Arc'teryx has fallen from its pedestal.

Author | Wang Xiaojuan

Editor | Huang Yu

Unexpectedly, Arc'teryx has encountered a crisis.

On September 19, Arc'teryx sponsored artist Cai Guoqiang to stage a fireworks show called "Ascending Dragon" in the Relong area of Jiangzi, Himalayas, Tibet. The three-act colored fireworks were ignited along a 3,000-meter mountain ridge, forming an "Ascending Dragon" spectacle.

The event video quickly sparked controversy upon release, raising public concerns about damage to the plateau's ecological environment, criticizing Arc'teryx for positioning itself as an outdoor brand yet harming outdoor spaces. Afterwards, both Arc'teryx and Cai Guoqiang issued apologies, but the public was not appeased.

After the apologies, netizens found differences between the English statement released by Arc'teryx on overseas social media platforms and the domestic version, accusing the brand of "shifting blame" to the Chinese team. The overseas version did not emphasize commitments to review and remedy actions that damage the ecological environment. More seriously, the mention of "communicating with the China team to adjust working methods" in the overseas version was suspected to be an attempt to "shift blame."

Regarding the fireworks show, industry experts called it a "highly intrusive act." The Qinghai-Tibet plateau environment is very special; the low temperature and scant rainfall reduce biological activity, thus slowing decomposition. Foreign substances may remain for years, increasing the ecological burden. External audio-visual stimuli may trigger stress responses in animals, impacting their daily rhythms and reproductive cycles.

At the same time, this incident exposed Arc'teryx's issues in controlling the boundaries of brand marketing. As an outdoor brand, Arc'teryx encourages people to embrace the outdoors, but this act damaged outdoor spaces and conflicted with its long-standing philosophy of "reverence for nature" and "sustainability."

The impact of this incident continues to ferment. On September 22 at market open, Anta Sports, the parent company behind Arc'teryx, witnessed its share price plunge by as much as 7.28% during trading.

The concerns of the capital market come not only from the incident itself but also from the potential impact on performance due to Arc'teryx's brand value being tarnished. Moreover, because of Arc'teryx's success in the outdoor sector, many brands under Anta are currently positioned in the outdoor lifestyle space, with heavy investment. This incident inevitably puts Anta as a whole under scrutiny.

In the past few years, Arc'teryx has always been a hot outdoor brand. In 2019, Anta Sports teamed up with FountainVest Partners, Anamered Investments, and Tencent to form a consortium and completed the acquisition of Amer Sports for 4.6 billion euros.

In this deal, Anta held 57.95% of the shares, becoming the absolute controlling shareholder. Back then, it was viewed as a major gamble in the industry, since Amer Sports had a net loss of 120 million euros in 2018.

Anta proved its outstanding operational capabilities. After the acquisition, Amer Sports' losses narrowed year by year, with net loss dropping to 80 million euros in 2020, further to 30 million euros in 2021, and finally turning a profit for the first time in 2022.

Thanks to Anta's operations, Arc'teryx experienced phenomenal growth in the Chinese market. From 2020 to 2024, Amer Sports' annual compound revenue growth rate in Greater China reached 61%.

In the first half of 2025, Amer Sports' revenue in Greater China grew another 42%. The Chinese market has now become the core engine for Arc'teryx's global growth.

In the second quarter of 2025, Arc'teryx achieved revenue of $509 million, accounting for 41.2% of Amer Sports' total revenue. Footwear became Arc'teryx's fastest growing category, outpacing overall brand growth, and women's categories achieved double-digit growth in all regions.

Despite its stellar performance, Arc'teryx's growth has already shown signs of slowing. According to financial reports, the department where Arc'teryx sits grew by 44%, 79%, 69%, and 26% in the four quarters of 2023, but only by 44%, 34%, 34%, and 33% in 2024.

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

Domestic brands are also rising. Kailas is seen as Arc'teryx's biggest threat, transitioning from being considered a "substitute" to developing its own independent brand identity, attacking from lower price ranges upward.

After this incident, Arc'teryx will need a long time to rebuild consumer trust. A consumer in Xi'an told Wallstreet CN that they often hike the Qinling Mountains, bought Arc'teryx two or three times in recent years, and loved the outdoor vibe. But after seeing this incident, they're quite disappointed and may not buy again: "People should pay or not pay according to their beliefs."

However, there are consumers who said, "If I need it, I'll still buy it, not for the brand but for my needs."

This incident also reflects the challenges international brands face in cross-cultural marketing. The content differences between Arc'teryx's overseas and domestic statements reveal incoherence in the brand's global communication strategy. More importantly, as an international brand acquired by Chinese capital, Arc'teryx needs to attach more importance to Chinese consumers' sentiments and cultural context.

Anta's stock price fluctuations also indicate that analysts are reassessing the value of the Arc'teryx brand.

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

Ma Lei faces a thorny task: repairing the damaged brand image, balancing the strategic contradictions between professional outdoor and luxury positioning, and maintaining momentum in the increasingly fierce competition among outdoor brands.

The trial for Arc'teryx may have only just begun.

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