ARTICLE AD BOX
Swiss watchmaker Swatch has reportedly issued a formal apology and swiftly removed advertisements for its
Swatch Essentials collection
after the campaign was widely condemned in China for featuring a male model making a "slanted eye" pose. The gesture, which involves pulling the corners of the eyes up and backwards, is seen by many as a racist taunt targeting people of Asian descent. According to a report by Reuters, the images, which sparked significant outrage online, led to a drop in the company's shares. On Monday, August 18, Swatch's stock fell as much as 4% before recovering slightly to a 3.1% loss."It is very significant for a brand of that scale to misfire in this way," said Mark Borkowski, a London-based public relations consultant, as reported by Reuters. "This carelessness is really quite a fundamental mistake." The incident has raised questions about the brand's approval process, considering that Swatch is a well-known brand in the Chinese market.
What Swatch said in its apology
In an apology posted in both Chinese and English on its Weibo and Instagram accounts, Swatch stated it had "taken note of the recent concerns" and had "removed all related materials worldwide." The company added, "We sincerely apologize for any distress or misunderstanding this may have caused."
While the backlash on social media was intense, Chinese fashion influencer Peter Xu, who has over seven million followers on Weibo, believes the quick apology will likely mitigate long-term damage to the brand. "It was pretty stupid to release images like those ones," he commented, but suggested the fallout would likely be short-lived.
Ad controversy adds to Swatch's China troubles
This controversy is the latest challenge for Swatch, which also owns popular brands like Omega, Longines, and Tissot. The company's shares have plummeted by more than half since early 2023, and it is also facing a 39% tariff on its exports to the United States.China, along with Hong Kong and Macau, accounted for approximately 27% of Swatch's group sales last year. The company's overall revenue in 2024 fell 14.6% to 6.74 billion Swiss francs ($8.4 billion), a decline the company attributed to "difficult market conditions and weak demand for consumer goods overall" in China.