Muji U-turns on global boycott of Xinjiang cotton after investor backlash sends stock price plunging
The Japanese home goods retailer Muji seems to have flip-flopped over participating in the international boycott of Xinjiang cotton, while still trying to straddle the fence on the issue.
Muji on Monday appeared to have removed items made of Xinjiang cotton from its stores in Japan, Hong Kong and Taiwan, while still selling those goods in mainland China, Apple Daily has found.
Last week Muji told the state-owned mouthpiece Global Times that “it did not boycott Xinjiang cotton, and our company is using Xinjiang cotton.” Investors reacted negatively, however, and the stock of Muji’s mother company, Ryohin Keikaku, plunged by 6.8% as a result, the worst performance since last July.
Ryohin Keikaku then flip-flopped on the issue, saying it was “deeply concerned” about reports of human rights abuses in China’s northwestern region, and would join the boycott in the footsteps of other global retailers including H&M and Nike.
Muji added that it sources cotton from many countries including China, and that it “thoroughly enforced compliance so as not to be directly or indirectly involved in transactions prohibited by law,” according to Bloomberg News.
Muji’s stores in Hong Kong, Taiwan and Hong Kong have officially removed all items found to contain Xinjiang cotton, although one store in Taikoo Shing, Hong Kong, was still selling menswear marked “using Xinjiang cotton” on Monday.
No one at that store was available for an interview, and Muji Hong Kong said it would have to first check with Japanese headquarters before making a response.
Muji’s websites for Hong Kong and Taiwan have removed all mentions of Xinjiang cotton in its products, listing only “organic cotton.”
However, Muji is still selling products containing Xinjiang cotton in its stores in mainland China, according to its China website, which emphasizes the fiber length, softness and elasticity of the cotton.
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