Swiss watchmaker Swatch has become the latest Western brand to be accused of cultural insensitivity in Asia after launching an advertising campaign that drew widespread criticism. The controversial advertisement, designed to promote its new Essentials collection, featured an Asian male model making a gesture by pulling the corners of his eyes upward. This motion, long recognized as a derogatory stereotype, was swiftly condemned by viewers as offensive and racist.
The backlash first erupted on Chinese social media, particularly on Weibo, where the campaign was denounced as disrespectful and damaging. Many users expressed outrage that such an image could be approved by a global luxury brand in 2025, despite repeated examples in recent years of similar missteps by Western companies in Asia. Some called for official regulatory scrutiny of Swatch, while others promoted hashtags urging a boycott of the brand.
The speed of the criticism reflects heightened cultural awareness among consumers, who increasingly demand that companies adapt marketing campaigns to local sensitivities. In this case, the offensive gesture overshadowed the product launch entirely, turning what was meant to be a global promotion into a reputational crisis.
Company Response And Global Apology
Confronted with growing outrage, Swatch moved quickly to control the damage. On August 18, the company issued an official apology across its international social media platforms, including Instagram and Weibo, in both English and Chinese. The statement read: “We sincerely apologize for any distress or misunderstanding this may have caused. The matter is being taken with the utmost importance, and all related campaign materials have been withdrawn globally.”
True to its word, Swatch pulled the entire campaign not only in Asia but also in European and American markets, acknowledging that the image had no place in its brand communications. The company further emphasized its commitment to “respecting diversity and inclusion,” promising to review internal approval processes to avoid repeating such mistakes.
Still, many critics online doubted whether the apology was sufficient. Social media users in China noted that repeated apologies from global fashion and luxury firms have often failed to repair long-term damage. One user wrote, “The brand’s image has collapsed. They think they can just apologize and salvage everything? It’s not that simple.”
Market Impact And Business Challenges
The scandal could not have come at a worse time for Swatch. The group relies heavily on Greater China—covering mainland China, Hong Kong, and Macau—for nearly 27 percent of its global revenue. Yet sales in this key market have been under significant pressure. In 2024, Swatch reported that its revenue declined 14.6 percent, falling to 6.74 billion Swiss francs (about $8.4 billion). Operating profit tumbled even more steeply, down 75 percent year-on-year, while overall sales dropped 12.2 percent.
The downturn has been attributed to sluggish consumer demand in China, supply chain disruptions, and broader global headwinds for the luxury sector. Swiss watch exports to China in particular fell by 19 percent last year, underscoring the company’s vulnerability to shifts in Asian markets.
The advertisement controversy only intensified investor concerns. On the day after the apology, Swatch Group shares fell by 2 percent, extending a year-long slump of more than 25 percent in stock value. Analysts noted that reputational crises of this type can have outsized consequences in China, where consumer sentiment plays a decisive role in brand loyalty.
Adding to the strain, the global luxury market has slowed following the post-pandemic boom. Rising inflation, shifting consumer priorities, and political uncertainties—including trade tensions and tariffs on Swiss exports to the U.S.—have added more challenges for Swatch. The combination of financial headwinds and reputational damage underscores the precarious position the company now finds itself in.
Wider Industry Lessons And Cultural Sensitivity
Swatch is far from the first brand to be caught in a controversy of this kind. Over the past decade, several high-profile luxury and fashion houses have faced severe backlash in Asia. Dolce & Gabbana famously faced boycotts in China in 2018 after an ad campaign featuring chopsticks was labeled racist. Dior was criticized in 2023 for a photo showing a model pulling her eyelid—a gesture nearly identical to the one Swatch used. In both cases, the backlash was swift, severe, and long-lasting, damaging sales and brand credibility.
For global companies, the Swatch episode underscores the strategic importance of cultural sensitivity. Advertising is no longer judged only by artistic creativity or branding impact—it is scrutinized by diverse audiences across different cultural contexts. Misjudging those sensitivities can erase millions in market value and jeopardize long-term consumer trust.
Industry observers say the incident should prompt luxury groups to strengthen internal diversity in creative teams and establish stricter global review mechanisms for advertising campaigns. Without meaningful change, similar controversies are likely to resurface, especially as consumers continue to voice their expectations loudly across digital platforms.