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From backlash to recovery: Western brands' journey in China over Xinjiang cotton controversy

  

The boycott in China of Western brands associated with the Better Cotton Initiative (BCI) began in March 2021 after allegations of forced labor in Xinjiang cotton production surfaced.

BCI promotes sustainable cotton production and has been under scrutiny in China since it announced it would stop licensing cotton from Xinjiang due to concerns over human rights abuses. Several other Western brands faced backlash and boycotts in China, including Nike, H&M, and Burberry.

Nike and H&M faced significant backlash in China, with many of their stores being closed and their products being removed from major Chinese e-commerce platforms. H&M's sales in China dropped by 23% in the first quarter of 2021, and the company faced calls for a boycott from Chinese consumers and celebrities. Nike faced a similar situation, with some Chinese consumers cutting up their Nike products in protest.

Burberry also faced a backlash in China, with its sales falling 23% year on year in the quarter ended December 2022. The luxury brand appointed its first Chinese ambassador, Chen Kun, in two years earlier this month, marking a step towards recovery in the Chinese market.

Other brands, such as Adidas, have focused on rebuilding their reputation in China by promoting Chinese culture and incorporating Chinese elements into their products. Adidas signed a three-year partnership with the Chinese Literature and Art Foundation in November 2022 to help promote Chinese culture to the rest of the world. The company has also sponsored local sports events and tapped local designers to incorporate Chinese cultural elements into its products.

As China's economy bounces back, recovering lost market share has become a key priority for Western brands in China. However, with competition from domestic brands and ongoing scrutiny of issues such as forced labor, brands such as Adidas are taking a cautious approach to rebuilding their presence in China.

 
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