Arc’teryx has apologized for the fireworks display it hosted in the Himalayan region of Tibet, which drew furious backlash on Chinese social media, including calls for a boycott, due to ecological concerns and perceived disrespect for local culture.
Arc’teryx, owned by Amer Sports, collaborated with Cai Guo-Qiang, a pyrotechnics artist, on the fireworks project dubbed “Rising Dragon,” held on September 19 in Shigatse city, in far western China, along the snow-capped ridge of the Himalayan mountains bordering Nepal at an altitude of 5,500 meters (18,045 feet).
A video of the event released on social media on Saturday, September 20, showed multiple fireworks designed to resemble a colorful dragon.
Arc’teryx and Guo-Qiang stated that the display “utilized biodegradable, environmentally friendly materials, that all stock herds had been relocated, and wildlife had been coaxed away with salt bricks.” The company also stated that the project “had passed tests in line with those set by the 2022 Beijing Winter Olympics and adhered to pollution management standards equivalent to those in Japan and Europe.”
Arc’teryx stated that the fireworks were “designed to raise awareness of mountain culture.” Instead, the video triggered criticism on social media, as it ran counter to the outdoor brand’s image of protecting nature.
Critics of the fireworks also denounced the performance as an act of “cultural arrogance,” noting that the mountains are “sacred to people in Tibet, where many follow Buddhism.” Some have further warned that the massive blasts could generate sound waves, posing potential risks to glaciers already vulnerable due to climate change, possibly destabilizing ice masses. Meanwhile, the explosions, color and smoke could also disrupt local wildlife.
Some expressed their intention to boycott Arc’teryx products while the Shigatse Municipal Government and Chinese Communist Party (CCP) branch launched an investigation into the incident. Arc’teryx has since retracted the video.
Arc’teryx acknowledged its oversight in setting off the fireworks display on September 21 and released the following official statement:
“The recent fireworks display on the Tibetan Plateau was out of line with Arc’teryx’s values. We’ve heard your concerns, and we share them.
“This event was in direct opposition to our commitment to outdoor spaces, who we are and who we want to be for our people and our community. We are deeply disappointed that this happened, and apologize, full stop.
“We’re addressing this directly with the local artist involved, our team in China and will change the way we work to ensure this doesn’t happen again. Our expectation is that everything we do reflects our environmental ethos, and we have no tolerance for actions that do not align. We have already begun efforts to mitigate the environmental and social impacts of this event.
“We are grateful to our community for holding us accountable.”
In a media statement, Arc’teryx pledged to “invite a third-party environmental organization to conduct a transparent assessment and take effective action to make up for any damage that may have been caused.” Based on the assessment results and community feedback, the company promised to “implement timely and effective remedial actions.
“At the same time, we will accelerate our established environmental protection plans in Xizang region and fully promote public welfare projects that contribute to local cultural development,” said the company.
Cai, the 67-year-old artist who famously oversaw fireworks for the 2008 Beijing Olympics, also took to Chinese social media to apologize, acknowledging there were “several areas that failed to be taken into account properly.”
“My studio and I attach great importance to this and humbly accept all criticisms of (our) artistic creation on the snowy plateau with a modest heart and sincerely thank you for your concern and reminders,” Cai wrote Monday, September 22, on Douyin, China’s version of TikTok.
Cai said he would “proactively cooperate with” the authorities’ assessment of the ecological impacts and “take practical action” to protect the plateau, pledging to implement more stringent measures in the future.
The artist, known for his gunpowder paintings and outdoor pyrotechnic displays, was born in the southern Chinese city of Quanzhou but has been based in New York since the mid-90s.
Implications
The uproar may have led Arc’teryx to cancel the unveiling of a new initiative supporting the brand’s circular practices, which was set to be announced on Monday morning, September 22, at a media event at its Soho store in New York City, featuring Arc’teryx CEO Stuart Haselden and other top executives within the company.
Shares of Amer Sports, which went public in February 2024, slid €1.60, or 5 percent, to €30.40 on Monday on the Frankfurt Stock Exchange.
In a note on Monday morning, Citi Research analyst Paul Lejuez said he believes Amer Sports’ shares might face “temporary pressure” as a fallout from the incident. He noted that China has been a significant driver of Arc’teryx’s recent sales surge, with China now accounting for approximately 40 percent of the brand’s sales.
Lejuez wrote in the note, “On the surface, we do not like to see brands facing backlash from any consumers in its key regions, though it seems the company is taking remedial actions, including apologies. While it is difficult for us to predict the short-term or long-term impacts (and if Chinese consumer perceptions might change), because Arc’teryx has roots as a very authentic brand with enormous respect for the outdoors, this incident will hopefully be viewed as a one-time mistake in judgment with no long-term consequences. Still, we have to consider that this situation could cause temporary pressure on sales and the stock.”
Bloomberg Intelligence analyst Catherine Lim said in a note that the incident could lead to Hong Kong-based Anta Sports, Amer Sports’ majority shareholder, to miss its second half and 2026 pretax profit consensus by 6 percent. She said erosion of consumer trust could hurt Arc’teryx’s traction among sustainability-minded urban shoppers.
Anta, however, may avoid any fallout because so far, the negative publicity has been limited to its Arc’teryx brand, Citigroup analysts Xiaopo Wei and Vincent Young said in a note.
On Sunday, September 21, local authorities launched an investigation.
“The Shigatse party committee and government take the matter seriously and have set up an investigation team to send to the site immediately to investigate,” the city’s local communist party committee said in a statement on Chinese social media platform WeChat. It will handle the outcome “in accordance with the law and regulations,” it said.
A top comment on Arc’teryx’s apology post said the display was “not something that can be forgiven with a single apology post,” and urged Arc’teryx to take responsibility for any long-term environmental impact.
Another commenter questioned how a project of such scale could have gotten approved by China’s Communist Party authorities. The area has been a tightly controlled part of China since it was annexed in the 1950s. On Weibo, one commentator stated. “Arrest all those who have passed the approval process.”
On Monday, the China Advertising Association stated that it was “disappointed” that Arc’teryx did not explore “more positive marketing strategies.” The group said in a statement, “The display, under the guise of ‘respecting nature,’ potentially harmed the environment, ultimately eroding years of trust.”
Amer Sports Investor Day
Citi’s Lejuez noted that Amer Sports last week held its first Investor Day at Arc’teryx’s Vancouver, BC headquarters, which focused on Arc’teryx’s growth potential, with the brand’s ReBird care and repair program receiving significant attention. Lejuez said, “Management hinted at a significant marketing campaign (coming soon, as early as this week) tied to their ReBird efforts (and sub-brand within Arc). This seems well-timed to help show their commitment to the environment and give them some potentially counteracting press to the fireworks backlash.”
At the Investor Day event, Haselden said Arc’teryx’s ReBird program, launched in 2021, has been “really successful” and remains critical to driving consumer engagement.
The CEO said, “Why we’re excited about this is that it’s something that’s personal for us as folks who are passionate about the mountains and live in British Columbia. Preserving the environment is preserving what we love. And from a business standpoint, our DTC footprint gives us a platform to really bring this concept to our customers or guests directly. Most of our competitors in the industry don’t have an 80 percent-owned distribution model. Because we have this, we can create this unique point of engagement with our guests, which is resonating around the world as you visit our stores in China, in Australia, in Europe, and across North America. This is an important way in which we engage with our guests.”
