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BBC interview of Fast Retailing ( FRCOF ) CEO goes viral on Chinese

web

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Weibo ( WB ) users slam Uniqlo, some vow to stop purchases

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Fast Retailing ( FRCOF ) makes a fifth of revenue from Greater China

(Adds details)

By Eduardo Baptista and Casey Hall

BEIJING, Nov 29 (Reuters) - Casual wear giant Uniqlo is

facing a storm of online criticism in China after a BBC report

quoted the chief executive of its owner as saying the company

does not source cotton from the far western region of Xinjiang.

The British Broadcasting Corporation published an interview

on Thursday with Tadashi Yanai, the chief executive of Fast

Retailing ( FRCOF ), in which it asked him if the Japanese

retailer sourced cotton from the region.

The report went viral on Chinese social media platform Weibo ( WB )

on Friday, with several users slamming the company and some

saying they would stop buying its products.

"With this kind of attitude from Uniqlo, and their founder

being so arrogant, they're probably betting that mainland

consumers will forget about it in a few days and continue to

buy," one user wrote. "So, can we stand firm this time?"

In the interview, Yanai initally responds to the BBC's

question saying, "We're not using," before interrupting himself

to say he did not want to continue his answer as it was "too

political".

Fast Retailing ( FRCOF ) did not immediately respond to a request for

comment.

The issue of sourcing from Xinjiang, where rights groups and

the U.S. government accuse China of abuses against the Uyghur

population, has been a geopolitical minefield for foreign firms

with a large presence in China.

Beijing denies any abuses in the region, the origin of the

vast majority of Chinese-produced cotton.

In 2021, Uniqlo's rival, H&M, faced a consumer boycott in

China for a statement on its website that expressed concern

about accusations of forced labour in Xinjiang and said it would

no longer source cotton from there.

H&M saw its stores removed from major e-commerce platforms

and its store locations moved from map apps in China as it bore

the brunt of consumer anger at companies refusing to source

cotton from Xinjiang.

Other Western brands such as Nike ( NKE ), Puma, Burberry ( BBRYF ), Adidas

and more were also caught up in the controversy.

In September, China's commerce ministry launched an

investigation into PVH, the parent company of Calvin Klein and

Tommy Hilfiger.

In a statement it said PVH was suspected of "unjustly

boycotting" Xinjiang cotton and other products "without factual

basis".

PVH has said it will respond in accordance with relevant

regulations, media reported.

In 2020, Fast Retailing ( FRCOF ) said it did not make any products in

Xinjiang. However, Yanai has refrained in recent years from

discussing the subject in other media interviews, saying Uniqlo

wanted to stay neutral.

China is Fast Retailing's ( FRCOF ) biggest overseas market and it has

more than 900 stores on the mainland. Greater China, including

Taiwan and Hong Kong, accounts for more than a fifth of its

revenue.

Ben Cavender, managing director at Shanghai-based China

Market Research Group said Uniqlo's sales had held up well

during the current weakness in its economy.

But that Chinese consumers would vote with their wallets if

they felt a brand was being disrespectful to their country or

culture, he added.

"It's too soon to tell if there will be lasting damage but

losing even a small number of consumers over this will not be

helpful, given how challenging things are for the apparel

industry right now."

Asked about Yanai's reported comments at a press briefing on

Friday, Chinese foreign ministry spokesperson Mao Ning said she

hoped "companies can eliminate political pressure and bad

interference and independently make business decisions in line

with their own interests".