Nike Shutting Down Fan-Favorite Workout App
In a move worthy of a double take, Nike has announced plans to permanently shut down the Run Club app in one region.
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Nike is set to remove a specific app from China, to the disappointment of many fans. Known as Run Club, this app is known for tracking your running goals and fitness accomplishments. A statement sent out by the clothing brand stated that Run Club would no longer be available on app stores after July 8th.
Though many runners in China are unhappy with this outcome, Nike did state that a “localized” version of Run Club would soon be available in the country. The sportswear company didn’t go into further detail about that application or when it would be available but hinted that there’s something in the works. The company is continuing to invest in upgrades for Chinese consumers and updating its online platforms in China. A representative said that Nike is hard at work catering to “the region’s unique consumer needs” but didn’t elaborate on how the company is doing so.
Removing a popular app from Chinese online stores is a confusing move on Nike’s part, especially since the country makes up a humungous portion of the company’s revenue. Last year, Nike made $8.3 billion in revenue in Greater China, including Taiwan and Hong Kong. East Asia has constantly been a region of monetary success for Nike, accumulating sales in China surpassing South America and the Asia-Pacific countries combined. Alongside Nike’s large consumer base, China is also a key player in the sportswear company’s manufacturing. A fifth of all footwear produced for the brand comes from facilities in China.
More than eight million people are currently using Run Club in China and have collectively run 600 million kilometers since the app was first available. Most apps removed by tech companies are due to lack of usage, which was not a problem for Run Club in China. Nike’s decision to take off the running app from online stores follows suit with other companies having business complications with the East Asian country.
Other factors have played into Nike’s decision to remove Run Club from Chinese app stores. It’s one of the latest US companies to begin reconstructing their business entanglements with China, facing stress and monetary depletions from the country’s extensive quarantine policies. Amazon was one of a few humungous enterprises which have shut down its online businesses in China. Announced last week, Amazon’s Kindle Store will no longer be available in the country this summer, alongside a permanent hiatus of Kindle device sales to third-party retailers.
Similar to Nike, Airbnb also removed specific business affiliations with China. Airbnb was facing more significant issues from the country’s strict quarantine protocol, which decreased the number of tourists needing temporary housing. The homestay and lodging company isn’t removing all of its business from China, keeping one office running for outbound travelers. Insurmountable costs that were weighing on Airbnb finalized its decision to reduce its operations in China.
Though China is one of Nike’s largest buyers and manufacturers, it didn’t stop the sportswear company from taking off Run Club from online stores. Though Nike stated that it would transform Run Club into a different app tailored to East Asia, there’s no definite information about the new application, what it would provide, and when it will be released.
