Uniqlo’s CEO Confirms Non-Use of Xinjiang Cotton

The chief executive of Fast Retailing, the parent company of the international fashion brand Uniqlo, informed the BBC that the Japanese corporation excludes cotton sourced from China’s Xinjiang region in its merchandise. This marks the initial instance where Tadashi Yanai, Fast Retailing’s chief executive, has directly spoken on this sensitive matter. China represents a vital market for Uniqlo, serving both as a significant customer base and a primary manufacturing center. Historically, Xinjiang cotton held a reputation as one of the finest fabrics globally. However, its standing has diminished following accusations of its production involving forced labor from the Muslim Uyghur minority. The Chinese government has consistently refuted these claims. Stringent US regulations concerning the importation of products from Xinjiang were implemented in 2022. Numerous international brands withdrew items containing Xinjiang cotton from their inventories, resulting in significant negative reactions within China. Companies including H&M, Nike, Burberry, Esprit, and Adidas faced boycotts. H&M, a Swedish retailer, experienced the removal of its apparel from prominent e-commerce platforms in China. Previously, Mr. Yanai – recognized as Japan’s wealthiest individual – declined to state definitively whether Uniqlo garments contained Xinjiang cotton, asserting his desire “to be neutral between the US and China”. This stance of non-alignment contributed to Uniqlo’s sustained popularity within China’s vast retail sector. However, during an interview with the BBC in Tokyo, discussing the company’s initiatives for greater transparency regarding the sourcing and production of its clothing materials, he stated: “We’re not using [cotton from Xinjiang].” He proceeded, “By mentioning which cotton we’re using…”, then paused, concluding his response with, “Actually, it gets too political if I say anymore so let’s stop here”. Isaac Stone Fish, who serves as chief executive and founder of Strategy Risks, a business intelligence company specializing in China, underscored the pressures exerted on businesses by both China and the United States. He asserted, “Not a single large company can remain politically neutral anymore.” He added, “Both Beijing and Washington want companies to choose sides, and Tokyo will continue to lean closer to the United States in this matter.” Despite Uniqlo’s vigorous expansion in Europe and the US, Mr. Yanai himself acknowledged, “we are not a known brand globally,” with Asia remaining its largest market. The corporation operates a greater number of outlets in China than in its native Japan, and Mr. Yanai indicated no intention to alter this approach, notwithstanding difficulties in the world’s second-largest economy. He stated, “There are 1.4 billion people in China and we only have 900 to 1,000 stores,” adding, “I think we can increase that to 3,000.” Concurrently, China serves as Uniqlo’s largest individual manufacturing center. The firm also produces apparel in nations such as Vietnam, Bangladesh, Indonesia, and India. In 2009, when 80% of its merchandise was manufactured in China, Mr. Yanai informed the BBC that China was becoming excessively costly, prompting the company to relocate production “to lower-wage Cambodia to keep prices low”. He currently asserts that replicating China’s achievements as the global manufacturing hub in other nations proved challenging due to difficulties in transferring extensive experience. Furthermore, retailers such as Uniqlo encounter fierce rivalry from ultra-fast fashion labels like China’s Shein and Temu, which are increasingly favored by consumers focused on price. Nevertheless, Mr. Yanai declared, “I don’t think there’s a future for fast fashion”. He elaborated, “They’re producing clothes without any careful consideration which you only wear for one season. That is a waste of the planet’s resources.” He further mentioned that Uniqlo’s approach centers on producing fundamental apparel designed for long-term wear. Over his 40-year tenure leading the company, Mr. Yanai has expanded the enterprise he inherited from his father from one with approximately 100 million yen ($656,700; £522,400) in annual sales to an international network generating 3 trillion yen in revenues this year. The 75-year-old executive expressed his ambition to surpass Inditex, proprietor of the worldwide Zara chain, to become the planet’s largest fashion retailer prior to his retirement. However, realizing this objective necessitates Uniqlo’s expansion not only within China but also into Western markets, where consumers are growing more aware of human rights concerns like forced labor. Mr. Yanai’s aspirations could encounter additional obstacles if Donald Trump re-enters the White House, having vowed to implement substantially higher tariffs on products manufactured in China. This report has been modified to specify that the Chinese government has refuted claims of forced labor in Xinjiang. Copyright 2024 BBC. 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