Swatch 'Slanted Eye' Ad Controversy

Swiss watchmaker The Swatch Group issued a formal apology and removed an ad campaign for its The Swatch Group Essentials collection after it was widely condemned in China and elsewhere for featuring an Asian male model making a 'slanted eye' gesture, seen as racist. The incident sparked significant outrage online, leading to calls for a boycott of The Swatch Group products in China, a crucial market that accounts for approximately 27% of The Swatch Group's group sales. Following the backlash, The Swatch Group's stock fell as much as 4%. This controversy adds to The Swatch Group's existing challenges, including a significant drop in share value since early 2023, a 39% tariff on its exports to the United States, and declining overall revenue in 2024 due to difficult market conditions and weak demand in China. The event underscores the importance of cultural sensitivity in advertising for global brands, particularly in markets like China where consumers have previously organized boycotts against perceived insults.