A Clear Misstep
Swiss watchmaker Swatch recently pulled an advertisement from its Essentials collection after it sparked fierce criticism across Chinese social media. The image featured an Asian male model pulling back the corners of his eyes—a gesture long seen as a racist caricature targeting Asians.
Swift Apology—but Is It Enough?
Swatch issued a public apology both on Instagram and the Chinese platform Weibo, in English and Chinese. The post offered regret for any “distress or misunderstanding,” and confirmed that the ad had been removed globally. However, the response fell short for many observers—prompting criticism that the wording downplays the offense and shifts blame onto offended viewers .
Impact Hits Beyond Social Media
The controversy couldn’t have come at a worse time. China, Hong Kong, and Macau account for roughly 27% of Swatch Group’s sales. Already facing a slump in demand across key markets including the U.S., Japan, and Hong Kong, the ad misstep triggered a sharp drop in share price—ranging from 2% to 4%, depending on the source.
A Broader Advertising Trend
This incident reflects a larger pattern of brands pushing bold, edgy advertising in a crowded market—and often misstepping. Experts warn that while such campaigns may generate attention, they risk doing lasting reputational harm, especially among non-white consumer groups whose buying power is on the rise.