Uniqlo's CEO Asserts No Use of Xinjiang Cotton Amid Global Scrutiny

In an interview, Uniqlo's CEO, Tadashi Yanai, confirmed that the brand does not utilize cotton from Xinjiang, responding to global concern over forced labor amid growing geopolitical tensions. He described China's significance for Uniqlo's operations while highlighting competition and sustainability challenges.

 
Uniqlo's CEO, Tadashi Yanai, has publicly confirmed to the BBC that the global fashion retailer does not source cotton from the Xinjiang region of China. This statement marks a pivotal moment for Fast Retailing, the company behind Uniqlo, as it navigates the complex landscape of global fashion amid scrutiny regarding the origins of its materials.

The Xinjiang region, once revered for its high-quality cotton, has recently become embroiled in controversy due to reports of forced labor involving Muslim Uyghurs. The introduction of stringent U.S. regulations in 2022 regarding imports from Xinjiang has prompted many global brands, including H&M, Nike, and Adidas, to reassess their supply chains, leading to public boycotts in China against companies that continued using Xinjiang cotton.

Previously, Yanai had been reticent to comment on Uniqlo's sourcing practices, opting for a neutral stance to maintain the brand's popularity in China—a critical market for its retail and manufacturing operations. However, during a recent interview, he explicitly stated, “We’re not using [cotton from Xinjiang],” though he later cautioned against delving deeper into the political implications of his response.

Isaac Stone Fish, a business intelligence expert focused on China, suggests that the political environment increasingly necessitates companies to take clear stances, which complicates operations for brands with global aspirations. Despite the challenges, Yanai remains committed to expanding Uniqlo's presence in China, aspiring to grow from 1,000 stores to as many as 3,000 in a nation of 1.4 billion people.

While Uniqlo has been diversifying its manufacturing presence—operating in countries like Vietnam, Bangladesh, and India—China remains its largest hub. Yanai reflects on previous strategies to reduce reliance on China due to rising production costs but acknowledges the difficulties of replicating the country's efficiency elsewhere.

Faced with competition from ultra-fast fashion brands such as Shein, Yanai feels that the future of clothing retail requires a more sustainable approach, emphasizing the importance of durability over fleeting trends. Throughout his four-decade leadership, he has transformed Uniqlo from a small venture into a global player, currently aiming to surpass Inditex, the parent company of Zara, as the leading fashion retailer.

As the market landscape evolves, especially with potential shifts in U.S. tariff policies under a new administration, Yanai's vision for Uniqlo hinges on balancing growth with ethical responsibility in sourcing materials.