It is the first time chief executive Tadashi Yanai has directly addressed the contentious issue. China is a crucial market for Uniqlo not just for customers but also as a major manufacturing hub.
Xinjiang cotton was once known as some of the best fabric in the world. But it has fallen out of favour after allegations that it is produced using forced labour by people from the Muslim Uyghur minority.
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Many global brands removed products using Xinjiang cotton from their shelves, which led to fierce backlash in China. Brands such as H&M, Nike, Burberry, Esprit and Adidas were boycotted.
Sweden’s H&M saw its clothing pulled from major e-commerce stores in China.
At the time, Mr Yanai - who is Japan’s richest man - refused to confirm or deny whether Xinjiang cotton was used in Uniqlo clothing, saying he wanted “to be neutral between the US and China”.
His decision not to take a side helped Uniqlo to remain popular in China’s huge retail market.
But speaking to the BBC in Tokyo about the firm’s measures to be more transparent about where the materials in its clothes come from and how they are made, he said: “We’re not using [cotton from Xinjiang].”
“By mentioning which cotton we’re using…” he continued, before pausing and ending his answer with “Actually, it gets too political if I say anymore so let’s stop here”.
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Retailers like Uniqlo are also facing intense competition from ultra-fast fashion as brands like China’s Shein and Temu gain popularity with price-conscious customers.
But Mr Yanai says “I don’t think there’s a future for fast fashion".
“They’re producing clothes without any careful consideration which you only wear for one season. That is a waste of the planet’s resources.”
He adds that Uniqlo’s strategy is to focus on essential items that can be worn for years.
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