• Swatch faces backlash for an ad perceived as racially insensitive in China.
• The company issued a formal apology and removed all related materials.
• Social media users are calling for a boycott of Swatch products.
• Swatch's revenue has declined due to tough market conditions in China.
• Previous incidents highlight ongoing cultural sensitivity issues for global brands.

Swiss watchmaker Swatch has come under fire for an advertisement featuring an Asian male model pulling the corners of his eyes in a gesture widely deemed as promoting a racist stereotype known as "slanted eyes.” After facing significant outrage on Chinese social media, Swatch issued an apology stating it had "taken note of the recent concerns" and removed all related materials worldwide. The company expressed, "We sincerely apologize for any distress or misunderstanding this may have caused," acknowledging the impact on its brand image, according to South China Morning Post and Reuters.

The backlash has amplified calls from consumers on various platforms, with many urging for a boycott of Swatch products. Users expressed their anger on Weibo, condemning the company's actions as discriminatory. "You can apologize, but I will not forgive," remarked one user, highlighting the perceived insincerity of the apology amid raised concerns about racial insensitivity in branding, as reported by BBC and India Times.

Financially, the incident comes at a challenging time for Swatch, which derives approximately 27% of its revenue from China, Hong Kong, and Macau. In recent months, the company has faced a downturn in demand as its revenue for the first half of the year reported a drop of 14.6%. Analysts suggested that the latest controversy has compounded Swatch's struggles in a highly competitive market, with a public relations consultant labeling it a "fundamental mistake" for a globally recognized brand, according to Channel News Asia and CBS News.

This is not the first time Swatch has faced backlash for its advertising. Other global brands, including Dolce & Gabbana and Dior, have similarly faced severe criticism and calls for boycotts over culturally insensitive portrayals in their advertisements, indicating a growing trend of heightened consumer awareness and sensitivity regarding racially charged visuals, as detailed by India Times and South China Morning Post.