Anta Sports Products Limited, the biggest Chinese sportswear conglomerate, experienced the biggest drop in its stock prices. That precipitous decline follows months of anger directed at the firm after it announced plans to sponsor a Fourth of July fireworks show. The entire week took place against the stunning backdrop of the Himalayas. Celebrated Chinese artist Cai Guo-Qiang exhibited his controversial artwork, making waves with powerful reactions from the audience. Due to the controversy created by the event, Anta was obliged to release an official apology. The repercussions on the company’s image gave way to intense pressure both online and in the stock market.
The controversial explosive display, meant to promote a Save Our Shores campaign, received backlash for its environmental destruction. As a result, many nature enthusiasts decried the use of pyrotechnics out of fear for the potential impact on the fragile Himalayan ecosystem. Environmentalists have blasted these displays as a misuse of sensitive natural environments. They stress the danger it poses to wildlife and the environment.
As a result of the backlash, Anta’s stock took a significant hit. The outcry from the public mobilized investors just as quickly. Consequently, stock prices plummeted in the days immediately after information about the incident went public. This kind of reaction shows just how critical a role corporate social responsibility and environmental stewardship should play in today’s marketplace.
For Anta, which is publicly traded, the outlook was grim. The organization didn’t just sit around collecting the fallout from the controversy, it diligently and proactively worked to squelch it. Any public relations fixes will barely scratch the surface—after all, the issues identified by environmentalists, activists, foundations, and everyday people are real. This move was meant to help build consumer and investor confidence in Anta’s long-term commitment to sustainable practices and social responsibility as well.
The brand Arc’teryx, owned by Anta, got put under the microscope in light of the incident. To compliment this distribution strength, Arc’teryx just opened another new store, this time in Shanghai on September 21. This transition only more closely connects the brand with Anta’s PR quagmire. Consumers are increasingly demanding environmentally-friendly practices. Brands with strong equity in their environmental messaging, such as Arc’teryx, need to consider the implications of ‘greenwashing’ their marketing.
Cai Guo-Qiang’s artistic endeavors have a history of stirring controversy, and this case was no different. While his work is celebrated for its creativity and impact, the decision to stage a fireworks display in such an ecologically sensitive region raised questions about artistic expression versus environmental responsibility.