The fall of Arc'teryx from grace

Author | Wang Xiaojuan

Editor | Huang Yu

Unexpectedly, Arc'teryx has encountered a crisis.

On September 19, Arc'teryx sponsored artist Cai Guoqiang to complete a fireworks performance titled "Ascending Dragon" in the Jiangzi Relong area of the Himalayas in Tibet. Three acts of colorful fireworks were launched along a 3,000-meter ridge, creating the "Ascending Dragon" spectacle.

The video of the event quickly sparked controversy, raising public concerns about the destruction of the plateau's ecological environment and accusing Arc'teryx of positioning itself as an outdoor brand while damaging outdoor spaces. Subsequently, both Arc'teryx and Cai Guoqiang issued apologies, but the public was not convinced.

After the apology was released, the English statement published by Arc'teryx on overseas social media platforms was found to differ from the domestic version, leading to accusations of "shifting blame" to the Chinese team. The overseas version did not emphasize the commitment to review and remedy actions that harm the ecological environment. More seriously, the mention of "communicating with the Chinese team to adjust work methods" in the overseas version was questioned for potentially "shifting blame."

Regarding this fireworks show, industry experts have labeled it as "highly invasive behavior." The environment of the Tibetan Plateau is very unique; the low temperatures and low rainfall reduce biological activity, thereby slowing decomposition rates. Foreign substances may persist for years, increasing ecological burdens. External auditory and visual stimuli may trigger stress responses in animals, affecting their life rhythms and reproductive cycles.

At the same time, this incident has exposed issues with Arc'teryx's control over the boundaries of brand marketing. As an outdoor brand, Arc'teryx advocates for people to go outdoors, but this action has damaged outdoor spaces, conflicting with its long-promoted concepts of "respecting nature" and "sustainability."

The impact of this incident is still unfolding. On September 22, as the parent company behind Arc'teryx, ANTA SPORTS saw its stock drop by as much as 7.28% during trading.

Concerns in the capital market stem not only from the incident itself but also from the potential impact on performance due to the damage to Arc'teryx's brand value. Furthermore, because of Arc'teryx's success in the outdoor sector, ANTA currently has several brands positioned in the outdoor lifestyle market, making significant bets in this area. This incident inevitably raises concerns at the overall level of ANTA.

In recent years, Arc'teryx has been a hot outdoor brand. In 2019, ANTA SPORTS, together with Fangyuan Capital, Anamered Investments, and Tencent, formed a consortium to acquire Amer Sports for €4.6 billion.

ANTA held a 57.95% stake in this acquisition, becoming the absolute controlling shareholder. This transaction was viewed as a gamble by the industry, as Amer Sports reported a net loss of €120 million in 2018.

ANTA demonstrated excellent operational capabilities. After the acquisition, Amer Sports gradually narrowed its losses, with net losses decreasing to €80 million in 2020, further down to €30 million in 2021, and finally achieving profitability for the first time in 2022.

Thanks to ANTA's operations, Arc'teryx has achieved remarkable growth in the Chinese market. From 2020 to 2024, Amer Sports' revenue compound annual growth rate in the Greater China region reached as high as 61% In the first half of 2025, Amer Sports' revenue in Greater China grew by 42%. The Chinese market has become the core engine of Arc'teryx's global growth.

In the second quarter of 2025, Arc'teryx's revenue reached $509 million, accounting for 41.2% of its parent company Amer Sports' total revenue. Footwear has become the fastest-growing category for Arc'teryx, with growth rates exceeding the overall brand, and the women's category also achieved double-digit growth in all regions.

Despite impressive performance, Arc'teryx's growth has shown signs of slowing down. According to financial report data, the growth rates for the department Arc'teryx belongs to in the four quarters of 2023 were 44%, 79%, 69%, and 26%, while in 2024 they were 44%, 34%, 34%, and 33%.

Market competition is also intensifying. Since 2024, at least 10 international outdoor brands have entered the Chinese market. These brands include Switzerland's X-Biotic, South Korea's Discovery Expedition, and Canada's trail running brand Norda.

Domestic brands are also rising. Kailas is seen as the biggest threat to Arc'teryx, transitioning from a "substitute" perception to developing an independent brand personality, attacking from the lower price range upwards.

After this incident, Arc'teryx will need a long time to build consumer trust. A consumer from Xi'an told Wall Street Insight that he often hikes in the Qinling Mountains and has bought Arc'teryx products two or three times in recent years, enjoying the outdoor atmosphere, but was disappointed by this incident and may not buy again, stating, "People have to pay or not pay for their beliefs."

However, some consumers expressed, "If there is a need, I will still buy it, not looking at the brand, but at my own needs."

The incident also reflects the challenges international brands face in cross-cultural marketing. The content differences between Arc'teryx's overseas and domestic versions show a lack of coordination in the brand's global communication strategy. More importantly, as an international brand acquired by Chinese capital, Arc'teryx needs to pay more attention to the emotional and cultural context of Chinese consumers.

The changes in Anta's stock price also indicate that analysts are reassessing Arc'teryx's brand value.

This fireworks incident occurred during a period of executive changes at Amer Sports. In June 2025, Ma Lei was appointed as the president of Amer Sports Greater China, succeeding Yao Jian, who successfully led Arc'teryx to performance growth. Yao Jian was then transferred to be the brand president of Jack Wolfskin, the German outdoor brand newly acquired by Anta.

Ma Lei faces a challenging task: how to repair the damaged brand image, balance the strategic contradiction between professional outdoor and luxury positioning, and maintain growth momentum amid increasingly fierce competition among outdoor brands.

The test for Arc'teryx may just be beginning.

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