Swiss watch giant Swatch is backpedaling hard after an ad for its Essentials collection sparked outrage in China and around the world. The campaign featured an Asian male model pulling the corners of his eyes upward — a gesture widely recognized as racist and mocking.
The ad spread quickly on social media, where users blasted the company for tone-deafness.
“When I saw this news, I was quite shocked,” said 23-year-old student Justin Zhao. “Swatch has been in the Chinese market for many years. I don’t know why they did it — how could something like this make it through so many approvals?”
By the weekend, the damage was done. Swatch pulled the campaign globally and issued apologies in both English and Chinese, posting statements on Instagram and China’s Weibo platform:
“We sincerely apologize for any distress or misunderstanding this may have caused. We have immediately removed all related materials worldwide.”
The apology came fast — but not before the company’s shares dipped nearly 3% in early trading on Monday.
Swatch isn’t just the colorful plastic watch many know from the ‘80s. It’s a powerhouse that also owns luxury names like Omega, Longines, and Tissot. And it leans heavily on China for business: nearly 27% of its sales last year came from China, Hong Kong, and Macau.
But business hasn’t been booming. Revenue plunged almost 15% in 2024, dropping to 6.74 billion Swiss francs (about $8.4 billion). Swatch cited weak consumer demand in China as a big factor. Add this ad scandal to the mix — on top of a 39% tariff on exports to the US — and the company is facing headwinds it doesn’t need.
Chinese social media lit up with criticism. Many said the ad mimicked racist taunts aimed at Asian eyes, something deeply offensive in a market where Swatch relies on customers. Peter Xu, a Chinese fashion influencer with more than 7 million Weibo followers, called the move “pretty stupid” but said the quick apology might limit long-term damage.
“It will definitely affect Swatch in China for now,” Xu said, “but since they reacted quickly, the fallout may not be permanent.”
The ad is just the latest stumble for a brand that’s seen its share price cut in half since early 2023. With global sales already under pressure, alienating one of its most important markets could be costly.
For now, Swatch is in damage-control mode. But for many customers, the bigger question lingers: how did such an obviously offensive image ever see the light of day?
With input from the Associated Press, CNN, and NBC News.
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