Pelliot first signaled its IPO ambitions in August 2023, when it filed for listing guidance with the Anhui arm of the China Securities Regulatory Commission. The goal was a debut on the Shenzhen Stock Exchange. But by April 2025, the company pivoted, ditching the mainland listing and preparing instead for an IPO in Hong Kong.
Compared to other Chinese outdoor brands riding the capital markets wave, Pelliot has kept a low profile. Many consumers initially assumed it was a foreign company—some even linked it to French sporting goods giant Decathlon. The brand name originally paid homage to Paul Pelliot, a French explorer and sinologist with a controversial legacy. But as perceptions shifted, the company reworked its origin story: it now says the name comes from a Chinese idiom about harmony between people and nature.
The business itself began in 2012, founded by husband-and-wife team Liu Zhen and Hua Jingling. In 2015, they formally incorporated Pelliot Outdoor Sports Group in Bozhou, Anhui. By the end of 2024, the brand had expanded to 146 stores in first- and second-tier cities across China.
Behind the scenes, Pelliot has attracted heavyweight investors. It has raised two funding rounds, drawing capital from Tencent, Qiming Venture Partners, Sinovation Ventures, and several state-backed funds. In March, Tencent poured RMB 300 million (USD 42 million) into a pre-IPO round, acquiring a 10.7% stake and becoming its largest institutional investor. At the time, Pelliot was valued at RMB 2.8 billion (USD 392 million).
For much of its first decade, Pelliot stayed modest, pulling in around RMB 300 million annually until 2022. But that changed rapidly. Its line of affordable technical jackets went viral among hikers and trekkers just as outdoor gear caught on as a broader trend. According to Moojing Market Intelligence, technical jackets alone made up a RMB 10 billion (USD 1.4 billion) online category in 2023. A report by Guosen Securities noted the segment grew more than 40% year-on-year, far outpacing yoga pants and sun-protective wear, both of which saw a drop in momentum.
With viral products in hand, Pelliot’s financials surged. Its IPO prospectus showed revenue climbed from RMB 380 million (USD 53.2 million) in 2022 to RMB 1.76 billion (USD 246.4 million) in 2024. Its market share hit 5.2%, putting it in the top three among domestic high-performance outdoor brands. Adjusted net profit jumped nearly tenfold from RMB 27.6 million (USD 3.9 million) to RMB 300 million, while profit margins rose from 7.3% to 17.2%. That handily outperformed Amer Sports, the parent company of Arc’teryx, which posted a 4.5% adjusted net margin in 2024.
With gross margins at 60% and net margins at 17%, it’s clear that budget-friendly technical jackets are not just popular, but also lucrative.
Building tech, not hype
Like premium players Arc’teryx and Kailas, Pelliot started with high-performance jackets. It developed proprietary shell and liner combinations and introduced a hybrid concept: the “down technical jacket,” designed for city dwellers and mountain hikers alike.
In the premium midrange market, proprietary technology and storytelling are vital to justifying higher prices. Brands like Arc’teryx, Klättermusen, and Mammut use materials like Gore-Tex and thermobonded seams to frame their products as technical and luxurious. Kailas, a domestic peer, has leaned heavily into this strategy.
At the lower end, however, many domestic brands falter. Poor waterproofing, low breathability, and awkward fits are common—leaving consumers stuck between overpriced gear and underperforming alternatives.
Pelliot saw an opening. In 2013, it launched its own technical platform, PT-China, including features like Storm Breath (water-repellent breathability), Storm Shield (wind protection), and eVent-based fabrics for professional-grade durability.
An industry expert noted that eVent rivals Gore-Tex Pro in performance but costs just a third as much to produce—delivering more than 90% of the functionality at a fraction of the cost.
Rather than chasing prestige, Pelliot went for value. Its bestselling jacket sells for RMB 499 (USD 69.9), while some fleece items go for just RMB 149 (USD 20.9)—on par with Decathlon’s pricing, but with better functionality.
From 2022 to 2024, Pelliot sold around 3.8 million technical jackets, achieving a compound annual growth rate of 144%—eclipsing many rivals. Camel’s sub-brand Xiongmao, by contrast, sold about 600,000 jackets in 2024 and brought in RMB 800 million (USD 112 million) on Douyin.
Yet Pelliot remains heavily reliant on a narrow set of products. Apparel makes up over 82% of its revenue. Arc’teryx and similar brands have diversified into footwear and women’s apparel, which now account for over 30% of sales.
Pelliot’s efforts to branch out have had mixed results. It introduced Korean sneaker brand Excelsior in 2020, but that line still contributes just 1.9% of revenue. In search of new growth, Pelliot has invested in more than ten companies, including Hikerhiker, and expanded its store offerings to include tents, trekking poles, and shoes.
Scaling offline and climbing upmarket
Pelliot’s viral breakout mirrors broader shifts in China’s outdoor sector. Other brands, including Beneunder, are eyeing IPOs. Publicly listed companies like Mobi Garden and Toread have also seen their stock prices rise.
But virality is not the same as longevity. Sustained growth will hinge on product diversification and brand development. Pelliot plans to use proceeds from its Series B round—worth several hundred million RMB—to expand its premium lines, build offline retail, and enhance its supply chain.
So far, Pelliot has grown largely online. Alongside Camel and Beneunder, it’s consistently among the top sellers in China during the Singles’ Day shopping festival. About 70% of its sales come from online platforms, with Tmall as the main channel.
Its marketing reflects that emphasis. The company spends about 30% of its revenue on digital advertising—triple the industry norm. Liu has identified Douyin, Xiaohongshu, Zhihu, and Bilibili as key traffic sources. An in-house content team handles short video production to drive engagement.
That aggressive online strategy has come at a cost. Offline visibility remains limited. Of its 146 stores, only 14 are directly operated; the rest are joint ventures. Offline growth was identified as a top priority as early as 2020, but expansion has lagged. The new capital and IPO may finally change that.
Meanwhile, Pelliot’s R&D spending is rising but still modest. From 2022 to 2024, the budget grew from RMB 13.6 million (USD 1.9 million) to RMB 31.5 million (USD 4.4 million). That’s well below Arc’teryx, which allocates nearly 10% of revenue to innovation. The heavy tilt toward marketing over R&D has drawn criticism—a pattern also seen with Beneunder. In response, Pelliot is now positioning R&D as a key investment area post-IPO.
In January 2025, the company launched its high-end line, “The Limit.” Early sales figures haven’t been disclosed, but the move signals a desire to move upmarket.
To strengthen its brand image, Pelliot has partnered with outdoor education group Camp Greenwoods and named teenage mountaineer Li Haorong as a brand ambassador. It also sponsors a national-level ski mountaineering event in China. On social media, some users say wearing Pelliot gear feels like gearing up for a scientific expedition.
Pelliot’s affordable technical jacket helped it break into the capital markets. But its real challenge now begins: moving beyond a single product success and shedding its image as a budget brand. Whether it can build a broader, more premium identity—and sustain that momentum—will determine its future.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Peng Qian for 36Kr.