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H&M: Fashion giant sees China sales slump after Xinjiang boycott | H&M: Fashion giant sees China sales slump after Xinjiang boycott |
(4 months later) | |
H&M faced a backlash in China over its refusal to use Xinjiang cotton | H&M faced a backlash in China over its refusal to use Xinjiang cotton |
Swedish fashion giant H&M saw its sales slump in China, months after it became the target of a Chinese boycott. | 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. | H&M was among several brands that raised concerns over alleged human rights abuses against Uyghur Muslims in China's Xinjiang province. |
Its statement led celebrities to cut ties with the brand and e-commerce platforms to drop H&M. | Its statement led celebrities to cut ties with the brand and e-commerce platforms to drop H&M. |
The sales slide came even as H&M's global business returned to profit as the impact of the pandemic eased. | The sales slide came even as H&M's global business returned to profit as the impact of the pandemic eased. |
China accounted for around 5% of the retail group's sales last year and is one of its biggest suppliers. | China accounted for around 5% of the retail group's sales last year and is one of its biggest suppliers. |
H&M's sales in China were down 23% in the local currency for the second quarter of 2021, compared to the same time last year. | H&M's sales in China were down 23% in the local currency for the second quarter of 2021, compared to the same time last year. |
"With regards to China the situation remains complex. Beyond that we refer to what we have said before," Chief Executive Helena Helmersson said as H&M quantified for the first time the impact of the boycott. | "With regards to China the situation remains complex. Beyond that we refer to what we have said before," Chief Executive Helena Helmersson said as H&M quantified for the first time the impact of the boycott. |
That came as the world's second-largest fashion retailer reported a stronger-than-expected $420m (£305m) pre-tax profit for the quarter, after a loss in the same period in 2020. | That came as the world's second-largest fashion retailer reported a stronger-than-expected $420m (£305m) pre-tax profit for the quarter, after a loss in the same period in 2020. |
Nike boss defends firm’s business in China | Nike boss defends firm’s business in China |
Cotton ban is self-defeating, China tells H&M | Cotton ban is self-defeating, China tells H&M |
Nike, H&M face China fury over Xinjiang cotton | Nike, H&M face China fury over Xinjiang cotton |
Why was H&M boycotted in China? | Why was H&M boycotted in China? |
Several Western brands, including H&M and Nike, recently faced a backlash from Chinese shoppers after the firms expressed concerns about the alleged use of Uyghur forced labour in cotton production. | Several Western brands, including H&M and Nike, recently faced a backlash from Chinese shoppers after the firms expressed concerns about the alleged use of Uyghur forced labour in cotton production. |
In March, H&M was removed from the Chinese online retail platform Tmall and domestic phone makers' app stores after it expressed concerns about the alleged use of Uyghur forced labour in cotton production. | In March, H&M was removed from the Chinese online retail platform Tmall and domestic phone makers' app stores after it expressed concerns about the alleged use of Uyghur forced labour in cotton production. |
But later in March, H&M said it was dedicated to regaining the trust of customers and partners China and that its commitment to the country remained strong. | But later in March, H&M said it was dedicated to regaining the trust of customers and partners China and that its commitment to the country remained strong. |
Last week, the boss of Nike, which also faced a boycott in China, made a robust defence of the sportswear giant's business in the country. | Last week, the boss of Nike, which also faced a boycott in China, made a robust defence of the sportswear giant's business in the country. |
Chief executive John Donahoe said "Nike is a brand that is of China and for China" in response to a question about competition from Chinese brands. | Chief executive John Donahoe said "Nike is a brand that is of China and for China" in response to a question about competition from Chinese brands. |
Mr Donahoe made the comments during a discussion on Nike's fourth quarter earnings, which showed revenues had doubled to a better-than-expected $12.3bn (£8.8bn) for the three months to the end of March. | Mr Donahoe made the comments during a discussion on Nike's fourth quarter earnings, which showed revenues had doubled to a better-than-expected $12.3bn (£8.8bn) for the three months to the end of March. |
What is Xinjiang and who are the Uyghurs? | What is Xinjiang and who are the Uyghurs? |
Xinjiang, China's biggest region, produces about a fifth of the world's cotton. An autonomous region in theory, in reality it faces restrictions which have only increased in recent years | Xinjiang, China's biggest region, produces about a fifth of the world's cotton. An autonomous region in theory, in reality it faces restrictions which have only increased in recent years |
Millions of China's Uyghurs, a Muslim minority that sees itself as culturally and ethnically close to Central Asian nations, live in Xinjiang | Millions of China's Uyghurs, a Muslim minority that sees itself as culturally and ethnically close to Central Asian nations, live in Xinjiang |
In recent decades, mass migration of Han Chinese (China's ethnic majority) to Xinjiang has fuelled tensions with Uyghurs which has at points flared into deadly violence | In recent decades, mass migration of Han Chinese (China's ethnic majority) to Xinjiang has fuelled tensions with Uyghurs which has at points flared into deadly violence |
This has resulted in a massive security crackdown and an extensive state surveillance programme, which critics say violate Uyghur human rights. China says such measures are necessary to combat separatism and terrorism | This has resulted in a massive security crackdown and an extensive state surveillance programme, which critics say violate Uyghur human rights. China says such measures are necessary to combat separatism and terrorism |
Uyghurs have been detained at camps where allegations of torture, forced labour and sexual abuse have emerged. China has denied these claims saying the camps are "re-education" facilities aimed at lifting Uyghurs out of poverty | Uyghurs have been detained at camps where allegations of torture, forced labour and sexual abuse have emerged. China has denied these claims saying the camps are "re-education" facilities aimed at lifting Uyghurs out of poverty |
In March, a group of Western countries imposed sanctions on officials in China over rights abuses against the Uyghurs. | In March, a group of Western countries imposed sanctions on officials in China over rights abuses against the Uyghurs. |
The sanctions were introduced as a coordinated effort by the European Union, UK, US and Canada. | The sanctions were introduced as a coordinated effort by the European Union, UK, US and Canada. |
In December, the BBC published an investigation based on new research showing China was forcing hundreds of thousands of minorities including Uyghurs into manual labour in Xinjiang's cotton fields. | In December, the BBC published an investigation based on new research showing China was forcing hundreds of thousands of minorities including Uyghurs into manual labour in Xinjiang's cotton fields. |
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The video Uyghur model Merdan Ghappar filmed inside China's detention system | The video Uyghur model Merdan Ghappar filmed inside China's detention system |