Swiss watchmaker Swatch apologized over the weekend and removed images from its adverts of an Asian man pulling the corners of his eyes up and back, creating a “slanted eye” effect.
Images from the Swatch Essentials collection have come under fire online in China, with many users saying they resemble racist jokes about Asian eyes.
The firm's shares fell 2.7% in early trading on Monday before paring their losses slightly.
“When I saw the news, I was completely shocked. Swatch has been in the Chinese market for many years, and I think most people are familiar with the brand,” said Justin Zhao, a 23-year-old student. “I don't understand why they did this. They somehow managed to release it after a lot of approvals.”
In an apology posted in Chinese and English on its official Weibo account on Saturday, Swatch said it had “taken into account recent concerns” and removed all relevant content worldwide.
“We sincerely apologize for any inconvenience or confusion this may have caused,” the statement said. A similar apology was also posted on Instagram.
Swatch Group did not immediately respond to a Reuters request for comment on the matter.
The criticism of the ad is another blow for the company, whose shares have more than halved since the start of 2023 and now face a 39 percent tariff on its exports to the United States.
Last year, Swatch, which also makes watches for Omega, Longines and Tissot, relied on China, Hong Kong and Macau for about 27 percent of group sales.
The watch company's revenue in 2024 fell 14.6% to CHF6.74 billion (€7.1 billion) due to weaker demand in China, where Swatch said it was experiencing “continued challenging market conditions and weak demand for consumer goods in general.”
Peter Xu, an influential Chinese fashion blogger with more than seven million followers on Weibo, said he believed the scandal would impact Swatch's business in China, but given the speed with which the apology was released, the impact would likely be relatively short-term.
“It was quite stupid to publish such images,” he added.
Sourse: breakingnews.ie
