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Japanese brands suffer in China due to Xinjiang ban

May 25, 2021
Japanese brands suffer in China due to Xinjiang ban

As per a report generated on Friday, Japanese apparel companies like World Co and Mizuno have stopped using Xinjiang cotton. This step was taken in response to allegations of human rights abuses. This action has angered Chinese net users who have posted online that the brands are making profits from other markets and criticizing China unnecessarily. Another net user posted that if the brands will favour the US, then it will be a huge loss to the Chinese market.

According to Yan Qiang, Partner, Hejun Consulting, this decision of banning Xinjiang cotton by the Japanese companies is driven by political factors, wherein, the US has put pressure on Japan. Because of this discrimination against Xinjiang cotton, companies like Nike, H&M, Uniqlo, and Adidas are suffering in the Chinese market.

According to Zhang Yi, CEO, iimedia Research Institute, this unwise decision of banning Xinjian cotton will create a situation wherein the fast-rising domestic brands will get a chance to grab a good share in the market. He also said that Chinese people might boycott these foreign brands as Chinese consumers' national self-consciousness has doubled in recent years.

Source – Global Times

Image Source: Wikipedia

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