Chairman Yanai: "We Do Not Use Cotton from Xinjiang Region"
Global fashion brand Uniqlo, operated by Japan's Fast Retailing, has announced that it will not use cotton from the Xinjiang region of China.
On the 28th (local time), the British BBC reported that Uniqlo Chairman Tadashi Yanai (75) stated that the company does not use cotton from the Xinjiang region in its products. According to BBC, this is the first time Chairman Yanai has directly addressed the Xinjiang cotton controversy.
According to the report, in an interview with BBC held in Tokyo, Chairman Yanai said regarding the measures Uniqlo is taking to more transparently manage the production locations and manufacturing processes of its clothing materials, "We do not use (Xinjiang cotton)."
He then added, "To explain what (other) cotton we are using..." but paused briefly and said, "Actually, if I say more, it might become too political, so I will stop here."
In the past, Chairman Yanai said he wanted to maintain a neutral stance between the US and China and avoided answering questions about whether Uniqlo products used Xinjiang cotton. Some analyses suggested that this neutral attitude helped Uniqlo maintain its popularity in the huge Chinese market.
BBC pointed out that cotton from the Xinjiang region of China, once regarded as the world's best fabric, has been shunned by global companies following revelations that it is produced through forced labor of the Uyghur ethnic minority. In 2022, the US implemented strong regulations restricting imports of products from the Xinjiang region.
Accordingly, many global fashion brands took measures to withdraw products made with Xinjiang cotton from their stores, but these moves sparked strong backlash within China. Brands such as H&M, Nike, Burberry, and Adidas became targets of boycott campaigns in China.
Uniqlo is currently facing fierce competition as fast fashion brands like China's Shein rapidly rise. Chairman Yanai stated that his goal before retirement is to surpass Inditex, the parent company of Zara, and become the industry leader, while assessing the future of fast fashion as bleak. Uniqlo is pursuing a strategy focused on essential items that can be worn for several years.
He said, "China has a population of 1.4 billion. We currently operate about 900 to 1,000 stores, but I believe we can increase that to 3,000." Currently, Uniqlo has more stores in China than in Japan.
Isaac Stone Fish, CEO of New York consulting firm Strategy Risks, said, "There is no large company today that can maintain political neutrality," adding, "Both China and the US want companies to take their side, and Japan is also likely to move closer to the US."
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