Swatch Apologizes for 'Slanted Eye' Ad Backlash in China

Swatch's Apology for Controversial Ad

• 🇨🇭 Swiss watchmaker Swatch issued an apology over the weekend following widespread criticism in China for an advertisement.
• ⚠️ The ad featured an Asian male model pulling the corners of his eyes up and backward, a pose many online commenters stated mimicked racist taunts about Asian eyes.
• ❌ Swatch has removed all related material from its platforms, including posting an apology on the Weibo social media platform.

Industry and Brand Impact

• 🗣️ Fashion influencer Peter Shu suggested the incident may not have been intentional, attributing it to a potentially uncareful decision by the photographer unfamiliar with Chinese cultural sensitivities.
• 📉 This ad controversy is the latest setback for Swatch, whose shares have fallen by more than half since early 2023.
• 📈 The company's shares slipped around 3% in early trading on Monday following the news.

Financial Context and Market Reliance

• 📊 Swatch Group, which also owns brands like Omega and Tissot, relies significantly on the Chinese market, with China, Hong Kong, and Macau accounting for approximately 27% of group sales last year.
• 💰 The company also faces external financial pressures, including 39% tariffs on exports to the US.