Nike, the sportswear behemoth, is making a strategic move into the expanding outdoor recreation industry. Starting with the launch of a new trail running shoe, Nike aims to invigorate its lesser-known sub-brand, ACG, and turn it into a vital source of growth.
Beginning with the Ultra-Trail du Mont-Blanc event, an ultramarathon in France, Nike plans to release its Ultrafly trail running shoe, which is a part of the ACG (All Conditions Gear) outdoor sub-brand. This move is an attempt by Nike to reestablish ACG as a credible contender in the realm of performance-focused trail running shoes.
Commenting on the broader strategy, Nike’s CEO, Elliot Hill, explained that the company is refocusing on core sports such as running in response to the growing competition from smaller brands. Nike is striving to catch up in the outdoor recreation industry, which has seen substantial growth during the pandemic, and in China, where outdoor activities have gained considerable popularity. The company’s struggle in these two markets has been a factor in its diminished share of the global sportswear industry.
Nike-sponsored athletes, including Anthony Costales, will wear the ACG Ultrafly during races. The shoe is scheduled to be available to consumers in spring 2026. In addition, a rejuvenated version of the Zegama trail runner, also under the ACG brand, will be released later in 2026.
However, revitalizing the ACG brand, initially launched in 1989 with an emphasis on hiking and biking, will not be without its challenges. The brand is currently associated with “gorpcore”, a fashion trend that blends functional gear with style. Despite these challenges, Nike is looking towards the long-term benefits of this strategy, especially in the Chinese market.
Nike established its ACG team as a sub-brand in October and appointed Angela Dong, VP for all of Greater China, to lead the unit. Sales of outdoor apparel in China nearly doubled between 2019 and 2025, and outdoor footwear sales increased by 65% in the same period. Despite this, Nike has reported double-digit sales declines in China over the past three quarters.
The Chinese market has posed significant challenges for Nike as it faces stiff competition from other retailers. Economic instability and high youth unemployment have also impacted spending.
Nike’s global sportswear market share fell to 26% from 29% in 2021. Other brands such as Hoka have used trail running to bolster growth, underscoring the potential that Nike sees in this segment.
Launching at a Hoka-sponsored event could be viewed as Nike’s attempt to overshadow its rival, demonstrating Nike’s ability to leverage its financial strength against smaller brands.
What is Nike’s new strategy in the sportswear market?
Nike is focusing on outdoor recreation, reviving its ACG sub-brand with the launch of a trail running shoe.
What challenges does Nike face in revitalizing the ACG brand?
ACG, launched with a focus on hiking and biking, has become associated with the “gorpcore” fashion trend, which may make it difficult for the brand to reposition itself as a serious contender in the outdoor recreation space.
What is the current state of Nike in the Chinese market?
Despite the growth in outdoor apparel and footwear sales in China, Nike has experienced double-digit sales declines in this market over the past three quarters due to tough competition and economic factors.
