Swatch faces backlash over controversial ad featuring Asian model

New Delhi: Swiss watchmaker Swatch has apologised and removed advertisements showing an Asian male model pulling the corners of his eyes in a "slanted eye" gesture, after the images sparked criticism online in China.

The campaign, promoting the Swatch Essentials collection, was widely condemned for appearing to mimic racist taunts about Asian eyes. Shares in the company fell as much as 4% on Monday before trimming losses to trade 3.1% lower at 1420 GMT, according to Reuters.

Swatch posted an apology in both Chinese and English on its Weibo social media platform on Saturday, stating it had "taken note of the recent concerns" and removed all related materials worldwide. "We sincerely apologise for any distress or misunderstanding this may have caused," the statement said. The apology was also shared on Instagram. The company declined to comment further beyond the statement.

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The incident comes amid challenges for the watchmaker, whose shares have fallen by more than half since early 2023 and which faces a 39% tariff on exports to the United States. Swatch, which also owns Omega, Longines and Tissot, relied on China, Hong Kong, and Macau for around 27% of group sales last year. Revenue dropped 14.6% to 6.74 billion Swiss francs ($8.4 billion) in 2024, with the company citing difficult market conditions and weak demand for consumer goods in China, according to a Reuters report.