A growing controversy is engulfing Swiss watchmaker Swatch after its latest campaign ad was met with outrage in China for featuring racially insensitive imagery. The campaign, promoting the Swatch Essentials Collection, showed an Asian male model pulling the skin near his eyes into a “slanted” shape — a gesture widely recognized as a racist caricature targeting East Asians.
The image, which surfaced on Swatch’s global social media channels, triggered swift backlash across Chinese social platforms, prompting users to question how such an offensive depiction could pass internal approvals. Calls for accountability and cultural sensitivity erupted online, putting Swatch in the spotlight for the wrong reasons.
Why is the Swatch ad controversy sparking outrage in China?
The offensive Swatch ad, which circulated widely on platforms like Weibo and Instagram, immediately drew sharp criticism from Chinese netizens. Many viewed the image as an unacceptable perpetuation of outdated and harmful stereotypes, particularly the “slanted eyes” gesture, which has long been condemned as a racist mockery of East Asian facial features.
Swatch quickly responded by pulling the ad from all global platforms and issuing a public apology on both Instagram and Sina Weibo. In its official statement, the company said:
“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.”
Despite the swift removal and apology, the damage to Swatch’s image — especially in China, its largest market — was already evident.
How does this impact Swatch’s brand reputation and sales in China?
The fallout from this ad comes at a precarious time for Swatch. China, which accounted for CHF 2.63 billion (approximately $3.26 billion) or 33.3% of the company’s global revenue in 2023, has recently become a challenging market. In 2024, sales in China dropped 30% year-over-year, with further 11.2% YoY decline reported in the first half of 2025.
Industry analysts attribute this slump to multiple factors, including the closure of third-party stores and a noticeable dip in direct retail traffic. According to Chinese media, wholesale revenue in China plummeted by over 30% YoY, while direct retail sales declined by 15%.
This recent ad scandal could exacerbate Swatch’s struggles, with consumer trust and brand loyalty now hanging in the balance. Cultural missteps such as this can significantly affect consumer sentiment, especially in a market that has previously voiced strong reactions against similar actions by other Western brands.
Swatch joins Dior, Gucci in facing cultural backlash in China
This isn’t the first instance of a Western brand misstepping in the Chinese market. Fashion giants Dior and Gucci have previously been caught in similar firestorms over racially insensitive campaigns. Both faced outrage for featuring models pulling their eyes into the same “slanted” gesture — leading to widespread criticism, social media boycotts, and demands for greater cultural awareness in global marketing strategies.
With Chinese consumers increasingly vocal about their expectations from global brands, companies operating in the region must navigate cultural nuances with care. The Swatch controversy serves as a reminder that global campaigns must undergo stringent cultural reviews to avoid offending key markets.
Expert analysis: Cultural sensitivity is no longer optional
Marketing and brand experts emphasize that multinational companies cannot afford to overlook cultural differences.
Li Mei, a Beijing-based branding consultant, explained, “Global brands must go beyond surface-level localization. Cultural sensitivity must be embedded into the core of creative strategies — from concept to execution — especially in countries like China where social media can amplify missteps overnight.”
The risk of alienating consumers in the world’s second-largest economy is not just reputational but also financial. With China being a top consumer of luxury and fashion goods, marketing blunders could result in lost revenue, boycotts, and long-term brand erosion.
What’s next for Swatch after the China backlash?
While Swatch has taken immediate corrective measures, the brand’s next steps will be critical in restoring consumer trust. Analysts suggest that a more proactive approach involving local partnerships, diverse creative teams, and culturally fluent content reviews is essential moving forward.
Chinese consumers, now more empowered than ever, expect sincerity and accountability from brands they support. Swatch’s future in China will depend on how it rebuilds its image and demonstrates meaningful changes in its marketing practices.
Swatch ad controversies reflect broader tensions between global branding and local values. The ability to listen, adapt, and respect diverse cultures is no longer a “nice-to-have” — it’s essential for global success.
For your information:
What was offensive about the Swatch ad in China?
The Swatch ad featured an Asian male model making a “slanted eyes” gesture — a stereotype that’s deeply offensive to East Asians. The gesture mimics outdated racist caricatures and triggered immediate backlash.
How did Swatch respond to the controversy?
Swatch removed the campaign from all platforms globally and issued public apologies on Instagram and Sina Weibo, stating that the company regrets any distress or misunderstanding caused by the image.
Has this happened with other brands before?
Yes. Similar backlash has previously affected Dior and Gucci for featuring Asian models making the same offensive gesture in their advertising campaigns, prompting similar calls for cultural sensitivity.
How important is China to Swatch’s business?
Extremely important. China generated over $3.26 billion in revenue for Swatch in 2023, comprising more than a third of its global sales. Despite a decline in 2024 and 2025, China remains a key market.
Will this controversy hurt Swatch’s sales in China?
It likely will impact brand perception and could contribute to further declines in sales. The controversy adds to existing challenges Swatch is facing in the Chinese market, including store closures and reduced demand.
What should brands learn from the Swatch ad backlash?
Brands must implement culturally aware marketing practices, involve local experts in campaign creation, and conduct rigorous reviews to prevent offensive content from reaching the public.
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