Swatch has now placed itself in the center of the controversy after it released an advertisement that deeply angered Chinese social media users. The campaign’s hit ad, showing a Singaporean model pulling the corners of his eyes, was widely interpreted as a racist depiction. In light of the negative response, Swatch has issued an apology and pulled the advertisement from circulation.
The Swiss watchmaker now derives an estimated 27% of its sales from markets that include China, Hong Kong and Macau. The company has recently faced increasing sales drops in China, due in part to the country’s economic slowdown. That’s why the timing of the ad’s release has raised eyebrows. It comes at an especially crucial time for Swatch, a brand that draws more than half of its profits from these waters.
In response to the outcry, Swatch released a docile statement recognizing the public outcry. The company said it had “taken note of the recent concerns regarding the portrayal of a model” in the advertisement.
“We sincerely apologize for any distress or misunderstanding this may have caused.” – Swatch
Although the apology came quickly, outrage among users on Weibo, China’s dominant social media platform, was widespread. One user commented, “They make money from us and still dare to discriminate against Chinese people. We would be spineless if we don’t boycott it out of China.” Another user added, “You can apologise, but I will not forgive.”
Swatch’s decision to remove the advertisement reflects its awareness of the potential impact of negative perceptions in a crucial market. The airline’s response was to act quickly to shield its brand reputation. They’re doing all of this while trying to increase the region’s sales numbers.
Continuing to overcome these challenges, Swatch now faces pressure on how to best rebuild trust with its customer base in China. The occurrence serves as a reminder of the need for cultural awareness in marketing campaigns, especially for global brands with a presence in multicultural environments.