H&M seeks to ‘regain trust’ in China following Xinjiang row

H&M faced fierce criticism from Chinese officials and from consumers on social media over its stance on cotton sourced from Xinjiang, where it has been alleged that members of the Uighur minority group have been forced to work, and its product was removed from top ecommerce platforms such as Alibaba’s Taobao and JD.com.

As it updated on quarterly trading, H&M also issued a statement on the situation in China, where it is reported that some landlords have closed the retailer’s shops.

H&M said: “We are working together with our colleagues in China to do everything we can to manage the current challenges and find a way forward.

“China is a very important market to us and our long-term commitment to the country remains strong. Having been present there for more than 30 years, we have witnessed remarkable progress within the Chinese textile industry. Being at the forefront of innovation and technology, China will clearly continue to play an important role in further developing the entire industry.

“We are proud our suppliers are being part of that development and we want to continue contributing to driving progress together with our partners and stakeholders in the country.

“We want to be a responsible buyer, in China and elsewhere, and are now building forward-looking strategies and actively working on next steps with regards to material sourcing. Together with all relevant stakeholders, we want to collaborate to be part of the solution and jointly build a more sustainable fashion industry.

“As a global company, we comply with local laws and regulatory frameworks in all the markets where we operate. Our company values are built on trust, respect, integrity and dialogue. We wish to focus on our core business and on what we do best – bringing fashion and design to our customers all around the world.

“We are dedicated to regaining the trust and confidence of our customers, colleagues and business partners in China. By working together with stakeholders and partners, we believe we can take steps in our joint efforts to develop the fashion industry, as well as serve our customers and act in a respectful way.”

In its first quarter to February 28, H&M reported group net sales down to SEK 40bn (£3.3bn) from SEK 54.94bn (£4.6bn), as many stores – at the worst point 1,800 or more than a third of the estate – were closed because of coronavirus lockdowns. H&M made a loss after tax of SEK 1.07bn (£89m) compared with a profit of SEK 1.93bn (£161m) in the comparable period.