Uniqlo’s Chairman Yanai’s statement on not using Uighur cotton sparks a boycott in China. The impact on Fast Retailing and Japan differs significantly.
On November 28, the British public broadcaster BBC reported that Tadashi Yanai, chairman, president and CEO of clothing giant Fast Retailing, had said that Uniqlo products “do not use cotton from China’s Xinjiang Uyghur Autonomous Region.” Chinese social media was ablaze and calls for a boycott spread. On Japanese social media, there are many voices praising Yanai’s remarks, as well as voices of opposition to China. On the other hand, there were also many voices questioning Fast Retailing’s reliance on China. Every time something like this happens, the more aggressive voices on social media from anti-China and patriotic accounts grow, but the rise of patriotic and anti-Japanese sentiment among the Chinese people is not a good thing, not only for Fast Retailing, but for Japan as a whole. ■Why did Chairman Yanai mention this now? China’s Xinjiang Uighur Autonomous Region is known as a producer of high-quality cotton, but an American think tank has announced that human rights violations against the Uighur ethnic minority in the Xinjiang Uighur Autonomous Region are taking place during the cotton production process. From 2020 to 2021, the United States, the United Kingdom, Canada, and the EU imposed sanctions against China. Fast Retailing and MUJI also produced products using cotton produced in the Xinjiang Uyghur Autonomous Region (Xinjiang cotton), but because they did not take a clear stance, they came under international criticism. In January 2021, the United States banned the import of the company’s men’s shirts, leading to an investigation by French prosecutors in July. Following pressure from overseas, criticism of the use of Xinjiang cotton has grown even within Japan. At a press conference announcing the company’s financial results in October 2021, Yanai, who had previously avoided making clear statements, declared that “we will never tolerate human rights violations.” At the company’s financial results briefing in November 2023, it also announced that it would promote supply chain reform with human rights and environmental protection in mind, and explained that it would consolidate its producers. The issue of Xinjiang cotton became less of an issue, at least within Japan, and was gradually forgotten. Why has this issue been brought up again now? Until now, Yanai has avoided making political statements, and this is also evident in his BBC interview, where when asked about the company’s use of Xinjiang cotton, he replied, “We don’t use that cotton,” but added, “Well, if I say any more it will get political, so let’s stop here,” quickly dropping the topic. Looking at the situation, it seems that when he was asked about it he said it without thinking (although he didn’t really want to say it), and it was then reported in the media, causing an uproar in China. ■The outrage and boycott movement in China is serious According to the United States Department of Agriculture (USDA), China is the world’s largest producer of cotton, accounting for 22.7% of the total. Furthermore, it is said that over 80% of China’s cotton production comes from the Uyghurs. On the other hand, according to Uniqlo’s financial results for the fiscal year ending August 2024, sales revenue in Greater China (mainland China, Hong Kong, and Taiwan) will be 677 billion yen, the second largest market size after Japan (932.2 billion yen). In other words, China is an important base for Uniqlo’s business both as a production base and a consumption base. Fast fashion retailer H&M was hit by a boycott over Xinjiang cotton in 2021, and its sales in the Chinese market fell by 28% in the second quarter of fiscal 2021 (the company announced in the same year that it would no longer use Xinjiang cotton). Shiseido announced a downward revision of its earnings forecast for December 2023, which was also due to the sluggish Chinese market. In addition to the worsening Chinese economy, the release of ALPS-treated water from the Fukushima Daiichi Nuclear Power Plant into the ocean led to a boycott of Japanese cosmetic brands in China, which worsened performance in the Chinese market. In Japan, even if a boycott occurs on social media, it rarely has an impact large enough to actually deal a serious blow to a company’s performance. Many of the people who criticize on social media are not actual purchasers of the product, and very few of them actually go so far as to refrain from purchasing the product. ■Isn’t this a voluntary boycott by Chinese consumers themselves? Boycotts overseas generally have a greater impact than in Japan, but there are special circumstances in China that require particular attention. This is because in China, the government has an aspect of control over consumers. In the case of the H&M boycott, state media has reported critically about the company, and the Communist Youth League of China, the youth wing of the Chinese Communist Party, has incited criticism on social media. In addition, products were removed from e-commerce sites and it became impossible to search for products. Continue reading below [Toyo Keizai] 2024/12/3 (Tue) 6:21.
>>6 Yanai wants to change his production base. With both China risk and Korean risk increasing, I think they are now targeting India and smaller Asian countries.
If the oppression of Russians in Ukraine and the Israeli invasion and massacre of Palestine are allowed, then the Uighurs must be a pitiful lot. At least the lives of the Uighurs are guaranteed, right? The genocide thing is a lie.
>Until now, Yanai has avoided making political statements, and this is also evident in his BBC interview, where when asked about his use of Xinjiang cotton, he replied, “We don’t use that,” but added, “Well, if I say any more it will get political, so let’s stop here,” quickly ending the topic. Looking at the situation, it seems that when he was asked about it he said it without thinking (although he didn’t really want to say it), and it was then reported in the media, causing an uproar in China. ↑Lol, it was directed by the BBC.
The United States is trying to take jobs away from Xinjiang, impoverishing it and directing the Xinjiang people’s frustrations at the Chinese government.
Yanai: “We don’t use Uyghur cotton!” West: “Don’t lie! Uniqlo is a slave-using company!” China: “Aiya! We use Uyghur cotton! Don’t lie!” Japan: “Long live Uniqlo!” Hmm, these Japs.
You’re saying they don’t use Uyghur cotton?! Boycott!!!! What is that? lol What are the Chinese thinking lol I guess they just want to bash Japan for any reason lol It’s the same as how right-wing netizens bash China and Korea lol.
Yanai: “We use high-quality cotton from the Uyghur region of China, which is why we can produce this quality at this price.” Past interviews are still available, so Yanai’s lies will be exposed right away.
Because they’re old. Old people’s judgement is delayed. Young people can stop someone before they say something, but old people sometimes say something and then do it.
I’ve stopped buying from Uniqlo because their quality has gone down, although I still buy a lot of t-shirts and stuff because they have a wide variety of designs.
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