital platforms in China.
"We are creating an ecosystem from China for China, specifically catered to the region's unique consumer needs," the representative said.
According ot CNN, NKE made nearly USD 8.3 billion in revenue in Greater China, which includes Hong Kong and Taiwan, in the last fiscal year, according to its most recent annual report. That was more than its sales in the rest of Asia Pacific and Latin America combined.
China is also a key manufacturing hub for the brand, with about a fifth of Nike's footwear and apparel being made there.
Nike Run Club, which allows users to track their runs and perform challenges with friends, has more than eight million users in China who have collectively covered more than 600 million kilometers (nearly 373 million miles), according to a company statement on the app.
The move is the latest in a series of changes big Western companies have made to their businesses in mainland China in recent months.
Last week, Amazon (AMZN) announced the closure of its Kindle bookstore in the country, as well as the discontinuation of Kindle device sales to retailers. This summer, Airbnb (ABNB) will take down all its listings in the country and concentrate instead on outbound travelers. The company made the decision because of mounting costs that were worsened by COVID-19.
