Swiss watchmaker Swatch offers apology for advert featuring perceived racially insensitive imagery, facing criticism on social media in China.
Swatch Apologises for Controversial Ad, Faces Decline in Revenue
Swiss watchmaker Swatch has issued a formal apology and withdrawn all advertisements worldwide following a backlash over an ad featuring an Asian model in a "slanted eye" pose, considered racist and derogatory in China and other countries.
The controversial ad, part of the Swatch Essentials collection, was globally distributed and widely condemned in China for mimicking racist taunts about Asian eyes. Swatch expressed "sincere apologies" for any distress caused and promised to treat the issue with the utmost importance, posting apologies on platforms including the Chinese social network Weibo in both Chinese and English.
The fallout from the controversy has impacted Swatch's stock, with the company's shares declining by about 4.3% amid a broader downward trend over recent trading days. The company's sales in the first half of 2025 also missed estimates, largely due to sluggish demand in China, a key market for Swatch, which generates around 27% of its revenue from the China, Hong Kong, and Macau region.
Swatch Group stated that it was experiencing persistently difficult market conditions and weak demand for consumer goods in China. The decline in Swatch Group's revenue for the previous year was attributed to this downturn in demand in China, with the company's revenue slumping by 14.6% to 6.74 billion Swiss francs ($8.4 billion) in 2024.
The condemned ads were removed worldwide by Swatch, and the concerns were raised online in China. Swatch did not immediately respond to a request for further comment from Reuters. In addition to its Weibo account, Swatch also posted an apology on Instagram.
The controversy has contributed to decreased revenue performance and reduced exposure in China, compounding existing market challenges for Swatch. The company will need to address these issues effectively to regain the trust of its customers and maintain its market position.
- The controversy surrounding Swatch's racist ad has not only caused a decrease in its revenue but has also affected its presence on social media platforms, such as Weibo and Instagram, where the company shared apologies for the incident.
- The backlash over Swatch's controversial ad has led to a decline in the company's revenue, and the negative attention on various social-media platforms might also impact its overall brand image, associated with entertainment, politics, and general-news discussions.
