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Xinjiang boycott causes China sales to slump: H&M

Jul 07, 2021
Xinjiang boycott causes China sales to slump: H&M


The sales of the famous Swedish fashion brand, H&M saw a slump in China due to the boycott issues. The brand had also raised concerns over human rights abuses against Uyghur Muslims in China's Xinjiang province.

After its statement, celebrities have cut ties with the brand as well as e-commerce platforms have dropped H&M. According to the data, the sales of the brand have fallen down by 23% for the second quarter of 2021 as compared to the corresponding figure last year. With the ease of the pandemic, H&M’s global business returned to profit, but the sales dropped due to the boycott issues.

According to Helena Helmersson, Chief Executive, H&M, as the brand has quantified the impact of boycott for the first time, the situation in China remains complex. Apart from that, the brand sticks to what it had said before.

Due to the concerns related to the alleged use of Uyghur forced labour in cotton production, H&M has faced a backlash from the Chinese shoppers. It was also removed from the Chinese online retail platform in the month of March.

The brand is highly dedicated to regaining the trust of customers and partners in China and the commitment towards the country holds the same.

Source – BBC News

Image Source: Twitter

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