News Uniqlo criticized in China after Xinjiang cotton boycott

Well, de facto boycott: Uniqlo has faced significant backlash in China after its parent company's CEO, Tadashi Yanai, stated in a BBC interview that it does not source cotton from Xinjiang. This comment sparked outrage on the Chinese social media platform Weibo, with many users vowing to boycott the brand and criticizing Yanai's perceived arrogance. Yanai initially confirmed that Uniqlo does not use Xinjiang cotton but abruptly ended the discussion, citing its political sensitivity. This incident highlights the delicate balance that international brands must strike between global supply chains and local sensitivities, particularly regarding Xinjiang. This region has been the subject of international controversy.

The issue of sourcing from Xinjiang, where rights groups and the U.S. government accuse China of abuses against the Uyghur population, has been a geopolitical minefield for foreign firms with a significant presence in China. Beijing denies any abuses in the region, the origin of most Chinese-produced cotton. In 2021, Uniqlo's rival, H&M, faced a consumer boycott in China for a statement on its website that expressed concern about accusations of forced labour in Xinjiang and said it would no longer source cotton from there. H&M saw its stores removed from major e-commerce platforms and its locations moved from map apps in China as it bore the brunt of consumer anger at companies refusing to source cotton from Xinjiang. Other Western brands, such as Nike, Puma, Burberry, Adidas, and others, were also involved in the controversy. In September, China's commerce ministry launched an investigation into PVH, the parent company of Calvin Klein and Tommy Hilfiger.

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While Fast Retailing affirmed in 2020 that it does not produce any goods in Xinjiang, Yanai has recently avoided discussing the topic in media interviews, citing Uniqlo's desire to remain neutral. China, Fast Retailing's largest overseas market, houses over 900 stores and contributes over a fifth of the company's revenue.

Ben Cavender, managing director of China Market Research Group, noted that Uniqlo's sales have remained steady despite the current economic downturn in China. However, he warned that Chinese consumers could boycott brands that were perceived as disrespectful to their country or culture. Cavender expressed uncertainty about the long-term impact of the recent controversy. Still, he emphasized that losing even a few customers could harm the apparel industry's current challenges.




Here's the original BBC article: