Retail News CRM

Tag: h&m

  • H&M closes Shanghai flagship after Covid lockdowns

    H&M closes Shanghai flagship after Covid lockdowns

    H&M has shut its flagship Shanghai store, its latest closure in China where consumer demand has slumped amid COVID-19 lockdowns and the fast-fashion retailer has borne the brunt of a backlash against companies that refuse to use Xinjiang cotton.

    Although it was open earlier this month, the three-storey building in downtown Shanghai was on Friday boarded up with its H&M signage gone.

    The world’s second-biggest fast-fashion retailer entered China in 2007 with the opening of the Shanghai flagship store and rapidly expanded. It had more than 500 stores in mainland China early last year but its website currently only lists 376, including the flagship Shanghai store.

    The company declined to comment, citing a blackout period prior to its first-half earnings report on June 29.

    Although nearly a month has passed since Shanghai lifted a strict two-month lockdown, consumers have yet to return to malls in significant numbers.

    Chinese consumers have also beat a retreat from its products after a letter in which H&M expressed concerns about allegations of forced labour in the Xinjiang region came to light in 2021.

    Other brands that publicly disavowed Xinjiang cotton such as Inditex’s, Zara, Nike and Adidas have also suffered with Chinese netizens calling for boycotts and Chinese celebrities refusing to work with them.

    But the backlash against H&M, the first foreign retailer to express concerns, has been particularly harsh. Unlike other brands, its products remain unavailable on major Chinese e-commerce sites such as Tmall and JD.com.

    UN experts and rights groups estimate over a million people, mainly Uyghurs and other Muslim minorities, have been detained in recent years in a vast system of camps in China’s western Xinjiang region.

    Many former inmates have said they were subject to ideological training and abuse in the camps. China denies all accusations of abuse.

    Lees ook:

    Lees ook:

    Lees ook:

  • H&M Group tests new tech in US Cos stores

    H&M Group tests new tech in US Cos stores

    H&M Group is piloting tech-enabled shopping solutions across its US Cos stores as part of its strategy to tap into the in-store technology-driven retail experience, to deepen its customer relationships.

    The initiatives include seamless payment options, personalised styling recommendations, faster checkout and upgraded delivery and return options.

    “We are developing and imagining how Cos retail spaces can inspire our customers, both now and in the future,” said Lea Rytz Goldman, MD at Cos. “Our ambition is to pilot new technologies that allow us to meet and exceed our customers’ in-store shopping expectations.”

    The program was first tried at the Cos Beverly Hills store, where fitting rooms are equipped with smart mirrors that recognise products brought into the room and allow customers to request items without having to leave the room. Meanwhile, there are other types of mirrors used for virtual try-on and styling.

    “With Cos Beverly Hills, we have seen first-hand how our customer experience can be elevated with tech enhancements. As a result, these innovations will be rolled out in more Cos’ US stores this year,” Goldman added.

    Chief technology officer at H&M Group, Alan Boehme, said the group will test a new frictionless and personalised shopping experience throughout this year.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • Chinese shun foreign brands

    Chinese shun foreign brands

    Catwalks canceled, showrooms closed, stores shuttered: the pandemic has led to massive disruption across the fashion industry. Even in China, which has coped with the pandemic better than many countries, multi-brand store buyers have been forced to place orders online, rather than in the showroom. And they don’t like it much.

    All this has led many Chinese fashion buyers to order more conservatively this year or ignore international brands and opt for local Chinese labels.

    Olivia Chen, head of Assemble by Réel, a high-end store in Shanghai’s centrally-located Réel Mall, says that virtual ordering makes her feel like something is missing. “In a showroom, you’re immersed in an environment that conveys the season’s atmosphere. We can use a variety of sensory clues to gain insight into the story the designer wants to convey,” says Chen. “These elements create a certain kind of atmosphere, one that has a lasting and powerful influence. Images and other materials related to remote purchases can evoke some of that feeling, but it can’t achieve a high degree of resonance.”

    Chen emphasises the difference between an image of a product and the product in real life, whether it’s in the weight of the fabric or the way the fabric moves on the body.

    Eric Young, head of high-profile designer store Le Monde de SHC in Shanghai, agrees. “Many times you have no choice but to judge a product from a photo or small picture, but even with Zoom, the imaging quality of different showrooms is actually very different,” he says. In Paris, he points out, a whole series of brands can be viewed in the space of a day. By contrast, online ordering is a long repetitive process of frustration. “In the end, one grows numb to viewing things online,” he says.

    More buyers would prefer to make the long trip to Europe for a more immersive experience — it would let them buy more boldly, explore new hot brands and interact with designer brands on a more personal level. Frustrated that they can’t travel, some buyers have come up with alternative solutions: from the AW21 season, Shanghai buyer store Eth0s set up a small showroom for 15 foreign brands including Geoffrey B. Small, Marc Le Bihan and Antonio Marras.

    Chen also notes that extra materials are being provided to improve the online experience. “The main change since the pandemic started is that brands are providing auxiliary materials before a Zoom meeting, including introductions to a line, lookbooks and fabric samples,” she says.

    As Chen notes, a shift to online ordering already predated the pandemic to some extent. “Actually a lot of brands started doing online ordering before this,” agrees Jony, manager of Chengdu buyer store Clap. “But it’s a plan B at best. Physical ordering is still extremely necessary.”

    Like many Chinese buyers, Le Monde de SHC’s Eric Young is reluctant to take a risk with new foreign brands that he cannot physically touch and see for himself. That problem has encouraged buyers to play safe, making safer purchases. “It’s also an opportunity for local designers. As long as the lines they launch are good enough, they’ll definitely have a higher chance of getting orders than they would have before the pandemic. Shanghai Fashion Week this past April was more active than it’s ever been,” he says.

    At Eth0s, another leading Shanghai store, head Chen Fei has struggled to find the right Chinese brands that match his outlook. “We have been very committed to finding domestic brands, and we’ve met some good designers, but… we want a brand that shares our world view,” he explains.

    Chen Fei has not played safe, looking for bold special pieces to excite his customers. “Everyone was quite frustrated because of the lockdown, and we wanted to stimulate the pleasure they get from consuming. And we wanted customers to be happier.”

    Chen Fei argues that the brands, rather than store buyers such as himself, have played it safer. “One thing that got more conservative was their style designs; another was their business decisions,” he says.

    In Chengdu, Clap has reduced its budget for foreign designer brands by 30 to 50 per cent — instead, Clap has bought local high-impact brands. Fashion pieces with strong graphics are often bestsellers, says Jony. “Such styles may excite customers more easily, because when you’re not sure about the line itself or the fabric, the easiest way to decide what you’re going to buy is through graphic design.”

    Olivia Chen of Assemble by Réel believes that if an effective purchasing programme is maintained, sales can be guaranteed. Post-pandemic, Assemble has maintained a sell-out rate of around 85 per cent.

    The current situation has some time to run yet. Even the most optimistic forecasts do not predict normal travel resuming before the beginning of 2022. That means at least another season or two of ordering online.

    With that in mind, Chen Fei believes brands should find better ways of presenting every detail of their clothes, especially more high-priced products. “If we can’t see the brand information clearly, it’s possible we’ll consider reducing our order, but where the information is clear, we feel quite confident about placing an order. For example, Rick Owens is very good — they have a representative in China and will try to provide very complete information. For example, if a style has five fabrics they’ll do their best to provide samples. We’ve bought from them for a long time. We even know the body shape of the model the brand uses, so there won’t be any big deviations in our orders.”

    Foreign showrooms are looking to enter the Chinese market. At Shanghai Fashion Week in April, Antwerp agency Up Next brought a number of brands, including Casablanca, Botter and Sweetlimejuice.

    Fresh design ideas and exciting new brands remain a driving force for the most fashion-forward stores. While easy-to-wear brands at attractive price points are likely to sell well in China, as in any market, the new generation of buyer-led stores are also serving the tastes of some increasingly sophisticated customers. “A lot of female consumers have gotten really niche in their tastes, and wear the clothes really well, better even than the brand’s own styling,” says Chen Fei. “They wear the clothes in ways the brand didn’t expect them to.”

    Lees ook:

    Lees ook:

    Lees ook:

  • Shein overtakes Intidex, H&M with $100 billion valuation

    Shein overtakes Intidex, H&M with $100 billion valuation

    A Chinese fast-fashion company without a global network of physical stores of its own is seeking a valuation that could be more than the combined worth of high-street staples Hennes & Mauritz AB and Inditex SA’s Zara.

    Shein, an online-only retailer of inexpensive clothes, beauty and lifestyle products that pumps out over 6,000 new items daily, is in talks with potential investors including General Atlantic for a funding round that could value the company at about $100 billion, Bloomberg News reported Sunday.

    Should Shein succeed with the round, it would make the decade-old brand about twice as valuable as Tokyo-based Fast Retailing Co. — the owner of Uniqlo — which last year had more than 2,300 outlets in 25 countries and regions. It would also make Shein the world’s most valuable startup after ByteDance Ltd. and SpaceX, according to data provider CB Insights.

    While funding rounds indicate the value of a business broadly, initial public offerings offer a sharper peek into whether a wider base of investors shares the same enthusiasm, especially after the books are thrown open to the public for scrutiny. Most manage to get the valuation they seek, if not better, but some fail. Shein hasn’t unveiled any plans for an IPO.

    Since its launch in 2012, Shein has developed an extensive network of low-cost suppliers in southern China. During the pandemic, it worked with celebrities like Lil Nas X and Katy Perry to boost its profile among Gen Z shoppers outside China.

    Early in the pandemic, Shein benefited from changes in consumer behavior, as shoppers made even more of their purchases on phones or computers. Sales more than tripled in 2020 to $10 billion, making Shein the biggest web-only fashion brand in the world.

    The new investment round would reflect the impact of a surge in sales for Shein. At the time of a funding round in August 2020, Shein had a valuation of $15 billion, according to PitchBook.

    Shein’s potentially astonishing valuation also masks some of the adverse impacts the fast-fashion industry has on the environment. Though the closely held company hasn’t commented on its carbon footprint, the sector is often blamed for its heavy reliance on petrochemicals derived from oil. Fashion accounts for up to 10% of global carbon dioxide output, according to the United Nations Environment Programme. It also accounts for a fifth of the 300 million tons of plastic produced globally each year — a product that is the backbone of polyester, which has overtaken cotton as the primary material in textile production.

    In its 2021 “Sustainability and Social Impact Report,” Shein said fashion has an undeniable impact on the planet’s health and said it’s striving for zero waste and would announce its goal by the end of this year. In December, it announced a $10 million fund to support global non-profit organizations focused on empowering entrepreneurs, supporting underserved communities, ensuring animal health and welfare, and promoting recycling.

    The Chinese brand is also facing headwinds in the U.S., with lawmakers in Washington considering legislation that could hinder its sales in the world’s No. 1 economy. The House of Representatives in February approved the America Competes Act, which includes language that would prevent Chinese companies from using a current exemption that allows tariff-free imports of packages worth less than $800.

    The Senate passed a bill without that change, though, and lawmakers have yet to reveal the terms of the final version.

    In a sign that Shein expects to enjoy continued growth in the U.S., the company recently announced plans to open a distribution center in Indiana that will employ 850 workers. Last month, Shein also agreed to a new program with Indiana University to offer fellowships to students in the university’s business school.

  • H&M plans showing its first Home concept store in Paris

    H&M plans showing its first Home concept store in Paris

    The Swedish giant is about to open an XXL store in Paris. Officially inaugurated on Thursday September 9, 2021, this H&M Home store is to open in the famous Madeleine area. Here is what we know about this spot already.

    Good news for home décor fans looking for bargains. H&M is opening this Fall 2021 a new store dedicated to home. Called H&M Home, this first 100% home décor store in France by the Swedish giant is to take over the Madeleine district – already housing the first IKEA store in Paris.

    It is at 14 boulevard des Capucines, a stone’s throw from Olympia, and not far from their flagship the concept-store is about to welcome Parisians and tourists looking for bargains to transform their indoors. This new spot, covering 724sqm, will feature different styles, also available in the H&M Home collection and collaborations with other brands.

    In addition to decoration for each room, you can find storage units, accessories, bedding, indoor clothing, crockery, toys for children, and even furniture to fit on small surfaces. This will be the occasion for small budgets to change their décor for a lesser cost.

    So, when will this new H&M concept store dedicated to indoor decoration open in Paris? The official opening is scheduled on Thursday September 9, 2021 with a special weekend including exclusive guest brands to enjoy on-site, and a never-before-seen digital experience.

    After the opening of an Ikea Décoration in Paris 1st arrondissement, and before the inauguration of Maxi Bazar in the 13th, stores dedicated to decoration are very trendy in town!

    Lees ook:

    Lees ook:

    Lees ook:

  • H&M fined for misleading Chinese consumers

    H&M fined for misleading Chinese consumers

    The fashion giant H&M China has been fined 260,000 yuan (US $ 40,200) for “misleading consumers” in its advertising.

    According to the market control regime in Shanghai, the Swedish multinational apparel retailer tricked its customers with advertising that claimed that the featured products were only available in China.

    Officials revealed that the investigation into the case began in February 2021.

    Authorities have confiscated “illicit earnings from selling substandard products” worth 30,000 yuan ($ 4,638).

    Regulators ordered the company to stop creating and selling items that do not meet quality guidelines.

    This is not the first time the fast-fashion company has been criticized in China this year. In April, H&M agreed to change the “problematic map” online after criticism from the government in China.

    After the US, the European Union, Britain and Canada imposed travel and economic sanctions on authorities over allegations of abuse in Xinjiang in the northwest of China, the ruling Communist Party held a barrage against H&M, Nike and other shoe and clothing brands.

    The city government said: “Internet users report that H & M’s website has a ‘problematic map of China’ and the Shanghai Municipal Bureau of Planning and Natural Resources has ordered it to be fixed quickly.”

    The company’s social media account stated that H&M managers “corrected the error as soon as possible” after calling to meet with regulators.

    Lees ook:

    Lees ook:

    Lees ook:

  • H&M to open first store in Cambodia next year

    H&M to open first store in Cambodia next year

    Swedish multinational clothing retail company Hennes & Mauritz AB (H&M) has announced the opening of its first store in Cambodia next year, according to a press release issued in early July.

    The firm, however, did not disclose the specific date and location of this first store.

    H&M already has a large presence in the region with 11 stores in Vietnam and 43 in Thailand.

    The decision to expand its stores to Cambodia was made after the company assessed the potential of Cambodia given the gradual increase of local purchasing power.

    The firm has been manufacturing its products in Cambodia since the 1990s.

  • H&M back to profit again, China sales hit by boycott

    H&M back to profit again, China sales hit by boycott

    Fashion retailer H&M’s global sales growth slowed in the second half of June and the Swedish company took a sales hit in China after its concerns over alleged human rights abuses in Xinjiang led to a social media-inspired boycott by shoppers.`
    The world’s second-largest fashion retailer aon Thursday reported a stronger-than-expected profit for its March-May quarter, after a loss in the same quarter last year.

    In China, sales were down 23% in local currencies when H&M was wiped off Tmall and domestic phone makers app stores in March after the retailer expressed concerns about the alleged Xinjiang human rights abuses.

    “With regards to China the situation remains complex. Beyond that we refer to what we have said before,” Chief Executive Helena Helmersson said, as H&M quantified for the first time the impact of the China boycott, which started on social media.

    H&M in late March said in a statement it was dedicated to regaining the trust of customers and partners China and that its commitment to the country remained strong.

    Helmersson said H&M was closely following the situation in Bangladesh – another main supplier – after a spike in coronavirus cases prompted the country to enforce a strict lockdown, although garment factories remain open.

    Group sales for June 1-28 were up a quarter year-on-year but 4% lower than in pre-pandemic 2019 as growth slowed from mid-June, highlighting a patchy recovery from the pandemic.

    Helmersson, speaking to analysts and reporters, attributed the easing in the second half of June to a combination of factors, including tough year-ago and 2019 comparisons, cold weather last week in some European markets, and how coronavirus restrictions were being eased.

    “We see signals of a strong recovery also in June, and that customers appreciate our collections,” she said.

    Analysts said the figures implied sales were down 9% on 2019 in the latter two weeks of June, and noted that rival Primark has also said trading was currently very volatile from week to week.

    “Recent weeks of trading highlight a mixed demand rebuild,” said Jefferies analyst James Grzinic.

    Quarterly pretax profit was 3.59 billion crowns ($419 million) against a year-earlier loss of 6.48 billion.

    “As more and more people are vaccinated and restrictions are eased, the world is gradually opening up and customers can once again visit our stores,” Helmersson said. “Online sales have continued to develop very well even as the stores have opened.”

    H&M said 95 of its 5,000 stores globally remained temporarily closed, against 1,300 at the start of March.

    Chief Financial Officer Adam Karlsson said the company was not unaffected by rising freight rates due to a global shipping backlog but it expected to mitigate them.

    H&M said prospects of paying a dividend for 2020 in the autumn were now very good after it failed to propose one at its annual general meeting in May.

    Lees ook:

    Lees ook:

  • H&M closes Shanghai flagship

    H&M closes Shanghai flagship

    H&M has closed one of its Shanghai flagship stores on the Nanjing West Road. The store, which was open for ten years, was considered a key part of the brand’s retail strategy as it was on a high-traffic shopping street.

    According to a statement made to Chinese media, H&M closed this store due to the lease ending. H&M says they will continue to review locations as business develops in China.

    Both Bloomberg and The New York Times have reported that landlords in China have forced the closure of H&M stores across the country after the controversy in late March regarding the company’s stance on using cotton sourced in China’s Xinjiang region. H&M products currently aren’t being sold on China’s top two e-commerce platforms, Tmall and JD.com.

    It’s been a tough year for H&M. In addition to taking a hit last year due to the global COVID-19 pandemic, H&M also saw a 21 percent fall in sales for Q1 2021. The company is projected to close 250 stores this year.

  • H&M begins placing orders in Myanmar again after pause in wake of coup

    H&M begins placing orders in Myanmar again after pause in wake of coup

    Swedish fashion retailer H&M said on Monday it was gradually beginning to place new orders again with its suppliers in Myanmar after a temporary pause following the military coup in the country in February.

    “With our decision, we want to avoid the imminent risk of our suppliers having to close their factories which would inevitably result in unemployment for tens of thousands of garment workers,” it said in an emailed statement.

    H&M said that after due diligence, it had concluded the company had no direct links with the military in Myanmar. “We are now looking for legal guidance on how to handle any potential indirect links international companies may have.”

    The world’s second-biggest fashion retailer in March said it was shocked by the use of deadly force against protesters in Myanmar and that it had paused placing orders in the country.

    Shortly after the military seized power, it was among the 55 foreign investors in Myanmar who signed a statement committing to the country and employees there during developments of “deep concern”.

    It said on Monday it remained deeply concerned about the situation in Myanmar.

  • H&M marks Zalora launch with exclusive online collection

    H&M marks Zalora launch with exclusive online collection

    The partnership with H&M and  Zalora as H&M’s e-commerce partner in Southeast Asia covering four markets namely Malaysia, the Philippines, Singapore, and  Indonesia. The tie-up debuted in Indonesia in mid-March, 1 April in Malaysia, and on 14 April in Singapore. H&M and Zalora also confirmed the extension of the initial two-month collaboration in the Philippines, which began in Q4 2020 to a long-term one.

    “Following our success in the Philippines these past months, we are excited to continue strengthening our partnership with Zalora by further extending our footprint across Southeast Asia. Backed by its strong presence in key markets, Zalora complements our extensive physical store portfolio as well as our digital stores at hm.com. We see great potential for substantial future growth and Zalora will be an important part of this to cater to the evolving needs and demands of our customers, so we can shape a more sustainable future for fashion and be even more locally relevant,”  says Oldouz Mirzaie, Regional Manager of H&M South Asia and Pacific.

    “We are excited to continue working with a globally renowned fashion brand like H&M and bring their extensive range to over 400 million digital consumers in Southeast Asia. As the largest online fashion and lifestyle vertical in the region, we will leverage our deep local expertise and strong fulfillment and logistics network to support H&M as they continue their strategy of integrating offline and online retail,”  shares Zalora’s CEO, Gunjan Soni.

    On 1 April 2021 , all online shoppers in Malaysia gained access to H&M´s fashion products on Zalora across all categories of customer groups: women, men, teenagers, and children. Online shoppers can now find everything with a klick of a button for any occasion –  from the casual weekend and sporty essentials to dressy workpieces and trendy must-haves.

  • H&M caught in a catch 22 as Vietnam boycott begins

    H&M caught in a catch 22 as Vietnam boycott begins

    H&M’s attempt to mend fences in China after angering consumers there with its stance against forced labor appears to have triggered another boycott next door in Vietnam.

    The Swedish fashion retailer drew Vietnam’s ire after it posted a map on its website that depicts islands in the South China Sea as Chinese territory. Vietnam has a competing claim on the islands. H&M changed the map at the request of authorities in China, according to Vietnamese media.

    Authorities in Shanghai said they summoned H&M’s local unit last week to address an issue with a map on its website, though it is unclear if this is the same map as the one angering Vietnamese citizens.

    In Vietnam, Twitter and Facebook users have been circulating images of a crossed-out map of China next to a map of Vietnam reflecting Hanoi’s claims to the islands and demanding the company apologize or have its 11 stores in the Southeast Asian country shuttered.

    The company has been attempting to win back consumers in China, where it became a lightning rod for public anger after multiple foreign brands stopped carrying items made using cotton from Xinjiang because of reports of human rights and labor abuses in the Muslim-majority region. It has been the subject of boycotts, and a number of its physical stores have been forced to close by landlords since the controversy flared up. H&M stores even disappeared from leading mapping service Baidu Maps and ride-hailing platform Didi Chuxing.

    The territorial dispute in the South China Sea is a hot-button topic in Vietnam. Hanoi has been one of, if not the most, vocal governments pushing back against Beijing’s claim to govern most of the sea, though the U.S. often calls for freedom of navigation in the region, calls which European powers have recently echoed.

    The dispute is not just a matter of government interest, either. When maps of the region are published, the Vietnamese public looks closely to see how the islands are portrayed. Backlash has followed perceived slights from an array of institutions, from the Hollywood film “Abominable” to the maps in passports issued by Beijing. Even the U.S. Embassy in Hanoi was accused of misrepresenting the territorial issue in September, when it posted on Facebook a Vietnam map with the islands, only to later delete the archipelagos.

    While the uproar in Vietnam adds to H&M’s recent headaches in Asia, the company is just one of several multinationals caught up in the Xinjiang controversy. Nike, Adidas, Burberry and others are also struggling with the balance between retaining Chinese shoppers and complying with Western laws against forced labor and other human rights violations. The U.S., Canada, the European Union and the U.K. all slapped sanctions on China in March, citing the country’s human rights violations against Uyghur Muslims.

  • H&M slips to loss, pledges to rebuild trust in China after backlash

    H&M slips to loss, pledges to rebuild trust in China after backlash

    Swedish clothing giant H&M said on Wednesday (Mar 31) it was doing “everything” to resolve a boycott in China that was sparked by its decision to stop sourcing cotton from Xinjiang over forced labor concerns.

    H&M and other fashion brands have been under fire in China for statements voicing concern about allegations of labor violations in cotton fields in the far west region.

    Chinese celebrities and tech firms pulled partnerships with H&M, Nike, Adidas, Burberry and Calvin Klein. H&M was even erased from Chinese shopping apps.

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

    “We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China,” it said.

    Australian Olympians were the latest to be embroiled in the row on Wednesday as the country revealed its uniforms for the upcoming Tokyo Games.

    The Australian Olympic committee faced criticism as it rolled out ASICS-branded sportswear, with the company facing questions over its use of cotton from the Xinjiang region.

    The vice president of the Olympic committee said it had been assured that none of the cottons came from that region.

    Rights groups say more than one million Uyghurs and other mostly Muslim ethnic minorities have been held in internment camps in Xinjiang, where they have also been forced to work in factories.

    H&M makes around 6 percent of its revenue in China, which is home to nearly 10 percent of its stores.

    China had become H&M’s third-biggest market before the boycott.

    The company has not released the figures on the financial impact of the boycott or which measures it has taken in response to the controversy.

    “China is a very important market to us and our long-term commitment to the country remains strong,” H&M said, noting it has been presented in the country for more than 30 years.

    “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.”

    The statement was issued on the sidelines of quarterly results which showed a net loss of 1.07 billion kronor ( US$123 million) in the December to February period due to the coronavirus pandemic.

    In late March, about 1,500 of the company’s 5,000 stores were temporarily closed due to coronavirus restrictions, H&M said.

    Sales, however, jumped 55 percent in March compared to the same month last year.

    Lees ook:

    Lees ook:

    Lees ook:

  • Investors press companies on human rights in Xinjiang

    Investors press companies on human rights in Xinjiang

    A group of religious and socially conscious investors and other funds are ramping up pressure on Western companies over alleged human rights abuses in China’s Xinjiang region, highlighting the challenges for brands trying to maintain their business ties amid rising tensions.

    The group of more than 50 investors, backed by the Interfaith Center on Corporate Responsibility, said it is in the process of contacting more than 40 companies, including H&M, VF Corp, Hugo Boss and Zara-owner Inditex, requesting more information about their supply chains and urging them to quit situations that could lead to human rights abuses.

    Anita Dorett, program director for the Investor Alliance for Human Rights, which put together the request to the fashion brands and other big corporate names, said she was worried that some companies had moved to scrub language about policies on forced labor from their websites, or pledged to buy more cotton from Xinjiang, in fear of a backlash from Chinese social media and companies.

    “Companies do not prioritize resources to digging into their supply chains and mapping them out. As investors, we want transparency and accountability,” Dorett said in an interview. She added that “This is their business. If they don’t know what’s happening, who will?”

    Over the past week, H&M, Burberry, Nike, Adidas, and other Western brands have been hit by consumer boycotts in China after raising concerns about forced labor in Xinjiang.

    The wave of boycotts coincided with Britain, Canada, the European Union, and the United States over what they say are human rights abuses taking place in Xinjiang.

    The investor alliance alleged that companies removing or moving statements concerning Xinjiang were doing so in fear of commercial retaliation from the Chinese government. It also said compliance rules were being developed in other markets, including the European Union, obliging them to disclose their supply chains fully.

    The Human Rights section of H&M’s website hmgroup.com on Friday no longer carried a link to a 2020 statement on Xinjiang. The statement could still be accessed through the page’s direct address.

    Inditex’s statement on forced labor on its website was no longer available as of last Thursday. H&M and Inditex did not immediately respond to a Reuters request for comment on the investor group’s approach. H&M has declined to comment on the removal of details from its website. Inditex has not responded to requests to comment on the removal of information from its website.

    VF Corp’s original statement on Xinjiang was no longer available, with a new statement published on a different site section. ON TUESDAY, a VF spokeswoman said the company had “not changed our position, our policies or our practices” but did not address the new location of its statement.

    Hugo Boss said last week on Chinese social media that it would continue sourcing Xinjiang cotton. Company spokeswoman Carolin Westermann said on Friday an undated English-language statement on its website stating that “so far, HUGO BOSS has not procured any goods originating in the Xinjiang region from direct suppliers” was its official position and that the Chinese statement was not authorized.

    Westermann reiterated the company’s position on Tuesday, adding that it was in “active exchange with NGOs and other key stakeholders, including investors, to outline our standards, values and sustainability initiatives in more detail.”

    Among investors, environmental, social and governance funds have taken in big inflows of cash, putting companies on the spot and prompting new financial disclosures on topics that were once considered fringe issues best left to governments to address.

    Assets in sustainable funds hit a record $1.7 trillion in 2020, based on data from fund management industry tracker Morningstar.

    The Investor Alliance for Human Rights has more than 160 institutional investors and other organizations as members, representing more than $5 trillion in assets under management currently, its website said.

    The New York-based Interfaith Center on Corporate Responsibility, which is backing the companies’ approach, has a broad range of members, including religious groups, public and union pension funds, and several other asset managers.

    The investor alliance does not include top U.S. fund groups BlackRock Inc and Vanguard Group Inc. With $16 trillion in assets between them both companies are large shareholders in many of the companies under pressure in China Refinitiv data.

    Both companies have ramped up their ESG efforts by publishing more details of their engagements and proxy votes at portfolio companies and introducing new funds using ESG criteria to pick holdings.

  • China says H&M should look into Xinjiang issue seriously amid boycott

    China says H&M should look into Xinjiang issue seriously amid boycott

    H&M, Burberry, Nike and Adidas and other western brands have been hit by consumer boycotts in China since last week over comments about their sourcing of cotton in Xinjiang. The growing rift comes as the United States and other Western governments increase pressure on China over suspected human rights abuses in the western region.

    Chinese social media users last week began circulating a 2020 statement by H&M announcing it would no longer source cotton from Xinjiang.

    H&M said at the time the decision was due to difficulties conducting credible due diligence in the region and after media and human rights groups reported the use of forced labor in Xinjiang – a charge that Beijing has repeatedly denied.

    Xu Guixiang, a spokesman for the regional government of Xinjiang, told reporters that a company should not politicize its economic behavior and said H&M won’t be able to make money anymore in the Chinese market because of its statement.

    Elijan Anayat, another Xinjiang government spokesman, said during the briefing that Chinese people do not want the products of companies such as H&M and Nike that have boycotted Xinjiang’s cotton. He invited companies to take trips to the region’s cotton fields to see for themselves what is happening.

    Washington on Friday condemned what it called a “state-led” social media campaign in China against U.S. and other international companies for committing not to use cotton from Xinjiang.

    The wave of consumer boycotts in China has coincided with a coordinated set of sanctions imposed by Britain, Canada, the European Union and the United States last week over what they say are human rights abuses taking place in Xinjiang. The U.S. government has publicly accused Beijing of genocide against the Uighur Muslim ethnic minorities in the region.

    Xu repeatedly rejected accusations of genocide and human rights abuses in the region and accused the Western powers of engaging in political manipulation to destabilise China with the sanctions.

    The United States in January announced an import ban on all cotton and tomato products from the area due to allegations of forced labour from detained Uighur Muslims.

    Western governments and rights groups have previously accused authorities in the far-western region of detaining and torturing Uighurs in camps, where some former inmates have said they were subject to ideological indoctrination.

    China has repeatedly denied all such charges and say the camps are for vocational training and combating religious extremism.

    Lees ook: