The worldwide ban on Xinjiang cotton has stoked patriotic fervor of Chinese consumers who are increasingly opting for domestic fashion brands over international labels. Chinese consumers are openly expressing their support to Xinjiang cotton, sending shares of textile and apparel companies traded in Shanghai and Shenzhen zooming higher, says Shanghai-based information provider Wind Info.

Patriotism fuels domestic sales

Patriotism is playing a big role in facilitating sales of domestic brands, especially those supporting domestic cotton, says Tang Xiaotang, a clothing and fashion industry analyst. Sportswear brands are experiencing an exponential rise in demand fuelled by consumers’ rising interest in healthy and casual wear. As per an English Eastday report, rise in demand for domestic brands has sent prices of their limited-edition sneakers soaring on online platforms.

The price rise may hit consumers' confidence in local brands and cripple their brands upgrade, say experts. Homegrown brands need to entice local consumers with a wide product variety, high quality and reasonable prices, say experts. Kong Xiangzhi, Professor, School of Agricultural Economics and Rural Development of Renmin, University of China says, the recent surge in domestic shopping may not necessarily translate into a higher share for domestic brands as consumers will continue to choose quality, style and cultural innovations. To gain more pricing power in the market, China needs to expand its domestic industrial chain and make it risk-resistant, adds Yang.

New standards for developing high-quality cotton

China is releasing its own version of Better Cotton Initiative standards. This helps it to promote a comprehensive set of principles for offering high-quality cotton products. The cotton program helps build China’s own national standards to develop higher quality cotton and digitize the entire industry, affirms Luo Yan, Secretary-General, Xinjiang Digital Cotton Research Center.

According to Luo, the proposed cotton program will improve the efficiency of cotton production in China through digitalization, low carbonization and high quality of cotton farming. For this, BCI aims to suspend its cooperation with licensed farmers in Xinjiang during the 2020-21 cotton season over allegations of forced labor in the region.

The world's second-largest cotton producer after India, China grows most of its cotton in Xinjiang, shows, data from China Grain Reserves Group. In 2020, the country exported textile and apparel products worth $291.22 billion, as per data from the General Administration of Customs. Most of these products were exported to Europe, the US and Southeast Asia.

Chinese brands to move up the chain

In future, China’s sportswear and apparel brands are expected to move up the industrial chain and expand in both local and overseas markets, avers Xie Xiaowen, Research Fellow, E-Commerce Research Center, Internet Economy Institute. Improving R&D and production skills will help these brands boost marketing operations, he adds.