Backlash Over Controversial Ad Gesture
Swiss watch brand Swatch has swiftly retracted an international advertisement after its portrayal of an Asian model making a “slanted eye” gesture sparked fierce condemnation on Chinese social media. The image, part of the promotion for the Essentials collection, was widely seen as perpetuating a racist stereotype targeting Asian physical features.
Global Apology and Ad Removal
In response to the uproar, Swatch issued a formal apology on both Instagram and the Chinese platform Weibo, stating it had taken the matter “with the utmost importance” and immediately removed all related content worldwide. The company expressed regret for any “distress or misunderstanding” caused by the ad.
Share Drop Signals Market Concern
Despite Swatch’s damage control, its market performance suffered: shares plunged nearly 4% at the market open before narrowing to a 3.1% loss. The timing underscores growing challenges the company faces in its key China-Hong Kong-Macau market, which accounts for about 27% of Swatch Group’s sales.
Consumer Outrage Lingers
Swatch’s apology faced backlash from consumers who deemed it insufficient. Many accused the company of token acknowledgment and stressed that the gesture was not merely a misstep, but a deliberate act of discrimination. Influencers on Weibo with large followings called for boycotts across the Swatch Group’s portfolio, including brands like Omega, Tissot, and Longines.
Context: Slumping Demand in Key Markets
Swatch’s woes extend beyond this controversy. The brand has already been hit by a downturn in Chinese luxury spending and a 39% surge in tariffs on Swiss exports to the U.S. last month. Its 2024 operating profit fell by 75%, and overall sales dropped 12.2%, with nearly a 19% decline in the Greater China region.
Broader Perspective: Cultural Oversights in Luxury Advertising
This incident adds to a pattern of Western brands facing backlash for cultural insensitivity in advertising targeting Asian consumers—from Dolce & Gabbana’s 2018 missteps to Dior’s similar “slanted eye” campaign last year. These episodes reflect the increasing scrutiny brands face in navigating global advertising, especially in sensitive cultural contexts.
In summary, Swatch’s “slanted eye” ad controversy highlights the perils of cultural misjudgment in marketing. As brand reputation hinges on authenticity and awareness, misearned missteps like this can carry lasting consequences in key global markets.
