H&M, the Swedish clothing retailer, has seen its sales decline markedly in China, following a boycott by consumers in that country of the brand.
China accounts for about 5% of H&M’s total global sales, and sales in China – measured in local currency – dropped by 23% in the first quarter compared to the corresponding period in the previous year.
The boycott came after H&M expressed concern about the use of Uyghur forced labour in cotton production in China. The Uyghurs are a Muslim minority in Xinjiang, in the west of the country, who are being oppressed by the Chinese government, with some observers going as far to claim they are the victims of an ongoing genocide.
In March H&M was also removed from a number of Chinese shopping apps. Subsequently, however, H&M said it was dedicated to restoring the trust of Chinese customers and its partners in that country.
China is now the world’s second biggest economy after the United States, and by some measures the largest.
China’s rapid economic growth over the past three decades has seen it become an important market for many companies which have to tread carefully when criticising the oppressive Beijing regime.
In 2018 H&M caused controversy in South Africa when in some of its advertising materials it showed a young black boy wearing a hoodie with the phrase ‘Coolest monkey in the jungle’ printed on it, which some people viewed as racist. A number of its stores in South Africa were vandalised by the Economic Freedom Fighters because of this perceived racist slight.