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Uniqlo Risks Boycott in China after CEO's Xinjiang Comment

People shop at a UNIQLO store during the grand opening of the The Hudson Yards development, a residential, commercial, and retail space on Manhattan's West side in New York City, New York, US, March 15, 2019. REUTERS/Brendan McDermid
People shop at a UNIQLO store during the grand opening of the The Hudson Yards development, a residential, commercial, and retail space on Manhattan's West side in New York City, New York, US, March 15, 2019. REUTERS/Brendan McDermid
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Uniqlo Risks Boycott in China after CEO's Xinjiang Comment

People shop at a UNIQLO store during the grand opening of the The Hudson Yards development, a residential, commercial, and retail space on Manhattan's West side in New York City, New York, US, March 15, 2019. REUTERS/Brendan McDermid
People shop at a UNIQLO store during the grand opening of the The Hudson Yards development, a residential, commercial, and retail space on Manhattan's West side in New York City, New York, US, March 15, 2019. REUTERS/Brendan McDermid

Casual wear giant Uniqlo is facing calls for a consumer boycott in China after the CEO of the clothing company's owner said it does not source cotton from China's Xinjiang, which has faced allegations of forced labor in recent years.
Fast Retailing CEO Tadashi Yanai made the comment during an interview in Tokyo with the British Broadcasting Corporation that was published on Thursday.
Two hashtags on Yanai's comment went viral on Friday on Chinese social media platform Weibo, where several users slammed the company and vowed to never purchase its products.
"With this kind of attitude from Uniqlo, and their founder being so arrogant, they're probably betting that mainland consumers will forget about it in a few days and continue to buy. So, can we stand firm this time?" one user wrote.
Fast Retailing did not immediately respond to a Reuters request for comment.
China is Fast Retailing's biggest overseas market and it has more than 900 stores on the mainland. Greater China, including Taiwan and Hong Kong, accounts for more than 20% of the company's revenue.
The issue of sourcing from Xinjiang has been a geopolitical minefield for foreign firms with a large presence in China.
This was demonstrated by the consumer boycott Uniqlo’s rival, H&M, faced in China in 2021 for a statement posted on its website where it expressed concern about the allegations of forced labor 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 store locations moved from map apps in China as it bore the brunt of consumer anger at companies refusing to source cotton from Xinjiang, although other Western brands including Nike, Puma, Burberry and more were also caught up in the controversy.

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Dr Martens Slips into the Red; Says Festive Season Off to a Good Start

FILE PHOTO: People enter in a Dr. Martens store in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo
FILE PHOTO: People enter in a Dr. Martens store in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo
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Dr Martens Slips into the Red; Says Festive Season Off to a Good Start

FILE PHOTO: People enter in a Dr. Martens store in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo
FILE PHOTO: People enter in a Dr. Martens store in Manchester, Britain, May 26, 2023. REUTERS/Jason Cairnduff/File Photo

Dr Martens said on Thursday that the autumn-winter festive season had got off to an encouraging start after the struggling bootmaker swung to a first-half pretax loss on weak demand in the United States, its biggest market.
Its shares, which have lost about a quarter of their value so far this year, rose 16% in early trade, Reuters reported.
The British company, whose chunky lace-up boots popularly known as "Docs" or "DMs" were originally made for workers before becoming a fashion statement in the 1960s, has been contending with a weak North American market and is betting on the festive season to shore up its sales and profit.
Dr Martens expects to make cost savings of about 25 million pounds ($31.64 million) in its fiscal year to end-March, 2026 with around two-thirds of that coming from job cuts.
The company reported a pretax loss of 28.7 million pounds for the six months ended Sept. 29, compared with a profit of 25.8 million pounds a year earlier. Revenue dropped 18% to 325 million pounds.
To halt the decline in profit at a time when consumers are shying away from pricy items such as the brand's $170 classic boots, Dr Martens has sought to cut costs while also increasing spending on US marketing.
"Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA (direct-to-consumer) to positive growth in the second half," outgoing CEO Kenny Wilson said in a statement.
Wilson, who announced in April that he would step down, will be replaced by Chief Brand Officer Ije Nwokorie on Jan. 6, the company confirmed on Thursday.
It maintained its fiscal 2025 outlook of a single-digit percentage year-on-year revenue drop, with a worst-case scenario of pretax profit at around one-third of the previous year's.