H&M Shape Monstrous Documents Decrease In Sales In China After The Boycott Of Xinjiang.

Swedish fashion giant H&M records decline in sales in China a few months after that became the subject of a China boycott. H&M is among several brands that raised concerns about alleged human rights abuses against Uighur Muslims in China's Xinjiang Province.

Her testimony led to celebrities breaking with brands and e-commerce platforms to turn down H&M. The drop in sales even came as H&M's global business returned to profitability as the effects of the pandemic eased. China accounted for about 5% of the group's retail sales last year and is one of the biggest suppliers.

"With China, the situation remains complicated. In addition, we are referring to what we said earlier," said CEO Helena Helmerson when H&M first assessed the impact of the boycott. It comes after the second-largest fashion retailer reported a stronger-than-expected profit before tax of $420 million (£305m) for the quarter after suffering losses in the same period in 2020.

Several Western brands, including H&M and Nike, have recently faced intense backlash from Chinese buyers after companies voiced concerns about the alleged use of Uighur forced labor in cotton production. In March, H&M was removed from China's online retail platform Tmall and a local phone maker's app store after raising concerns about the alleged use of Uighur forced labor in cotton production.

However, later in March, H&M said it was committed to restoring the confidence of its Chinese customers and partners and that its commitment to the country remained strong. Last week, the boss of Nike, which is also boycotted in China, staunchly defended the sports giant's business in the country. CEO John Donajo said, "Nike is a brand made for and for China," in response to a question about competition from Chinese brands.