Nike, Adidas Join Brands Feeling Chinese Social Media Heat Over Xinjiang

ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu
ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu
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Nike, Adidas Join Brands Feeling Chinese Social Media Heat Over Xinjiang

ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu
ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu

Nike and Adidas came under attack on Chinese social media on Thursday over past comments the fashion brands have made about labor conditions in Xinjiang, part of a diplomatic row between China and the West.

The sportswear companies were the latest caught up in a backlash prompted by a Chinese government call to stop foreign brands from tainting China's name as internet users found statements they had made in the past on Xinjiang.

Chinese state media had singled out H&M on Wednesday over a statement reported last year where the Swedish fashion retailer said it was deeply concerned by reports of accusations of forced labor in Xinjiang, and that it did not source products from the Chinese region.

Both Nike and Adidas, which have been growing rapidly in China, have said previously that they do not source products or yarn from the Xinjiang region. Adidas declined to comment on Thursday and Nike did not respond to requests for further comment, according to Reuters.

Earlier this week, China denied allegations of human rights abuses by its officials in the western region of Xinjiang, home to Muslim Uighurs, after the European Union, United States, Britain and Canada imposed sanctions on the officials.

Beijing hit back with retaliatory sanctions on European lawmakers, scholars and institutions.

Some internet users said they would stop buying Nike and will support local brands such as Li Ning and Anta, while others told Adidas to leave China.

The dispute creates a dilemma for Western companies who must balance the desire to expand their business in China against the views of consumers in their home markets.

"Brands must not rescind on their human rights responsibilities in the face of this pressure," said Chloe Cranston of Anti-Slavery International, a member of the Coalition to End Forced Labour in the Uighur Region.

BOYCOTT CALLS

Shares of Anta Sports Products Ltd and Li Ning Co surged, while shares in Adidas, Inditex and H&M fell on Thursday.

State tabloid Global Times said Spain's Inditex, owner of Zara, had "quietly removed" a statement on Xinjiang from its English and Spanish-language websites.

An Inditex webpage stating that the company was highly concerned about reports alleging social and labor malpractice in various supply chains among ethnic Uighurs in Xinjiang was live on March 24, a Google cache showed, but now appears to be unavailable.

Inditex did not respond to a request for comment. Inditex has previously said it does not have any commercial relations in Xinjiang.

Chinese internet users also targeted the Better Cotton Initiative (BCI), a group that promotes sustainable cotton production which said in October it was suspending its approval of cotton sourced from Xinjiang, citing human rights concerns.

BCI members include Nike, Adidas, H&M and Japan's Fast Retailing. The Better Cotton Initiative website also stopped working on Thursday. The organization did not respond to a request for comment.

"If you boycott Xinjiang cotton, we'll boycott you. Either Adidas quits BCI, or get out of China," one internet user wrote.

H&M said on Wednesday it respected Chinese consumers and that it was committed to long-term investment and development in China.

But by Thursday morning, H&M did not exist on some Chinese store locator maps. Searches for H&M stores on Baidu Maps yielded no results. The retailer's official store on Alibaba's Tmall, an e-commerce platform, was inaccessible.

At a daily media briefing at China's foreign ministry, spokeswoman Hua Chunying, when asked about H&M, held up a photograph of Black Americans picking cotton.

"This was in the US when Black slaves were forced to pick cotton in the fields," she said.

Hua then held up a second photograph of cotton fields in Xinjiang.

"More than 40% of the cotton in Xinjiang is harvested by machinery, so the alleged forced labour is non-existent."



Ralph Lauren Hikes Annual Sales Forecast on Strong Demand for High-end Apparel

A man walks past Ralph Lauren Corp.'s flagship Polo store on Fifth Avenue in New York City, US, April 4, 2017. REUTERS/Brendan McDermid
A man walks past Ralph Lauren Corp.'s flagship Polo store on Fifth Avenue in New York City, US, April 4, 2017. REUTERS/Brendan McDermid
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Ralph Lauren Hikes Annual Sales Forecast on Strong Demand for High-end Apparel

A man walks past Ralph Lauren Corp.'s flagship Polo store on Fifth Avenue in New York City, US, April 4, 2017. REUTERS/Brendan McDermid
A man walks past Ralph Lauren Corp.'s flagship Polo store on Fifth Avenue in New York City, US, April 4, 2017. REUTERS/Brendan McDermid

Ralph Lauren raised its annual sales forecast after topping quarterly revenue estimates on Thursday, on steady demand for its cable-knit sweaters and Oxford shirts in North America, Europe and China, sending shares of the company 6% up in premarket trading.
Wealthy customers continue to splurge on high-end leather handbags and Polo sweat-shirts, boosting demand across Ralph's direct-to-customer channels and helping it counter a muted wholesale business and soft e-commerce sales in North America.
The results are in contrast to a pullback in the broader luxury sector, primarily in the key China market, which has hurt larger European fashion houses such as Hugo Boss, Kering and luxury bellwether LVMH.
The Club Monaco owner now expects fiscal year 2025 revenue to increase about 3% to 4% compared with a prior forecast of a 2% to 3% rise.
The luxury retailer's net revenue rose 6% to $1.73 billion in the second quarter ended Sept. 28 from a year earlier. Analysts on average had expected revenue of $1.68 billion, according to data compiled by LSEG.