Swiss watchmaker Swatch found itself at the center of a storm this week after an advertising campaign for its Essentials collection sparked outrage in China and beyond. The ad, which featured an Asian male model pulling the edges of his eyelids upward and backward with his fingers—a gesture widely recognized as derogatory and racist—quickly drew criticism across social media platforms, especially in China, one of Swatch’s most important markets.
According to the Associated Press, Swatch issued a public apology on Monday, August 18, 2025, acknowledging the distress and misunderstanding caused by the campaign. The company acted swiftly, removing all related materials worldwide and addressing the controversy on both Instagram and the Chinese social network Weibo, posting their apology in both English and Chinese. The statement read, “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 apologise for any distress or misunderstanding this may have caused.”
The gesture at the heart of the controversy, sometimes referred to as the “slanted eye” pose, has a long history as a racist taunt directed at people of Asian descent. As reported by Swiss public broadcaster SRF and echoed by The Independent, the image triggered a wave of criticism on Chinese social media, with major influencers and everyday users alike expressing their dismay. One Weibo user, reflecting the deep sense of hurt, wrote, “You can apologise, but I will not forgive.”
The backlash was swift and intense, with calls for a boycott of Swatch echoing across Weibo, China’s equivalent of X (formerly Twitter). The reaction underscored just how sensitive and important cultural representation has become for global brands—especially in a market as significant as China, where luxury goods and watchmakers have long enjoyed a strong customer base.
Swatch, which owns other luxury brands such as Harry Winston, Longines, Omega, Tissot, and Breguet, was not immune to the financial impact of the controversy. Following the uproar, shares in Swatch Group stalled by two percent, dropping to 135.70 Swiss francs. The timing could hardly have been worse for the company, which is already navigating choppy waters due to broader economic challenges.
In recent years, the Swiss watch industry has faced mounting pressure. According to industry association figures cited by the AP, Swiss watch exporters are contending with new tariffs in the United States and a prolonged slowdown, with significant declines in key markets including the United States, Japan, and Hong Kong. The imposition of a 39 percent tariff on Swiss exports by the U.S. president has only exacerbated the situation, making it harder for companies like Swatch to maintain their global sales momentum.
China, in particular, has become a challenging environment for luxury brands. Swatch’s revenue slumped 14.6 percent to 6.74 billion Swiss francs (£6.1 billion) in 2024, a decline attributed largely to a downturn in demand in China. The company itself cited “persistently difficult market conditions and weak demand for consumer goods overall” as key factors behind the slump. For an industry that has long relied on the aspirational spending power of Chinese consumers, such a downturn represents a serious threat.
Fashion influencer Peter Xu, who boasts more than seven million followers on Weibo, weighed in on the controversy, telling The Independent that he believed the fallout would impact Swatch’s business in China. However, he also noted that the brand’s rapid response and public apology might limit the long-term damage. “It was pretty stupid to release images like those ones,” Xu said, highlighting both the misstep and the hope that Swatch’s quick action would prevent a drawn-out backlash.
This is not the first time a global luxury brand has found itself in hot water over culturally insensitive advertising. In 2018, the founders of Dolce & Gabbana issued a video apology after Chinese consumers boycotted their products over what were seen as tone-deaf promotional videos for a Shanghai runway show. That incident, like Swatch’s current predicament, underscored how global brands must navigate the complex and often fraught terrain of cultural representation, especially in markets where consumer sentiment can shift rapidly—and where social media can amplify outrage in a matter of hours.
For Swatch, the lesson is clear: cultural missteps can have immediate and far-reaching consequences, both reputational and financial. The company’s apology, posted in multiple languages and on multiple platforms, was an attempt to stem the tide of anger and demonstrate respect for its diverse customer base. But as the responses on Weibo and other platforms indicate, apologies may not always be enough to restore trust, especially when the offense strikes at the heart of identity and dignity.
The controversy also comes at a time when the luxury watch sector is under pressure from multiple directions. In addition to tariffs and slowing demand, the industry is grappling with changing consumer tastes, the rise of smartwatches, and an increasingly vocal global audience that expects brands to reflect their values and sensitivities. For Swatch and its peers, the stakes have never been higher.
Despite the turbulence, some industry observers believe that Swatch’s prompt response could help it weather the storm. As Peter Xu suggested, the speed and visibility of the apology may help contain the fallout, particularly if the company follows up with concrete actions to demonstrate its commitment to cultural sensitivity. Still, the incident serves as a cautionary tale for brands everywhere: in today’s hyperconnected world, a single image can spark a global crisis, and the margin for error is vanishingly small.
Swatch’s experience is a reminder that global brands must not only be attuned to the nuances of local cultures but also be prepared to act quickly and transparently when things go wrong. As the company seeks to regain its footing in China and other key markets, the watchword—no pun intended—will be vigilance, humility, and a willingness to learn from mistakes.
For now, Swatch faces the challenge of rebuilding trust and navigating a tough economic landscape, all while ensuring that its future campaigns reflect a deeper understanding of the diverse communities it serves. The eyes of the world, it seems, are watching.
