Ad campaign withdrawal and apology by Swatch in China - Advertisement withdrawal and apology by Swatch in China
In a recent turn of events, Swiss watchmaker Swatch has found itself in a public relations crisis following the withdrawal of an advertising campaign in China. The campaign, which was part of Swatch's Essentials collection, featured an Asian model making a gesture that many in China perceived as offensive and reminiscent of derogatory stereotypes historically used to mock Asians.
The controversial image quickly went viral, attracting intense backlash from Chinese consumers on social media platforms like Weibo. Users accused Swatch not only of racism but also of insensitivity and disrespect towards Chinese people. The incident resulted in a notable surge in negative sentiment around the brand, attracting significant negative attention globally.
The impact of this controversy has been substantial. Swatch's apology was met with criticism by some social media users who saw it as insincere or motivated by profit concerns. The controversy also contributed to a decline in Swatch's share prices and worsened its already sluggish sales performance in China, a key market. The episode serves as a reminder of the importance and risks of cultural sensitivity in advertising, especially in vital international markets like China.
Swatch, the owner of brands like Omega, Longines, and Tissot, issued a statement on both Weibo and Instagram, apologizing for the offense caused by their withdrawn advertising campaign. The statement was made in both Chinese and English, expressing Swatch's deep regret and concern for any hurt or discomfort caused. The company also stated that they would remove all related materials worldwide.
The controversy comes at a challenging time for Swatch, as their revenue plummeted by 14.6% to 6.74 billion Swiss francs in 2024. The decline in revenue is attributed to "persistent difficult market conditions and overall weak demand for consumer goods" in China.
In summary, Swatch's campaign has triggered a significant public relations crisis in China due to the perceived racist imagery, resulting in a public apology, removal of the campaign, and measurable damage to the brand’s reputation and market performance there. The incident underscores the growing awareness and intolerance of racist imagery in global advertising.
The Commission, in light of the Swatch incident, might consider expanding the scope of its proposal for a directive on the protection of workers, to include guidelines for cultural sensitivity in advertising within the industry, finance, and business sectors. Swatch's misstep serves as a cautionary tale for companies in these domains, emphasizing the importance of meticulous cross-cultural advertising practices to maintain a positive brand image and avoid potential financial losses.
