What We Can Learn from Arc’teryx’s Fall from Grace

Recap

Arc’teryx, the Canadian outdoor brand now controlled by China’s Anta Group, has been thrown into the rage of fire and may soon live up to its “dead bird” logo. Since September 19, it has been accused by outraged netizens of “blowing up the mountains 炸山” and bringing irreparable damage to the fragile ecosystem of Tibet’s sacred Himalayan region.

This suicidal act is a textbook brand case: how an iconic name fell from grace and destroyed what it had painstakingly built over years of consistent effort and investment.

credit: Xiao Hongshu

What It Implies

It is perilous for any brand to lose its footing in the overwhelming temptation of economic returns and revenue growth if it fails to stand unwaveringly on its brand integrity, the very foundation of the values it proclaims, and where trust is built with its core customers.

According to the 2024 annual report of its parent company, Amer Sports, Arc’teryx delivered a strong 36% surge in performance last year, with revenues reaching USD 2.194 billion (about RMB 15.6 billion). That success fueled the unbridled ambition of Arc’teryx to ride the outdoor boom in China. It could not wait to cast off its humble grassroots beginnings and repackage itself as a luxury outdoor fashion brand, milking a lifestyle embraced by the deep-pocketed middle class and elites searching for freedom and a spiritual bond with the wild. And what it thought was needed for this rebirth was a stunt, unimaginable and unprecedented, to shake off its “nobody” status.

But what this stunt evoked was not awe of nature, but collective outrage. After years of education and awakening, Chinese consumers have evolved fast and can no longer be fooled by hollow brand promises. What Arc’teryx tried to fool others with became self-deception.

Lessons from This Brand Suicide Case

1. Brands lag behind consumers in ESG.

ESG in China is no longer hype; it is a necessity. Consumers will not tolerate greenwashing or hypocrisy in the name of “awe for nature.”

2. Consumers have outpaced brands.

I was stunned by the backlash to Arc’teryx’s stunt and marveled at how quickly Chinese consumers have evolved in just a decade. Back in 2017, when I researched consumer perceptions of ESG for one of Unilever’s eco-friendly brands’ launch in China, ESG was vague and often dismissed as a pretext for premium pricing. Now, value-driven choices dominate, on par with advanced markets like Europe and North America.

3. Brand builders are blinded by complacency.

Too many brands remain complacent in hype creation rather than embedding ESG at their core. Arc’teryx paid the ultimate price: proclaiming “awe and respect for nature” while literally destroying it.

4. Premium brands face higher scrutiny.

Affluent Chinese consumers no longer accept empty promises. For luxury and premium brands, social and value identity must align perfectly with behavior. Any contradiction is intolerable.

The Backlash

This learning is echoed in comments across social media, where voices are unanimous in denouncing this brand stunt. After the wave of emotional outpouring, rationality has taken over. Chinese netizens are now calling for severe condemnation of Anta Group, Arc’teryx, artist Cai Guoqiang, and the officials who approved the stunt. Whether this proves to be a fatal blow to the brand will be revealed in the next annual report of Amer Sports, Arc’teryx’s parent company.

The Way Forward

As a trend forecaster, I always eye the future. This case makes one truth clear: in China, brands must now look to the pioneers of ESG and evolve rapidly to match their consumers’ mindset and behavior.

Patagonia offers the path. When Yvon Chouinard declared “Earth is now our only shareholder” and pledged Patagonia’s profits to fighting climate change and protecting the earth, he rooted the brand in love for the outdoors and mountaineering. This spirit echoes the Chinese saying: 不忘初心 (never forget why you started).

I believe this is the only way forward for any brand that seeks to expand and grow in China, never forgetting its root love while pursuing revenue and scale. As the Chinese Business Account 商界 (Shangjie) commented, “Once trust is broken, it is like the snow and ice of the Himalayas melting, impossible to restore.”

credit: Xiao Hongshu