Swatch's Controversial Ad Backlash in China: Swift Apology Follows

Swatch issued an apology after ads featuring an Asian male model in a 'slanted eye' pose were criticized for racism online in China. The controversy impacted Swatch's shares, which had already declined in value. The company quickly removed the ads and apologized on Weibo and Instagram.

Swiss watchmaker Swatch has been thrust into controversy following an advertisement that drew widespread criticism for its insensitivity. The ad, featuring an Asian male model making a 'slanted eye' pose, quickly sparked online backlash in China, leading Swatch to issue an apology and remove the ads globally.

Swatch's shares experienced a brief dip of nearly 2.7% in early trading before recovering slightly. This incident marks another challenge for Swatch, which has seen its shares more than halve since early 2023. The company is currently facing additional hurdles, including a 39% tariff on exports to the United States.

While apologizing on platforms like Weibo and Instagram, Swatch emphasized its commitment to better understanding cultural sensitivities. The Chinese market, crucial to Swatch's sales, has seen a decline in demand, impacting Swatch's revenue figures. Analysts expect the controversy to have a temporary impact on the brand's business in China.

(With inputs from agencies.)