Canadian craze: The surging popularity of Arc’teryx, Lululemon in China

Editor's note: The story has been updated to include Q3 sales figures released by Canada Goose. Lululemon yoga pants, Arc’teryx jackets, and Canada Goose mittens — each time Andy Wang flies back to Beijing from Canada, these are the items that his friends and family ask him to buy for them. “People know that it’s cheaper to buy in Canada,” says Wang (not his real name). Back in the day, Coach bags, Michael Kors accessories, and other American brands used to be among the top requests. Nowadays, Canadian brands are what people in China desire, according to Chinese-Canadian entrepreneur Wang. “Or they will tell me, ‘I want to visit you in Vancouver, so that you can take me shopping at Lululemon and Arcteryx.’ They do all their Canadian shopping research through Chinese social media. [I find it] quite funny,” he says. In recent years, Canadian athleisure and outdoor wear brands like Lululemon, Arc'teryx, Canada Goose and others have accelerated their expansion in China, in terms of presence and sales. Brand Canada’s appeal “Why does everyone like Arcteryx? Because there are no cons in terms of functionality or daily usage,” writes Xiaohongshu user Cunshangcunxia (@村上村下). “This jacket is a major hit at ski resorts, and its powerful performance is a main feature.” The rise of outdoor activities and winter sports, coupled with a greater demand for wellness and balanced lifestyles, is one reason Canadian brands in China have been so successful in recent years. While skiing and snowboarding were considered fringe sports in China a decade ago, today millions of Chinese consumers partake in these activities, partly influenced by the 2022 Beijing Winter Olympics. “The natural beauty of Canada becomes a central element when projecting the Canadian brand in China,” says Alex Kocun, vice president of sales and operations at Rudsak, a Montreal-based outdoor wear label that recently entered the Chinese market. Winter sports, particularly skiing and snowboarding, seamlessly connect with Canada's climate and topography. The country's reputation for cold winters and snow-covered regions makes winter sports a natural choice for branding. “This association with stunning landscapes and climate fosters positive perceptions of Canadians as experts in outerwear,” says Kocun. “Winter sports, particularly skiing and snowboarding, seamlessly connect with Canada's climate and topography. The country's reputation for cold winters and snow-covered regions makes winter sports a natural choice for branding.” It makes sense that China’s outdoor enthusiasts would identify with this image. According to data from Chinese travel website Mafengwo, 85.6 percent of outdoor sports aficionados in 2022 were millennials and Gen Z, who are at the forefront of the convergence of outdoor sports and fashion trends in China. “The perception of Canadian brands in China has been increasingly positive,” says Kocun. “We’ve seen a growing demand for high-quality outerwear that combines both style and performance and is founded on expert craftsmanship, especially in ski and apres-ski.” Arc’teryx, a subsidiary of Finnish firm Amer Sports — whose parent company is Chinese sports conglomerate Anta — is the largest growth engine for Amer. In the first nine months of 2023, the Vancouver-headquartered apparel brand Arcteryx posted revenue of $941 million, with its greater China revenue at $452 million, 43 percent of global revenue. With 63 self-operated retail outlets across China as of September last year, and multiple China-based activations in 2023 — including the launch of its skiing documentary titled The Taoism of Ski Mountaineering — Arc’teryx’s expanded presence in China has paid off. Despite recent price hikes, such as the Beta LT shell jacket costing upwards of 6,000 RMB ($834), Arc’teryx is still highly sought-after by Chinese consumers. Fellow Canadian outdoor wear brand Canada Goose also performed strongly in China last year. The premium label, whose iconic fur-hooded black parkas sell for upwards of $1,000, reported $207 million in revenue in the fiscal quarter ending October 2023. The brand expects up to 70 percent of its sales to take place via direct-to-consumer channels by the end of 2024. Beyond parkas, Toronto-headquartered Canada Goose has expanded its offering to include rainwear and shoes. Meanwhile, Arcteryx’s yoga-focused counterpart Lululemon, saw sales climb 63 percent year on year to $794 million in the first three quarters of 2023 in China. The brand recently launched a Year of the Dragon special collection, resulting in pages of posts on Chinese social media platform Xiaohongshu. “I hope these [collages] give you some ideas for how to match their items,” writes blogger MaxxxxLo in a popular post on the red-themed collection. Enter more Canadians Amid the tremendous success and widespread appeal of brands like Arc'teryx and Lululemon, other Canadian competitors such as Rudsak, Moose Knuckles and Nobis have found their footing in the Chinese market. “The perception of Canadian brands seems to focus on credibility and premium functional positioning,” says Robin Yates, vice president and founder of Nobis, a premium outdoor wear label. “The strong DNA of functionality is more welcomed by the market over fashionability as we are driving consumer awareness of technical apparel with other strong Canadian brands like Arc'teryx and Lululemon.” Helmed by Yates, a former executive at Canada Goose, Nobis has in recent years expanded its East Asia offering from South Korea to include three new retail shops in Beijing and Shanghai. “We’ve had a presence on Tmall [since] 2021, and more recently in our joint venture with Ellassay Group opened brick-and-mortar retail locations in Beijing and Shanghai,” he says. The feedback from Chinese consumers has been positive, says Yates. “Magnetic closures, vent systems, detachable trims and multi-pocket systems and home wash ability have all been embraced by the customer,” says Yates about the brand’s Canadian duck down jackets and accessories. Localized campaigns have proven to successfully engage consumers, says Yates. In December last year, Nobis unveiled a “tri-collaboration” with The Paris Saint-Germain football club alongside Taiwanese Mando-pop star Jay Chou. Together they launched the “Ace of Stade” outerwear collection. Two months after the store openings in Beijing and Shanghai, and the Nobis, Jay Chou and football team tie-up, the brand’s total impression rate on all social media platforms exceeded 140 million views, says Yates. Evolution of a national image Ultimately, demand for Canadian products in China is soaring thanks to Canada’s pristine, outdoorsy and healthy image, says Jacob Cooke, co-founder and CEO of WPIC Marketing and Technologies. Cooke believes there is something inherent in “brand Canada” that chimes with Chinese consumers. “For example, [Canadian cafe chain] Tim Hortons explicitly deploys Canadian imagery in their China branding,” says Cooke of the stores adorned with maple leaves and hockey sticks, and where employees where signature red and black plaid shirts. “From our work with Canadian apparel, food, and nutraceuticals brands, it’s clear that when a connection to Canada is marketed as a selling point, it resonates with Chinese consumers.” "It’s clear that when a connection to Canada is marketed as a selling point, it resonates with Chinese consumers.” Kocun, VP of sales and operations at Rudsak echoes these views. “Overall, Canada as a brand in China is likely to be associated with … a land of natural beauty, friendly inhabitants, and a high quality of life. This narrative creates an appealing image that resonates with the Chinese audience's love for travel, scenic landscapes, and a healthy, active lifestyle.” Additional research by William Zhou

Canadian craze: The surging popularity of Arc’teryx, Lululemon in China

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Published January 22, 2024

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Canadian craze: The surging popularity of Arc’teryx, Lululemon in China