Is Arc'teryx's Brand Identity Eroding as Some of its Production Goes to China and Other Countries?

High-end outdoor apparel company Arc'teryx is eroding the strength of its brand by contracting some of its manufacturing overseas and not fully embracing it.

If Arc'teryx is going to source production overseas they need to fully embrace it, just like Mountain Equipment Co-Op (MEC) did. The company needs to tell consumers about their corporate sustainability efforts, conditions in their overseas production facilities and have audits & accountability for their contractors. 

Arc'teryx's customer base are avid outdoor people.  These people as a group tend to value social responsibility highly when making decisions on buying.  When companies don't provide this information or worse yet offer weak corporate sounding gloss over statements consumers look elsewhere.

Its not good enough any more to tell consumers 25% of the products are made in China and other countries and the remainder is made in Canada.  Eco-consumers want specifics, they as a group do more product research than any other segment of the buying population before making a decision on what to purchase.  Eco-consumers want information so they can make informed decisions.  Be open and up front and consumers will respond and the focus will shift from the country of manufacture back to the quality of the final product.

Arc'teryx Diplomat ST Gore Windstopper® Jacket made from Italian wool.  Made in China
 

Arc'teryx was founded in 1991 in Vancouver and made all of its gear in Canada.  It was known as a highly respected small brand with impeccable quality.   The company started making climbing harnesses and then began making innovative garments known for their construction and fit. 

In 2002 Arc'teryx was bought by Salomon, owned at the time by Adidas.  With the global presence of Salomon and the increasing popularity of Arc'teryx, the company started to out source manufacturing of some of its garments to China and other countries.

This move is not uncommon in the industry, in fact it is more the norm these days.  However as more and more Arc'teryx gear was being made overseas the company continued to develop its image as the small Vancouver-based clothing designer and maker that it once was.

By making this decision the brand that was built on the idea of being small and high quality and producing everything in Canada started to lose the very identity it used to grow in the first place.  The company seemed not to realize this type of move didn't sit well with its customer base.

Then in 2005 as Salomon's sales were lagging Adidas sold Salomon and its brands to Helsinki-based Amer Sports Corporation.  As a result Arc'teryx is now a brand under Amer.

I called Arc'teryx to find out how much of their product line is made in China and was told some garments are made their because they simply couldn't keep up with demand in Vancouver.  The answer wasn't clear.  The man I spoke with said a lot of their Gore Paclite® garments were made in China.  However I knew it was more than that having seen their Diplomat ST jacket that was made in China and some of their other Polartec items coming from there as well. 

A simple Google search yields a wealth of commentary from surprised consumers reacting to the fact their Arc'teryx garment was made in China.  The most common comment is something to the effect of "I thought Arc'teryx made in Canada."

Arc'teryx was a small brand whose garments are expensive, they catered to a high end niche market of outdoor enthusiasts  who didn't want to be wearing the North Face jacket everyone else had, and were willing to a pay a price in order to get something better. 

Now according to Arc'teryx's web site, they're making the "majority" of their products in Vancouver but also have sourced production to China, Vietnam, Taiwan and New Zealand. 

A statement from Arc'teryx CEO Tyler Jordan on their parent company web site goes further and says the company currently has contracted manufacturing to eight countries.  Not just the four  they name on their own web site. 

Regardless, the company web site is quick to note, "All Arc’teryx products are constructed with the highest quality materials and are individually inspected and tested to the same exacting standards regardless of production origin."

They are missing the point.  Arc'teryx consumers don't want a product made in China, Vietnam or Taiwan.  If they wanted that they could get a North Face or any one of a host of other choices in outerwear that have sent production to China.  Arc'teryx was different they were made in Canada by Canadians, but now they are becoming like the rest. 

Worst its unclear which of their products are actually made overseas.  The company does not tell you on their web site or catalog.  If you're going to source production overseas tell consumers up front.  Embrace it.  Don't let them be surprised when they look at the label of their new garmet to find it was made in China.

Arc'teryx can learn a lot from another Canadian company, Mountain Equipment Co-Op (MEC).  MEC makes a whole line of high end technical outerwear much of which is made in Canada.  Like Arc'teryx they too source production overseas.  However, unlike Arc'teryx everything they sell through their web site and catalog is clearly labeled with the country where its made.  MEC goes a step further by actually providing information about their overseas production facilities as well as extensive social responsibility data. 

Instead of hiding it MEC embraces the fact they have sourced some of their production overseas and consumers are then able to make an informed choice based on their own criteria. 

Arc'teryx needs to make some changes to revive its brand identity.  Overseas production is not a positive for Arc'teryx whether it increases sales in the short term or not unless they can embrace it. 

Until then I am unclear what the Arc'Teryx brand stands for and I know I am not alone.

Comments

[Robert Olton]

If Arc'teryx or other companies determine a need to source production to China or somewhere else - that is the choice. However where I and other consumers object is when they try to charge prices for their products as if they were made Canada like they used to be. I'm not paying $450US for jacket made in China. Period. I know it costs them no where near that to produce. I support local made products and would and have paid over $400 for an Arc'teryx jacket in the past one that was made in BC Canada.

Their jackets from China should be like $150 or less - all of them should North Face, Marmot, Mountain Hardwear its crazy.

[Josh Brackett]

I agree exactly with what your saying. I actually care where products I buy are made I bought a Gore-tex shell from MEC for $300 CAD the shell was made in Canada. I'll buy something like that before I pay the same amount or more for something made in China or elsewhere. Expanding production is a business decision if a company makes that decision charging the same price as if it was made in the US or CAN is crazy thats just lining companies pockets and not supporting local manufacturing.

im hiking in washington this weekend and wearing a shell made in canada and I like it.

josh

[GERN BLENSKIN]

Let's see - you want a Goretex shell, made in Canada and less than $150...
Ain't gonna happen. It's just this thinking that has driven the manufacturers to source in Asia...
To get the level of technology and performance we want at an inexpensive price means that they need to be made somewhere cheap.
And to Arc'teryx's defence - not all their shells are made in China. Most of the expensive stuff is made in Canada and it's more of the cheaper stuff (shirts and underwear - and some Paclite) that's made in Asia.

Now here's the question: if most of this stuff is made on sewing machines by hand - isn't it being racist to say the Chinese can't make it as well as Canadians (assuming the factory is on the same level as one in Canada - and many are...)? Or are our issues just based on very minor differences in environmental footprints? Or if we just want to support our local economy, why won't we pay $600 for a jacket versus $300?

[R Hardy]

Arc'teryx and other companies should both clearly label where their products are manufactured, and give consumers *CHOICE* to buy either cheap product for a cheap price, or pay more for a similar, locally made and likely better quality product!
I personally am sick and tired of not being able to find enough alternatives to China made products... things like certain home goods to clothing. And then there is the whole food issue!

[Sophia Sunshine]

Thanks for sharing this info - you're analysis is spot on! I've been looking to replace my heavily used 7 year old ArcTeryx Theta AR jacket and boy was I in for a surprise when I started looking! It's rather challenging to find one made in Canada and for the first time ever I've actually seen "20% off" on an ArcTeryx jacket. If that doesn't tell the parent company something about how us outdoorsy, eco-concious folks make our purchases, I'm not sure what will. ArcTeryx has made some great gear but selling out just doesn't sit well with me. Talking to the folks in Banff AB it would sound as though the Alpha SV is the only one of the Alphas, Betas and Thetas that's still made in Canada. And the differences? They aren't as minor as one might think. There are no pull tabs on the pocket zippers, the adjustments on the bottom of the jacket aren't of the quality that their old jackets were, and the fabric is much more noisy. And does anyone know if the fabric is really up to snuff? I was happy to save a few pay checks to support a BC company that made some great advances in activewear design but now that everyone else is copying and they're making their best gear in China no thanks. At least not at the current price tag. I think I'll be looking for something different!

[Roger Cochran]

The difference is that China , Viet Nam etc. have absolutely no environmental laws or constraints. My brother has been to China and has had tours of large manufacturing sites. They have no regards for worker safety or welfare. The Chinese companies feel that the worker can easily be replaced. The foundries and die-casting plants are cesspools with toxins flowing right into rivers and being absorbed into the water table. Who wants a high end piece of gear made in settings like that? Also knock offs are sold right out of the back door and in city markets. Want to buy a $25 North Face Mountain Light jacket.....go to China. As an American I value products made in North America....I liked the fact that folks in British Columbia were actually making these clothes and then using them after work and on weekends. Being socially concious begins in your wallet, talk is cheap and everything else is just B.S.

[Dave J]

I agree that Arc Teryx has been on a downward trend more concerned with financial performance and branding at the expense of the key elements that made it a unique company in the outdoor industry. I feel they are selling the brand name and not selling the product. By outsourcing to China, they must have lower costs. And I have seen these lower costs presented to the end consumer in the past with products in their line which tended to be less expensive. And this made up a small protion of their line up...in the past. Today, I have inspected some of the fall 2007 products to find many more items that were made in Canada which are now made in China. The Beta AR pro-shell jacket is now made in China as are the gamma soft shells. The beta sells for the same price as the pervious canadian made model it replaces. This is clearly a sign of things to come. The consumer always has a choice whether to buy a product. As numerous others have voiced, the country of origin weighs heavily in my choice to purchase arc teryx products. It is in part supporting the Canadian people and choosing a superior product. And as I see more and more people wearing chineese made arc teryx shells in the coffee shops of Seattle, I'm reminded that the company is well on its way to dominating this industry as did the north face and other comapnies of the like. The true arc teryx is slowly dying.

[Jeremy]

You suggest the company embrace offshore production and highlight the fact, but admonish them for doing it and then declare you would never purchase a product made in China. Wha?

[Rick]

Another problem that many are unaware of, is that Chinese manufacturers often put "Made in Canada" tags on Chinese made products. It is a common practice and this makes it extremely difficult to differentiate real from fake.

[Andy]

Not coincidnetally, the year that Arc'Teryx started to manufacture in China, fakes (some laughable, and some quite convincing) and gray market items started to turn up online. A big problem is that when specs are sent to suppliers and contractors manufacture products overseas, local insiders will often either expropriate the designs or create unlicensed copies. The Chinese government has been cracking down on pirateers, and thankfully, I haven't seen any fakes stateside yet, or during my last visit to China in 2004. If the practices of other major outdoor brands [TNF] have shown anything, its that fakes and gray market goods severely errode the brand.

[Zach Gray]

One should look no further than to Patagonia for an outdoor clothing company that is committed to the environment and to corporate social responsibility. Awareness is half the battle and understanding where your clothing is coming from and what a company does with the top dollars you fork over to them is essential knowledge for those wanting improve the health of the planet. I own both Arc'Teryx and Patagonia gear and after doing some research on Arc'Teryx to learn more about their stance on these matters, I will discontinue purchase of any of their gear until they develop and invoke an environmental statement and CSR policy of value.

[basshead]

notice: no comment from arcteryx on this thread...their silence speaks volumes.

[gearfreakNY]

To: Arc’teryx
Product Development, R&D, Marketers

What is going on with Arc’teryx? I am so disappointed!

I heard the rumors, and I confirmed it; most NEW as of Fall 2007 if not all Arc’teryx gear and outdoor clothing to be made in yes folks Communist CHINA, Vietnam, Taiwan and New Zealand. I am personally cool New Zealand manufacturing, but with to my utter surprise, my favorite hardcore outdoor brand screwed up their production of their product line big time! “Made In Canada no more” but for a small percentage of product unfortunately! I currently own 30, count them 30 Arc’teryx pieces; I have supported the Canadian company since their inception so I know the product line better then most and that includes Arc’teryx’s currant employees. Which are not nearly as friendly as they use to be which is a sad decline with regards to Customer Service.

I swore by the quality and functionality and user-friendliness of the Arc’teryx’s gear and outdoor clothing its second to none. Their Canada production, I give my hats off to the technology and the meticulous craftsman / artisanship / garment workers which sadly does not exist in North America any more, period! I recommended Arc’teryx products to everyone I know. I’m all about improving designs and efficiency and making a product better, but what was corporate development / marketing team thinking? HORRENDOUS move Arc’teryx!!!!!!!!

Their prices are not going to go down one iota; it is called corporate greed, farming out all production to a Communist nation with no concept of quality control in my opinion. “In 2002 Arc'teryx was bought by Salomon, owned at the time by Adidas. With the global presence of Salomon and the increasing popularity of Arc'teryx, the company started to out source manufacturing of some of its garments to China and other countries. Then in 2005 as Salomon's sales were lagging Adidas sold Salomon and its brands to Helsinki-based Amer Sports Corporation. As a result Arc'teryx is now a brand under Amer.” Since these mergers / bye outs I feel their designs have in my opinion have been simplified to cuts production costs which gives less comfortable articulated apparel. I find that they are straying from their original core philosophy. Yes Arc’teryx is still the innovator and makes improvements, but there are some design elements that have been eliminated that were far superior, that may be do to different designers that don’t have a clue.

By beloved Theta AR Jacket, AKA: Paper Thin Body Armor is now being made in Communist CHINA, and some idiot eliminated the left arm pocket to boot!

“A statement from Arc'teryx CEO Tyler Jordan on their parent Amer Sports Corporation company web site goes further and says the company currently has contracted manufacturing to eight countries. Not just the four they name on their own web site. Regardless, the company web site is quick to note, "All Arc’teryx products are constructed with the highest quality materials and are individually inspected and tested to the same exacting standards regardless of production origin." They are missing the point folks. I don't and if your reading this, you surly don’t want a product made in China, Vietnam or Taiwan.

Well, as you can see I am pissed to the max! Hears an idea make it in the USA! Well we will wait and see if I am the only one that feels the same way, $600.00 for a paper-thin jacket Made In China - you got to be kidding me! I can see the small accessories being Made In China but NOT the good stuff. May I suggest Europe even, O’my ggoodd what about the USA, what about that corporate knuckleheads?

Will I be recommending anymore, yes maybe but NOT with the enthusiasm and respect I had for the brothers up north, they have Sold Out in my opinion. I vote with my dollars, do you? (KEEP Canadians Employed) Look what happened when Nike bought out Bower Hockey Skates move almost all production to China. By the way The North Face is owned by Vanity Fair, get my drift.

I may just ware a plastic bag in disgusts! gearfreakNY

[Andy]

Don't forget, even if they had sustainable manufacuring practices oversees (that includes New Zealand), it takes lots of energy ie pollution, to ship them to North American markets (the primary market for Arc'teryx). For such premium prices, I also expect premium environmental practices.

[Geoffery Poulin]

Somebody needs to slap Arcteryx into reality.It realy ticks me off that they are making anything outside of Canada. Im only a kid and I'm still willing to pay the currant price and even more if it was made in Canada.Some of us are extremely picky about our equipment and that includes clothing. Who is willing to pay $250.00 for a sweater made in china. I would pay this much and more if it was made in Canada. This has nothing to do with being racist or thinking that China can not do anything right nor does it matter to me as a fashion statement(for those of you wearing Arcteryx as a fashion statement shame on you. Its people like you who deserve to have to wear chinese made products)It is strictly because I demand top performance from my equipment and want to support a Canadian brand. If I wanted a chinese made product I wouldnt be spending $700.00 on a jacket. Now that Im done my rant why are we just sitting here and complaining about it? Why arent we contacting Arcteryx flooding them with emails telling them about our disgust in their decision to outsource to china? Im shure if a few Hundred thousand people all sent them 2 or 3 raging emails they would change their ways and continue making all their products in Canada. Let them know why we all bout their products let them know we want our gear made in Canada and are willing to pay the price.please join me in my quest to try and make Arcteryx 100% Canadian again!

[Scott N]

OK guys, I've read over the comments on this and many other blogs. I am an employee of an outdoor outfitter and today I will be meeting with an Arcteryx Rep. Just wanna let you guys know that your complaints are going straight to Corporate. Please send emails as well.