The company took steps to argue that the raw materials for the shirts were sourced from Australia and other countries and had nothing to do with China, but the authorities rejected the raw materials for the shirts due to insufficient evidence. .
Uniqlo’s Quick Retail Division said: “This decision is very regrettable. Under the company’s policy of not tolerating any forced labor, respecting human rights in the supply chain is a top priority. We have Confirm that there are no serious human rights violations such as forced labor.”
According to a report by Nikkei Business News on May 20, the U.S. customs department has stopped importing Japanese Fast Retailing products. Shirts of the “UNIQLO” brand operated by the group. Although only one product is currently involved, it does not rule out that the United States will increase its “sanctions”. After all, in April this year, at the performance conference of Fast Retailing Group (Uniqlo’s parent company), regarding the “human rights issues” in Xinjiang, Uniqlo founder Yanai Masaru Said: “It is not so much a human rights issue, but closer to a political issue. As a company, we are doing what we can and will not comment on other matters.” Regarding the fact that foreign-funded companies that do not use Xinjiang cotton are boycotted by Chinese consumers, Yanai Tadashi said that the issue itself has political overtones and we remain neutral.
Referring to 2019 data, Uniqlo’s global business distribution has local revenue of 870 billion yen, which is the largest market. China is the largest overseas market with revenue of 500 billion yen. The Japanese yen accounts for 50% of overseas sales. Other markets such as Southeast Asia, Oceania, and South Korea account for 170 billion yen and 140 billion yen respectively. Europe and North America have the same revenue (100 billion yen).
Comparatively speaking, China’s market space far exceeds that of North America, which is fully in line with Xunpin Group’s desire to become the world’s largest clothing brand company. However, considering that after the Biden administration comes to power, Japan has already It is gradually leaning towards the United States, and the demand to join the “Five Eyes Alliance” is the best proof. Therefore, it does not rule out the possibility that Uniqlo will be completely banned by the United States in the future, but adopts a negative market attitude towards China. What’s more, Japanese companies have taken the lead. On April 14 this year, Japan’s “king of ketchup” Kagome stopped importing tomatoes from Xinjiang, China. Kagome’s representative claimed that the reason why the Japanese company stopped buying tomatoes Xinjiang tomatoes, in addition to cost and quality, Xinjiang labor issues are also a factor. Although for Kagome, China’s market position is relatively low, the demonstration effect has been achieved, which is not a good start. </p
