Swatch has apologized for an advertisement featuring a man of Chinese appearance pulling at his temples to make his eyes appear more slanted.
The gesture is widely seen as offensive to Chinese and others of Asian origins in their home countries and around the world.
The image was part of a campaign to promote Swatch’s new Essentials, a collection of plastic watches priced at around $100 that can be matched to any outfit.
Chinese influencers have called for a boycott of Swatch after the image was widely shared on social media.
If the protest takes root, and spreads to other Swatch Group brands including Omega and Longines, it could have a significant impact on sales.
Before the pandemic, it was estimated that 50% of Swatch Group sales were to Chinese customers shopping at home or abroad.
In comments under the Swatch apology on Instagram, one contributor listed all Swatch Group brands and called for a boycott of them all.
The company’s share price dropped by almost 4% today, before recovering slightly. There was no similar movement in shares for the likes of Richemont, LVMH or Watches of Switzerland Group.
In a post pinned to the top of its Instagram feed today, Swatch says it has taken note of the recent concerns regarding the portrayal of a model in images for the Swatch Essentials Collection.
“We treat this matter with utmost importance and have immediately removed all related materials worldwide,” the statement continues.
“We sincerely apologize for any distress or misunderstanding this may have caused,” it adds.
Swatch’s discomfort comes at a time of challenging trading for the wider group.
Sales declined 7.1%, year-on-year, to CHF 3.06 billion in the first half of the year and and rising costs added to pressure on profits.
Lacklustre sales in China and Hong Kong were blamed for the global drop in turnover, but the financial report for the first half of 2025 did say there are positive signs that consumption is increasing in China.
Swiss watchmakers are hoping that growth in China and Hong Kong will compensate for any drop in demand from the United States if a new 39% tariff triggers steep price rises.