Swiss watchmaker Swatch has issued a public apology and swiftly removed advertisements that featured an Asian male model making a gesture widely interpreted as racist. The controversial imagery, which depicted the model with a "slanted eye" pose, sparked significant backlash across China, with online critics condemning it for evoking offensive stereotypes associated with Asian facial features.
In response to the widespread criticism, Swatch took to its official Weibo and Instagram accounts to post an apology in both Chinese and English. The company expressed deep regret for any offense or misunderstanding caused by the advertisement, emphasizing its commitment to rectifying the situation by removing all related materials globally. This swift action underscores the potential repercussions of cultural missteps in a market as significant as China. Swatch, a prominent player in the watch industry with well-known brands under its umbrella such as Omega, Longines, and Tissot, holds a substantial reliance on the Chinese market for its revenue. The controversy arrives at a particularly challenging time for the company, which has been experiencing a broader downturn in sales. Reports indicate a decline in revenue, largely attributed to weakened consumer demand within China, Hong Kong, and Macau. This financial pressure likely amplifies the need for careful brand management and cultural awareness.
This is not the first instance of a major international brand facing accusations of racial insensitivity in China. In April 2023, French luxury brand Dior encountered similar criticism for an advertisement featuring an Asian model in a comparable pose. Such incidents serve as a stark reminder for multinational corporations about the necessity of thorough market research and cultural understanding to avoid alienating consumers and damaging brand reputation. The financial implications can be substantial, as seen in Swatch's recent struggles, where the company reported an 11.2% drop in net sales to 3.1 billion Swiss francs in the first half of the year, with the decline being exclusively attributable to China. The region's share in total sales fell from a third to just under a quarter, exacerbated by China's economic slowdown and a real estate crisis impacting household consumption. While Swatch anticipates a potential improvement in the Chinese market in the latter half of the year, this incident underscores the delicate balance brands must maintain to navigate cultural sensitivities effectively.