The global luxury market is increasingly scrutinized for cultural representation, a challenge recently highlighted by Swiss watchmaker Swatch. The company issued a public apology and withdrew a global advertisement following significant backlash, predominantly from Chinese consumers, who perceived a model’s gesture in the campaign as racially offensive. This incident underscores the complexities of international marketing and the immediate repercussions of perceived cultural insensitivity, particularly in economically vital regions such as China.
- Swatch issued a global apology and withdrew an advertisement.
- The backlash originated primarily from Chinese consumers.
- A model’s gesture in the campaign was identified as racially offensive.
- The controversial ad featured an Asian model performing a “slanted eyes” caricature.
- The incident highlights the critical need for cultural sensitivity in international marketing.
The Controversial Advertisement and Public Reaction
The controversial advertisement, part of Swatch’s “ESSENTIALS” collection, featured an Asian model depicted pulling his eyelids towards the sides of his head with his fingers. This gesture is widely recognized as a caricature used to mock individuals of Asian descent, often referred to as the “slanted eyes” gesture. The image quickly circulated across social media platforms, including Weibo in China and Instagram internationally, drawing strong condemnation from users who accused the brand of promoting discrimination.
Following the swift negative reception, Swatch announced the immediate removal of all related materials worldwide, stating: “We have taken note of the recent concerns regarding the portrayal of a model in images for the Swatch ESSENTIALS Collection. We treat this matter with the utmost importance and have immediately removed all related materials worldwide. We sincerely apologize for any distress or misunderstanding this may have caused.”
Despite the apology, public sentiment, particularly among Chinese social media users—a crucial demographic for the watchmaker—remained largely critical. Many rejected Swatch’s characterization of the incident as a “misunderstanding,” arguing that such a significant global brand should possess a deeper understanding of cultural nuances and potential offensive imagery. This sentiment led to calls for broader boycotts, extending beyond Swatch to other brands within the Swatch Group portfolio, including high-profile names like Omega, Longines, Breguet, and Tissot.
Market Impact and Business Implications
This incident carries significant implications for Swatch’s market performance, especially given its recent financial trajectory. The company reported a 7.1 percent decline in sales for the first half of 2025, a downturn that Swatch itself attributed exclusively to the Chinese market. Against this backdrop, alienating Chinese consumers through perceived cultural disrespect could further impede the brand’s recovery and growth in a region critical for luxury goods consumption.
Lessons for Global Corporations
The episode serves as a stark reminder for international corporations of the imperative to conduct rigorous cultural vetting of marketing campaigns. In an interconnected digital environment, missteps can rapidly escalate into global public relations crises with tangible financial consequences, particularly in markets where brand perception and cultural alignment hold considerable weight in consumer purchasing decisions.
Lucas turns raw market data into actionable strategies, spotting trends in a heartbeat. With 9 years managing portfolios, he treats market volatility like a surfer riding big waves—balance and timing are everything. On weekends, Lucas hosts “Bull & Bear Banter” podcasts, showing that finance discussions can be as entertaining as they are informative.