Japanese fashion retailer Muji continues to sell products made from Xinjiang cotton and a new line of clothing called “Xinjiang cotton” appears in the “New Products” section of its Chinese website. But investors expressed dissatisfaction, MUJI shares plummeted, market value evaporated about $ 210 million.
According to “Nikkei News” reported on March 25, in the international brands have boycotted the mainland Xinjiang cotton, MUJI is listed on its official website named “Xinjiang cotton” series of clothing.
A spokesman for MUJI said in response to a question from the Nikkei News on March 25 that in addition to its regular monitoring practices of its direct suppliers, Ryohin Keikaku, the company that runs MUJI, has “conducted ‘due diligence’ on Xinjiang companies that are indirectly involved in the supply chain. “.
The spokesman said it would continue to gather information carefully and take appropriate measures, such as due diligence, to prevent human rights abuses in the supply chain.
The report said it is unclear whether MUJI uses Xinjiang cotton for clothes sold in Japan and other countries, and MUJI did not respond to questions from the Nikkei Shimbun about it.
But investors were not satisfied with MUJI’s explanation, and shares of Ryohin Keikaku fell 6.8 percent on Friday morning on the Tokyo stock market, indicating that investors were concerned about possible repercussions for the company, before narrowing in the afternoon to close down 3.25 percent.
Sources in Free Finance show that in just one day, MUJI’s market value evaporated 22.9 billion yen (about $210 million) directly.
On March 24, the Communist Youth League’s central microblogging account posted an intensive article about a statement issued by Swedish fashion brand H&M in October 2020 that it did not use Xinjiang cotton in response to human rights persecution in Xinjiang.
At present, the incident has spread to Burberry (Burberry), Adidas (Adidas), Nike (Nike), New Balance (New Balance) Uniqlo (Uniqlo) and other brands.