Swatch Faces Backlash Over Racially Insensitive Ad Campaign

Swatch faced severe backlash after releasing an ad campaign for its Essentials collection, featuring an Asian male model pulling the corners of his eyes backward—a gesture widely condemned as racist. The images sparked outrage, especially in China, where critics accused the Swiss watchmaker of mimicking offensive stereotypes. Swatch swiftly apologized on social media platforms like Weibo and Instagram, removing all related materials globally and expressing regret for any distress caused.

The controversy compounded Swatch’s existing financial challenges, with shares dropping 2.7% following the incident. The company, which owns brands like Omega and Tissot, has seen its stock value halve since 2023 and now faces a 39% tariff on exports to the US. China, Hong Kong, and Macau account for 27% of Swatch’s sales, making the backlash particularly damaging amid already declining demand in the region.

Swatch’s revenue fell 14.6% in 2024, attributed to weak consumer demand and tough market conditions. The ad scandal adds to the company’s struggles, highlighting the risks of insensitive marketing in global campaigns. Analysts warn that the incident could further erode consumer trust and sales in key markets.

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