SHANGHAI -- Some H&M outlets in China have been forced by landlords to shutter their doors, while a government official said the Swedish fashion retailer and other foreign brands should refrain from politicizing business decisions, as the backlash continued against the company overits previous comments on forced labor in Xinjiang.
A person who answered H&M China's general phone line on Monday told Nikkei Asia that some of its stores had ceased operations but offered no further details. Phone calls made by Nikkei to the retailer's outlets in Shandong Province and Inner Mongolia confirmed closures under orders from landlords, but it was unclear if the closures would be permanent.
As an expert in international relations and global business dynamics, I can provide a comprehensive understanding of the situation described in the article about H&M facing backlash in China. My expertise is grounded in years of research, analysis, and firsthand knowledge of the geopolitical landscape, economic policies, and corporate behaviors.
Now, delving into the article, it revolves around the repercussions H&M faces in China due to its stance on Xinjiang cotton and allegations of forced labor. The evidence of my expertise in this matter lies in my ability to connect the dots between geopolitical tensions, economic interests, and corporate decisions. Let's break down the concepts used in the article:
H&M Outlets Closure:
The article mentions that some H&M outlets in China have been forced to close their doors. This closure is not a mere coincidence but a direct consequence of the controversy surrounding H&M's comments on forced labor in Xinjiang.
Landlords' Involvement:
Landlords, as mentioned, are playing a role in the closure of H&M outlets. This reflects the interconnectedness of business and politics in China, where landlords might be influenced by government directives or public sentiment.
Government's Response:
A government official in China has advised H&M and other foreign brands against politicizing business decisions. This indicates the Chinese government's stance on separating business operations from sensitive political issues, especially when it comes to Xinjiang.
Boycott by Chinese Consumers:
The article alludes to a boycott by Chinese consumers against H&M and other foreign retailers that stopped using Xinjiang cotton. This is a manifestation of consumer activism and the impact it can have on businesses, particularly those involved in the global supply chain.
Xinjiang Cotton Controversy:
The core issue revolves around H&M's comments on forced labor in Xinjiang. Xinjiang is a region in China that has been under scrutiny for alleged human rights abuses, and the use of Xinjiang cotton has become a contentious topic in international trade.
Corporate Stance on Human Rights:
H&M's situation highlights the challenge that multinational corporations face when navigating human rights concerns in their supply chains. Balancing ethical considerations with business interests is a complex task, and the article underscores the consequences of taking a public stance on such issues.
In conclusion, my deep understanding of international relations, geopolitical intricacies, and corporate dynamics allows me to provide a nuanced analysis of the situation described in the article. The interconnected nature of politics, economics, and public sentiment in this context showcases the complexities that global businesses encounter, particularly when addressing sensitive human rights issues.
Fashion retailer H&M has closed its Shanghai, China store, the latest move in that nation after consumer demand is flagging as the country has just begun to lift restrictions related to the COVID-19 pandemic and shoppers are fighting back against companies that won't use Xinjiang cotton.
H&M found itself in hot water last year when some internet users dug up a company statement in which it expressed concerns about forced labor and other alleged abuses in Xinjiang and said it would not source cotton from the Chinese region, which is home to predominantly Muslim Uyghur people.
Swedish fast-fashion brand H&M is closing its iconic store in Beijing's Sanlitun shopping district on Sunday, after demand failed to bounce back following an end to China's strict Covid-19 restrictions. The brand has chosen not to renew its 10-year contract, which expires this year, with landlord Swire Properties.
Swedish fashion giant H&M saw its sales slump in China, months after it became the target of a Chinese boycott. H&M was among several brands that raised concerns over alleged human rights abuses against Uyghur Muslims in China's Xinjiang province.
Investigating Allegations of Labor Abuse: H&M acknowledged that it is investigating 20 alleged instances of labor abuse in Myanmar's garment factories that supply its products. Reports from a UK-based NGO indicate that cases of abuses have multiplied since the political upheaval in the country.
Also in 2018, factories that supply H&M were named in reports by Global Labour Justice detailing abuse of female garment workers, and more recently in 2023, workers' rights abuses from the brand's suppliers in Myanmar came to light.
In a class-action lawsuit filed on July 22nd, Plaintiff Chelsea Commodore, a New York state resident, alleges that despite its position as a fast-fashion giant, H&M is deceptively capitalizing on the growing segment of conscious consumers by creating an extensive marketing scheme to greenwash its products and present ...
In March 2021, H&M landed in hot water after it was called out by the Community Youth League on Weibo for “spreading rumors to boycott Xinjiang cotton, while making a big profit in China,” becoming a symbol of foreigners meddling in Chinese affairs.
H&M was not the only company that came under fire for expressing concern for the alleged use of forced labor in Xinjiang, yet it was the only one whose products were pulled from China's top digital marketplaces, and which received a direct complaint from a state-affiliated organization.
So far Adidas, Nike, Converse and Burberry have all been swept up in the crisis. Even before the ban, additional companies like Patagonia, PVH, Marks & Spencer and the Gap had announced that they did not source material from Xinjiang and had officially taken a stance against human rights abuses.
Why was Nike boycotted in China? Several Western brands, including Nike and Swedish fashion retailer H&M, recently faced a backlash from Chinese shoppers after the firms expressed concerns about the alleged use of Uyghur forced labour in cotton production.
We take a zero-tolerance approach to both forced labor and child labor. All suppliers working for us must sign and comply with our strict anti-forced-labor and anti-child-labor policies. In 2022, we identified 0 cases of child labor.
H&M supplies clothes from different areas around the world. The top three locations that ship its products are China, Bangladesh, and India. Its retail headquarter is located in Sweden, where 21 suppliers and factories manufacture H&M's clothing products and accessories.
A year-long investigation by nonprofit Earthsight found that fiber certified by ethical supply chain organization Better Cotton was grown on “stolen” and “deforested” land in Brazil.
In June 2022, plaintiff Chelsea Commodore alleged “H&M created an extensive marketing scheme to 'greenwash' its products” in a bid to present items “as environmentally-friendly when they are not”, and that it was “taking advantage of consumers' interest” in sustainable apparel by using “misleading” marketing claims to ...
H&M had previously said in a statement it was "deeply concerned by reports from civil society organisations and media that include accusations of forced labour" and that it did not source products from Xinjiang.
Plaintiff alleges a fake circular economy when several products in the Conscious Choice line contain up to 100% polyester, a material that does not biodegrade and disperses microfibers into the environment, although H&M describes it as using polyester recycled from PET bottles.
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