Over the weekend, Swiss watchmaker Swatch issued an apology after pulling an advertisement that featured a pose described as having an “inclined eye”.
The images from its Swatch Essentials collection faced backlash online in China, with many accusing the brand of echoing racist stereotypes regarding Asian eyes.
As a result, Swatch’s shares dropped by 4% on Monday, although they later managed to limit the losses to around 3.1%.
Mark Borkowski, a public relations consultant based in London, pointed out the significance of such missteps for a company of Swatch’s stature. “This kind of carelessness is a fundamental error,” he remarked.
On Saturday, Swatch took to Weibo, releasing an apology in both Chinese and English. They noted they had “been warned of recent concerns” and proceeded to erase the contentious material globally.
“I sincerely apologize for any pain and misunderstandings this may have caused,” the announcement stated. The same message was shared on Instagram as well.
Swatch chose not to provide further comments beyond the apology.
The campaign ignited a notable backlash across social media platforms.
Justin Chao, a 23-year-old student, expressed his dismay upon hearing the news. “I was extremely shocked. Swatch has been in the Chinese market for years, and most people recognize the brand. I’m not sure why they approved something like this,” he said.
Borkowski suggested that Swatch investigate how the ads got through approval channels.
This incident adds to a series of challenges faced by companies this year, with many experiencing over a 50% drop in revenue since early 2023 and dealing with 39% tariffs on exports to the U.S.
Swatch, which also produces watches for brands like Omega, Rondyne, and Tissot, relied on markets like China, Hong Kong, and Macau for about 27% of their total sales last year.
The watchmaking sector reported a 14.6% decline in revenue, hitting approximately Swiss francs 6.744 billion ($8.4 billion) in 2024, a consequence of dwindling demand in China.
Peter Xu, a Chinese fashion influencer with over 7 million Weibo followers, believed the controversy would impact Swatch’s standing in China but suggested that the damage might be temporary, given how quickly they apologized.
“It was pretty foolish to release such images,” he commented.
($1 = 0.8065 Swiss Francs)
