China signals: C-beauty’s rise, Arc’teryx’s resilience, a tycoon’s yacht bet

Three stories this week illuminate China’s evolving economic landscape. The country’s cosmetics industry posted further export growth in 2025, with the U.S. retaining its position as the largest market despite trade tensions. Amer Sports’ full-year results offered a revealing verdict on last September’s Arc’teryx fireworks controversy: the brand posted over 40% growth in Greater China, with technical apparel emerging as the group’s strongest profit driver. And JD.com founder Richard Liu has committed personal capital to making yachts accessible to China’s middle class through new-energy and intelligent manufacturing. China’s cosmetics export surge reveals a new global beauty powerhouse Market intel: China's cosmetics industry extended its export growth streak in 2025, with exports reaching $7.82 billion — growing 9.2% for the fifth consecutive year. The U.S. retained its position as the largest market at $1.51 billion despite trade tensions, while Russia stood out with exports surging 34.9% to $260 million. ASEAN markets accounted for 15.7% of total exports. Imports, meanwhile, edged down just 0.9% — the smallest decline since the category entered a contraction cycle in 2022 — with France maintaining its position as China’s largest import source. Market indicator: The data points to a structural shift. China is no longer simply a manufacturing base for Western beauty brands — it is emerging as a significant exporter in its own right. The narrowing import-export gap signals a meaningful change in global beauty dynamics, and for international brands, competitive pressure from Chinese players looks set to intensify not just at home but in third markets. Growth in ASEAN and Russia suggests Chinese brands are finding receptive audiences beyond their traditional strongholds, aided by cultural proximity and shifting trade relationships. Arc’teryx’s China resilience holds despite fireworks backlash Market intel: Amer Sports’ full-year results offered a notable verdict on last September’s Arc’teryx fireworks controversy: minimal financial impact. Despite widespread criticism over an event widely seen as contradicting the brand’s environmental ethos, full-year revenue grew 27% YoY to $6.6 billion. The technical apparel segment grew 34% for the year, with Q4 operating margins reaching 25.9% — making it the group’s strongest profit driver. Greater China maintained over 40% growth, with Arc’teryx accounting for 45% of global revenue from the region. Market indicator: Arc’teryx’s financial resilience through the controversy points to the value of long-term brand positioning. The brand has spent years building credibility through technical innovation and a strong association with aspirational outdoor values — assets that appear to have cushioned the impact when the backlash erupted. For luxury brands operating in China, the results suggest that a deeply established identity and loyal customer base can provide meaningful insulation that reactive crisis management alone cannot. That said, the episode is also a reminder of the reputational risks that come with brand extension into high-concept marketing territory. Can Richard Liu bring yachts to China’s middle class? Market intel: Richard Liu, founder of JD.com, has launched an independent yacht brand, Sea Expandary, backed by a personal investment of 5 billion RMB ($723 million). The venture aims to build a full industry chain spanning R&D, manufacturing, sales, and after-sales services, with a production base in Zhuhai and headquarters in Shenzhen. Liu has stated his ambition to offer yachts priced as low as 100,000 RMB ($14,500), making them accessible to ordinary families through new-energy and intelligent manufacturing technologies. China had approximately 9,850 registered yachts at the end of 2025, according to a Ministry of Transport official, compared to more than 12 million registered recreational watercraft in the U.S. — though the two figures measure different categories and are not directly comparable. Market indicator: Liu’s venture is a wager on an underdeveloped domestic market. China dominates global commercial shipbuilding — accounting for more than half of global output — but its recreational yacht sector remains nascent. Growing appetite for coastal tourism and marine recreation, particularly around Hainan, suggests the consumer foundations may be building. For luxury and lifestyle brands, Sea Expandary is a category worth monitoring: a successful push to broaden yacht ownership in China could create downstream opportunities in marine accessories, lifestyle services, and experiential offerings. The harder question is whether consumer culture can be built as quickly as the boats.

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China signals: C-beauty’s rise, Arc’teryx’s resilience, a tycoon’s yacht bet