Uniqlo's Chief Executive Confirms Absence of Xinjiang Cotton in Products

Tadashi Yanai's comments reflect both the complexities of operating in China and the pressures from the international community.

In a recent interview with the BBC, Tadashi Yanai, the CEO of Uniqlo's parent company Fast Retailing, confirmed that the fashion retailer does not use cotton sourced from the Xinjiang region of China. This marks Yanai's first official acknowledgment of the ongoing controversy surrounding Xinjiang cotton, which has been linked to forced labor involving the Uyghur Muslim minority.

While Uniqlo maintains a significant presence in China with around 1,000 stores, the subject of cotton sourcing has become increasingly contentious. Historically regarded as a premier fabric source, Xinjiang cotton has faced severe criticism and boycotts from international brands, including H&M and Nike, due to allegations of human rights violations. In 2022, the U.S. instituted stringent regulations prohibiting the import of goods from Xinjiang, further influencing global fashion decision-making.

Yanai previously refrained from addressing the issue directly, opting instead for a neutral stance to safeguard Uniqlo’s interests in China—a strategy that has paid off amid fierce competition. Nevertheless, during his recent interview, he declared, “We’re not using [cotton from Xinjiang],” although he hesitated to elaborate further due to the politically charged nature of the topic.

Isaac Stone Fish, head of Strategy Risks, noted that companies find it increasingly difficult to remain neutral amidst the pressure from both U.S. and Chinese governments to align with their respective policies. He stressed that the pressure for political alignment is now a reality for major corporations globally.

Despite the challenges, Yanai maintains Uniqlo's aim to expand within China, targeting a growth of stores from 1,000 to as many as 3,000 to capitalize on China’s vast market of approximately 1.4 billion consumers. Even with ongoing expansions in Europe and the U.S., Yanai recognizes Asia as the core of Uniqlo's operations, with China's role as its primary manufacturing hub being paramount.

He also remains cautious about competing with ultra-fast fashion brands such as Shein, declaring, “I don’t think there’s a future for fast fashion,” criticizing the industry’s wasteful production practices. Instead, Yanai plans to steer Uniqlo toward essential clothing items designed to remain in wardrobes for years, rather than fleeting seasonal trends.

Having transformed Uniqlo from modest beginnings to a global powerhouse with revenues of approximately 3 trillion yen this year, Yanai is determined to consolidate his position in the fashion industry, aiming to compete with giants like Inditex, owner of Zara. However, geopolitical uncertainties, including a potential return of tariffs under a new administration in the U.S., pose significant hurdles for the brand's aspirations.