Overview

• Swatch said on Instagram and Weibo that it removed all materials from the ESSENTIALS campaign worldwide and apologized for causing “distress or misunderstanding.”
• The ad showed an Asian male model pulling his eyelids, which Chinese social media users condemned as racist and used to rally boycotts of Swatch Group brands including Omega, Longines, Tissot and Blancpain.
• Investor jitters eased after an initial drop, with shares down nearly 3% on Monday before recovering those losses on Tuesday, according to market reporting.
• Greater China accounts for about 27% of Swatch Group sales, and the company has flagged weakening demand in the region alongside a first-half revenue decline.
• Analysts and PR experts criticized Swatch’s approval processes and drew comparisons to prior luxury-brand ad backlashes in China.