Chinese consumers reject H&M statement
April 6, 2021 Category China News Round-up, Weekly
Many Chinese consumers rejected a new statement from H&M, claiming that it was “a responsible buyer” while refusing to apologize or begin sourcing Xinjiang cotton. Market watchers warned that such a statement could hardly win the forgiveness of Chinese people, and the company may face more stores being shut down due to lost consumers, according to the Global Times. “Just shut up. H&M does not understand the true thinking of Chinese consumers at all”, a Beijing-based white-collar worker surnamed Liang told the Global Times. “Lots of nonsense, the statement does not have one sentence saying H&M will support Xinjiang cotton.” “There is no apology? I will continue to boycott the brand,” were some comments by netizens. CCTV.com commented that such a statement is full of empty words and lacks sincerity. “If you really want to regain trust and keep the market, you have to show sincerity on the key issues that you are stirring up,” it said.
Such comments came after H&M said that “China is a very important market” and its commitment to the country “remains strong”. H&M’s statement said that it is dedicated to regaining the trust and confidence of its customers, colleagues, and business partners in China. “We comply with local laws and regulatory frameworks in all the markets where we operate. We want to be a responsible buyer, in China and elsewhere,” the statement said. However, “the statement has no sincerity, and it is of no help in restoring business in Chinese stores,” Zhang Yi, CEO of iiMedia Research Institute, a mobile internet consulting agency, said. Some H&M stores in Xinjiang have been closed, while few customers were seen in stores in Beijing and Shanghai.
As of the end of February, H&M had 502 stores in China, ranking third in terms of the total number, after the U.S. and Germany. China accounted for 5.2% of H&M’s total sales in 2020, the fourth-largest market after Germany, the U.S. and the UK.
Chinese people and consumers have the right to make their own choices, Chinese Foreign Ministry Spokesperson Hua Chunying said, when asked whether the boycott of H&M was being promoted by the Chinese government. Companies in China should avoid politicizing business matters like H&M did, Xu Guixiang, Spokesperson of the regional government of Xinjiang, said, as reported by the Global Times.
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